Tahiti

The Los Angeles Homeless Services Authority (LAHSA) is stepping away from the federal administrative duties it has held for roughly three decades, including coordinating the region's annual homeless count and applying for over $200 million in yearly HUD funding, effective next month. The agency's governing commission voted unanimously not to apply to retain these roles after a months-long legal battle with the federal government, which had suspended LAHSA in June over management concerns tied to alleged fraud. A federal judge paused that suspension in August, but an appeals court issued a temporary stay, leaving LAHSA's status uncertain. The day after LAHSA's decision, federal prosecutors announced new fraud and bribery charges against a nonprofit founder accused of siphoning $1 million in homelessness funds routed through the agency.

The city of Los Angeles and L.A. County are now competing to take over LAHSA's federal responsibilities, including the homeless count, funding applications, and HUD-mandated housing databases. County officials, who already pulled over $300 million in funding from LAHSA earlier this year, argue the county should lead. City leaders, including Mayor Karen Bass and mayoral challenger Nithya Raman, are also weighing an independent system, though the city has yet to hire a consultant to draft a transition plan. Applicants face a September 25 deadline, with final selections subject to HUD and federal court review.