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In what would be a seismic shift in how homeless services are delivered across Los Angeles, two top county officials are proposing an overhaul that could pull hundreds of millions of tax dollars from the region’s troubled homeless services agency.

The idea to revamp the regional homeless services system comes from L.A. County Supervisors Lindsey Horvath and Kathryn Barger and arrives days after a scathing audit of LAHSA that highlighted serious accounting and contract monitoring issues.by the County Auditor-Controller's office showed LAHSA may not be the right steward of public money to address homelessness.

It’s not yet clear if other supervisors will support the plan. Supervisors Hilda Solis and Holly Mitchell did not immediately return requests for comment. A spokesperson for Supervisor Janice Hahn said the supervisor was examining the motion and did not yet have comment. If the motion gets enough votes, it would direct county officials to report back in 60 days on plans to stand up the new department and transition responsibilities away from LAHSA.

“Clearly, given the audit that was just conducted, something needs to be done to improve contracting for homeless services in Los Angeles,” Hunter said. “Whether this board initiative is the solution, I think, is questionable.” Miguel Santana, president and CEO of the California Community Foundation and a proponent of Measure A, said the new money will come with outcome reporting requirements for LAHSA — or any other entity that might receive the funding.

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