HUD Cuts Los Angeles Homelessness Funding During Fraud Investigation

Secretary Turner said his organization will fund results, not “corrupt failure or the homeless industrial complex.”

The Department of Housing and Urban Development announced the suspension of funding to the Los Angeles Homeless Services Authority (LAHSA) while the Inspector General investigates allegations of fraud. HUD officials reported evidence of repeated false statements from LAHSA in addition to “irresponsible actions and failures… which pose a threat to the public, HUD’s mission, and the stewardship of taxpayer dollars.”

“HUD will fund results, not corrupt failure or the homeless industrial complex,” said Secretary Scott Turner. “Year after year, hundreds of millions of taxpayer dollars were funneled to LAHSA with little accountability. Meanwhile, homelessness skyrocketed. Taxpayers will no longer bankroll an organization that puts its own self-interests ahead of the Americans it was created to serve.”

HUD explained that the state housing organization has lacked financial management, internal controls, and safeguards against conflicts of interest.

As the Lord Leads, Pray with Us…

  • For Secretary Turner to be led by the Lord as he heads the Department of Housing and Urban Development and its review of allocations to the states.
  • For the HUD Inspector General and other officials involved in fraud investigations.
  • For federal, state, and local leaders to have integrity and provide services to homeless individuals effectively and efficiently.

Sources: Reuters,

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