In compliance with state law, LAHSA formally notified the union representing its employees, SEIU Local 721, about the layoffs, as well as the Los Angeles County Board of Supervisors, Mayor Karen Bass and state officials.
In total, LAHSA is expected to lay off 284 employees -- with their final day of work June 30, the last day of the fiscal year.
"I want to profoundly thank our staff for their unwavering dedication and hard work serving people experiencing homelessness across Los Angeles County," interim LAHSA CEO Gita O'Neill said in a statement.
"Our staff has been the driving force behind the historic reductions in street homelessness we've seen over the past two years. Though our agency's structure is changing, the monumental impact of their work -- housing nearly 80,000 people over three years -- speaks for itself,'' O'Neill added.
LAHSA said the layoffs are part of a restructuring that will eliminate 414 positions, of which 130 are vacant positions. The layoffs will reduce the staff from 600 to 320 employees, with about 53 additional vacant positions, according to Ahmad Chapman, a spokesman for the agency.
The announced layoffs follow a signed contract between LAHSA and SEIU Local 721, which requires a 60 days' notice.
While the layoffs are expected to move forward, LAHSA officials said some of these positions could be saved after June 30 depending on the final details of the city's budget.
"My fellow commissioners and I are committed to this necessary restructuring to ensure system continuity. What matters most right now is reshaping LAHSA to provide uninterrupted support for the service providers on the frontlines every single day, working to end homelessness across Los Angeles,'' Amber Sheikh, chair of the LAHSA Commission, said in a statement.
On Monday, Bass unveiled her proposed $14.89 billion budget for the 2026-27 fiscal year. It would allocate about $788 million for homelessness spending, a 17.3% decrease or $165.2 million less compared to the current fiscal year of $953.3 million.
Of the proposed spending, funding for LAHSA is expected to increase from $50.65 million to $52.82 million, or by approximately $2.2 million, according to city documents.
City spending on LAHSA is expected to maintain the annual point-in-time homeless count, continuum of care administration services, shelter and housing interventions and strategies to address street homelessness.
Meanwhile, LAHSA officials touted their work on homelessness. Officials said they've reduced street homelessness by 14% and 18%, county-wide and city-wide, respectively, citing the annual PIT homeless count. LASHA also said they made 77,834 permanent housing placements from 2022 to 2024.
O'Neill emphasized LAHSA will be a "fundamentally'' different organization beginning in July. The agency is expected to focus on the operation of the Homeless Management Information System and Coordinated Entry System, governance and system performance, and overseeing the annual homeless count and lead grant awards.
As part of this transition, LAHSA's contracting and program oversight role will be refocused primarily on the city.
"This restructuring marks a necessary evolution for LAHSA,'' O'Neill added. "By narrowing our focus to macro-level governance, data management, and securing federal funding, we are stepping into our true role as a strategic architect of the region's homelessness response system.''
In 2025, the Board of Supervisors approved the creation of the county's first homelessness department, and authorized the transfer of some employees and about $300 million in funding from LAHSA to the new agency. The decision came in response to audits that found LAHSA had failed to properly track spending and service outcomes.
The Department of Homeless Services and Housing formally launched in January, with county officials expecting the department to be fully operational by July.
Los Angeles city officials are discussing a similar move to shift some programs away from LAHSA over the next fiscal year.
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