Trump administration pauses funding to LA homeless agency citing ‘fraud’
LOS ANGELES (KESQ) - The U.S. Department of Housing and Urban Development today has suspended federal funding to the Los Angeles Homeless Services Authority, essentially cutting off millions of dollars to the L.A. region, over allegations of fraud and widespread mismanagement.
HUD's Office of Inspector General opened an investigation into LAHSA, Secretary Scott Turner announced Thursday, adding that the agency has "uncovered evidence of LAHSA's false statements and its irresponsible actions and failures,'' including a lack of financial management and lack of safeguards
against conflicts of interest.
The Los Angeles Continuum of Care, led by LAHSA, has received nearly $1 billion in taxpayer dollars over the last five years. Despite federal assistance, L.A. remains the epicenter of the nation's "drug-fueled" homeless crisis, according to Turner.
"Under President Trump's leadership, HUD will fund results, not corrupt failure or the homeless-industrial complex,'' Turner said in a statement. "Year after year, hundreds of millions of taxpayer dollars were funneled to LAHSA with little accountability. Meanwhile, homelessness skyrocketed. Taxpayers will no longer bankroll an organization that puts its own self-interests ahead of the Americans it was created to serve."
LAHSA officials pushed backed on the federal government's claims, stating that its actions could put thousands of formerly homeless people back on the street.
"LAHSA received a letter from HUD announcing a suspension of CoC funding. After initial review, this appears to be a blatant attempt to pull yet more resources from Los Angeles, a city they have targeted time and again, when it is clear that LAHSA has either corrected or is in the process of correcting nearly all of the issues raised,'' according to a statement from LASHA.
The organization maintained that local oversight actions have already resulting in strong repairs and reforms to LAHSA's internal controls, which officials said are "accountable and viewable to the public."
"If HUD's Inspector General actually conducts a fair review of LAHSA's current and future practices, they will clearly see how our systems now allow us to clearly track the work and investments that have resulted in L.A. outperforming the nation by reducing homelessness over the last two years,'' LAHSA said in it's statement.
"While the review plays out, our immediate priority is to explore all available options to ensure that federal funds continue to support the thousands of people who have been housed through LAHSA and our broader rehousing system,'' the statement continued.
