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Judge keeps LAHSA suspension on hold as L.A. County assumes key homelessness roles

Judge keeps LAHSA suspension on hold as L.A. County assumes key homelessness roles

Rule Changes Los Angeles, CA local

Federal funding continues while a court-ordered transition moves homelessness roles from the joint city-county agency to the county.

October 28th, 2026: HUD says LAHSA's fiscal 2025 funds have been delivered

Overview

Updated Nov 1

A federal judge on Tuesday kept the Trump administration's suspension of the Los Angeles Homeless Services Authority (LAHSA) on hold. The joint city-county agency can keep running key homelessness systems while it hands its federal roles to L.A. County. Roughly $240 million in federal homelessness money keeps flowing through LAHSA while its lawsuit plays out.

Lawyers say the settlement is about 90% done and could be signed in about two weeks. On Tuesday, Oct. 27, the county Board of Supervisors also approved a city-county agreement that lets the city control placements into its shelters and housing. A federal appeals court later rejected an attempt to sideline LAHSA from a $239 million federal funding process.

Why it matters

Who controls how L.A. spends federal homelessness funds determines whether thousands of unhoused residents receive shelter and services—and the court's ruling keeps that money flowing during the transition.

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Key Indicators

$240M
Annual federal homelessness funding at stake
The amount LAHSA manages for hundreds of service providers; HUD suspended it in June.
4
Federal roles shifting from LAHSA to L.A. County
Includes running the annual homeless count, managing funding applications, the database, and the housing-matching system.
75,000
Homeless population in L.A. County (2023)
Most recent official estimate; the region has struggled with rising homelessness for decades.
2027
Deadline for full transition of all roles
HUD's lawyers say the database and housing-matching system will move by the end of 2027; other roles may move sooner.

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People Involved

DC
David O. Carter
U.S. District Judge, Central District of California
Presiding over the LAHSA case; issued preliminary injunction and subsequent orders
 Gita O'Neill
Gita O'Neill
Interim CEO, Los Angeles Homeless Services Authority
Leading LAHSA during the lawsuit and transition
 Scott Turner
Scott Turner
U.S. Secretary of Housing and Urban Development
Overseeing HUD's suspension of LAHSA; says administration will fight the ruling

Organizations Involved

Los Angeles Homeless Services Authority
Los Angeles Homeless Services Authority
Joint city-county authority
Suspension on hold while it keeps running key systems and hands federal roles to L.A. County; an appeals court let it seek federal funds.

The joint city-county agency that has managed federal homelessness funds and programs for over two decades.
Los Angeles County Department of Homeless Services and Housing
Los Angeles County Department of Homeless Services and Housing
County department
Selected to take over all four federal roles from LAHSA, subject to the court-ordered transition plan.

The county's new homelessness department, selected to take over LAHSA's four federal roles.
CC
L.A. Continuum of Care
Regional planning body
Joined LAHSA's lawsuit; selected county to take over federal roles

A congressionally mandated board that coordinates federal homelessness funding programs in L.A. County.

Timeline

June 2026 October 2026

10 events Latest: October 28th, 2026 · 2 weeks ago
Tap a bar to jump to that date

  1. HUD says LAHSA's fiscal 2025 funds have been delivered

    Latest Regulatory

    HUD said it complied with the court order to release previously approved funds. Jewish Family Service LA said its shelter still has no contract for about $300,000 in expected funding.

  2. Judge extends suspension block; parties near settlement

    Court Order

    Judge Carter keeps HUD's suspension on hold at the parties' joint request. The parties say a settlement is about 90% complete. The county's takeover proceeds in stages.

  3. County Board of Supervisors approves city-county agreement

    Vote

    The board approved a deal that settles the city's complaint about being cut out of data on homeless people. It also clears the county to take over LAHSA's matching system and database.

  4. Continuum of Care votes to transfer two more roles to county

    Vote

    The board votes 253-43 to make the county lead for the database and 219-38 for the housing-matching system, completing the selection of all four roles.

  5. Los Angeles City Council approves city-county agreement

    Vote

    The council approved an agreement giving the city control over who is placed in city shelters and housing, and access to the homelessness database. The county board approved it Oct. 27.

  6. Court-ordered review of replacement agencies due

    Procedural

    The Continuum of Care submits its review, leading to the selection of the county to take over LAHSA's federal roles.

  7. Appeals court rejects bid to sideline LAHSA from federal funding process

    Court Order

    A federal appeals court rejected the administration's latest attempt to remove LAHSA from a $239 million funding process. The ruling clears LAHSA to finish an application due next month. The exact date was not in the report.

  8. Judge blocks HUD suspension with preliminary injunction

    Court Order

    Judge David O. Carter rules HUD acted arbitrarily, orders HUD to resume funding, and sets a February trial date. He also orders a review of agencies that could replace LAHSA.

  9. HUD suspends LAHSA from federal programs

    Regulatory

    HUD cuts off LAHSA's funding, citing financial mismanagement and fraud, affecting about $240 million for 140 service providers.

  10. LAHSA files lawsuit against HUD

    Legal

    LAHSA sues, calling the suspension 'a baseless attempt to eliminate' the agency. The L.A. Continuum of Care joins as a plaintiff.

Scenarios

1

Settlement reached, county takes over all homelessness roles by 2027

Likely Resolves by Jan 31, 2027

Discussed by: Both sides' attorneys; Judge Carter in court

The parties finalize a settlement within weeks, as indicated by the 90% figure. The county assumes the annual count, funding applications, database, and matching system on a staggered schedule. Federal funding flows uninterrupted, and LAHSA's role diminishes. The judge dismisses the lawsuit. This is the most likely outcome given the joint request and stated progress.

2

Settlement collapses, case proceeds to February trial

Possible Resolves by Feb 28, 2027

Discussed by: No explicit prediction, but trial date already set

Negotiations stall over details (e.g., exact transition dates, financial terms). The case goes to trial as scheduled in February 2027. Judge Carter rules on the merits of HUD's suspension. If he upholds the suspension, LAHSA could lose federal funding permanently, though the transition to the county is already underway, so the practical effect may be limited.

3

HUD regains authority, but transition already complete

Unlikely Resolves by Q2 2027

Discussed by: Not explicitly predicted; a possible legal outcome if HUD wins

If the case goes to trial and HUD wins, the agency could argue that the transition should be reversed. However, because the county has already been selected, HUD would need to approve a new arrangement. Given the political narrative, HUD might try to force providers to apply directly to HUD, bypassing both LAHSA and the county. This would create administrative chaos and potentially delay funding.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

March 2021

Judge Carter's Skid Row order (2021)

In a lawsuit brought by the LA Alliance for Human Rights, Judge Carter ordered the city and county to house everyone living in Skid Row within 180 days, saying local leaders were 'unable or unwilling' to solve the crisis.

Then

The Ninth Circuit overturned the order, citing reliance on extra-record evidence. The lawsuit settled in 2022, with the city agreeing to build over 12,000 shelter beds or housing units.

Now

It established a pattern of judicial intervention in L.A.'s homelessness crisis, showing both the potential and limits of court-ordered solutions.

Why this matters now

Carter's willingness to intervene directly, and the subsequent settlement structure, mirrors his current role in mandating a transition from LAHSA to the county while protecting funding.

1993

Creation of LAHSA (1993)

The city and county of Los Angeles created LAHSA as a joint powers authority to resolve long-standing disputes over how to deliver homeless services, pooling resources under one agency.

Then

LAHSA became the central coordinator for homeless funding and programs, managing billions over the decades.

Now

But the joint governance structure made accountability difficult, leading to repeated audits and criticism, and eventually to the county's decision to create its own department.

Why this matters now

The current shift from a joint authority to single-county control is the reverse of the 1993 compromise, reflecting a recognized failure of the earlier governance model.

May 2009

HEARTH Act (2009)

Congress passed the Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act, which reorganized HUD's homeless assistance programs and formalized the role of Continuums of Care as local planning bodies.

Then

CoCs were given authority to designate local agencies to administer federal funds, leading to LAHSA becoming the designated administrator for L.A.

Now

The act created the legal framework for the current dispute: HUD's attempt to bypass the CoC directly to providers was challenged as violating the CoC's congressionally assigned role.

Why this matters now

The lawsuit against HUD hinges on whether HUD can overrule the CoC's designation; the HEARTH Act is the statutory basis for both the CoC's authority and LAHSA's suspension.

Sources

(8)
+2
LAist Jewish Family Service LA Courthouse News Service National Low Income Housing Coalition Los Angeles Times Spectrum News LA County Homeless Services & Housing LAist