LAHSA Sues Trump Administration To Protect Over 11,000 Angelenos

FOR IMMEDIATE RELEASE

LOS ANGELES - Today, the Los Angeles Homeless Services Authority (LAHSA) filed a lawsuit against the U.S. Department of Housing and Urban Development (HUD) after HUD moved to suspend critical federal homelessness funding for the Los Angeles region.

LAHSA's legal action seeks to prevent any interruption of federal resources that currently support housing and services for more than 11,000 people across Los Angeles County.

HUD's action threatens funding that helps formerly homeless individuals and families remain housed. If those resources are withdrawn, thousands of people could lose access to the housing assistance and supportive services that helped them leave homelessness behind.

"We are taking this step to protect formerly unhoused people who found a permanent home," said Gita O'Neill, LAHSA's Interim Chief Executive Officer. "The people who will be harmed by this decision are not bureaucrats. They are families, veterans, seniors, and formerly homeless Angelenos who rely on these resources to remain housed. We must do everything in our power to ensure those funds continue reaching the people who rely on them."

On June 11, 2026, HUD notified LAHSA of its intent to suspend federal Continuum of Care funding that LAHSA administers throughout the Los Angeles region. HUD cited prior financial reviews despite extensive corrective actions already undertaken by LAHSA and ongoing efforts to modernize its financial systems and strengthen internal controls.

LAHSA's lawsuit strongly disputes the legal and factual basis for the suspension and believes the action unjustifiably threatens housing stability for thousands of vulnerable residents. The legal brief cites several inaccuracies and misrepresentations in HUD's notification letter to LAHSA, including improperly attributing a failure to spend over $500 million in homeless services funding to LAHSA when the source does not mention the agency.

Other inaccuracies in the HUD letter include conflating reviews, assessments, public comments, and media statements-which do not follow rigorous, established standards-with formal audits; misrepresenting the context of corrective actions or cooperation; and suggesting wrongdoing without evidence.

"We have worked to build real transparency at LAHSA. Weaponizing old, corrected financial reviews to suddenly strip housing from thousands of people makes no sense-legally or practically," said LAHSA Commission Chair Amber Shiekh. "LAHSA cannot stand by while an unjustified federal decision threatens to pull the rug out from under Los Angeles's homeless services system. We are taking legal action because our first and highest responsibility is to protect this system and the people who rely on it."

LAHSA asserts that its mission is to provide the most effective services to individuals experiencing homelessness. It has always been willing to implement recommendations that enhance its effectiveness.

"Over the last year, LAHSA has reorganized its financial operations, strengthened oversight, implemented nearly all recommendations identified in prior reviews, and begun implementing KPMG's recommendations to modernize our financial infrastructure," continued O'Neill. "We take our stewardship responsibilities seriously, and we remain focused on ensuring that every available dollar supports people experiencing or at risk of homelessness."

The proposed suspension comes as Los Angeles is making measurable progress in reducing homelessness. Since 2023, homelessness has declined 4.3% countywide and 5.5% within the City of Los Angeles. Unsheltered homelessness has fallen even more significantly, declining 14% countywide and 17.5% within the City.

Those results stand in stark contrast to national trends. While homelessness increased by 13.5% nationwide during the same period, Los Angeles moved in the opposite direction.

LAHSA's legal action today seeks to ensure that progress is not reversed by the sudden loss of federal resources that thousands of people depend on every day.

In addition to the federal complaint, LAHSA filed an application seeking immediate judicial relief in the form of a temporary restraining order to prevent HUD from suspending funding while the matter is reviewed in court.

The goal is straightforward: keep people housed, keep services operating, and prevent thousands of vulnerable Angelenos from becoming collateral damage in a political dispute over funding.