LAHSA owes millions to homeless service providers; County looks to speed up payments

"LAHSA is experiencing a monumental change which at the heart of it has affected our people's ability to pivot. The agency was delayed in paying millions owed to homeless service providers, with staff resignations and plummeting morale amid uncertainty over the agency's future contributing to the crisis."

"My phone is ringing off the hook from service providers who are demanding to be paid. LAHSA has long faced criticism for how it manages the region's homeless services, with audits finding the agency lacked proper oversight over its funds and programs, leaving them susceptible to waste and fraud."

The Los Angeles Homeless Services Authority faces a severe payment crisis, owing homeless service providers $69.3 million in late February, with $26.9 million overdue by at least two months. Deputy Chief Financial Officer Janine Lim attributed delays to staff resignations and declining morale amid uncertainty about the agency's future. The County Board of Supervisors directed staff to develop a plan accelerating payments and approved funding for a financial review of LAHSA operations. This action followed repeated criticism from Supervisor Lindsey Horvath and complaints from service providers demanding payment. LAHSA has long struggled with management issues, including inadequate fund oversight and susceptibility to waste and fraud, prompting the county to transfer most funding to a new county department by July.

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