HUD suspends federal funding to Los Angeles homeless agency

The Department of Housing and Urban Development has suspended tens of millions of dollars in federal funding to the Los Angeles Homeless Services Authority, citing allegations of fraud and mismanagement. The suspension, effective immediately, will remain in place while the agency's inspector general conducts an investigation.

In a letter sent to LAHSA Board Chair Wendy Greuel and CEO Gita O'Neill, HUD officials stated that suspending the agency's participation in federal programs was a necessary step. The letter accused LAHSA of "obvious fraud" and "wanton mismanagement" of public funds. It noted that Los Angeles County has already withdrawn its funding for the agency and that the City of Los Angeles is considering similar action.

HUD, a member of the White House Fraud Task Force led by Vice President JD Vance, detailed a series of issues prompting the suspension. These include conflicts of interest, financial mismanagement, and a lack of oversight. The letter referenced a federal judge's conclusion last year that LAHSA had committed fraud by allegedly requesting funding for an 88-bed shelter while knowing it was operating at roughly half capacity. It also cited LAHSA's...