The Los Angeles Homeless Services Authority (LAHSA) has been formally notified that it must compete for its core operational functions, signaling a potential significant restructuring and breakup of the joint city-county agency that has overseen local homeless services since the 1990s.
A board overseeing Los Angeles' federal homelessness funds has issued a request for qualifications, seeking new applicants for four federally mandated roles that constitute LAHSA's primary responsibilities. These functions include managing the homelessness database and housing matching system, conducting the annual homeless count, and submitting annual applications for U.S. Department of Housing and Urban Development (HUD) funds on behalf of numerous service providers. The Los Angeles Continuum of Care (CoC) board was scheduled to vote on this solicitation, which was prompted by a federal court ruling, but failed to achieve a quorum. A new meeting date must be set before a court-imposed October 13 deadline.
In response to this development, Los Angeles County Supervisor Lindsey Horvath announced that the county intends to apply for these functions. Should the county succeed, it would mark a complete separation from LAHSA, following the supervisors' decision last year to redirect over $300 million in sales tax funds to a new county homelessness department. Supervisor Horvath stated, "LAHSA failed to deliver the collaboration and accountability our communities need. We need one regional response — that is mindful of each community’s unique needs — with clear accountability for outcomes, and Los Angeles County is best positioned to lead."
The City of Los Angeles is also considering withdrawing its funding from the joint powers authority. Mayor Karen Bass confirmed the city's intention to apply for some or all of the roles related to the CoC's administrative functions. Mayor Bass has stepped down from LAHSA's board and is reportedly working to appoint a replacement, with her spokesperson indicating a commitment to developing a city-led homelessness response system designed to deliver results.
City Councilmember Nithya Raman, a challenger to Mayor Bass, also expressed support for the city competing for these duties, emphasizing their critical role in accountability and resource allocation for addressing the homelessness crisis. LAHSA has stated it is reviewing the materials released by the CoC board and will determine its next steps.
This process stems from an order by U.S. District Court Judge David O. Carter, who mandated that the CoC conduct a nationwide application process for its 2027 contract, following HUD's suspension of LAHSA's funding application last year due to audit findings and alleged conflicts of interest. Judge Carter's ruling allows LAHSA to submit its 2026 application but sets the stage for potential replacement in 2027, reflecting ongoing scrutiny of the agency's performance and data management practices.
