By JOSE HERRERA
City News Service
The Los Angeles City Council voted unanimously on Wednesday Sept. 17 to explore the possibility of withdrawing all legally allowable homelessness funding from the Los Angeles Homeless Services Authority and contract instead with a new county department focused on the issue.
Council members Bob Blumenfield, Eunisses Hernandez and Katy Yaroslavsky introduced the motion on Aug. 20, calling on city officials to conduct an analysis of taking such action. In the motion, the council members said “systemic change is needed in Los Angeles to improve the delivery and funding of homelessness services.”
LAHSA, the lead agency responsible for coordinating housing and social services for the region’s homeless population, was established in 1993 as a joint powers authority between the city and county.
Earlier this year, the L.A. County Board of Supervisors voted to create the Department of Homeless Services and Housing, with plans to move $300 million in Measure A funding — a half-cent sales tax for homeless programs —away from LAHSA, and to hire or transfer some agency staff to the new entity.
County officials have said the new department is expected to be operational starting July 1, 2026.
The decision came in response to scathing audits of LAHSA that suggested a lack of transparency related to services provided and funding.
LAHSA officials have refuted such claims, adding that any problems came as a result of rapid expansion and crises during the coronavirus pandemic. The agency insisted it has taken steps to enhance transparency, including the creation of online data dashboards.
In response to those audits and the county’s action, the City Council moved to establish a Homelessness Oversight Bureau within the Housing Department. The council is awaiting a report on the feasibility of establishing a department on homelessness, and of implementing a new approach to contract directly with service providers, bypassing LASHA.
In a report dated April 22, Chief Legislative Analyst Sharon Tso explained that the county’s decision to transfer Measure A funding away from LAHSA “will significantly alter the purpose and functions of LAHSA, to the extent that it may no longer be able to provide services that support the city’s needs.”
“The city of Los Angeles should explore contracting directly with the county to administer contracts with service providers who operate city-funded interim housing sites and other homelessness services programs, in an effort to reduce administrative cost and achieve efficiencies and more expedient contract administration,” according to the motion authored by Blumenfield, Hernandez and Yaroslavsky.