May 21, 2024

Los Angeles, CA – At today’s meeting, Chair Lindsey P. Horvath’s motion calling for a discussion of the financial health of the Los Angeles Homeless Services Authority (LAHSA) was heard by the Board. The discussion addressed challenges with how LAHSA reimburses service providers that are the backbone of our regional homeless services system. Too often, nonprofits provide interim housing, street outreach, and case management without timely payment for services rendered, slowing our homelessness emergency response.

“Los Angeles County’s state of emergency on homelessness requires transparency and accountability to fix every problem that stands in the way of results. It’s clear the payment system we have today is broken,” said Board Chair Horvath. “It’s time to end the practice of overburdening our service providers by building a new funding model that matches the scale of the humanitarian crisis we are committed to ending. I am grateful for all of our partners’ dedication to delivering the results our unhoused neighbors deserve.”

Supervisor Kathryn Barger co-authored the motion to bring forward the discussion and, with Board Chair Horvath, is on the LAHSA Commission.

“At its heart, this motion is about helping our County create a better system to effectively and urgently house people experiencing homelessness,”said Supervisor Kathryn Barger. “Hearing directly from LAHSA, County leaders, and service providers today keeps a focus on both accountability and transparency. We must continue having constructive conversations so that we can continue finding ways to make positive changes to the financial and contracting systems that deliver help to those who need it the most.”

The discussion included Cheri Todoroff of the County’s Homeless Initiative, LAHSA CEO Dr. Va Lecia Adams Kellum, and representatives from five of Los Angeles County’s largest nonprofit service providers: The People Concern, People Assisting the Homeless (PATH), LA Family Housing, HOPICS, and SSG.

The County’s Auditor-Controller Oscar Valdez also participated to follow up on the department’s financial audit of LAHSA, an effort directed by Chair Horvath in February. The audit is underway, and the Board directed that a member of the Auditor-Controller’s Office join LAHSA at their headquarters to expedite the audit process.

In closing, Chair Horvath read in a motion directing the Homeless Initiative to report back with potential alternative models to fund the homeless service providers that would replace the existing reimbursement model and prevent providers from having to perform contracted services until those services are funded.

The presentation of options will be part of the June 18 homeless emergency update.

More Information 

Motion from Sups. Horvath and Barger > 

Chair Horvath opening remarks >

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