The Los Angeles Homeless Services Authority (LAHSA), responsible for distributing nearly $700 million in funding to organizations serving unhoused people, is facing scrutiny over significant payment delays to its service providers. As of February 20, 2026, LAHSA owes at least $69 million in outstanding invoices, with approximately 40% of those invoices more than two months overdue.
Where things stand
At a LAHSA Finance Committee meeting Friday, Janine Lim, the agency’s deputy chief financial officer, explained that some payments are delayed due to a lack of funds from the city, while others are stalled because LAHSA possesses the funds but has not yet distributed them to providers. Lim also acknowledged that her department has struggled with staff turnover and ongoing crisis management.
Lindsey Horvath’s rebuke
The payment issues prompted a strong response from L.A. County Supervisor Lindsey Horvath, who called for a public hearing, a forensic audit, and immediate payment of all outstanding invoices to county-funded contractors. Horvath stated that “LAHSA balance sheets don’t balance” and that the agency “fail[s] to provide real-time financial information to their very own commissioners.”
LAHSA officials have stated they are working to address the delays and implement internal changes. They attribute the issues to a combination of contracting delays, outdated policies, and a leadership vacuum.
LAHSA’s funding sources
LAHSA’s funding for this fiscal year is derived from multiple sources, including 46% from L.A. County, 35% from the city of Los Angeles, nearly 11% from the federal government, and more than 8% from the state of California. The agency stated that delays in finalizing contracts—with only one-third completed by July 1—contributed to the backlog of invoices.
Challenges for providers
The delayed payments are impacting service providers. HOPICS, a South L.A. Provider, reported being owed nearly $20 million. Stephanie Klasky-Gamer, CEO of LA Family Housing, explained that the delays threaten the ability of organizations to pay staff and maintain operations, stating, “Our contract is with LAHSA…They’re not able to deliver on their end of the contract because they don’t have access to the money to pay us.” Some providers, like Hope The Mission, acknowledge that delayed payments are common when working with government entities, but others are nearing their financial limits.
Commissioners demands answers
L.A. County supervisors voted last year to strip LAHSA of approximately $300 million in county funding, beginning this July. LAHSA Commissioner Justin Szlasa has requested an itemized summary of all unpaid bills, a request that remains unfulfilled months later. He has since filed a public records request for the information.
Frequently Asked Questions
What is LAHSA’s primary function?
LAHSA’s main job this year was to distribute nearly $700 million to contractors who operate shelters and other services for unhoused people.
How much money does LAHSA currently owe to service providers?
As of February 20, 2026, LAHSA owes at least $69 million in outstanding invoices to providers.
What percentage of LAHSA’s funding comes from L.A. County?
46% of LAHSA’s funding comes from L.A. County.
As LAHSA navigates these financial challenges, will the agency be able to restore trust with its service providers and ensure the continued delivery of vital resources to those experiencing homelessness?
