HUD is freezing LA's access to Continuum of Care funds after allegations of fraud at the county's homelessness agency.
The U.S. Department of Housing and Urban Development is barring the Los Angeles Homeless Services Authority from accessing hundreds of millions in federal funds after allegations of fraud, reports Marisa Kendall in CalMatters.
The agency laid out its accusations in a letter, saying the agency engaged in fraud and failed to decrease homelessness. "The agency failed to record when people left their motel housing, misused government money by using it to pay for services provided under another contract and could not provide documents to prove the existence of homes it was responsible for, according to HUD."
The agency has faced criticism from local leaders, who reorganized the county's homeless services this spring, when the head of the agency resigned and LAHSA laid off nearly 300 people. However, Kendall points out that the agency is still responsible for receiving and distributing federal Continuum of Care funds critical to the operations of dozens of local organizations. "Blocking that funding could jeopardize the work the authority has already done to fight homelessness by putting thousands of formerly homeless people back on the street, the Los Angeles Homeless Services Authority said in a statement."
Read the full story: Trump administration blocks federal homelessness funds in Los Angeles
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