The Los Angeles Homeless Services Authority (LAHSA) is preparing to lay off 284 employees by the end of June as part of a broader restructuring that will eliminate more than 400 positions. This move comes as the agency transitions to a significantly reduced role starting July 1, the beginning of the next fiscal year.
The layoffs follow a decision by Los Angeles County to withdraw funding from LAHSA and launch its own independent homelessness department. County officials stated the move was intended to create a more accountable and centralized system after audits raised concerns regarding LAHSA’s financial management.
A Shift in Regional Governance
Beginning July 1, LAHSA will shift its focus toward coordinating the region’s rehousing system. Its limited responsibilities will include managing data, coordinating service access, and leading annual applications for federal funding.
Because county-funded programs are shifting to the new county department, city funding is expected to comprise the majority of LAHSA’s staffing budget. This makes the agency’s future structure heavily dependent on decisions made by the City of Los Angeles.
City Hall’s Divided Approach
City leaders have long debated how to handle the agency’s effectiveness. In November 2024, Councilmembers Monica Rodriguez and Bob Blumenfield called for the city to explore contracting directly with service providers to bypass LAHSA.
By September 2025, the City Council voted to explore withdrawing all legally allowable homelessness funding from LAHSA to instead contract with the county’s new department. However, other leaders, including Mayor Karen Bass and Councilmember Nithya Raman, previously urged the county to reconsider, warning that dismantling the joint system could disrupt services.
On April 15, the City Council’s Housing and Homelessness Committee advanced recommendations to begin shifting some city-funded programs away from LAHSA over the next fiscal year. These proposals too include exploring changes to governance and hiring consultants to manage the transition.
Concerns Over Service Continuity
Councilmember Tim McOsker has proposed renegotiating the joint powers agreement to give the city majority control over LAHSA’s governing commission. He has also suggested shifting administrative functions, such as payments and contracting, directly to the city.
Meanwhile, LAHSA employees have expressed widespread fear and uncertainty. Ash Afanan, a system and planning analyst, warned that these changes could be detrimental to the people most in need of help.
LAHSA has highlighted its recent progress, reporting an 18% reduction in street homelessness within the city and a 14% reduction countywide. Staff members hope city leaders will consider these results when deciding the agency’s fate.
What May Happen Next
The City Council is likely to take up the Housing and Homelessness Committee’s recommendations at a future meeting. Depending on the outcome, the city may begin shifting more programs in-house or move toward a more formal partnership with the county’s new department.
A possible next step could include the renegotiation of the joint powers agreement, which may result in the City of Los Angeles gaining majority control over LAHSA’s governance.
Frequently Asked Questions
Why is LAHSA laying off hundreds of employees?
The layoffs are primarily driven by Los Angeles County’s decision to withdraw funding from LAHSA to establish its own Department of Homeless Services and Housing.
What will LAHSA’s responsibilities be after July 1?
The agency will take on a limited role focused on managing data, coordinating how people access services, coordinating the rehousing system, and leading federal funding applications.
What are the proposed changes to LAHSA’s governance?
Councilmember Tim McOsker has proposed renegotiating the joint powers agreement to provide the city with majority control over the governing commission and shifting administrative functions like contracting and payments to the city.
Do you believe a centralized city-led system or a joint city-county agency is more effective for addressing homelessness?
