LAHSA Set to Lay Off 284 Employees as County Shifts Homelessness Strategy
The Los Angeles Homeless Services Authority (LAHSA) is issuing layoff notices to 284 employees on April 30 as the agency undergoes a major restructuring after Los Angeles County cut more than $300 million in annual funding. The workforce reductions mark a pivotal turning point amid the county’s launch of its new Department of Homeless Services and Housing.
The impacted staff include 216 union-represented workers from SEIU Local 721 and 68 non-represented employees. All affected workers are expected to finish their current roles by June 30, aligned with the close of LAHSA’s fiscal year. The layoffs are part of a larger downsizing that includes eliminating a total of 414 positions, of which 130 are presently vacant.
County Withdraws Funding as LAHSA Faces Audits and Criticism
The cuts follow an abrupt decision by the Los Angeles County Board of Supervisors, which voted on April 1 to withdraw funding from LAHSA. Supervisors Lindsey Horvath and Kathryn Barger spearheaded the funding pullout, citing systemic failures within the agency. Since January 1, the county’s new Department of Homeless Services and Housing has taken over with an annual budget of $843 million, funded primarily by Measure A, a sales tax projected to bring in about $1 billion each year.
Interim CEO Gita O’Neill acknowledged the workforce’s major impact despite the upheaval. In a statement, she said, “Though our agency’s structure is changing, the monumental impact of their work—housing nearly 80,000 people over three years—speaks for itself.” LAHSA staff facilitated 77,834 permanent housing placements between 2022 and 2024, reporting steady reductions in homelessness, including a 14% drop in street homelessness countywide and an 18% decrease within the city of Los Angeles.
LAHSA to Narrow Mission and Restructure Post-Layoffs
Beginning July 2026, LAHSA will reshape into a “fundamentally different organization.” Its focus will shift toward governance of federal funding, operating the county’s Homeless Management Information System, managing the annual Greater Los Angeles Homeless Count, and overseeing the Continuum of Care governance. Contracting and program oversight roles will largely concentrate on services within the city of Los Angeles.
To aid the transition, LAHSA has retained consulting firm KPMG to rebuild and optimize its financial infrastructure. This comes after years of mounting critiques, including a 16-point audit by the Los Angeles County Auditor-Controller identifying late payments and unrecovered funds exceeding $50 million. Additionally, a court-ordered $2.8 million audit commissioned by U.S. District Judge David O. Carter found “nearly zero financial oversight or accountability” between 2020 and 2024, concluding that LAHSA failed to verify services billed by providers.
Leadership Turmoil and Data Controversies Weigh on LAHSA
Leadership instability compounded LAHSA’s struggles. Executive Director Heidi Marston resigned in April 2022, succeeded by Va Lecia Adams Kellum, who left abruptly in April after scrutiny over a $2.1 million contract tied to her husband’s nonprofit. Interim CEO O’Neill has since managed the agency.
Adding to doubts about LAHSA’s data credibility, a 2025 RAND Corporation study found that LAHSA undercounted unsheltered homeless by up to 32% in critical areas like Hollywood and Skid Row, casting uncertainty on the agency’s reported declines.
What’s Next for LAHSA and Homeless Services in Los Angeles County
The final headcount of how many LAHSA employees will stay depends in part on the City of Los Angeles budget, expected in early June. Meanwhile, LAHSA’s leadership aims to “reshape the agency to provide uninterrupted support for frontline service providers,” according to Amber Sheikh, chair of the LAHSA Commission.
As Los Angeles County takes direct control over homelessness funding and services through its new department, LAHSA faces a challenging transformation designed to restore trust, improve accountability, and focus on large-scale governance rather than direct service delivery.
The coming months will reveal how this overhaul affects frontline workers and the thousands of residents relying on homelessness programs across the region. For now, LAHSA’s sweeping layoffs mark a stark new chapter in Los Angeles’ ongoing battle against homelessness.
