In an effort to fix an embattled system critics have called fragmented, disorganized and unaccountable, the Los Angeles County Board of Supervisors voted on Tuesday, April 1 to create its own homeless services department.
The seismic move comes despite objections from several Los Angeles City Councilmembers who said the process of creating a county department that moves taxpayer funds from the Los Angeles Homeless Services Authority (LAHSA), a joint-powers agency between Los Angeles city and L.A. County, will deeply impact the city’s response to homelessness.
“I am disappointed to see the county moving Measure A dollars from LAHSA,” City Councilmember Nithya Raman told the board. “I fear we are moving from one said bureaucracy to another.”
However, Supervisor Lindsey Horvath, a co-author of the motion who has expressed a strong desire to move away from LAHSA, said the county will cut the joint agency’s administrative budget and build a one-stop, cohesive system for moving the unhoused off the streets in both L.A. city, L.A. County and the rest of the cities in the county.
“The status quo is not serving anyone,” Horvath said. “The possibilities are endless if we are unafraid to say yes to a new beginning.”
The new county homeless department will be the county’s largest department, with about 1,000 employees managing about $1 billion. The new department will be established by Jan. 1, with complete funding moving from LAHSA programs to the county department by July 1, 2026.
It will report directly to the Board of Supervisors. LAHSA will continue to conduct the Greater Los Angeles Homeless Count, as well as provide services through contract agencies.
“We need to treat homelessness like the crisis it is — but problems with LAHSA (including contract delays and unaccounted funds) have been roadblocks. It’s time to make a change,” said Supervisor Janice Hahn.
Most of the new department funding comes from Measure A, approved by voters in November, that increases the existing sales tax for homeless services by one-quarter cent. The motion for a new county homeless services department falls on the same day Measure A takes effect.
It is estimated the new measure will bring in about $1 billion annually. The measure will maintain existing programs and provide more revenue to address the homelessness crisis in the region. It also sets aside funds for preventing people from becoming homeless, and for building more affordable housing units in L.A. County.
The action comes on the heels of a county audit and other reports that point blame at LAHSA for not responding to the homeless crisis in a timely manner and not always accounting for expenditures of taxpayer dollars.
The county’s Auditor-Controller’s Office released an audit on Nov. 20, spelling out numerous deficiencies regarding the fiscal practices of LAHSA. These included no agreements with partners for repaying cash advances from the county; failing to timely reimburse nonprofits in the field for services even when money was available; inadequate controls over contract reviews or cash payments and inappropriate use of funds.
The homeless agency was created in 1993 to address homelessness in the county. It is the lead entity that coordinates and manages federal, state, county and city funds for shelter, housing and services to people experiencing homelessness throughout the L.A. Continuum of Care, which encompasses all cities in the region — with the exceptions of Long Beach, Pasadena and Glendale.
LAHSA officials have disputed some of the findings of the audits and urged officials to continue their partnership. The homeless agency has begun efforts to bolster transparency through the creation of accessible databases, which better track available shelter beds and outcomes of services, Va Lecia Adams Kellum, CEO of LAHSA, told the board.
Adams Kellum told the board the county has seen a reduction in unsheltered homeless two years in a row.
However, the new county homeless department will include extensive streamlining of LAHSA. It may include moving about 300 LAHSA employees over to the new county department by early July, the county reported.
“This is a chance for the county to learn from past mistakes and build a system of care that is set up to succeed and better serve those in need,” read the motion approved by a 4-0 vote, with Supervisor Holly Mitchell abstaining.
The motion, written by Supervisors Horvath and Kathryn Barger, says one county department overseeing all taxpayer funding and services for people experiencing homelessness will be more effective.
“A transparent, efficient system overseen by one entity, directly responsible to the Board of Supervisors and held accountable to clearly defined performance-based outcomes, will both empower the county to act and hold the county directly responsible for the voter-approved funding from Measure A,” read the motion.
Funding would be redirected from LAHSA to the new county department. LAHSA employees would also get first shot at working at the new county department.
Last week, the board approved its homeless funding plan, which allocated $656 million from Measure A, $209 million in unspent Measure H funding (the homeless services tax being replaced by Measure A) and $42.6 million in state grants.
Last year the homeless count reached 75,312 in Los Angeles County.
The city of West Hollywood endorsed the move. Mayor Chelsea Lee Byers wrote in a letter to the board:
“The streamlining of systems and the consolidation of human and other needed resources under the oversight of one County Department will maximize operational efficiencies, increase transparency and bolster accountability by having dedicated, experienced leadership at the Department’s helm.”
Other key aspects of creating the county’s new homeless services department include:
• Begin a 30-day national search for the new department’s director
• A transition team would establish and budget for new positions using Measure A funds and unspent funds from LAHSA
• Making sure there are no disruptions to services currently being provided
Related links
LA County Board of Supervisors wants a new department for homeless services ‘No accountability’ for homeless services in LA city and county, judge says Homeless agency hit by critical audit; Horvath calls for new homeless department Sales tax bump in LA County starts Tuesday for homeless prevention measures The largest point-in-time homeless count in the U.S. is underway in LA County
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