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Options begin to emerge for how LA will handle homeless services after LAHSA
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Tents line the sidewalk along 5th Street in downtown L.A.
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As L.A. considers pulling funding from the L.A. Homeless Services Authority, the City Council is weighing whether to contract directly with providers or through L.A. County’s new homelessness department.
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LA City Council considers LAHSA alternatives after county funding was cut
It could be months before a final decision is made, but potential paths forward are beginning to take shape.
The search for alternatives to LAHSA comes after the L.A. County Board of Supervisors voted in April to withdraw more than $300 million in annual funding from LAHSA by July 2026 and transition to a new Department of Homeless Services and Housing. City Council President Marqueece Harris-Dawson said in April that the county’s withdrawal meant LAHSA “has effectively ended.”
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Charting a path
A report by city analysts released this week recommended a pilot program to test contracting directly with service providers. Analysts recommended using Mayor Karen Bass’ Inside Safe Program as a test case, removing LAHSA from the program’s contracts and instead managing those contracts through city staff.
A full transition to direct contracting with service providers could begin in July 2026, according to city analysts.
Councilmember Monica Rodriguez said going directly to service providers would save the city money and improve transparency.
“We pay more to outsource that work to LAHSA than what it would cost for us to do it in-house,” Rodriguez told LAist in an interview. She added that the move would give the city “greater accountability and oversight,” ensuring taxpayer money is spent efficiently.
Meanwhile, Councilmembers Bob Blumenfield and Eunisses Hernandez on Wednesday introduced a plan for the city to look into contracting services through the county. Blumenfield told LAist this could reduce bureaucracy and potentially save more money than direct contracting, which would require up to 89 new city staff positions.
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“ What I'd love to see is the city and county working together,” Blumenfield told LAist, “and roles and responsibilities being more clear and not being mired in all this bureaucracy.”
The report introduced Wednesday will still have to make its way through multiple council votes and could take about 45 days to be presented to the City Council.
In the end, the city could also decide to continue funding LAHSA, but council members have expressed concerns with that option.
“ That's the path of least resistance, but it also may be the path of least effectiveness, too,” Blumenfield said.
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