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The Brief

The most important stories for you to know today
  • Small businesses feel Hollywood shutdown's effects
    Johnny Agnew of Funky Junk Farms wears overalls and stands in front of a vintage trailer
    Johnny Agnew of Funky Junk Farms.

    Topline:

    Members of the Writers Guild of America have been on strike for nearly three months. They’re fighting for better pay and protections against things like artificial intelligence. Actors have joined them, and are now two weeks into a strike of their own. With Hollywood mostly shut down, some local businesses are starting to feel the pinch.

    Why it matters: When the writers strike began in May, Todd Holmes, a professor of entertainment industry management at Cal State Northridge, estimated it could cost the greater L.A. economy some $3 billion.

    What's next: At their last meeting, the L.A County Board of Supervisors agreed to send a letter to the Alliance of Motion Picture and Television Producers (AMPTP) urging them to return to the negotiating table. Gov. Gavin Newsom’s office said he had been in touch with both sides of the Hollywood strikes in order to try and help broker a deal.

    Listen 3:54
    How The Hollywood Strikes Are Affecting Small Businesses In LA

    Members of the Writers Guild of America have been on strike for nearly three months. They’re fighting for better pay and protections against artificial intelligence, among other demands.

    And, Hollywood performers are now two weeks into a strike of their own.

    With Hollywood mostly shut down, some local businesses are starting to feel the pinch.

    Last Friday, hundreds of striking writers and actors picketed in the sweltering heat outside the Warner Bros. studio in Burbank. Bright-pink billboards for the new Barbie movie were plastered all around.

    Two picketers hold signs outside the Warner Bros. lot
    Dawn Garcia (L) and April Rock (R) joined the picket lines outside the Warner Bros. lot in Burbank on Friday.
    (
    Robert Garrova/LAist
    )

    But even as summer blockbusters rake in hundreds of millions of dollars at the box office, economic anxiety is running high among striking performers, like SAG-AFTRA member April Rock.

    “I’m at the level of just trying not to think about it ... afraid to check the bank account,” Rock said.

    Uncertainty and community

    That financial uncertainty isn’t just hitting actors and writers. Just across the street, Kismet Collective Salon opened up their bathroom to strikers.

    Roxanne Schreiber said her dad, a retired set designer, came up with the colorful decorations inside the salon, and a local prop shop helped them renovate the space.

    “I lost my job in production 15 years ago when we had the last writers strike... I know it affects the dry cleaners, the craft service people, the restaurants — everybody around the studios suffers because it is a company town,” Schreiber said.

    It doesn’t help that Schreiber and her partners opened the salon just weeks before the writers strike started.

    “I think all of us were a little worried opening a luxury-based business in a union town in the middle of a giant strike — most of our clients are in the industry,” Kismet co-owner Nicoletta Gauci told LAist.

    But Schreiber says the strike hasn’t been totally bad for business. The surge of foot traffic gave them a sense of community — and at least a few new customers.

    Roxanne Schreiber (L) and Nicoletta Gauci (R) of Kismet Collective Salon opened their bathroom to striking writers and performers. They stand in front of a sign that reads "We support creatives!"
    Roxanne Schreiber (L) and Nicoletta Gauci of Kismet Collective Salon opened their bathroom to striking writers and performers.
    (
    Robert Garrova / LAist
    )

    Contractors’ work halted

    At his home about 15 miles northeast of the Warners lot, Johnny Agnew showed off his COVID project: a restored vintage mini motorcycle that used to lead parades in the '60s and '70s.

    Through his business, Funky Junk Farms, Agnew has helped source countless vehicles for movies and TV productions, including the gold vintage trailer Leonardo DiCaprio’s character inhabits in 2019’s Once Upon a Time in Hollywood.

    Agnew’s lot is filled with all kinds of cool old stuff that would make any period piece pop. There’s old Santa Claus blow molds, gas station memorabilia and plenty of vintage trailers.

    But all of this great stuff has sat unrented since March, when studios started getting worried about the imminent writers strike.

    Johnny Agnew's Funky Junk Farms is filled with vintage trailers and metal outdoor furniture.
    Funky Junk Farms as it looked in 2017.
    (
    Katherine Garrova / LAist
    )

    “With my rental stuff I have to have guys work on reupholstering interiors of cars — if we’re doing picture cars — or a mechanic. None of those guys are working right now. That’s just me, myself and my little crew, so you can imagine what it must be like with all the other factions,” Agnew said.

    By trade, Agnew is a unionized studio driver, getting equipment and actors where they need to go on set. But that work dried up in April. For now, Agnew said he’s happy he can just keep his mortgage paid.

    “It’s huge because most people can’t survive off unemployment ... You know, most of us live from paycheck to paycheck to be honest with you," he said. "People are hurting."

    A man with dark skin tone wearing light blue overalls and a black T-shirt Jstands in front of a vintage green truck.
    Johnny Agnew of Funky Junk Farms stands in front of a vintage truck.
    (
    Katherine Garrova / LAist
    )

    Agnew pointed out that that’s not the case for some of the big studio executives. He hopes the people at the top of the earnings ladder get things settled soon so he can go back to work.

    “They need to pull their heads out of their behinds and respect the working class, basically, is what it comes down to,” Agnew said.

    For its part, the Alliance of Motion Picture and Television Producers said in a statement after the SAG-AFTRA strike was announced, that the union’s choice: “will lead to financial hardship for countless thousands of people who depend on the industry.”

    They say their offers to both the WGA and SAG-AFTRA represent “historic” and “generous” pay increases, along with other protections and benefits.

    Billions in estimated losses

    When the writers strike began in May, Todd Holmes, a professor of entertainment industry management at Cal State Northridge, estimated it could cost the greater L.A. economy some $3 billion.

    Holmes said he arrived at that estimate based on a study that looked at the economic impact of the last writer’s strike in 2007, adjusting for inflation and other factors.

    “We’d have to increase that number substantially since now we’re factoring in SAG [strike],” Holmes told LAist. If the strikes continue into October, Holmes estimates the overall economic impact could be in the range of $4 to $5 billion.

    “A lot of people are thinking that this goes on for another three months or so,” Holmes said.

    In the meantime, Holmes says he’s interested to see how much local politicians will step in to move things toward a resolution.

    At their last meeting, the L.A. County Board of Supervisors agreed to send a letter to the Alliance of Motion Picture and Television Producers, urging them to return to the negotiating table.

    Gov. Gavin Newsom’s office said he had been in touch with both sides of the Hollywood strikes in order to try and help broker a deal.

    Editor's note: Many LAist journalists are represented by SAG-AFTRA. However, they work under a different contract to the actors, and are not subject to this strike.

    How are the dual Hollywood strikes affecting you?

  • Newsom orders CA agencies to develop new plans
    Governor Gavin Newsom, a man with light skin tone, wearing a dark colored suit, holds up a piece of paper as he speaks behind a podium with signage that reads "Protecting kids."
    Gov. Gavin Newsom speaks during a press conference at the Bay Area Discovery Museum in Sausalito, where he signed 13 bills focused on protecting kids from technology, on Sept. 10, 2026.

    Topline:

    Gov. Gavin Newsom on Friday ordered state agencies to develop safety regulations for artificial intelligence after vetoing tougher rules two years ago.

    Why now: His change of tune on those measures, including requiring AI developers to include a “kill switch” to shut off certain programs in emergencies, comes in response to growing public alarm over the fast-developing technology’s potential “catastrophic” harms such as AI creating a bioweapon or bringing down the power grid.

    The backstory: Newsom has sought in recent weeks to respond to several incidents in which AI agents from leading developers OpenAI and Anthropic broke away from testing environments, gained access to the open internet and carried out cyberattacks on other websites and companies. Earlier this month, a researcher set off a panic when he resigned from Anthropic while warning the technology could “kill all humans;” the researcher’s former colleagues were quick to agree.

    Read on... for more on Newsom's order.

    Gov. Gavin Newsom announced Friday that he is directing state agencies to develop artificial intelligence safety recommendations, some of which were part of a bill he vetoed two years ago.

    His change of tune on those measures, including requiring AI developers to include a “kill switch” to shut off certain programs in emergencies, comes in response to growing public alarm over the fast-developing technology’s potential “catastrophic” harms such as AI creating a bioweapon or bringing down the power grid.

    Newsom is seeking recommendations from the Government Operations Agency and the Governor’s Office of Emergency Services by Nov. 16, meaning they could form the basis of a special legislative session on the issue. He floated the possibility of calling one in Politico on Thursday.

    Newsom has sought in recent weeks to respond to several incidents in which AI agents from leading developers OpenAI and Anthropic broke away from testing environments, gained access to the open internet and carried out cyberattacks on other websites and companies. Earlier this month, a researcher set off a panic when he resigned from Anthropic while warning the technology could “kill all humans;” the researcher’s former colleagues were quick to agree.

    The hackings have captivated the public and seem to confirm AI researchers’ fears that the fast-developing technology is improving its own capabilities beyond human control. Several industry leaders last week endorsed Anthropic CEO Dario Amodei’s call for a slowdown in development.

    Newsom’s Friday executive order directs the state agencies to recommend changes in state law to implement an external evaluation requirement, as well as requirements that AI companies’ safety frameworks required under the newest law be independently verified. He’s also seeking recommendations on how to require a kill switch, and how to expand the safety incidents companies must report to include “a range of loss-of-control incidents” such as the recent reported hackings.

    Regulation is unlikely from the federal government; President Donald Trump remains all-in on speeding up AI development in the face of competition from China and said the calls for a slowdown are a “conspiracy.”

    Newsom, a likely 2028 presidential contender, said Friday in a press release that should “alarm every American.”

    “We’re going to speed up our work on substantial and responsible AI oversight before it's too late,” he said.

    California under Newsom has enacted several first-in-the-nation laws to curb the potentially existential risks of AI. In 2025 he signed Senate Bill 53, which requires large AI model developers to publish frameworks on how they manage safety incidents and assess catastrophic risk — defined as incidents involving 50 or more deaths, chemical or biological weapons or more than $1 billion of theft or damage. They also must report critical safety incidents to the state. Illinois and New York have similar laws.

    But the measure was a compromise — a requirement for transparency rather than regulatory control — after Newsom in 2024 vetoed Senate Bill 1047.

    Both bills were authored by Democratic Sen. Scott Wiener, whose San Francisco district is home to the most prominent AI companies.

    The vetoed measure would have required the largest AI developers to receive safety auditing from third-party, external monitors, develop a kill switch and be subject to clearer legal liability if their technology causes harm. The measure divided Silicon Valley and received fierce opposition from several, but not all, of the largest AI developers.

    Newsom wrote then in a veto letter that while he agreed with the need to require safety protocols, the bill could restrict AI development at large companies “at the potential expense of curtailing the very innovation that fuels advancement in favor of the public good.”

    “I agree with the author — we cannot afford to wait for a major catastrophe to occur before taking action to protect the public,” he added.

    Since then, more in the industry have embraced third-party evaluations. This year, Newsom signed two laws to verify and set standards for those external monitors. But the new laws did not require companies to use them.

    In a recent call for a slowdown in AI development that was endorsed by several other industry leaders, Anthropic CEO Dario Amodei also called for third-party monitoring; both that company and OpenAI say they will commit to the practice.

    This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.

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  • City Council votes to withhold rebuilding permits
    A slightly low angle view of a warehouse building with bags of trash outside next to a gated fence.
    Workers continue to clear out the Lineage warehouse in Boyle Heights.

    Topline:

    The Los Angeles City Council on Wednesday approved a series of measures that halt the rebuilding of the burned Lineage warehouse in Boyle Heights and that steer funding toward fire recovery efforts.

    Why it matters: In a unanimous vote, the City Council barred the Los Angeles Department of Building and Safety (LADBS) from issuing any rebuild permits until after the Los Angeles Fire Department completes its investigation.

    More resources: The council also directed city staff to explore the feasibility of establishing a fund of up to $10 million to support the affected Lineage community. It also called for the reallocation of up to $940,000 in Los Angeles County Fire Assistance Grant Funds to the Boyle Heights WorkSource Center for Lineage Fire Recovery to support impacted workers and businesses.

    Read on... for more on the vote.

    This story first appeared on The LA Local.

    The Los Angeles City Council on Wednesday approved a series of measures that halt the rebuilding of the burned Lineage warehouse in Boyle Heights and that steer funding toward fire recovery efforts.

    In a unanimous vote, the City Council barred the Los Angeles Department of Building and Safety (LADBS) from issuing any rebuild permits until after the Los Angeles Fire Department completes its investigation.

    The council also directed the Department of City Planning, the city attorney and the LADBS to present an interim control ordinance prohibiting permits or certificates of occupancy for large cold-storage warehousing and distribution near residential neighborhoods and sensitive areas like parks, schools, day care centers and libraries in Boyle Heights. 

    The ordinance, if approved, would be in effect for 45 days, with an option to extend by 10 months and 15 days. It could be extended by an additional year, or until the “appropriate land use regulatory controls have been prepared,” according to a city staff report. 

    “This Lineage fire exposed the cost of systems that have concentrated industrial risk in working-class communities of color for generations,” said Councilmember Ysabel Jurado during the council meeting. 

    “A facility should not be able to request a like-for-like rebuild while the fire investigation remains active and the surrounding community is still living with the consequences,” she added. 

    Jurado pushed forward the measures, noting that “recovery doesn’t finish when the site is cleaned up.”

    “Our responsibility is also to demand accountability and strengthen protections so residents do not experience a disaster like this again,” she said. 

    Jurado said the measures will ensure Boyle Heights residents “aren’t left to navigate recovery alone or bear the financial burden of an emergency they did not create.”

    The council also directed city staff to explore the feasibility of establishing a fund of up to $10 million to support the affected Lineage community. 

    It also called for the reallocation of up to $940,000 in Los Angeles County Fire Assistance Grant Funds to the Boyle Heights WorkSource Center for Lineage Fire Recovery to support impacted workers and businesses. 

    Additionally, council members instructed the LADBS and the city attorney to provide recommendations for increasing penalties for notices of violations “on projects that impose a significant impact to the community,” as seen in the Lineage fire. Recommendations should include a fee and fine structure that ranges from $25,000 to $1 million per fine, according to a city staff report.

  • No cohesive policy in place
    A close up of a ChatGPT icon on a smartphone, with the words ChatGPT in the background.
    Faculty and students say UC schools don't have a consistent approach to AI use.

    Topline:

    Years after generative artificial intelligence software became widely accessible, the University of California system still does not have a systemwide approach to how AI is used in classrooms. “The situation is contradictory and also extraordinarily fluid,” professor Rita Raley told the university system’s Board of Regents on Wednesday. “In one class, students are permitted to use AI, in another, they're cautioned against it, and in a third, they're told it's prohibited.”

    What comes next for the UCs: The University of California has an AI steering committee tasked with “developing a coordinated approach that allows UC to use its systemwide scale while recognizing the distinct needs of its campuses, medical centers, laboratories, faculty, researchers, staff, and students,” according to a University of California spokesperson.

    Keep reading: For more faculty and student thoughts on AI use at UC schools.

    Years after generative artificial intelligence software became widely accessible, the University of California system still does not have a consistent approach to how AI is used in classrooms, according to its faculty and students.

    “The situation is contradictory and also extraordinarily fluid,” professor Rita Raley told the university system’s Board of Regents on Wednesday. “In one class, students are permitted to use AI, in another, they're cautioned against it, and in a third, they're told it's prohibited.”

    Raley, a professor of English at UC Santa Barbara, heads the breakout group that will define what AI literacy means for UC, and will make recommendations on how to cultivate AI in classrooms across the UCs. The big question the working group is grappling with, Raley said: What every student needs to know about artificial intelligence.

    “If we are indeed moving toward automated education, then we have to ask what a UC degree will mean. It will have to mean more than skills because these too can be automated,” she said. “... [W]e must now give students the critical judgment to ask what this technology is, who needs to be accountable for it, how to use it, when to refuse it, and what it could be instead.”

    Jayha Buhs-Jackson, UCLA’s undergraduate student body president, says she does not like AI, so she does not use it.

    She agreed that the university does not have a “succinct” AI policy. Some of her professors, Buhs-Jackson said, strictly do not allow AI in the classroom; others allow it for research and coding.

    She said UCLA has its own internal AI committee, which she was just appointed to.

    “ I'm curious to see … how I could use my voice as president to discuss and uplift the undergraduate student voice related to AI at UCLA,” she said.

    UC vs CSU approach

    The UC system currently does not have a single systemwide AI product or mandatory AI protocols in place.

    Instead, “eligible employees have access to frontier AI tools from a variety of vendors including OpenAI, Microsoft and Google. Access is intended to support activities such as analysis, research, learning, and operational efficiency,” a University of California spokesperson said.

    The university system also has a Master Service Agreement in place with OpenAI, but it does not include a minimum spend commitment or prepurchased licenses. Schools under the UC umbrella can purchase OpenAI products through the agreement.

    UC’s approach stands in contrast to the one California State University took.

    In 2025, the nation’s largest public university system signed a nearly $17 million contract with OpenAI and made a suite of ChatGPT tools available to all its faculty and students.

    At the time, CSU spokesperson Amy Bentley-Smith told LAist, the goal was for all students to have “the same access to the tools and learning opportunities that will prepare them for the future,” regardless of which campus they attend.

    Still, the rollout was heavily criticized as students and faculty were left on their own to figure out how to use AI. And in a 2025 survey of CSU students, over 60% said AI has negatively affected their learning experience.

    What's the best approach for schools?

    The different approaches taken by California’s public university systems demonstrate that higher education is still grappling with how to confront — or embrace — this technology.

    Universities across the nation have to find ways to work with AI, said Justin Reich, a professor of digital media and the director of the Teaching Systems Lab at MIT.

    We don't want our brains to atrophy while we're trying to get better at what we're doing.
    — Stephanie Valadez, UCLA student

    But we also do not have a framework for what to do or how to implement AI in higher education, he added.

     ”The right strategy is to come up with a systematic series of experiments, where you're testing hypotheses, in particular, by looking at student learning experiences and student learning outcomes,” Reich said.

    The University of California’s AI steering committee overall is tasked with “developing a coordinated approach that allows UC to use its systemwide scale while recognizing the distinct needs of its campuses, medical centers, laboratories, faculty, researchers, staff, and students,” according to a University of California spokesperson.

    Reich said it is great that the University of California has multiple voices involved in the steering committee.

    “I  would encourage any university system to have students play a central role in directing their AI response pretty much at all levels,” he said. “Especially in a system as complex as UC, where you have so many students that have so many different kinds of expertise.”

    The UC AI steering committee has one student voice on it. Stephanie Valadez, an ethnomusicology graduate student at UCLA and president of the UC graduate and professional student council, says she would like to see more. She’s concerned about the environmental impact of AI and the negative impact on “underrepresented communities that are living near these data centers,” she said.

    In the classroom, she hasn’t had to use AI.

    “ All of my professors say, ‘Don't use AI. Just don't use ChatGPT, don't use Claude, don't use any of that stuff,’ for multiple reasons,” she said. “Being in the music department, as an artist, we also are very conscious of having our work stolen, having what we produce then go on to train AI.”

    The training a Ph.D. student is seeking, Valadez said, you would not get from AI.

    “ We don't want our brains to atrophy while we're trying to get better at what we're doing,” she said.

    What comes next for UC

    UC San Diego and UC Irvine, Valadez said, have rolled out TritonGPT and ZotGPT, but she’s heard from other board members that students aren’t using  the AI tools as much as the university would like them to, adding that there has been “a lot of pushback from students.”

    James Milliken, the University of California president, said the committee’s guiding principle is AI “for humans and for humanity” and how it “ can advance human potential, not diminish it.”

    The committee had its first meeting in June, where five working groups were created to explore how to use AI in clinical research, curriculum development and “public benefit” among other things.

    Come October 2027, the committee will come to Milliken with a proposal for a UC sovereign AI cloud. This means UC could have its own hardware and processing power to build, run and train AI models.

  • City is left as last major funder of LAHSA
    LAHSA-COMMISSION
    A presentation during a LAHSA Commission meeting on Friday, April 25, 2025.

    Topline:

    The city of L.A. is now left as the last remaining major funder of L.A.’s embattled homelessness agency — known as LAHSA — after the agency decided this week to give up management of federal dollars and L.A. County pulled its funding this summer.

    The backstory: The L.A City Council has debated withdrawing funds for years, but is still in the process of hiring a consultant to come up with a plan.

    Corruption charges: This week, federal prosecutors announced new fraud and bribery charges over homelessness funds that flowed through LAHSA. They allege a nonprofit founder siphoned $1 million in taxpayer funds into a high-end nightclub and a nearly $50,000 trip to Tahiti. It’s the latest fallout around LAHSA, which for years has seen outside audits and reviews find that it’s failed to adequately oversee taxpayer spending.

    What the mayoral candidates say: L.A. Mayor Karen Bass and her mayoral challenger, Councilmember Nithya Raman, both say they want the city to pull its funds and directly manage them. In recent weeks on the campaign trail, Raman has promised an exit within her first year as mayor if elected, while Bass this week said it would take “a couple of years.”

    This week, Los Angeles' embattled homelessness agency made a major shift when it decided to no longer conduct the region's annual homeless count and give up management of over $200 million in annual federal funds aimed at addressing homelessness starting next month.

    The day after the shift, federal prosecutors announced new fraud and bribery charges over homelessness funds that flowed through the agency. They allege a nonprofit founder siphoned $1 million in taxpayer funds into a high-end nightclub and a nearly $50,000 trip to Tahiti, among other claims. The founder's attorney has not responded to requests for comment.

    It’s the latest fallout around the L.A. Homeless Services Authority, known as LAHSA, which for years has seen outside audits and reviews find that it’s failed to adequately oversee taxpayer spending.

    In response to one of those audits, L.A. County decided a year and a half ago to pull its roughly $300 million per year from LAHSA — moving it into a newly created county homelessness department.

    Until this year, LAHSA was funded by three main sources: the county, the city and the federal government.

    With LAHSA’s decision this week to bow out of federal funding, the city of L.A. is now left as its last remaining major funder.

    The L.A City Council has debated withdrawing funds for years, but is still in the process of hiring a consultant to come up with a plan.

    L.A. Mayor Karen Bass and her mayoral challenger, Councilmember Nithya Raman, both say they want the city to pull its funds and manage them directly. In recent weeks on the campaign trail, Raman has promised an exit within her first year as mayor if elected, while Bass this week said it would take “a couple of years.”

    A woman with medium skin tone with short curly light brown hair wearing black-rimmed glasses and a black jacket with the seal of Los Angeles stands behind a podium speaking into a microphone.
    L.A. Mayor Karen Bass speaks at a press conference before LAHSA's annual homeless count on Tuesday, Feb. 18, 2025, in Los Angeles.
    (
    Carlin Stiehl
    /
    LAist
    )

    In June and July, Bass’ office said she took steps toward exiting LAHSA, saying she directed city housing staff to come up with a plan for the city to leave the agency. Those staff told LAist they’re not aware of any such directive, and Bass’ office has not responded to follow-up questions.

    No decisions yet from city

    Three years ago, as the L.A. City Council’s homelessness committee was expressing frustration at years of inaccurate and incomplete performance data from LAHSA, a council member said the council had failed to examine alternatives that could take over management of the funding from the agency.

    “ We have to have something in place. And I think what we failed as council is to start talking [through] the questions about what that would mean,” Councilmember John Lee said at the time.

    “ We need to make sure that we take a look at those options. Otherwise, every year, we're going to be coming here … having the same exact conversations.”

    How to reach me

    If you have a tip, you can reach me on Signal. My username is ngerda.47.

    The next year, county auditors found that LAHSA had failed to properly track and oversee the money it managed.

    The City Council then voted in March 2025 to study letting the city contract directly with homeless service providers, bypassing LAHSA.

    It was about a year before council members discussed next steps at a meeting.

    This April, the council's Housing and Homelessness Committee — chaired at the time by Raman — recommended shifting city-funded programs away from LAHSA over the course of the current fiscal year. They recommended a July 1 deadline for a plan to be provided. That date came and went without the full council directing that a plan be created.

    A person with light-brown skin tone and dark hair pulled back speaks at a podium into a microphone, wearing a mustard-colored turtleneck and gesturing with one hand. Behind them stand three people.
    City Councilmember Nithya Raman speaks ahead of the annual homeless count on Jan. 20, 2026.
    (
    Jordan Rynning
    /
    LAist
    )

    The full council approved money for a consultant on Aug. 4, when it voted to allocate $450,000 to "rapidly hire" outside experts to study a transition plan.

    That consultant hasn’t been hired yet. A competitive bidding process is underway, according to City Administrative Officer Matt Szabo.

    "We are required to solicit bids for that work and are currently in the procurement process," Szablo said via email.

    Mounting federal and legal pressure

    The city's deliberations are unfolding against escalating scrutiny of LAHSA itself.

    In June, the Trump administration suspended the agency from federal homelessness dollars, citing what it called a pattern of fraud, failure and flagrant mismanagement. Administration officials at the U.S. Department of Housing and Urban Development, or HUD, pointed in part to the case of Abundant Blessings, a nonprofit whose director, Alex Soofer, was criminally charged in January with siphoning at least $10 million in homelessness funds that flowed through LAHSA.

    An LAist investigation found LAHSA had approved at least $3.5 million in contracts to Soofer's nonprofit even after its own compliance team flagged the group as high-risk for failing to do its job. Soofer recently agreed to plead guilty to diverting $2 million and previously repaid LAHSA $1.25 million.

    LAHSA sued to block the federal suspension of homelessness dollars, arguing HUD's evidence was thin and its process abrupt. In an August ruling, U.S. District Judge David Carter paused the suspension pending further hearings, writing that LAHSA "may be dysfunctional" but that federal officials had "abruptly" pulled funding from providers serving thousands of people.

    This week, LAHSA gave up trying to continue its federal responsibilities, just before prosecutors announced the new charges against LAHSA vendors.

    LAist reporter Aaron Schrank contributed reporting to this story.