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Options begin to emerge for how LA will handle homeless services after LAHSA
Tents line the sidewalk along 5th Street in downtown L.A.
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Ethan Ward
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LAist
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LA City Council considers LAHSA alternatives after county funding was cut
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.
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.
Listen
0:40
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.
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The project runs on an approximately four-mile stretch of the street between North Mission Road near LAC+USC Medical Center and Alhambra/South Pasadena.
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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But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
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