LA City, County battle over $240M in federal homeless funding

Days after it was announced homeless numbers in Los Angeles increased despite billions in taxpayer spending, Los Angeles City Hall and County are now fighting over who controls more than $240 million in federal funding.

The political fight erupted after the Trump administration threatened to strip the Los Angeles Homeless Services Authority, or LAHSA, of its authority to oversee the region’s federal Continuum of Care funding, which pays for permanent supportive housing, street outreach and other homelessness programs.

The federal government accused LAHSA of fraud and financial mismanagement.

Los Angeles received about $240 million through the program last year, the largest Continuum of Care grant awarded anywhere in the nation.

Mayor Karen Bass and City Council President Marqueece Harris-Dawson argued Tuesday, in a letter obtained by The California Post, that the federal money should flow directly to the city because Los Angeles is home to the largest share of the county’s homeless population and operates many of the programs that depend on the funding every day.

“The City stands ready to work collaboratively to ensure continuity of critical Continuum of Care functions, protect regional coordination, and minimize disruption for service providers and people experiencing homelessness,” they wrote.

The County, however, says it wants the money and to take control of the operation.

In a July 24 letter, obtained by The Post, Los Angeles County and the Los Angeles County Development Authority told the board they are ready to immediately take over LAHSA’s responsibilities if the federal suspension remains in place.

County leaders said they already have the staff, experience and management of major federal grants and oversight of programs serving more than 30,000 people in permanent supportive housing.

They also said delays could jeopardize the federal funding and services that help keep more than 11,000 people housed.

LAHSA was created more than 30 years ago because the City and County couldn’t agree on how to coordinate homelessness funding and services.

The most current battle traces back to June 11, when HUD Secretary Scott Turner suspended LAHSA after the agency’s Office of Inspector General opened an investigation.

HUD accused LAHSA of repeated financial failures despite receiving nearly $1 billion in federal homelessness funding over the past five years.

Federal officials alleged LAHSA failed to verify nearly 2,300 housing sites, could not determine whether taxpayer money paid for empty motel rooms, made false conflict-of-interest certifications, and lacked basic financial safeguards.

HUD also cited the resignation of LAHSA’s former CEO after she approved more than $2 million in federal funding for her husband’s employer.

“Under President Trump’s leadership, HUD will fund results, not corrupt failure or the homeless industrial complex,” Turner said when announcing the suspension.

LAHSA is fighting the suspension in federal court, with a hearing scheduled for Aug. 6.

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