Background
As the Los Angeles City Council considers how to best manage city funding dedicated to addressing homelessness, LA County wants to ensure that the public has the facts about the County Board of Supervisor’s decision last year to establish a new Department of Homeless Services and Housing.
The LA County Department of Homeless Services and Housing (HSH), which launched in January, shares Mayor Bass’s dedication to addressing homelessness with urgency and compassion. We value our ongoing partnership with the City of Los Angeles as the County transitions its funding and programs out of the Los Angeles Homeless Services Authority (LAHSA).
Why is HSH facing a deficit?
As our region faces significant state and federal funding reductions and federal policy changes that threaten homelessness and housing safety net programs, it is crucial to remain focused and aligned on facts. The creation of HSH did not cause the previously reported $303 million deficit. As the County has consistently stated publicly and outlined in its FY 2026-27 Spending Plan, the deficit is driven by rising program costs and a reduction in federal, state, and other one-time funding sources.
Why do we need a new department focused on solutions to homelessness and housing?
Establishing HSH creates an opportunity to work differently — with clearer accountability, stronger coordination across jurisdictions, and a more strategic approach to addressing homelessness. We remain committed to working closely with Mayor Bass and the City of Los Angeles to build on our recent progress together and more effectively reach people and communities in need.
For more information about HSH and its spending plan: