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LA Homeless Agency Sues HUD to Block Federal Funding Suspension

The lawsuit asks a court to restore LAHSA’s ability to apply for federal homelessness grants to prevent disruption of regional systems that match people to housing.

Overview

  • LAHSA filed a federal lawsuit seeking a temporary restraining order and injunction on Monday to halt HUD’s suspension and let the agency continue applying for federal grants.
  • HUD suspended LAHSA on June 11 after saying the agency may have committed violations of federal law and notifying that the HUD inspector general had opened an investigation.
  • LAHSA says HUD relied on inaccurate or irrelevant information and that the suspension threatens about $241 million in funding and services used by more than 11,000 people across Los Angeles County.
  • The agency manages key regional tools — the Homeless Management Information System and the county’s point‑in‑time count — and the suspension could block client matching and the Aug. 26 Continuum of Care grant application.
  • Previous audits and a consulting review found weak financial controls, which prompted the county last year to move over $300 million out of LAHSA, and the outcome now depends on the inspector general’s probe and any court ruling.