LOS ANGELES — The Los Angeles City Council Tuesday voted to study a possible transition away from the Los Angeles Homeless Service Authority so the city can contract directly with homeless service providers rather than deliver such services through the joint city-county agency, which has been questioned for alleged misuse of funds and lack of transparency.

In a unanimous vote, council members advanced a motion introduced by Councilwoman Monica Rodriguez and Councilman Bob Blumenfield on Nov. 22, 2024, which called for a study on the feasibility of bypassing LAHSA.

The homeless agency was created in 1993 to address homelessness in Los Angeles 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 LA Continuum of Care, which encompasses all cities in the region — with the exceptions of Long Beach, Pasadena and Glendale.

"We have the elephant in the room, and it's LAHSA," Rodriguez said. "We've continued to see the failures."

"There's not much more data that we can see that will confirm what we already know to be true — this monstrosity has been funded with taxpayer dollars from multiple sources, and it continues to fail to perform," she added.

The council members authored the motion in response to findings of last year's LA County Auditor-Controller audit. Data showed that LAHSA provided $50.8 million of Measure H funds to nonprofit service providers in fiscal year 2017-18 without formal agreements to determine how and when the funds would be repaid. LAHSA has taken steps to recoup that money, but it has only recovered $2.5 million, or 5%, as of July 8, 2024.

Additionally, approximately $409,000 was given to six subrecipients, who no longer contract with LAHSA. County auditors stated that LAHSA allegedly misused funds by paying for services under another government funder's contract or grant.

According to the motion, the city administrative officer, Housing Department and the Mayor's Office coordinate and manage overlapping homelessness programs. The CAO and Mayor's office focus more on service coordination and delivery, while housing staff provides some oversight of the city's contract and relationship with LAHSA.

According to the motion, the city administrative officer, Housing Department and the Mayor's Office coordinate and manage overlapping homelessness programs. The CAO and Mayor's Office focus more on service coordination and delivery, while housing staff provides some oversight of the city's contract and relationship with LAHSA.

A most recent audit of LAHSA, authorized by a federal judge and funded by the city of LA found that the agency made it impossible to accurately track spending or the performance outcomes of its vendors.

Rodriguez also criticized LAHSA CEO Va Lecia Adams Kellum for alleged ethics violations reported by LAist, including a $2.1 million contract with her husband's employer.

"We can't continue to fund the failure, and we need to separate ourselves, and begin the work of creating the systems in place," Rodriguez said. "The county is already beginning that work and having those conversations. We can't get left being strapped to this sinking Titanic."

Council members noted that there's a barrier between city oversight and service outcomes — an issue exacerbated by ongoing changes to contracts.

In a bid to address these concerns, council members authorized the creation of a new bureau to provide oversight of homelessness service providers' performance and outcomes. City staff will later report on details of the new entity, which will live in the Housing Department.

The LA County Board of Supervisors has approved a motion to explore the creation of a county department to centralize homeless services. The city is also exploring similar action.

LAHSA officials have disputed some of the findings of these 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.

Last week, officials at the agency said they anticipate a 5% to 10% decrease in unsheltered homelessness in the region, which would mark the second consecutive year of such a decline.

The preliminary results are in line with last year's outcome, which showed a 10.7% and 5.1% decrease in unsheltered homelessness within the city and the county of Los Angeles, respectively. The final results of the 2025 count are expected to be released in late spring or early summer.

"When I first came to LAHSA, I publicly stated that we wanted to reduce unsheltered homelessness within three years," Kellum said in a statement. "We've done it in two."

The agency hailed the early results, which officials say show the region is on the right track to "solving" homelessness.