With Billions on the Line, LA County Moves to Centralize Homeless Response
Los Angeles County is making a dramatic shift in how it addresses homelessness. On Tuesday, the County Board of Supervisors voted to establish a new standalone department tasked with overseeing regional homeless services. The move will ultimately redirect hundreds of millions of dollars away from the Los Angeles Homeless Services Authority (LAHSA), a joint city-county agency that has long been criticized for inefficiencies and a lack of financial accountability.
The Board of Supervisors approved the measure in a 4-0 vote, paving the way for the new department to take over funding and service coordination by July 1, 2026. The announcement coincided with the implementation of a new half-cent countywide sales tax increase under Measure A, which raises the rate from 9.5% to 9.75%. That tax is expected to generate $1 billion annually for homelessness prevention and housing services.
Under the approved plan, LAHSA will gradually lose its funding, with roughly $300 million set to be reallocated to the new department over the next two years. Supervisor Lindsey Horvath, who led the initiative, said the department will be modeled after the county’s Department of Health Services Housing for Health program, which she touted as having the highest success rate for housing placements.
“Los Angeles County is leaving the status quo behind and embracing a model for homeless services that centers accountability and results,” Horvath said in a statement. “This isn’t making the system bigger; it’s making it work better, which our communities have been demanding for years.”
Supervisors Janice Hahn, Kathryn Barger, and Hilda Solis joined Horvath in supporting the measure, while Supervisor Holly Mitchell sat the vote out without taking a side.
The decision drew criticism from several Los Angeles City Council members, who expressed concern that dismantling LAHSA would jeopardize recent progress made in addressing the homelessness crisis. Councilmember Katy Yaroslavsky, whose district includes parts of West Los Angeles, warned against fracturing collaboration at a time when federal support is diminishing.
“When the federal government is taking everything away, we need to be united,” Yaroslavsky said.
Councilmembers Monica Rodriguez and Nithya Raman, along with Mayor Karen Bass, also opposed the plan. In a letter to the board, Bass and Raman argued that LAHSA had made measurable strides over the past two years and cautioned against unraveling the city-county partnership.
“We must keep building on this and confronting our challenges together,” they wrote.
Despite the pushback, the county is moving forward with plans to establish the new agency by January 1, 2026, setting the stage for a full transition of services and funding from LAHSA by the following July.
