US Suspends Los Angeles Homeless Funding Alleging ‘Clear’ Fraud

The US Department of Housing and Urban Development has suspended federal funding for a leading homeless services agency in Los Angeles, alleging a “clear pattern of fraud” in a city with more than 40,000 people sleeping in tents, cars and other temporary shelter.

The Los Angeles Homeless Services Authority has received more than $1 billion in public funds over the last five years, but remains “the epicenter of the nation’s drug-fueled homelessness crisis,” according to the HUD announcement Thursday.

The federal agency believes there is evidence that LAHSA lacks financial management, internal controls and safeguards against conflicts of interest that ...