HUD to end funding for Los Angeles Homeless Services Authority, impacting local nonprofits

The United States Department of Housing and Urban Development has announced it will stop funding the Los Angeles Homeless Services Authority (LAHSA). This decision creates financial uncertainty for nonprofits like Home Again LA, which receives approximately $400,000 annually from LAHSA to provide emergency shelter and rental assistance to families.

Why does the LAHSA funding halt impact families in Los Angeles?

Home Again LA provides several services to families experiencing or at risk of homelessness, including 90-day emergency motel stays, six months of rental assistance, and job placement support. Following a merger with the Burbank Temporary Aid Center, the nonprofit also manages daily lunches and monthly grocery distributions.

Albert Hernandez, CEO of Home Again LA, said the loss of federal funds could reduce the number of families the organization serves. While the nonprofit currently assists 300 families, Hernandez estimates that number may decrease by 30 to 40 families due to the funding gap.

“How are we putting clients first and making sure that they don’t fall back into homelessness just because of this halt on federal funds?” Hernandez asked. He stated that the lack of support could put families in jeopardy and move the community “backwards.”

How does Home Again LA manage its operating budget?

The nonprofit maintains a $4 million annual operating budget and holds federal funds remaining from 2016. While the $400,000 annual contribution from LAHSA is significant, Hernandez noted that LAHSA has not been the organization’s primary funder.

Home Again LA receives support from various other sources, including:

• The City of San Fernando
• Burbank
• Glendale
• LA County Supervisor Lindsey Horvath
• LA County Supervisor Kathryn Barger

Hernandez noted that the organization has previously dealt with financial instability regarding LAHSA. He said the agency failed to reimburse the nonprofit for spent funds during a period lasting from last August to approximately April.

What are the possible next steps for local homeless services?

To mitigate the impact, Home Again LA is looking to establish new partnerships, including with the county’s Department of Homeless Services and Housing, which launched Jan. 1. Hernandez said the nonprofit will “hustle” to find alternative funding sources to avoid a hard hit to their services.

Hernandez also suggested that local nonprofits may need to collaborate or merge to use collective resources more effectively. He noted that if organizations continue to compete for the same available funds, they may not achieve the impact they envision.