LA County steps in as LAHSA's $69M payment crisis threatens homeless services
The Los Angeles Homeless Services Authority (LAHSA) has faced sharp criticism over ongoing payment delays to service providers. County supervisors have now stepped in, demanding faster solutions as the backlog of unpaid funds reaches tens of millions. The issues stem from internal disarray, outdated policies, and a refusal of outside help.
In late February, LAHSA owed homeless service providers a total of $69.3 million. Of that amount, $26.9 million was overdue by at least two months. Nonprofit organizations have repeatedly raised concerns about these late payments, which have disrupted their ability to deliver services.
The delays have been blamed on high staff turnover, organizational instability, and inefficient internal procedures. Supervisor Lindsey Horvath criticized the agency harshly, suggesting that if it were a private company, regulators would have shut it down by now. Despite the problems, LAHSA previously turned down an offer from the county to provide extra staff during the transition to a 'news' department.
In response, county supervisors have ordered their staff to create a 'news' plan for speeding up payments. They also approved funding for an independent financial review of LAHSA's operations. Since these measures were announced, the payment backlog has been reduced to $53.4 million.
Looking ahead, the county is establishing a 'news' homeless department to take over county-funded programmes. The transfer of funds and contracts to this department is scheduled for July 2025. The move follows years of criticism over LAHSA's lack of oversight, which has led to cases of waste and fraud in its programmes.
The county's intervention aims to resolve the payment crisis and improve accountability. With a 'news' department set to take control next year, service providers may see more reliable funding. For now, the focus remains on clearing the remaining backlog and preventing further delays.
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