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LAHSA warns of HAP 6 cash-flow gap; committee approves CAO recommendations and instructs inclusion of homelessness bureau
Summary
LAHSA told a Los Angeles City committee that state timing and a reduced HAP 6 allocation will create cash-flow challenges for providers; the committee approved CAO recommendations, instructed inclusion of the bureau of homelessness (LHD) in application planning, and sought clearer county commitments.
The Los Angeles Homeless Services Authority (LAHSA) told a City committee on June 11, 2025 that timing changes and a reduced allocation in the state’s Homeless Housing Assistance and Prevention (HAP) round 6 grant will create cash-flow problems for providers unless the county and city provide short-term advances.
CAO staff reported HAP 6 will reduce the statewide entitlement for the City of Los Angeles compared with HAP 5. The CAO said the city’s HAP 5 allocation was $164,335,500; HAP 6’s allocation for Los Angeles is $143,640,000, a reduction of roughly $20 million. LAHSA staff said the state has also tightened reporting and now links tranche disbursements to meeting performance measures, a change that affects the timing of reimbursements to providers.
LAHSA representatives — including Deputy Chief External Relations Officer Paul Rubinstein, Deputy Chief Program Officer Nathaniel Vergau, and CFO Janine Trejo — outlined the system-level impacts. LAHSA said it had already allocated HAP 5 funds to providers and spent more than 50% of the entitlement after the funds arrived late in January 2025. For HAP 6, LAHSA asked for a quarterly advance to cash-flow the Continuum of Care (CoC) HAP-funded programs: LAHSA estimated a Q1 cash-flow need of about $6.3 million to allow providers to start contracts and operate on July 1, 2025, and described additional Q2 needs tied to Time-Limited Subsidies (TLS).
CAO and county CEO representatives described a proposed split: the county would front Q1 cash flow and provide the annual Measure A TLS entitlement up front to cover several months of TLS; the city would front Q2 cash flow. LAHSA would repay advances when state funds are disbursed. Committee members pressed for clearer, written commitments from the county before a formal city advance, and asked CAO staff to return with more detailed program-level information.
Committee members also instructed CAO staff to include the city’s Bureau of Homelessness Oversight (LHD) in the HAP 6 application planning and to deliver a draft funding plan, draft MOU and draft application for committee review (anticipated for the August cycle, per the CAO). The committee voted to approve the CAO recommendations as amended by that instruction; the roll call recorded Councilmember Grama and Councilmember Blumenfield voting aye; Councilmember Gerardo was absent.
LAHSA and CAO staff committed to provide further details on access-center locations and utilization, interim housing beds, TLS household counts and the programmatic funding plan before the committee’s next discussion.
