LA City Attorney agrees to approve tenant aid after withholding signature for more than a year

Long-term eviction defense funding for Los Angeles renters could soon begin to flow now that city officials have announced a break in an impasse dating back to May 2025.

L.A. City Attorney Hydee Feldstein Soto said Thursday she intends to sign a new $107 million contract with the Legal Aid Foundation of L.A. She said the contract — which was approved by the City Council and the mayor in April, but still awaits her approval — was “nearly finalized.”

“I am fully committed to supporting these crucial eviction defense services for our vulnerable neighbors in need,” Feldstein Soto said in a statement.

Feldstein Soto — who will not secure a second term after placing third in last month’s primary election — pledged to continue investigating the legal aid group. She has frequently criticized the nonprofit for what she sees as a lack of transparency, though L.A. Housing Department officials say the group has consistently provided accounting and caseload data to the city.

“Taxpayers deserve transparency and accountability and to know that their money is being used as intended,” Feldstein Soto said.

Barbara Schultz, a Legal Aid Foundation attorney overseeing the city-funded Stay Housed L.A. program, said both parties have been negotiating final contract details for more than a week. She said the city attorney’s announcement was encouraging.

“[Feldstein Soto] said she was going to approve the contract, so I'm very excited to hear that,” Schultz said. “Moving forward… we can continue to grow, fully implement the ‘Right to Counsel,’ and tenants in Los Angeles will be much better off as a result.”

In response to Feldstein Soto’s claims that more than $58 million in eviction defense grants remain “unaccounted for” in the foundation’s financial audits and IRS forms, Schultz said taxpayer dollars have not been misspent and that no findings have been made to that effect.

“[The Legal Aid Foundation] is a very large nonprofit law firm that has over 40 federal, state and local government contracts,” Schultz said. “We are very used to being audited. Any audit the city wants to do to satisfy itself is absolutely fine with us.”

Feldstein Soto denied a five-year contract to the legal aid group last year, arguing it should have gone through a competitive bidding process. After the city solicited applications and selected the group for new long-term funding, she later told city councilmembers in a confidential memo that they should consider withholding support for “a frequent litigant against the city.”

While she announced the contract should be ready for her signature by July 7, Feldstein Soto said her office would move forward with plans to assign forensic accountants to study how the legal aid group has spent more than $90 million in city funds since 2021.