Top LA officials spar over who should oversee city’s homelessness spending: ‘LAHSA twilight zone’

Two of L.A.’s top elected officials are publicly clashing over one of the public’s top issues — the future of homeless services spending — as city council members weigh pulling $300 million a year out of the troubled L.A. Homeless Services Authority (LAHSA).

It started just after Wednesday’s meeting of the city council’s housing and homelessness committee, where members discussed the possibility of directing the city’s homelessness spending to the county’s new department. Mayor Karen Bass issued a statement urging the council not to redirect the funds too quickly without a plan.

“The county’s decision to establish its own department and withdraw from LAHSA has created a funding and operational gap, which the city must immediately address in order to ensure life-saving services for unhoused Angelenos are not disrupted,” Bass said.

County supervisors decided last April to withdraw their funding — over $300 million a year — from LAHSA and shift it to a new county department starting this July.

“The last thing we need is a new department and more bureaucracy,” the mayor said, adding the county had been “prioritizing bureaucracy rather than services.”

County Supervisor Lindsey Horvath responded shortly after with a statement of her own, saying the mayor “is living in the LAHSA twilight zone.”

“When the mayor created a new program — spending hundreds of millions of your dollars without prior City Council approval — she called it ‘strategic,’” said Horvath, referring to Bass’ Inside Safe program.

“Now, when the County withdraws hundreds of millions of your dollars from an agency that failed multiple audits, she calls it ‘more bureaucracy.’”

Audits released in late 2024 and last spring found LAHSA failed to properly track the hundreds of millions of dollars the city and county entrusted to it per year.

“Angelenos know the truth: The current system doesn’t work,” Horvath’s statement said. A spokesperson for Bass didn’t respond to a request for comment on Horvath’s criticism.

‘Wasted precious time’

Wednesday’s discussion by the homelessness committee came a year after city and county officials received staff reports about potential alternatives to LAHSA.

County supervisors made their decision last April. The city council is about a year behind in starting its discussion of the options.

City Councilmember Monica Rodriguez, who introduced the motion two years ago requesting the city report up for discussion Wednesday, said at the meeting the council had “wasted precious time.”

 ”This is a leadership failure,” Rodriguez said. “If you care about the people that are being lost in the street, then you should care to work with urgency and decisive action.”

She has criticized the committee’s chair, Nithya Raman, for waiting more than 300 days after the report was finished before bringing it forward for discussion.

Raman did not respond to the criticism during the meeting or in response to a request for comment from LAist.

At Wednesday’s meeting, council members were told in their official staff briefing that the city lacks officials dedicated to homelessness policy and that it would likely take a year and a half to bring oversight of the spending in house to direct city control.

Homelessness Bureau not ready

Bass’ statement pointed to a forthcoming Homelessness Bureau, a team in city government she said will focus on oversight and accountability over homelessness spending.

Raman said the bureau is not yet ready to monitor homelessness spending or advise the council.

“We have not hired a single person for the bureau yet,” said Raman, who championed the bureau a year ago. City council approved the bureau’s funding nine months ago, for the fiscal year starting last July.

Rodriguez criticized the council’s decision last spring to pursue the bureau instead of discussing options to shift funding from LAHSA. The bureau, she added, still does not have “ an overarching goal, which addresses the concerns around governance” of homelessness dollars.

Raman recently announced she’s running for mayor against Bass, something Horvath openly considered but opted not to do. She is instead running for re-election as supervisor.

The committee plans to hold one more discussion in the coming weeks, before deciding next steps. Any changes to funding would have to go to a vote of the full city council.