‘Gross misuse of federal funding’: HUD cuts off funds to LA homeless services agency over fraud concerns

After losing county funding, Los Angeles’ primary homeless services agency has lost federal funding due to its failure to address potential fraud.

The Task Force to Eliminate Fraud, alongside the Department of Housing and Urban Development, sent a letter on Thursday to the Los Angeles Homeless Services Authority to inform the agency that it was immediately suspending funding amid an ongoing probe by HUD’s inspector general. The IG’s office is investigating any potential offenses by the LAHSA and its leadership, according to Fox News Digital, which obtained a copy of the letter.

‘Taxpayers will not bankroll LA’s fraud-filled homelessness industrial complex.’

The department reportedly outlined in its letter conflicts of interest, financial mismanagement, fraud, and oversight failures.

HUD has given the Los Angeles Continuum of Care, which is led