Layoffs Signal Deep Restructuring at LAHSA (Image Credits: Pexels)
Los Angeles — The city of Los Angeles took steps this month toward securing majority control of the Los Angeles Homeless Services Authority, or LAHSA, after Los Angeles County pulled its funding from the joint agency.[1][2] Lawmakers approved measures backed by Mayor Karen Bass that would reshape LAHSA’s governance and operations, positioning the city as the dominant force in its future. The push reflects years of frustration over inefficiencies, even as the agency grapples with layoffs and financial scrutiny.
Layoffs Signal Deep Restructuring at LAHSA
LAHSA announced last week that it would lay off 284 employees by the end of June, part of a broader cut exceeding 400 positions.[1] The reductions stem directly from the county’s decision to shift its programs and hundreds of millions in funding to a new internal department starting July 1.[2] Staff members expressed alarm over the uncertainty, with one employee warning that those most in need of services would suffer the most.[2]
A federal audit, approved nearly a month late, uncovered a significant deficiency in the agency’s internal financial controls.[1] Earlier issues included millions owed to service providers and delays in payments, fueling demands for accountability. LAHSA described itself as in crisis, with low morale among remaining staff.
City Council Backs Bass-Led Overhaul Proposals
On April 15, the City Council’s Housing and Homelessness Committee endorsed a package of reforms proposed by Mayor Bass, Councilmember Tim McOsker, and Councilmember Ysabel Jurado.[1] The measures direct negotiations to revise LAHSA’s joint powers agreement, granting the city a majority on its oversight board. City departments would also collaborate to standardize contracting, payments, data collection, and performance metrics.
Councilmember Nithya Raman advanced complementary ideas, calling for a gradual shift of city-funded programs away from LAHSA during the next fiscal year.[1] Officials emphasized taking over administrative functions where possible to maintain service continuity. The proposals now move to the Budget and Finance Committee and then the full council.
“As we navigate the transition away from LAHSA in a responsible way, we are making sure that people are not turned back out onto the street, and are increasing oversight and accountability over LAHSA in the interim.”
— Ilanna Morales, spokesperson for Mayor Karen Bass[1]
Roots of the Rift: County Exit and Long-Standing Criticisms
LAHSA, formed 33 years ago as a partnership between the city and county, has coordinated homeless programs funded by local, state, and federal sources.[1] The county voted last April to withdraw over $300 million annually, citing poor oversight revealed in audits.[3] It launched its own Department of Homeless Services and Housing to centralize efforts.
The city sends roughly $300 million each year to LAHSA, making it the primary funder after July 1.[3] Past motions explored bypassing the agency entirely, but leaders now favor a hybrid approach. Even post-reforms, LAHSA would handle federal housing subsidies and regional data coordination.
- Renegotiate joint powers agreement for city board majority.
- Streamline LAHSA’s administrative processes with city input.
- Transition select programs to city management.
- Require reports on costs and effectiveness of shifts.[2]
Officials Weigh Risks and Opportunities
Mayor Bass warned against hasty withdrawal, noting it could exacerbate funding shortfalls amid state and federal cuts.[4] Her office highlighted progress, such as two years of declining homelessness rates. Councilmember Raman described the reforms as a “managed transition that preserves what works.”[1]
Councilmember Jurado stressed alignment with community needs without disruptions.[2] LAHSA argued that sufficient city support would enable it to provide data and oversight for better decisions. Critics inside the agency feared service gaps from the upheaval.
Path Forward Hinges on Council Approval
If approved, negotiations for greater city control could begin within 30 days, with program transitions ramping up by July.[1] The city lacks full infrastructure for in-house management yet, prompting calls for a phased approach. Bass proposed budget additions to bolster oversight capacity.
Supporters view the changes as essential for accountability after decades of stagnation. Yet the stakes remain high: any misstep risks setbacks in housing thousands still on the streets. As LAHSA shrinks, the city must prove it can deliver results where the joint model fell short.
