HUD Suspends Nearly $1 Billion for LAHSA as Fraud Probe Targets Los Angeles Homeless Agency
Updated
Updated · Fox News · Jun 11
HUD Suspends Nearly $1 Billion for LAHSA as Fraud Probe Targets Los Angeles Homeless Agency
2 articles · Updated · Fox News · Jun 11
Summary
HUD immediately halted federal funding to the Los Angeles Homeless Services Authority, which has received nearly $1 billion since 2021, while its inspector general investigates alleged fraud and mismanagement.
The agency cited conflicts of interest, weak oversight and a federal judge’s finding of "obvious fraud" tied to funding requests for an 88-bed shelter that was operating at roughly half capacity.
HUD also pointed to LAHSA’s inability to verify nearly 2,300 housing sites, audits showing late payments and poor records, and a city finding that it failed to spend $513 million budgeted for fiscal 2024.
The suspension deepens pressure on LAHSA after former chief Va Lecia Adams Kellum resigned over a $2.1 million funding conflict, while Los Angeles city and county officials have already moved to shift money and contracts away from the agency.
The federal action lands even as LAHSA and Mayor Karen Bass cite two straight years of declining homelessness counts; more than 72,000 people were still homeless across Los Angeles County in 2025.