Los Angeles County intends to take over the annual point-in-time homeless count as well as other duties forfeited by the Los Angeles Homeless Services Authority (LAHSA), county officials announced on Tuesday.
The decision comes after LAHSA voted not to continue its role as the lead agency on federal duties regarding homeless services, including organizing and running the annual homeless count in the county and 85 cities within the Los Angeles Continuum of Care.
Other services LAHSA will no longer continue providing include: coordinating the annual application for federal funding with the U.S. Department of Housing and Urban Development; overseeing the Homeless Management Information System (HMIS), and handling the Coordinated Entry System (CES).
While L.A. County is applying with HUD to take over the four program, the city of Los Angeles is seeking to take on just two of the functions: the HMIS and the CES functions.
Third District L.A. County Supervisor Lindsey Horvath suggested the move last week, saying the county with its newly operating Department of Homeless Services and Housing (HSH) is better suited for assuming LAHSA administrative functions.
Horvath also wants the county to go a step further and remove itself from LAHSA, a joint-powers authority created by the courts in 1993 that includes the city of L.A. and the county.
“This is a fundamental change, and I believe it should be the county to lead the Continuum of Care,” Horvath said on Sept. 15. The decision will be made by the LA CoC’s Board in the coming weeks.
“It shouldn’t be viewed as a hostile takeover,” said Fifth District Supervisor Kathryn Barger.
LAHSA has performed these services for decades. The relinquishing of these duties is a monumental shift in the administration of homeless services and dollars in L.A. County.
The pending moves by L.A. County and from L.A. City comes amid years of criticism of how LAHSA performs other functions, such as failing to pay providers on time and transparency of financial records.
The U.S. Department of Housing and Urban Development is investigating LAHSA’s use of federal funds amid allegations of fraud and widespread mismanagement. LAHSA has received over $1 billion in federal funds since 2021, including $220 million in 2024.
With the creation of L.A. County’s new homeless department, it has moved $300 million away from LAHSA and begin to oversee services and payments to nonprofits who provide those street services. LA City is taking similar action.
Mayor Karen Bass and City Councilwoman Nithya Raman, who will face off in the Nov. 3 mayoral election, have both stated that the city needs to separate from LAHSA and establish an independent city-run entity.
“With both the city and county preparing their own applications, competing against our founding partners would only fracture regional collaboration during an already complex time,” according to a LAHSA statement. LAHSA has agreements with the city to manage programs and contracts through June 30, 2027.
Horvath inquired of staff how the county could legally remove itself from LAHSA. Any departure by the county or the city would be required to give 180 notice before becoming effective, said Catherine Bowser, an attorney with the Office of County Counsel.
Horvath was also concerned about the county getting saddled with the bill for programs not being paid by LAHSA. One major issue is HUD suspending further federal funding to LAHSA. Also at stake is about $241 million already earmarked for the Los Angeles region by Congress, as well as funding for next fiscal year.
However, Carter’s injunction was overruled last week by the 9th U.S. Circuit Court of Appeals, creating uncertainty about LAHSA’s role and eligibility as the lead agency coordinating housing and homelessness services across LA County.
The issue of fraud involving area homeless programs also has the county worried should they take on more responsibilities.
On Sept. 16, three people were charged in separate federal cases for fraud, including a Culver City nonprofit founder accused of diverting more than $7.5 million in public money. According to authorities, some of the money was used to finance an Inglewood nightclub and a bingo hall.
Michael Young, 46, of Baldwin Hills, a founder of Home At Last, was charged with wire fraud for allegedly using sham vendors to siphon money from publicly funded homeless housing contracts. Home At Last received more than $118 million from the Los Angeles Homeless Services Authority, the city and county of Los Angeles and the U.S. Department of Housing and Urban Development, prosecutors said. LAHSA paid the nonprofit more than $75 million for homeless housing services.
“We need to make sure we are providing funding for services we are getting,” said Barger. “The taxpayer dollars are precious. It is important for us to show that the money is being invested in exactly what they voted for.”
Measure A is half-cent countywide sales tax that aims to solve homelessness through housing, services for mental health and drug abuse, and also providing more affordable housing. It was approved by voters in November 2024.
Sarah Mahin, director of the county’s HSH department, assured the supervisors she has been adding checks and balances to ensure nonprofit service providers are actually providing help to the unhoused, either with temporary housing, or with mental health and substance abuse services.
Mahin said she’s working with the county’s Office of Inspector General to monitor nonprofit activity. She has also highlighted subcontractors and made them part of those prime contractors that must itemize and document service providers before receiving payment. This is something LAHSA did not do, she said.
She told the Board her department has terminated several contractors she labeled as “bad actors.”
A report on her department’s progress for the fourth quarter of 2026, namely from April 1 to June 30, show 248 completed encampment removals. Also, 429 halfway home residents entered permanent housing by the end of the fiscal year.
About 91% in permanent housing remained after one year; 84% remained after two years, she said.
She was asked why only 6% of those in interim housing moved into permanent housing during the fourth quarter. Mahin said state and federal funding for permanent and interim housing has decreased. Also, there is still a shortage of affordable housing to place people.
According to annual data from HUD, California has nearly 182,000 homeless people. Los Angeles County has 73,000 homeless people, and the city of Los Angeles has more than 45,000 homeless people, an increase of 3.4% from the year prior.
City News Service contributed to this article.