Last week, the Los Angeles County Board of Supervisors voted to explore how it could reduce the budget and duties of the LA Homeless Services Authority (LAHSA) and move its funding and responsibility by creating a new centralized department.
The move by the supervisors indicates a lack of faith in the region’s top homeless services agency.
The board hopes that by creating a new county department they will have greater control and more success in tackling LA’s homeless epidemic.
“We are in a declared state of emergency on homelessness, and made a promise to our constituents to do things differently – to eliminate the bureaucracy that stands in the way of results,” said Supervisor Lindsey Horvath at the board meeting on Nov. 26.
If the proposal is accepted it could severely limit the duties of LAHSA to only core functions – including the Greater LA Homeless Count and some emergency services. Hundreds of millions of dollars currently managed by LAHSA could be routed to the new county department, which would be taking over the responsibilities for distributing funds to service providers.
Despite efforts and LAHSA’s $875-million annual budget, the number of unhoused residents in LA County remains stagnant, dipping only 0.3% last year according to the 2024 annual homeless count. The tally released in January found that 75,312 people were homeless on any given night, compared to 75,518 the year before.
The approval of the motion, co-authored by Supervisors Horvath and Kathryn Barger, followed a scathing audit of LAHSA released by the LA County Auditor-Controller, which exposed weaknesses in the department’s fiscal operations.
Horvath, who is also the vice chair of LAHSA’s 10-member commission, requested the agency’s audit earlier this year.
It found that due to lax accounting practices, LAHSA failed to reclaim millions of dollars in cash advances to contractors, while simultaneously failing to pay other contractors on time despite available funds.
As of July 2024, LAHSA had approximately $8 million in outstanding advances to contractors that should have been recovered by the end of 2023. Of that $8 million, approximately $409,000 was advanced to six subrecipients who no longer contract with LAHSA.
LAHSA was found to have a lack of formal agreements and was unable to provide comprehensive contract data. In one sample of contracts, the auditors found that LAHSA “understated the amounts awarded to two subrecipients by $505,591, and did not provide adequate supporting documentation for approximately $5 million in advances awarded to five subrecipients.”
Officials from LAHSA have disputed a number of the audit’s findings, maintaining that some of the problems highlighted were unique consequences of the COVID-19 pandemic.
“We agree with the spirit of the audit, and LAHSA did request the audit so that we could understand what the shortfalls were and where improvements needed to be made,” said Janine Trejo, CFO of LAHSA at the board meeting.
Trejo clarified upon questioning, that some of the “disagreements” noted are because LAHSA has already made changes to rectify issues found in the audit.
LA County residents have expressed the desire for the County to address homelessness by passing Measure A during the general election. The measure, which will take effect on April 1, 2025, continues the progress on ending homelessness with housing and services. By implementing a ½ cent sales tax countywide the measure will generate over $1 billion annually to maintain all existing homeless housing and service support.
“With Measure A, voters showed their belief in a better future. Now, it’s our responsibility to cut through red tape, set clear goals, and ensure every public dollar gets our unhoused neighbors into the housing and care they deserve,” said Horvath.
The board’s motion sets a goal to restructure funding and programs so that public dollars invested in homeless services are utilized in the best way possible.
Creating a centralized County department focused on homelessness solutions, stems from a recommendation made two years ago by the Blue Ribbon Commission on Homelessness. By centralizing funding and program oversight, the County hopes to strengthen internal controls, ensure regular reporting and align services with measurable outcomes.
“A centralized department will ensure coordination and accountability, while LAHSA can focus on its core functions effectively,” said Horvath.
With the motion approved, the board requested reportbacks regarding funding and staffing within the County’s Homeless Initiative and Housing for Health and an evaluation of LAHSA’s staffing levels, vacancies, rates of attrition and memoranda of understanding with labor organizations.
Reportbacks will also outline a schedule for the creation of the new department, a summary of County and LAHSA programs and functions that will transition to the department and a description of the programs that will operate out of the department.
To be included are requirements that LAHSA staff have priority in the application process for new positions at the department.
“I believe a County department focused on homelessness will help us create more unity of effort and will also help end a blame game,” said Barger. “Ultimately, our Board is responsible and accountable for addressing the homelessness crisis. We are the entity that must make thoughtful, informed decisions and direct resources accordingly.”
