The Los Angeles Homeless Services Authority (LAHSA) has had its federal funding suspended after an investigation by the U.S. Department of Housing and Urban Development (HUD) revealed fraud and mismanagement. Despite receiving over $1 billion in funding over the last five years, LAHSA has failed to reduce homelessness in the city.

Investigation Findings

The investigation by the HUD Office of Inspector General (OIG) found that LAHSA made repeated false statements and engaged in irresponsible actions and failures. The agency did not keep track of the unhoused who left transitional motel housing, yet it continued to pay for empty hotel rooms. Additionally, LAHSA was unable to provide verification paperwork to show where 2,300 housing sites are located.

LAHSA officials have pushed back against the federal government’s claims, stating that the suspension of funding could put thousands of formerly homeless people back on the street. The organization maintains that local oversight actions have already resulted in strong repairs and reforms to LAHSA’s internal controls.

Response from City Officials

Mayor Karen Bass’s office has expressed grave concerns about LAHSA, highlighting that she has already directed the city to evaluate how it can move away from the agency. The mayor’s office has urged HUD to work with the city to provide the necessary funding to reduce homelessness.

Original reporting: NBC4 Los Angeles — read the source article.