Story perspectives

HUD Halts $69M LAHSA Homeless Funding Over Fraud

6/13/2026

Summary

Story summary

U.S. Department of Housing and Urban Development (HUD) suspended $69 million in federal homelessness funding to LAHSA, labeling its financial controls “severe and pervasive.”
Audits found LAHSA late contractor payments, conflict-of-interest violations, and a $10 million fraud case tied to a hired charity.
Mayor Karen Bass urged HUD to coordinate the funds with the city, warning the suspension could push thousands of formerly housed people back onto the streets.

History

Historical Context

After President Bill Clinton signed the 1996 Personal Responsibility and Work Opportunity Reconciliation Act, which turned AFDC into block-grant TANF and cut federal welfare spending, welfare caseloads fell by 6.5 million (53 %) by 2000. Decades later, HUD’s 2024 suspension of $69 million to the Los Angeles Homeless Services Authority echoes the same pattern of federal fund withholding amid audit concerns.

1 of 2

Story summary

U.S. Department of Housing and Urban Development (HUD) suspended $69 million in federal homelessness funding to LAHSA, labeling its financial controls “severe and pervasive.”
Audits found LAHSA late contractor payments, conflict-of-interest violations, and a $10 million fraud case tied to a hired charity.
Mayor Karen Bass urged HUD to coordinate the funds with the city, warning the suspension could push thousands of formerly housed people back onto the streets.

1 / 2