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 CAO memos on LAHSA administrative funding, contracts, and grant funding at risk","outcome":"requested","notes":"Committee requested workload analysis and list of grants/contracts at risk; no vote"}

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The agency said a county pullback could leave a $2.3 million shortfall for administration in FY25-26 and asked the city to clarify who will fund core back-office functions to avoid service disruption.","ending":"The committee requested detailed memos on LAHSA administrative costs, the grants and contracts at risk, and options for continuity; LAHSA said it will provide the requested analyses and plans for a phased transition."},"topic_primary":"LAHSA","speakers":[{"name":"Felicia Adams Kellum","role_title":"Chief Executive Officer","affiliation_type":"government","affiliation_name":"Los Angeles Homeless Services Authority","first_reference":{"timecode":"02:29:62","transcript_line_range":[8962,8990]}},{"name":"Janine Trejo","role_title":"Chief Financial Officer","affiliation_type":"government","affiliation_name":"Los Angeles Homeless Services Authority","first_reference":{"timecode":"02:87:39","transcript_line_range":[9287,9310]}},{"name":"Rachel Johnson","role_title":"Chief of Staff","affiliation_type":"government","affiliation_name":"Los Angeles Homeless Services Authority","first_reference":{"timecode":"02:58:22","transcript_line_range":[9582,9614]}}],"authorities":[],"actions":[{"kind":"other","motion":"Request LAHSA financial and workload memos","mover":"Budget & Finance Committee","second":"not specified","vote_record":[],"tally":{"yes":0,"no":0,"abstain":0,"absent":0,"recused":0},"legal_threshold":{"met":false,"notes":"No vote recorded in transcript; memos requested"},"outcome":"no_action","notes":"Memos requested on admin costs, grants at risk, and transition planning"}],"discussion_decision":{"discussion_points":["County pullback of Measure A/H funding will change LAHSA operations and funding mix.","LAHSA estimates an administrative funding gap of roughly $2.3M for FY25-26.","Memos requested on grants/contracts at risk and workload-based administrative funding analysis."],"directions":["LAHSA to provide detailed administrative workload and funding memos to Budget Committee.","CAO and CLA to analyze options for city continuity and potential funding sources."],"decisions":[]},"clarifying_details":[{"category":"la_hsa_contracts","detail":"LAHSA administers roughly 250 contracts on behalf of city/county providers","value":250,"units":"contracts","approximate":true,"source_speaker":"Felicia Adams Kellum"},{"category":"admin_gap","detail":"LAHSA estimated administrative funding gap for FY25-26 after county funding changes","value":"2300000","units":"USD","approximate":true,"source_speaker":"Janine Trejo"}],"proper_names":[{"name":"Los Angeles Homeless Services Authority","type":"agency"}],"community_relevance":{"geographies":["Los Angeles County","City of Los Angeles"],"funding_sources":["Measure A/Measure H","HUD COC funds","City general fund"],"impact_groups":["homeless service providers","people experiencing homelessness","city and county administrators"]},"meeting_context":{"engagement_level":{"speakers_count":6,"duration_minutes":70,"items_count":3},"implementation_risk":"high","history":[{"date":"2025-05-01","note":"LAHSA CEO testified at Budget & Finance Committee about county funding changes"}] },"searchable_tags":["LAHSA","MeasureA","MeasureH","administration","grants"],"provenance":{"transcript_segments":[{"block_id":"block-8962","local_start":0,"local_end":80,"evidence_excerpt":"Good morning, Jerry Yarslowski and members of the committee. 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