LAHSA warns funding pullback by county will create administrative gap; seeks city clarity on roles

Dr. Felicia Adams Kellum, chief executive officer of the Los Angeles Homeless Services Authority, told the Budget and Finance Committee on May 1 that LAHSA is preparing for an "altered landscape" after Los Angeles County signalled it will withdraw some Measure A/Measure H funding.

Adams Kellum said LAHSA administers roughly 250 contracts and supports hundreds of service providers across the region. She told the committee the cityadmin allocation covers the equivalent of about 66 staff, while the agencyrelies on county measure funds and other sources for the remainder. "We need about 40 staff to cover everything from managing procurements to processing hundreds of provider invoices and payments each month to monitoring performance," she said, adding the recent changes have created a roughly $2.3 million administrative funding gap for FY25-26.

Why it matters: LAHSA acts as the Continuum of Care lead for the county and administers many contracts that affect city services. Adams Kellum said some programs that braid city and county dollars will need to be "unbraided," which will change how contracts are administered and could require new city or county structures to sustain operations.

Committee exchange and requests - Administrative shortfall: Janine Trejo, LAHSA CFO, quantified an approximately $2.3 million gap in administration should the county reduce its contributions; LAHSA requested a workload-based analysis and detailed funding breakdowns. - Transition timeline: LAHSA staff said Measure A/H funds are expected to begin shifting in mid-2025 and that some county functions may move to a new county department by July 1, 2026. LAHSA said it is preparing for a phased transition and has scheduled a first planning meeting with the county in mid-May. - Data and invoices: LAHSA CFO also told the committee that LAHSA already submits detailed trial balances and invoices for reimbursements and has delivered back-invoices and financial documentation to the city controller and LAHD.

Council reaction and follow-ups: Councilmembers asked for memos quantifying LAHSA administrative costs, breakdowns of what the city pays LAHSA to administer, and lists of grant and contract staff that might be affected. LAHSA agreed to provide a workplan and asked the council to consider options to ensure continuity and minimal disruption during the transition.

Speakers - Dr. Felicia Adams Kellum, Chief Executive Officer, Los Angeles Homeless Services Authority - Janine Trejo, Chief Financial Officer, LAHSA - Rachel Johnson, Chief of Staff, LAHSA - Councilwoman Grama (Housing & Homelessness Committee)

Authorities referenced - HUD Continuum of Care rules (referenced in discussion of COC responsibilities)

Actions - action: {"kind":"other","motion":"Request LAHSA and…