Judge keeps LAHSA suspension on hold as L.A. County assumes key homelessness roles

Overview

Updated 1 hour ago

A federal judge on Tuesday kept the Trump administration's suspension of the Los Angeles Homeless Services Authority (LAHSA) on hold, letting the agency continue managing key homelessness systems while it hands its federal roles to L.A. County. The order extends an earlier block that was set to expire, ensuring that roughly $240 million in federal homelessness money keeps flowing to the region through LAHSA while its lawsuit against HUD plays out.

The decision came as the parties said they were close to settling the entire case. The L.A. Continuum of Care, the congressionally mandated planning body, voted Monday to make the county the lead agency for the region's homelessness database and housing-matching system, completing the selection of the county for all four federal roles currently held by LAHSA. Once the transition is complete, the county's Department of Homeless Services and Housing will consolidate control over the region's core homelessness systems, a shift from the joint city-county agency that has been difficult to hold accountable.

Why it matters

Who controls how L.A. spends federal homelessness funds determines whether thousands of unhoused residents receive shelter and services—and the court's ruling keeps that money flowing during the transition.

Monday: what changed in Los Angeles, CA

One short email a week with the openings, closings, permits and council votes we covered. Free. Unsubscribe in one click.

Questions about this story

Free account needed to ask — your question is kept and asked for you right after sign-up. Answers are public.

No questions yet — be the first to ask.

Key Indicators

$240M

Annual federal homelessness funding at stake

The amount LAHSA manages for hundreds of service providers; HUD suspended it in June.

Federal roles shifting from LAHSA to L.A. County

Includes running the annual homeless count, managing funding applications, the database, and the housing-matching system.

75,000

Homeless population in L.A. County (2023)

Most recent official estimate; the region has struggled with rising homelessness for decades.

2027

Deadline for full transition of all roles

HUD's lawyers say the database and housing-matching system will move by the end of 2027; other roles may move sooner.

Voices

Curated perspectives — historical figures and your fellow readers.

People Involved

David O. Carter

U.S. District Judge, Central District of California

Presiding over the LAHSA case; issued preliminary injunction and subsequent orders

Gita O'Neill

Interim CEO, Los Angeles Homeless Services Authority

Leading LAHSA during the lawsuit and transition

Scott Turner

U.S. Secretary of Housing and Urban Development

Overseeing HUD's suspension of LAHSA; says administration will fight the ruling

Organizations Involved

Los Angeles Homeless Services Authority

Joint city-county authority

Under federal suspension, fighting HUD in court; transitioning roles to L.A. County

The joint city-county agency that has managed federal homelessness funds and programs for over two decades.

Los Angeles County Department of Homeless Services and Housing

County department

Selected to take over all four federal roles from LAHSA

The county's new department, created after the Board of Supervisors voted to divert $300 million from LAHSA, will absorb federal responsibilities.

L.A. Continuum of Care

Regional planning body

Joined LAHSA's lawsuit; selected county to take over federal roles

A congressionally mandated board that coordinates federal homelessness funding programs in L.A. County.

Timeline

June 2026 October 2026

6 events Latest: Yesterday

Tap a bar to jump to that date

October 2026
Judge extends suspension block; parties near settlement
Latest Court Order

Judge Carter keeps HUD's suspension on hold at the joint request of the parties, who say a settlement is 90% complete. The county's takeover proceeds in stages.
Yesterday
Continuum of Care votes to transfer two more roles to county
Vote

The board votes 253-43 to make the county lead for the database and 219-38 for the housing-matching system, completing the selection of all four roles.
3 days ago
Court-ordered review of replacement agencies due
Procedural

The Continuum of Care submits its review, leading to the selection of the county to take over LAHSA's federal roles.
October 13th, 2026
August 2026
Judge blocks HUD suspension with preliminary injunction
Court Order

Judge David O. Carter rules HUD acted arbitrarily, orders HUD to resume funding, and sets a February trial date. He also orders a review of agencies that could replace LAHSA.
August 13th, 2026
June 2026
HUD suspends LAHSA from federal programs
Regulatory

HUD cuts off LAHSA's funding, citing financial mismanagement and fraud, affecting about $240 million for 140 service providers.
June 11th, 2026
LAHSA files lawsuit against HUD
Legal

LAHSA sues, calling the suspension 'a baseless attempt to eliminate' the agency. The L.A. Continuum of Care joins as a plaintiff.
June 2026

Scenarios

Settlement reached, county takes over all homelessness roles by 2027

Likely Resolves by Jan 31, 2027

Discussed by: Both sides' attorneys; Judge Carter in court

The parties finalize a settlement within weeks, as indicated by the 90% figure. The county assumes the annual count, funding applications, database, and matching system on a staggered schedule. Federal funding flows uninterrupted, and LAHSA's role diminishes. The judge dismisses the lawsuit. This is the most likely outcome given the joint request and stated progress.

Settlement collapses, case proceeds to February trial

Possible Resolves by Feb 28, 2027

Discussed by: No explicit prediction, but trial date already set

Negotiations stall over details (e.g., exact transition dates, financial terms). The case goes to trial as scheduled in February 2026 (actually February 2027). Judge Carter rules on the merits of HUD's suspension. If he upholds the suspension, LAHSA could lose federal funding permanently, though the transition to the county is already underway, so the practical effect may be limited.

HUD regains authority, but transition already complete

Unlikely Resolves by Q2 2027

Discussed by: Not explicitly predicted; a possible legal outcome if HUD wins

If the case goes to trial and HUD wins, the agency could argue that the transition should be reversed. However, because the county has already been selected, HUD would need to approve a new arrangement. Given the political narrative, HUD might try to force providers to apply directly to HUD, bypassing both LAHSA and the county. This would create administrative chaos and potentially delay funding.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

March 2021

Judge Carter's Skid Row order (2021)

In a lawsuit brought by the LA Alliance for Human Rights, Judge Carter ordered the city and county to house everyone living in Skid Row within 180 days, saying local leaders were 'unable or unwilling' to solve the crisis.

Then

The Ninth Circuit overturned the order, citing reliance on extra-record evidence. The lawsuit settled in 2022, with the city agreeing to build over 12,000 shelter beds or housing units.

Now

It established a pattern of judicial intervention in L.A.'s homelessness crisis, showing both the potential and limits of court-ordered solutions.

Why this matters now

Carter's willingness to intervene directly, and the subsequent settlement structure, mirrors his current role in mandating a transition from LAHSA to the county while protecting funding.

1993

Creation of LAHSA (1993)

The city and county of Los Angeles created LAHSA as a joint powers authority to resolve long-standing disputes over how to deliver homeless services, pooling resources under one agency.

Then

LAHSA became the central coordinator for homeless funding and programs, managing billions over the decades.

Now

But the joint governance structure made accountability difficult, leading to repeated audits and criticism, and eventually to the county's decision to create its own department.

Why this matters now

The current shift from a joint authority to single-county control is the reverse of the 1993 compromise, reflecting a recognized failure of the earlier governance model.

May 2009

HEARTH Act (2009)

Congress passed the Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act, which reorganized HUD's homeless assistance programs and formalized the role of Continuums of Care as local planning bodies.

Then

CoCs were given authority to designate local agencies to administer federal funds, leading to LAHSA becoming the designated administrator for L.A.

Now

The act created the legal framework for the current dispute: HUD's attempt to bypass the CoC directly to providers was challenged as violating the CoC's congressionally assigned role.

Why this matters now

The lawsuit against HUD hinges on whether HUD can overrule the CoC's designation; the HEARTH Act is the statutory basis for both the CoC's authority and LAHSA's suspension.