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7h ago

HUD Suspends Federal Funding to LA Homeless Services Authority

The department has launched an inspector‑general probe into alleged mismanagement, conflicts of interest, suspected fraud that prompted an immediate pause in federal payments.

An image collage containing 3 images, Image 1 shows Homeless individuals and their tents line a street in Skid Row, Los Angeles, with a backdrop of city skyscrapers, Image 2 shows JD Vance speaks with reporters after arriving on Air Force Two, Image 3 shows Nithya Raman speaking at a press conference with a "Nithya for Mayor" sign beside her
LOS ANGELES, CALIFORNIA - JUNE 28: An encampment of unhoused people is viewed in the Skid Row community on June 28, 2024 in Los Angeles, California. The U.S. Supreme Court ruled today that cities can ban people, including those who are homeless, from camping and sleeping outdoors in public places, overturning lower court rulings. Skid Row is home to thousands of people who are either experiencing homelessness on the streets or living in shelters. (Photo by Mario Tama/Getty Images)
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Overview

  • HUD sent a formal notice that suspended LAHSA’s participation in HUD programs and opened a HUD Office of Inspector General investigation on Thursday, June 11, 2026.
  • Federal documents cite multiple specific failures, including LAHSA’s inability to verify nearly 2,300 housing sites, routine late payments to providers, and a court finding of “obvious fraud” over shelter funding.
  • HUD and audits say LAHSA directed nearly $944 million to $1.16 billion in federal funds to the region since 2021 and that a former CEO approved about $2.1 million to a nonprofit that employed her husband.
  • LAHSA disputes the federal action, says it is implementing reforms and modernizing financial systems, and warns the pause could interrupt payments that help keep thousands of people housed.
  • Los Angeles County has already moved more than $300 million a year away from LAHSA into a new county department, LAHSA has 30 days to request an administrative hearing, and the investigation could lead to restored funding, penalties, or other remedies.