LA Pays Law Firm Over $100M to Fight Homeless Encampment Cleanups

Lawyers from the Legal Aid Foundation of Los Angeles have repeatedly sued the city to block efforts to clear homeless camps.

Mar. 12, 2026 at 3:49pm

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The City of Los Angeles has awarded a $106.6 million contract to the Legal Aid Foundation of Los Angeles (LAFLA), a nonprofit law firm, to provide eviction defense services. However, attorneys connected to LAFLA have also filed lawsuits that have hindered the city's ability to dismantle homeless encampments and clean up city streets. The contract with LAFLA is nearly twice the organization's annual revenue, raising concerns about conflicts of interest.

Why it matters

The situation in Los Angeles highlights the complex and often contradictory nature of efforts to address homelessness. While the city is attempting to clean up public spaces, the very organization it is paying to help the homeless is actively working to prevent those cleanup efforts through legal challenges.

The details

LAFLA attorneys have filed lawsuits arguing the city has no right to dismantle abandoned RVs or dispose of belongings seized during encampment cleanups. In one recent case, a court sided with a plaintiff represented by LAFLA, ruling that the city must store property seized during cleanups, potentially making such efforts more difficult and costly.

  • On March 12, 2026, the City of Los Angeles awarded a $106.6 million contract to LAFLA.
  • LAFLA attorneys have filed multiple lawsuits against the city in recent years to block homeless encampment cleanups.

The players

Legal Aid Foundation of Los Angeles (LAFLA)

A nonprofit law firm that was awarded a $106.6 million contract from the City of Los Angeles to provide eviction defense services, despite the organization's attorneys having filed lawsuits to hinder the city's efforts to dismantle homeless encampments.

City of Los Angeles

The local government that awarded the large contract to LAFLA, even as the organization's lawyers have worked to block the city's attempts to clean up homeless encampments.

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What’s next

The City of Los Angeles will likely face continued legal challenges from LAFLA as it tries to address the homelessness crisis through encampment cleanups and other measures.

The takeaway

This situation highlights the complex web of interests and competing priorities that can hinder effective solutions to complex social issues like homelessness. It raises questions about the role of nonprofit organizations, the use of taxpayer funds, and the balance between individual rights and the broader public good.