L.A. Homeless Agency Faces Delayed Payments Crisis

LAHSA struggles with outdated policies, bureaucratic delays, and staffing issues that have left providers waiting millions in overdue funds.

Published on Mar. 5, 2026

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Los Angeles' regional homeless services agency, LAHSA, revealed last month that it is behind on paying tens of millions of public dollars to homeless services providers. LAHSA's finance team blames the payment delays on a variety of factors, including the agency's own outdated policies, disorganized workflows, low morale among staff, and bureaucratic delays within local government. Now, the city of L.A. and L.A County are investigating the causes of LAHSA's cashflow problems and pushing to get those contractors paid.

Why it matters

This crisis highlights the ongoing challenges facing LAHSA, L.A.'s lead homelessness agency, which has been under heightened scrutiny for more than a year after audits found widespread financial mismanagement. The delayed payments have destabilized homeless service providers and eroded public trust in LAHSA's ability to effectively manage and distribute hundreds of millions in homelessness funding.

The details

LAHSA currently owes more than $50 million to service providers for services they've already provided. Several LAHSA contractors said they're taking on debt to maintain operations while awaiting payments. LAHSA's finance team blames the delays on factors like outdated policies, disorganized workflows, low staff morale, and bureaucratic delays within the city government, which LAHSA said has failed to pass along tens of millions in public funds meant for providers. The county's auditor-controller is launching a review of LAHSA's financial operations, and county supervisors have approved a motion to speed up late payments to county-funded providers.

  • Last month, LAHSA finance deputy Janine Lim told the commission overseeing the agency that delayed payments were partly caused by the city of L.A. not passing along funds.
  • This budget year, which ends June 30, LAHSA is responsible for doling out nearly $700 million in city, county and state and federal dollars to local organizations it contracts with to provide homeless services.
  • In December, LAHSA put a new plan in place for contracts, which interim CEO Gita O'Neill said 'will prevent the avalanche of invoices' next budget year.
  • In July, L.A. County will start managing its homelessness funds directly, through the Department of Homeless Services and Housing, instead of relying on LAHSA.

The players

LAHSA

The Los Angeles Homeless Services Authority, the regional homeless services agency responsible for distributing hundreds of millions in homelessness funding.

Janine Lim

LAHSA's chief financial officer, who was instrumental in developing the new advanced payment model that has now become a bottleneck for the agency.

Gita O'Neill

LAHSA's interim CEO, who acknowledged the agency is in deep crisis and said they will work with an outside firm to improve their payment processes.

Amy Perkins

A LAHSA Commission member and policy deputy for county Supervisor Lindsey Horvath, who pressed LAHSA on why they had not raised an alarm about the delayed payments.

Karen Bass

The Mayor of Los Angeles, who blamed the City Council for contributing to the payment delays by moving half of all funding for shelter beds into the city's unappropriated balance.

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What they’re saying

“LAHSA has been structured for decades as the entity that takes the blame. Political incentive has always been to point at LAHSA rather than to address structural issues.”

— Gita O'Neill, LAHSA Interim CEO

“Providers are submitting invoices for work they've completed for the city of Los Angeles and you don't have that money, and you are not calling out that as a 911? That feels like a 911 to me.”

— Amy Perkins, LAHSA Commission Member, Policy Deputy for County Supervisor Lindsey Horvath

“What may take the County a few days or a week to approve, can take considerably longer at the City level. The City has a much more complex process that can, and has, caused delays for months in both finalizing contracts as well as funding.”

— Kelvin Driscoll, CEO of HOPICS

What’s next

The county's auditor-controller is launching a review of LAHSA's financial operations, and county supervisors have approved a motion to speed up late payments to county-funded providers. The review is expected to conclude this month, and county officials are expected to return to the Board of Supervisors with a financial analysis and corrective action plan next month.

The takeaway

This crisis highlights the ongoing structural and governance issues plaguing LAHSA, L.A.'s lead homelessness agency, which has struggled with financial mismanagement and a lack of accountability. Resolving the delayed payments to providers will require addressing these deeper systemic problems within LAHSA, as well as improving coordination and streamlining processes between the agency, the city, and the county.