LA Homelessness Agency Faces Scrutiny Over Late Payments to Service Providers

LAHSA owes $69 million in overdue invoices, threatening operations for organizations serving the unhoused

Feb. 21, 2026 at 4:43am

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The Los Angeles Homeless Services Authority (LAHSA), responsible for distributing nearly $700 million in funding to organizations serving unhoused people, is facing criticism 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.

Why it matters

The delayed payments are impacting service providers' ability to pay staff and maintain operations, threatening the delivery of vital resources to those experiencing homelessness in Los Angeles. This situation highlights the precarious financial position of many organizations providing critical services and their reliance on timely payments from LAHSA.

The details

LAHSA officials have attributed the issues to a combination of contracting delays, outdated policies, and a leadership vacuum. The agency'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 delayed payments have led to 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.

  • As of February 20, 2026, LAHSA owes at least $69 million in outstanding invoices.
  • Approximately 40% of those invoices are more than two months overdue.

The players

Los Angeles Homeless Services Authority (LAHSA)

The lead agency responsible for distributing nearly $700 million in funding to organizations serving unhoused people in Los Angeles.

Lindsey Horvath

L.A. County Supervisor who called for a public hearing, a forensic audit, and immediate payment of all outstanding invoices to county-funded contractors.

Janine Lim

LAHSA's deputy chief financial officer who 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.

Stephanie Klasky-Gamer

CEO of LA Family Housing, who explained that the delays threaten the ability of organizations to pay staff and maintain operations.

Justin Szlasa

LAHSA Commissioner who requested an itemized summary of all unpaid bills, a request that remains unfulfilled months later.

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What they’re saying

“LAHSA balance sheets don't balance and they fail to provide real-time financial information to their very own commissioners.”

— Lindsey Horvath, L.A. County Supervisor (newsy-today.com)

“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.”

— Stephanie Klasky-Gamer, CEO of LA Family Housing (newsy-today.com)

What’s next

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.

The takeaway

The current situation highlights the precarious financial position of many organizations providing critical services to people experiencing homelessness in Los Angeles. Reliance on timely payments from a central agency like LAHSA is essential for these groups to maintain operations and avoid disruptions in care.