from the existing authority’s programs to the county department by July 1, 2026.

The department will report directly to the Board of Supervisors. The existing authority will continue to conduct the Greater Los Angeles Homeless Count, as well as provide services through contract agencies.

“We need to treat homelessness like the crisis it is — but problems with LAHSA (including contract delays and unaccounted funds) have been roadblocks. It’s time to make a change,” said Supervisor Janice Hahn.

Most of the new department funding comes from Measure A, which voters approved in November and which increases the existing sales tax for homeless services by one-quarter of a cent. The motion for a new county homeless services department fell the same day Measure A took effect, Tuesday.

It is estimated the new measure will bring in about $1 billion annually.

The measure will maintain existing programs and provide more revenue to address the homelessness crisis in the region. It also sets aside funds for preventing people from becoming homeless and for building more affordable housing units in the county.

The action comes on the heels of a county audit and other reports that point blame at the existing authority for not responding to the homeless crisis in a timely manner and not always accounting for expenditures of taxpayer dollars.

The county auditor-controller’s office released an audit on Nov. 20, spelling out numerous deficiencies regarding the fiscal practices of the authority. These included making no agreements with partners for repaying cash advances from the county; failing to reimburse nonprofits in the field for services in a timely manner even when money was available; having inadequate controls over contract reviews or cash payments; and inappropriately using funds.

The authority was created in 1993 to address homelessness in the county. It is the lead entity that coordinates and manages federal, state, county and city funds for shelter, housing and services to homeless people throughout the Los Angeles Continuum of Care, which encompasses all cities in the region with the exceptions of Long Beach, Pasadena and Glendale.

Officials from the authority have disputed some of the findings of the audits and urged officials to continue their partnership. The authority has begun efforts to bolster transparency through the creation of accessible databases, which better track available shelter beds and outcomes of services, the authority’s CEO, Va Lecia Adams Kellum, told the board.

Adams Kellum told the board the county has seen a reduction in unsheltered homeless people two years in a row.

However, the new county homeless department will include extensive streamlining of the authority. It may include moving about 300 authority employees over to the new county department by early July, the county reported.

“This is a chance for the county to learn from past mistakes and build a system of care that is set up to succeed and better serve those in need,” read the motion, which was approved by a 4-0 vote, with Supervisor Holly Mitchell abstaining.

The motion, written by Horvath and Supervisor Kathryn Barger, says one county department overseeing all taxpayer funding and services for homeless people will be more effective.

“A transparent, efficient system overseen by one entity, directly responsible to the Board of Supervisors and held accountable to clearly defined performance-based outcomes, will both empower the county to act and hold the county directly responsible for the voter-approved funding from Measure A,” read the motion.

Funding will be redirected from the authority to the new county department and employees of the authority will get first shot at working at the department.

Last week, the board approved its homeless funding plan, which allocated $656 million from Measure A, $209 million in unspent funding from Measure H — the homeless services tax being replaced by Measure A — and $42.6 million in state grants.

Last year the homeless count reached 75,312 in L.A. County.

The city of West Hollywood endorsed the move. Mayor Chelsea Lee Byers wrote in a letter to the board: “The streamlining of systems and the consolidation of human and other needed resources under the oversight of one County Department will maximize operational efficiencies, increase transparency and bolster accountability by having dedicated, experienced leadership at the Department’s helm.”

Other key aspects of creating the county’s new homeless services department include:

Beginning a 30-day national search for the new department’s director.

Having a transition team establish and budget for new positions using Measure A funds and unspent funds from the authority.

Making sure there are no disruptions to services currently being provided.