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HUD secretary says LAHSA funding will be halted until accountability shown after alleged fraud
Summary
HUD Secretary Turner criticized LAHSA's use of federal homeless funds, cited an arrest tied to $23 million in alleged fraud and said HUD will not give LAHSA additional funding until it proves accountability and transparency.
HUD Secretary Turner used Thursday's visit to the Dream Center to sharply criticize the Los Angeles Homeless Services Authority (LAHSA) and to signal that the department will withhold future funding pending reforms. Turner said LAHSA has received about $1,000,000,000 over the last five years "with no accountability and 0 results," alleged the agency could not verify 2,300 housing units it was responsible for, and cited an arrest that involved $23,000,000 in alleged fraud.
Turner told reporters the department is "in the middle of" decisions about LAHSA's funding and that "our aim is that LAHSA does not receive another dollar until there's accountability and transparency." He also accused agency officials of conflict-of-interest behavior, saying more than $2,000,000 in federal funds had been committed to a former LAHSA CEO's husband's employer; Turner framed withholding funds as stewardship of taxpayer dollars while urging new partners that demonstrate measurable results.
