The Trump administration has suspended federal funding to the Los Angeles Homeless Services Authority (LAHSA) due to allegations of fraud, financial mismanagement, and inadequate oversight. The U.S. Department of Housing and Urban Development (HUD) has launched an investigation into the agency’s activities.
Concerns Over LAHSA’s Management
According to documents reviewed by Fox News Digital, HUD has expressed concerns over LAHSA’s management of public funds, including conflicts of interest, poor financial controls, and failures in accountability. The agency has faced increasing scrutiny in recent years, with both city and county officials exploring ways to assume greater control over its operations.
HUD noted that LAHSA has received close to $1 billion in federal funding alone since 2021, in addition to support from local and state governments. Despite this, conditions on the ground have shown limited improvement. The decision to suspend funding is a necessary step in accomplishing HUD’s mission to reduce homelessness in America.
Former LAHSA Executive Director Va Lecia Adams Kellum stepped down last year after findings showed she had participated in directing $2.1 million in federal funds managed by LAHSA to a nonprofit organization in Santa Monica that employed her husband. A federal court ruling from last year also determined that LAHSA had engaged in “obvious fraud” by continuing to seek funding for an 88-bed shelter despite allegedly knowing that the facility was operating at roughly half of its intended capacity.
Investigation and Next Steps
The investigation into LAHSA’s activities is ongoing, and the agency’s inspector general is working to determine the extent of any wrongdoing. In the meantime, HUD has made it clear that it will not continue to fund an organization that has shown such blatant disregard for the proper use of taxpayer dollars.
As HUD Secretary Scott Turner stated, “Under President Trump’s leadership, HUD will fund results, not corrupt failure or the homeless industrial complex. Year after year, hundreds of millions of taxpayer dollars were funneled to LAHSA with little accountability. Meanwhile, homelessness skyrocketed. Taxpayers will no longer bankroll an organization that puts its own self-interests ahead of the Americans it was created to serve.”
Original reporting: KTSA News/Talk (San Antonio) — read the source article.
