By Jorge Casuso
April 10, 2026 -- The County Board of Supervisors will take up a "corrective action plan" on Wednesday to pay providers contracted by the Los Angeles Homeless Service Authority (LAHSA) with County funding.
At the meeting, top County executives will present a review of the finances and operations of the homeless agency, which has come under fire for failing to fully account for its nearly $1 billion annual budget.
The report comes days after LAHSA missed a key federal audit deadline that represents one of the most crucial oversight checks of the agency.
It also comes after the U.S. Government released a budget proposal for the upcoming fiscal year that slashes nearly $393 million in federal funding for homeless programs nationwide and signal's out LAHSA's failure.
"LAHSA has an abysmal record of reducing what is the highest number of street homeless individuals in the United States," the budget document said.
It noted that "an independent audit issued in March 2025 found that the authority failed to accurately track billions of Federal and local dollars."
The proposed budget document also takes aim at the “Housing First” model that government-funded programs, including those in LA County, have "prioritized for years," calling it "a profound failure."
"Far from ending homelessness as promised, overall homelessness has increased by 34 percent and chronic homelessness has increased by over 80 percent in just a decade," the budget document stated.
County Supervisors requested Wednesday's presentation after a review by LAHSA's Finance Committee revealed the agency can't pay its bills and is refusing help with its day-to-day operations ("Supervisor Sounds Alarm Over LAHSA," February 24, 2026).
The presentation will provide an "analysis, corrective action plan, and hands on County oversight to ensure timely contractor payments and transparent, effective financial processes," according to the agenda.
Under the proposed plan, the County would "pay providers as directed" under LAHSA's contract "until all County funds have been paid to providers for work performed under County-funded programs."
LAHSA has said it is understaffed and has called for budget increases to cover its administration and operations.
Last May, LAHSA officials told the LA City Council the agency needed 140 staff members to cover the 250 contracts it oversees, more than double the 66 staff members the City funded, according to news reports.
On July 1, LA County's newly created Department of Homeless Services & Housing (HSH) will assume control of County-funded LAHSA contracts.
County officials have said the City of LA's homeless services contracts "will remain with LAHSA," which will continue conducting the annual Homeless Count and running the winter shelter program.