HUD Suspends LAHSA's Federal Funding Eligibility: Inspector General Probe Into Fraud and Mismanagement Puts About $239 Million Application on Hold
The U.S. Department of Housing and Urban Development (HUD) notified the Los Angeles Homeless Services Authority (LAHSA) on June 11, 2026, that it was suspending the agency's eligibility to apply for federal homelessness funding on behalf of the Los Angeles region, effective immediately. LAHSA is a joint-powers authority created by the City of Los Angeles and Los Angeles County, California, to coordinate homeless services across the county. The suspension put about $239 million in federal funding applications in doubt, along with housing and services for more than 11,000 people in 85 cities across the region.
HUD said the move followed an investigation opened by its Office of Inspector General into whether LAHSA violated federal laws. "Year after year, hundreds of millions of taxpayer dollars were funneled to LAHSA with little accountability," HUD Secretary Scott Turner said in a statement. HUD said investigators had uncovered evidence of false statements by the agency, a lack of financial management, and a lack of safeguards against conflicts of interest. HUD said the Los Angeles Continuum of Care led by LAHSA had received nearly $1 billion in federal funds over the previous five years.
Under the terms of HUD's notice, LAHSA had 30 days to request a hearing to contest the suspension; if it did not, the suspension would become final. The outcome of the inspector general's investigation will determine whether LAHSA's funding eligibility is reinstated or whether the agency is permanently debarred.
LAHSA responded that HUD's action was "a blatant attempt to pull yet more resources from Los Angeles," saying nearly all of the issues raised had been corrected or were in the process of being corrected. In a statement, the agency warned the action "could put thousands of formerly homeless people back on the street."
According to HUD and LAHSA materials, federal funds accounted for about 7 percent of LAHSA's annual budget as of July 2025, largely through the Continuum of Care program. The suspension came as Los Angeles County was already planning to divert hundreds of millions of dollars from LAHSA to a new county agency, citing the authority's record of poor oversight of contracts and spending.
Related: HUD Announces Voluntary Compliance Agreement With Multnomah County, Oregon
Source: GSM America
Source: GSM · USA (original Chinese edition)
Photo: 位于华盛顿的美国住房与城市发展部总部罗伯特·C·韦弗联邦大楼。CC BY 2.0，经 Wikimedia Commons。 / The Robert C. Weaver Federal Building in Washington, headquarters of the U.S. Department of Housing and Urban Development. CC BY 2.0, via Wikimedia Commons.
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