LAHSA Keeps Control Until County Takes Over

Los Angeles residents seeking shelter and services will see little immediate change as a federal judge kept the suspension of the Los Angeles Homeless Services Authority on hold. U.S. District Judge David O. Carter issued the order on Tuesday, allowing the joint city-county agency to keep running key homelessness systems while a lawsuit over the suspension continues.

The decision came at the joint request of LAHSA, the U.S. Department of Housing and Urban Development, and the L.A. Continuum of Care. This move ensures that federal homelessness money continues to flow to the region through LAHSA until the transition to Los Angeles County is complete. Carter’s order blocks HUD’s proposed penalties against the Continuum of Care, meaning local service providers will not be forced to apply directly to the federal agency for funding.

On Monday, the L.A. Continuum of Care voted to make Los Angeles County the lead agency for the region’s homelessness database and housing matching system. The database selection passed 253-43, and the matching system selection passed 219-38. These votes formally selected the county’s new homelessness department to take over all four federal roles currently held by LAHSA. The group had earlier selected the county to run the annual homeless count and manage federal funding applications.

First Assistant U.S. Attorney Bill Essayli told the court that the parties are close to a full settlement. He stated that they are 90% there and that a signed agreement could be ready in about two weeks. The current sticking point is the use of federal dollars for harm reduction programs, such as distributing clean pipes or syringes. Essayli said federal funds can no longer be used for these efforts, while LAHSA attorney Shayla Myers argued that current HUD rules already cover the issue.

Carter noted that the city and county have bickered for years, describing LAHSA as a punching bag on many occasions. He emphasized the need for a centralized authority to ensure accountability. The judge ordered HUD to process the region’s pending funding application of about $240 million as usual. The transition of the database and matching system will happen last, no later than the end of next year, according to HUD lawyers.

The shift in oversight will change how the region addresses homelessness. LAHSA has run the annual count for about two decades, and its accuracy has faced scrutiny. In August, the L.A. City Council called for a review of this year’s count. LAHSA budgeted about $24 million to run these roles in the current budget year. The agency did not immediately respond to requests for the number of employees supporting these functions.

Carter Hewgley, chief strategy officer for the county’s Department of Homeless Services and Housing, said the department is committed to a transition plan that preserves subject matter expertise and continuity of services. The city of L.A. also applied to run the systems but was not selected. Under a tentative deal, the city would get access to data on unhoused people within city limits and handle matching for city-funded housing under county oversight. The L.A. City Council approved these terms 10-0 on Friday, and the county Board of Supervisors authorized its department to negotiate the agreements on Tuesday.