HUD halts funding to LA homeless agency amid fraud probe
What's new: The agency has received nearly $1 billion in federal money since 2021, and HUD linked the cutoff to alleged fraud and weak oversight.
The U.S. Department of Housing and Urban Development suspended federal funding to the Los Angeles Homeless Services Authority while its inspector general investigates alleged fraud, conflicts of interest and financial mismanagement at the agency. HUD told LAHSA board chair Wendy Greuel and CEO Gita O'Neill that the suspension takes effect immediately. The department said LAHSA has received nearly $1 billion in federal funds since 2021. HUD cited a previous case in which former executive Va Lecia Adams Kellum was found to have directed $2.1 million in federal funds to her husband's nonprofit employer, and it pointed to a judge's finding last year of "obvious fraud" tied to funding requests for an 88-bed shelter that was operating at about half capacity.