HUD Cuts Off Fraud-Filled Los Angeles Homelessness Funding Following the HUD Office...

HUD Cuts Off Fraud-Filled Los Angeles Homelessness Funding

Following the HUD Office of Inspector General (OIG) opening an investigation, Secretary Scott Turner announced June 11th the immediate suspension of the Los Angeles Homeless Services Authority (LAHSA), the lead agency for Los Angeles’ homelessness response.

HUD has uncovered evidence of LAHSA’s repeated false statements and its irresponsible actions and failures, including its lack of financial management, internal controls, and safeguards against conflicts of interest, which pose a threat to the public, HUD’s mission, and the stewardship of taxpayer dollars.

The Los Angeles Continuum of Care, led by LAHSA, has received nearly $1 billion in taxpayer dollars over the last five years. Despite receiving more federal homelessness funding than any other jurisdiction in the nation, Los Angeles remains the epicenter of the nation’s drug-fueled homelessness crisis.

“Under President Trump’s leadership, HUD will fund results, not corrupt failure or the homeless industrial complex,” said Secretary Scott Turner. “Year after year, hundreds of millions of taxpayer dollars were funneled to LAHSA with little accountability. Meanwhile, homelessness skyrocketed. Taxpayers will no longer bankroll an organization that puts its own self-interests ahead of the Americans it was created to serve.”

“For years, American taxpayers have been sending billions of dollars to Los Angeles to house the homeless and other vulnerable Americans. The result? Fraud and corruption. That ends today. None of this would be possible without the leadership of Secretary Turner,” said Scott Brady, White House Task Force Executive Director.

Following a HUD-initiated investigation, LAHSA’s clear pattern of fraud is being exposed, including:

In August 2023, LAHSA could not even determine whether it used funding to pay for empty hotel rooms, because it failed to record when individuals exited transitional motel housing;

In November 2024, the LA County’s Auditor-Controller found that LAHSA misused government money by using it to pay for services provided under another government funders’ contract weeks before LAHSA received grant funds to cover the particular cost; During a 2025 assessment, LAHSA failed to provide documentation to verify the existence of nearly 2,300 housing sites for which it was responsible;

LAHSA made false certifications and did not even have its own internal written conflict-of-interest policy until September 26, 2025, even though it certifies that it will comply with these requirements and will establish safeguards to prohibit conflict of interest;

The agency’s former CEO resigned after she and LAHSA violated federal conflict-of-interest rules by committing more than $2 million in federal funds under LAHSA’s control to her husband’s employer. Los Angeles’ failure to address the homelessness crisis is glaring. While its funding has increased 178% since HUD first mandated the Housing First policy in 2013:

Homelessness in LA has increased 100%, Free housing for the homeless in LA has increased 212%, and HUD Continuum of Care funding per homeless person in LA has increased 39%.

Following the outcome of a HUD OIG investigation, permanent debarment is on the table.