The Los Angeles City Council is poised to vote on a contract amendment Friday that would keep city-funded eviction defense services running through January, even as a dispute over competitive bidding, funding delays and an audit-style review continues to cloud the long-term future of one of L.A.’s signature tenant protection programs.
The amendment would add $8.4 million in United to House LA Fund (Measure ULA) to the city’s existing short-term contract with the Legal Aid Foundation of Los Angeles (LAFLA), the lead agency behind Stay Housed L.A., a city-county coalition that provides free legal services and rental assistance to low-income tenants facing eviction.
If approved, the funding would extend the contract through January 31, 2026.
Tenant advocates warn that without the additional funding, LAFLA would likely have to suspend legal services and rental assistance, further complicating the city’s rollout of its newly adopted Right to Counsel ordinance, which provides free legal representation to eligible low-income tenants facing eviction.
“This funding will allow Stay House LA (SHLA) to continue all services through the seven month contract which ends January 31, 2026,” Barbara Schultz, an attorney with LAFLA who oversees Stay Housed LA, said in an emailed reply Thursday. “Without it we will likely run out of legal services funding and rental assistance.”
Since launching in 2020, Stay Housed L.A. has provided legal assistance to more than 19,000 renters, including full legal representation for more than 4,200 tenants, according to city data based on reports from LAFLA.
The program has also distributed more than $9.5 million in rental aid, held hundreds of Know Your Rights workshops, and reached roughly 840,000 renters through citywide outreach.
Friday’s vote is the latest flashpoint in a months-long standoff over how eviction defense services should be funded and awarded. In May, the City Council and Mayor Karen Bass approved a new five-year, $34 million sole-source agreement with LAFLA.
But just weeks before the old contract was set to expire on June 30, City Attorney Hydee Feldstein Soto refused to sign off, citing concerns over the lack of a competitive bidding process.
Instead, Feldstein Soto’s office called for a new Request for Proposals (RFP) and began a legal review of how more than $54 million in city funds had been spent under LAFLA’s previous contracts.
“The issue is simple – we are attempting to verify compliance with the existing terms and value delivered for the more than $54 million paid through June 30,2025,” said Karen Richardson, a spokesperson for Feldstein Soto. “We asked LAFLA for the invoices and the payments to the other providers. The Office evaluates sole-source authorizations on a case-by-case basis as part of its normal Contract review process.”
Richardson clarified that while the City Attorney’s Office does not conduct financial audits — a function reserved for the City Controller — it is responsible for reviewing all city contracts over $25,000 for legal compliance.
“Our Office, however, has the responsibility and right to review every contract, grant, amendment, or other agreement (Contract) involving more than $25,000 for compliance including with the terms of the Contract itself, other City agreements, city authorizations, charter provisions, and all applicable provisions of federal, state and local laws,” she said. “The reports we requested should already exist as they were required under the terms of the existing contract.”
While city officials moved quickly in June to authorize a seven-month bridge contract to keep services going, that temporary deal did not include 2025–26 Measure ULA funding, which hadn’t yet been allocated at the time, Schultz said. As a result, LAFLA suspended rental assistance for three months, which made it difficult to keep tenants in their homes.
Schultz added that the ongoing uncertainty has also impacted hiring, especially for postgraduate legal fellows who would be key to staffing the new Right to Counsel program, which was enacted by the city in August.
Adding to the pressure: The city’s new RFP process — meant to address Feldstein Soto’s concerns — is now delayed.
The Housing Department told Councilmembers during a Housing and Homelessness Committee meeting on Wednesday that it had postponed a scheduled bidders’ conference and was reevaluating whether a new contract could realistically be executed by the end of January.
“We received a notice yesterday stating that the RFP bidders conference and due date were suspended,” Schultz said. “We are extremely concerned that the RFP and contracting process cannot be completed by February 1, 2026, and all SHLA services will be interrupted.”
Housing Department leaders said Wednesday said the new contract divides the program’s original components — legal services, outreach and education, rental assistance, and tenant harassment services — into four separate components, opening the door for multiple agencies to apply.
“I do expect that agencies will bid for various parts of those components,” Los Angeles Housing Department’s Assistant General Manager Anna Ortega told Committee members. “I think it’s unlikely that LAFLA will be the only one.”
Councilmember Nithya Raman, who co-authored the original motion to approve the $34 million sole-source contract with LAFLA, said the short-term amendment is necessary to avoid a harmful service gap, especially as eviction filings remain high citywide.
“Approving this contract is critical to avoid a disruption in eviction defense services for residents of Los Angeles,” Raman said in a statement Thursday. “There has been broad support from both the public and advocates for continuing this contract and providing vital services to keep people housed, including eviction defense, homelessness prevention, and tenant outreach and education programs.”
Raman also urged the City Attorney to move quickly.
“My hope is that the City Attorney will work swiftly to avoid any delay, recognizing that thousands of tenants will be at risk for eviction without proactive action from the City,” she said.
The Council’s vote Friday follows Housing Committee Chair Nithya Raman’s instruction on Wednesday for the Housing Department to confirm by Thursday whether additional time or funding will be needed to maintain services.
Raman said the item could be continued to next Tuesday’s committee meeting if those details remain unresolved, but that the Committee would move it forward to the City Council for now.