City attorney has left $177M tenant aid contract unsigned for months. LA leaders want to know why

Nearly three months ago, the Los Angeles City Council voted to fund homelessness prevention programs to the tune of $177 million. Despite approval by Mayor Karen Bass, the funding still has not been cleared by City Attorney Hydee Feldstein Soto.

Now, city leaders want answers about the delay.

A motion introduced earlier this week by Councilmember Ysabel Jurado said the “contracts remain unexecuted without explanation.” The motion goes on to say the setback has caused “$17 million ... in emergency rental assistance to sit unused” and has put “services for those at risk of homelessness in jeopardy.”

If passed by the council’s Housing and Homelessness Committee and later approved by the full council, Jurado’s motion would call on Feldstein Soto to report back to the council within 30 days about the reasons for the delay.

Representatives with the City Attorney’s Office did not respond to LAist’s repeated requests for comment.

Tenant aid providers said they’ve entered their third month without funding from the city. They said without an executed contract, legal aid organizations may soon have to lay off staff and stop taking eviction cases.

“The people who are providing the services are all in nonprofit organizations that don't have a great deal of extra funding to cover this contract that isn't being paid,” said Barbara Schultz, housing director at the Legal Aid Foundation of Los Angeles.

How we got here

Feldstein Soto has held up the tenant aid funding since April 2025, when she refused to sign a previously approved five-year funding deal with the Legal Aid Foundation. At the time, she argued the contract should have gone through a competitive bidding process.

City officials responded by putting out a request for proposals. They ultimately selected the Legal Aid Foundation, along with several other tenant rights groups, to receive funding set aside for rent relief, tenant education, enforcement of the city’s tenant anti-harassment ordinance and programs that provide free attorneys to tenants facing eviction.

Much of the funding for these homelessness prevention programs comes from the city’s Measure ULA, also known as the L.A. “Mansion Tax.” That tax is now facing potential elimination from a statewide November ballot measure from the Howard Jarvis Taxpayers Association.

The city attorney’s tenant rights track record 

Feldstein Soto has frequently clashed with tenant rights advocates.

She previously attempted to remove the word “right” from the city’s “Right To Counsel” ordinance, which supplies free eviction defense attorneys to qualified tenants.

Feldstein Soto also has faced criticism for not prosecuting more landlords accused of rent gouging in the wake of the 2025 Palisades and Eaton fires.

She also was accused of failing to defend the rights of tenants at the high-rise apartment complex Barrington Plaza, who went to court to successfully fight wrongful evictions from landlord company Douglas Emmett, which donated to a campaign opposing Feldstein Soto’s opponent in the 2022 election.

Feldstein Soto launched an audit of the Legal Aid Foundation last year. So far, no findings have been released.

Schultz said the organization has provided all the financial and administrative documentation requested by the L.A. Housing Department related to the contracts.

Why it matters for renters

The Legal Aid Foundation is the lead contractor for the city’s eviction defense funding, but the money is shared with other legal aid organizations as well.

Elena Popp, who leads the Eviction Defense Network, said her small team of lawyers can’t continue to take on tenant cases until funding is approved.

“We're contemplating layoffs effective June 15 unless we can raise the part of the money that is our budget from the city,” Popp said. “If we lay people off, then tenants won't be served.”

Anna Urena, a paralegal with the Eviction Defense Network, says her organization would normally do intake for about 300 tenants per month.

“We're not taking on new cases. We're not representing new people right now because we don't know what's going to happen,” she said. “We really cannot leave our tenants behind.”

What’s next?

Jurado’s motion has not yet been scheduled for a vote in the council’s Housing and Homelessness Committee.

Based on her third-place showing so far in the June primary election results, it appears Feldstein Soto will not be L.A.’s city attorney much longer. Popp said Feldstein Soto’s lame duck status doesn’t bode well for the contract getting signed soon.

“She now has no incentive to sign, and pressure on her will not get her to sign,” Popp said. “If that happens and the City Council doesn't take charge of this, maybe hire outside counsel to get the approval, then we won't see any money until the new city attorney comes in.”