County Forms Homeless Agency, Taking Hundreds of Millions from LAHSA

Introduction to the Plan

The Los Angeles County Board of Supervisors approved a plan to move hundreds of millions of dollars out of the region’s homeless services agency on Tuesday, despite warnings from L.A. Mayor Karen Bass about creating a “massive disruption” in the region’s fight against homelessness.

The Vote and Its Implications

On a 4-0 vote, the supervisors signed off on the strategy to form a new county homelessness department with a budget that would almost immediately exceed $1 billion. By July 2026, the supervisors will move more than $300 million from Measure A, a half-percent sales tax, out of the Los Angeles Homeless Services Authority, or LAHSA, and into the new county agency.

Impact on LAHSA and City Council

More than 700 county workers will be transferred to the new agency by Jan. 1. Six months later, the new department will finish taking on hundreds more employees from LAHSA, a joint city-county agency that has been derided for years by City Council members, county supervisors, and other officials. The vote was a serious defeat for Bass, who had argued that the changes would result in the creation of yet another bureaucracy, while diverting energy away from efforts to move people indoors. With a huge chunk of its budget slated to disappear, LAHSA’s long-term future is now in question.

Rationale Behind the Decision

County supervisors said the changes will give them more direct oversight, and ultimately, greater accountability, over the funds generated by the Measure A half-percent sales tax, which went into effect on Tuesday. That measure, which provides funding for an array of housing and homelessness services, served as a replacement for Measure H, a quarter-percent sales tax approved in 2017.

Reaction from City Officials

Hours before the meeting, Bass and City Councilmember Nithya Raman, who heads the council’s homelessness committee, sent the supervisors a letter warning that the changes would ultimately deprive the city of “essential resources.” “This action would create a monumental disruption in the progress we are making and runs the serious risk of worsening our homelessness crisis, not ending it,” they wrote.

The New Agency and Its Structure

The new agency will be modeled after the county Department of Health Services’ Housing for Health program, which Supervisor Lindsey Horvath called the “the most successful program across anything being done in the county to date.” That initiative has a high success rate of moving people into permanent housing and keeping them housed. Housing for Health began in 2012 to house homeless patients who rotated through the county’s public hospitals and has since expanded to more than 600 workers and an $875-million annual budget.

Programs and Services

The program includes homeless outreach teams, financial assistance for tenants at risk of eviction, and funds for roughly 3,200 interim housing beds. “We can do big things — things that work,” Horvath said. “Housing for Health works, and the Board of Supervisors created it.”

Concerns and Criticisms

But Supervisor Holly Mitchell, whose South L.A. district stretches from Koreatown to Carson, warned her colleagues that they were moving too quickly — and without a clear strategy to ensure the replacement agency will perform better than LAHSA. Mitchell attempted to postpone the start date for the new agency, only to be outvoted. She abstained from voting on the proposal itself.

Conclusion

The formation of a new county homelessness department and the significant transfer of funds from LAHSA mark a major shift in how Los Angeles County approaches homelessness. While the move is intended to increase oversight and accountability, critics fear it may disrupt progress and worsen the crisis. The success of this new agency will depend on its ability to effectively manage the funds and services, providing tangible solutions to the complex issue of homelessness.

FAQs

1. What is the main purpose of forming a new county homelessness department?

   • The main purpose is to give the county more direct oversight and accountability over the funds generated by Measure A, a half-percent sales tax, to combat homelessness more effectively.

2. How much money will be moved from LAHSA to the new agency?

   • More than $300 million from Measure A will be moved out of LAHSA and into the new county agency by July 2026.

3. What is the reaction from city officials to this plan?

   • City officials, including L.A. Mayor Karen Bass, have expressed concerns that the changes will create a “massive disruption” in the region’s fight against homelessness and deprive the city of essential resources.

4. What model will the new agency be based on?

   • The new agency will be modeled after the county Department of Health Services’ Housing for Health program, which has been successful in moving people into permanent housing and keeping them housed.
5. What are the concerns regarding the implementation of the new agency?
   • There are concerns about the speed of implementation and the lack of a clear strategy to ensure the new agency performs better than LAHSA, potentially worsening the homelessness crisis.