Federal Investigating Homeless Management Agency in City of Los, Bass Resigns as Agency Commissioner.

Los Angeles Mayor Karen Bass promised to address the city’s homeless problem at the beginning of her term, but as her final year in office approaches, the homeless population has only continued to rise. Faced with criticism and a federal investigation, the Los Angeles Mayor’s Office issued a statement on Tuesday, announcing that Bass will officially step down from her position as a member of the Los Angeles Homeless Services Authority (LAHSA) on Thursday.

Last Thursday, the House Committee on Government Efficiency and Oversight (DOGE) launched an investigation into LAHSA. The DOGE Committee, a subcommittee of the House Committee on Oversight and Government Reform, was established to legislatively interface and coordinate with the Department of Government Efficiency (DOGE).

DOGE Committee Chairman Tim Burchett wrote to Bass last week, requesting her presence at a hearing on the 15th to testify and cooperate with the investigation into potential corruption in LAHSA’s contracting and funding practices. However, the mayor’s legal counsel stated that Bass would be unable to attend due to scheduling conflicts.

In light of the federal investigation, Bass will appoint a new member to replace her on the committee. Bass had taken on this position in 2023. Speaking to local media station KFI last Friday, she cited “time constraints and other reasons” for her resignation.

LAHSA, a joint agency established by the city and county of Los Angeles, is managed by a board of 10 members. Bass and the four members she appointed hold five seats, while the remaining five are appointed by the Los Angeles County Supervisors. Both the city and county oversee the allocation of federal funds to LAHSA in terms of budget, planning, and project decisions.

Since 2021, LAHSA has received $1 billion in federal funding, but has faced criticism for mismanagement and misappropriation of funds. The Department of Housing and Urban Development (HUD) attempted to suspend a $240 million allocation in June on the grounds of non-compliance, but LAHSA successfully challenged the decision through litigation, allowing the funds to be disbursed.

The DOGE Committee initiated an investigation on September 3rd to determine whether federal funds were being wasted. The committee has requested Bass to testify at a hearing and provide contracts, documents, and communication records related to LAHSA.

Recently, Los Angeles County acknowledged significant financial management failures within LAHSA. As a result, in 2025, a vote decided to transfer $300 million of county government subsidies from the organization to an independent unit for management.

In his letter to Bass, Burchett listed several recent corruption scandals involving LAHSA, pointing out that during Bass’s tenure as mayor, the homelessness crisis in Los Angeles has worsened. Despite the city government’s continuous promotion of a “housing first” approach, it has failed to address the mental health and substance abuse crises fueling a vicious cycle, leading to deteriorating public health conditions, increased illegal activities, and a challenging environment for small businesses in the city.

Burchett highlighted multiple instances of corruption and self-enrichment in recent reports. For example, the self-described nonprofit organization 1736 Family Crisis Center paid its executive director a total of $1.6 million in salaries between 2023 and 2024, with an additional $907,000 in the prior year, including nearly $500,000 in bonuses. This compensation far exceeds what leaders of larger similar organizations receive.

HUD data shows that California has nearly 182,000 homeless individuals, with 73,000 in Los Angeles County and 45,000 in the city of Los Angeles. According to a July report on homelessness in the greater Los Angeles area, the number of people living in encampments or vehicles in the city of Los Angeles increased by 7.9%.

Bass has acknowledged responsibility for the growing homeless population, attributing the increase to various factors, including federal policies that raise the cost of living and reduce allocations. Additionally, the city lost a $78 million allocation from the state government.