The U.S. Department of Housing and Urban Development (HUD) has suspended funding to the Los Angeles Homeless Services Authority (LAHSA) due to allegations of mismanagement and lack of accountability. In a letter to LAHSA CEO Gita O’Neill, HUD Deputy Secretary Andrew D. Hughes stated that the agency’s repeated false statements and irresponsible actions pose a threat to HUD, the public, and those living on the streets of Los Angeles.

Allegations of Mismanagement

Hughes cited examples of LAHSA’s mismanagement, including the resignation of the agency’s former CEO, Va Lecia Adams Kellum, after it was found that she had committed $2 million of the agency’s money to her husband’s employer. Additionally, the agency failed to account for $2.3 billion in federal funds, according to a federal court finding in March 2025.

Hughes stated that HUD cannot ignore LAHSA’s wanton mismanagement of public funds and that the agency’s actions have done nothing to reduce homelessness in Los Angeles. Instead, diverting dollars from worthy programs to LAHSA has made the homeless crisis worse.

Response from City Officials

Los Angeles Mayor Karen Bass expressed concern about the misuse of taxpayer funds by LAHSA and stated that she has directed the city to evaluate how to move away from the agency. However, Bass’s office also urged HUD to work with the city to provide necessary funding to reduce homelessness.

The suspension of funding to LAHSA is a significant development in the ongoing efforts to address homelessness in Los Angeles. As the city continues to grapple with this complex issue, the need for responsible and accountable management of public funds is more pressing than ever.

Original reporting: KTBS 3 (Shreveport) — read the source article.