LAHSA moves to end Home At Last contracts July 22

LAHSA terminating – LAHSA says it is terminating its contracts with Home At Last Community Development Corp., a nonprofit interim housing provider, after the nonprofit signaled it would close two temporary homeless sites. The agency also disclosed that the IRS seized cash from an

By the time Home At Last Community Development Corp. told the Los Angeles Homeless Services Authority it would shut down two temporary homeless housing sites. LAHSA was already moving toward termination. The agency says it received notice that federal authorities seized cash at an address tied to the nonprofit’s founder. Michael Young. and that it acted for “cause” after what it described as a failure to perform contracted services.

In a news release Tuesday. LAHSA said Home At Last notified it last month it would close two of its temporary housing sites. The nonprofit said LAHSA was late in paying Home At Last to operate. LAHSA acknowledged that late payments to nonprofit providers have been a recurring problem. and it pointed to the Trump administration’s recent explanation for suspending federal funds to the joint city-county agency.

But LAHSA said the dispute did not reflect the amount of money it sent. The agency said it had paid Home At Last sufficient funds to operate. LAHSA’s release also turned to the federal seizure. saying the IRS told the agency last month that cash was seized from an address linked to Young. LAHSA said the IRS told it the cash was subject to criminal forfeiture and that LAHSA might be able to claim the money.

Home At Last and Young did not immediately respond to an email seeking comment.

The contract termination is expected to take effect July 22. LAHSA said that after Home At Last informed it it would stop operating two facilities within four weeks, the agency moved to terminate the nonprofit’s contracts for cause, citing a failure to perform contracted services.

As the transition unfolded, LAHSA said it focused on keeping residents housed. After Home At Last’s notification to close the sites. LAHSA said it worked to find shelter for the residents. and that most of the 181 individuals had since been rehoused. “Our absolute priority throughout this transition was the safety. stability. and well-being of the unhoused residents living at these sites. ” Gita O’Neill. LAHSA’s interim chief executive. said in a statement.

The disclosure about the IRS seizure arrives as federal oversight of homelessness spending has intensified. Over the last year, federal authorities have brought at least three fraud cases involving misuse of homeless money. One case includes allegations against the executive director of a homeless housing nonprofit named Abundant Blessings. alleging the nonprofit leader used public money to pay for houses. vacations and a $125. 000 Range Rover.

LAHSA’s release also said its scrutiny of Home At Last includes information from the nonprofit’s own filings. According to the organization’s 2024 tax filings, Young worked 40 hours a week at the nonprofit and was paid more than $150,000.

Between the timing of the shutdown notice, LAHSA’s decision to terminate for cause, and the newly disclosed IRS seizure connected to Young, the situation has brought fresh pressure to how taxpayer money is used as Los Angeles tries to reduce homelessness.

LAHSA Home At Last Community Development Corp. Michael Young IRS cash seizure interim housing homeless services Los Angeles homelessness contracts termination July 22 Gita O’Neill