A 2-1 9th Circuit ruling keeps Los Angeles’ homeless-services agency, LAHSA, as applicant for $239 million in 2026-27 HUD funding and orders HUD to release approved grants from last year; applications are now due Oct. 14.
HUD suspended LAHSA in June, citing a record of mismanagement, and told providers to apply directly; the original deadline was the end of August. LAHSA sued, and a district judge issued a preliminary injunction restoring its role. The appeals panel denied HUD’s request to pause that order, with a trial set for February.
About a dozen Los Angeles organizations had gone months without reimbursement for approved prior-year grants. Jewish Family Service LA said its Hope Transitional Shelter, which serves domestic-violence survivors and their children, has operated since April 1 without $300,000 in promised funds—half its budget. The group said the ruling alone does not end the crisis; HUD’s appeal remains underway and the funds have not yet reached providers.
