March 3rd, 2026

LOS ANGELES, CA – Today, the Los Angeles County Board of Supervisors advanced a motion authored by Supervisor Lindsey P. Horvath to address ongoing payment failures at the Los Angeles Homeless Services Authority (LAHSA) and ensure service providers delivering County-funded homelessness programs are paid for work they have already performed. 

“The Los Angeles Homeless Services Authority has repeatedly failed to provide meaningful oversight or transparency for taxpayer dollars. That is why Los Angeles County is transitioning to direct accountability through our new Homeless Services and Housing Department. This transition is not the cause of instability—it is our response to it,” said Supervisor Lindsey P. Horvath. “As we enter the eleventh month of this transition, we are ensuring providers are paid and financial best practices are in place, while demanding clarity from LAHSA on what happens after July 1. Public funding requires public accountability.” 

Today’s Board discussion followed a LAHSA Finance Committee meeting that made clear payment delays persisted. Supervisor Horvath called out the financial failures, and the County initiated a new financial review of LAHSA.  

Concerns about LAHSA’s financial management are not new: 

• In 2021, the County’s Blue Ribbon Commission on Homelessness recommended centralizing County homeless services contracting after repeated failed audits and oversight breakdowns.  
• In spring 2024, service providers sounded the alarm that delayed reimbursements from LAHSA were putting their organizations at financial risk. The Board acted, shifting from a reimbursement model to quarterly advance payments for Measure A funds so providers would not go into debt waiting to be paid. 
• On April 1, 2025, the Board implemented Blue Ribbon Commission on Homelessness recommendations and began transitioning County-funded contracting authority away from LAHSA.  
• On January 1, 2026, the Department of Homeless Services and Housing was established to bring direct oversight, transparency, and accountability to the system. 
• On February 20, 2026, a LAHSA Finance Committee meeting confirmed the agency was once again experiencing serious cash flow issues. 

The motion directs the County’s Acting Chief Executive Officer, the Department of Homeless Services and Housing, and the Auditor-Controller to embed County staff at LAHSA to review financial operations, stabilize contract administration, and directly oversee a plan to ensure providers are paid for County-funded contracts through June 30, 2026. 

County leadership will return to the Board with a financial analysis and corrective action plan on April 14, 2026. 

Read the full motion here. 

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