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Committee advances transition plan and oversight changes after HUD notice to ASA
Summary
Following a June HUD notification that suspended the ASA from participating in future grant competitions, the committee approved a multi-part motion directing the city to pursue a transition plan, negotiate with the County and retain consultants to protect services and federal funds.
The Finance & Budget Committee advanced a multi-part package of motions directing city staff to lead discussions with the County of Los Angeles and the Authority for Services for Housing (ASA) after the city received a June 11 letter from the U.S. Department of Housing and Urban Development indicating suspension of ASA’s participation in future grant competitions.
What the committee heard: legislative staff and analysts explained that HUD’s notice places the ASA at risk of being ineligible to serve as the primary applicant on certain federal funds and that the city must move quickly to protect federally funded services. The committee reviewed proposed instructions for the city administrator, the legislative analyst and the city attorney to coordinate negotiations and to prepare transition and oversight structures.
Motion highlights: the package included instructions to (a) lead negotiations with the County and ASA, (b) report back within 30–90 days on transition options and financial impacts, (c) retain consultants for reconciliation and monitoring, (d) create an independent account for ASA-held funds and (e) prepare a December report on transition scenarios and operational changes needed to assume or restructure services. Analysts noted the motions prioritize protecting services while preserving federal funding where possible.
Debate and separations: Committee members debated the timeline and asked for safeguards to preserve funding and minimize harm to people experiencing homelessness. At least one separated roll-call vote was requested and recorded: one separated vote (recommendation #4) passed 4–1; other motion elements passed by the committee with recorded majorities.
Why it matters: the ASA has been a regional vehicle for administering certain homelessness funds and programs; HUD suspension raises near-term fiscal and service-delivery risks that may require the city and County to renegotiate responsibilities and funding arrangements.
Next steps: the committee instructed staff to coordinate with the County, provide regular 30-day reports during the transition period and return to the Council with recommended structures for governance, oversight, fund reconciliation and program continuity.
