LA Councilmembers to Weigh in On Delayed Contracts for Tenant Aid Services

A Los Angeles City Council committee will meet Wednesday to investigate why $177 million in homeless prevention and eviction defense contracts remain unsigned three months after approval. City Attorney Hydee Feldstein Soto alleges reporting failures by the Legal Aid Foundation of Los Angeles (LAFLA), while the organization claims the delays are retaliation for lawsuits filed against the city.

The council’s Housing and Homelessness Committee will hear from city attorneys and Los Angeles Housing Department representatives. The goal is to determine how these delays have impacted services for the Stay Housed LA program.

Why are the eviction defense contracts delayed?

City Attorney Hydee Feldstein Soto released a public report Monday citing “challenges” in negotiating the contracts. Soto alleged that LAFLA refused to comply with reporting and oversight requirements for the period of 2021 through 2025.

According to the City Attorney’s Office, LAFLA provided raw information with redacted ZIP codes and initials for webinar participants. Soto further alleged the organization failed to produce usable data on the cost of legal services for tenants represented in court or landlord negotiations.

Barbara Schultz, director of housing justice for LAFLA, called these claims “baseless misinformation” in an email to City News Service. Schultz maintained that the foundation provided detailed invoices, salary information, and more than 25 data points per case. She noted that staff cannot provide confidential client information, as is standard for legal services organizations.

Did You Know? The city’s previous contract with the Legal Aid Foundation of Los Angeles, which expired on March 31, cost the city $90.8 million over five years.

How is the $177 million in funding distributed?

The Los Angeles City Council authorized the distribution of $177 million in revenue from Measure ULA, known as the “mansion tax.” The Housing Department requested specific allocations for four organizations.

Legal Aid Foundation of Los Angeles: Nearly $107 million for eviction defense and prevention.
Southern California Housing Rights Center: $42 million for short-term emergency assistance.
Liberty Hill Foundation: Approximately $22 million for tenant outreach and education.
Strategic Action For A Just Economy (SAJE): Some $7 million for outreach regarding the Tenant Anti-Harassment Ordinance.

The Southern California Housing Rights Center is expected to use Senate Bill 2 Permanent Local Housing Allocation funds for the first year, with subsequent years relying on Measure ULA revenue.

Expert Insight: Samantha Carter notes that the conflict highlights a systemic tension between municipal audit requirements and legal privilege. When city-funded legal advocates also act as adversarial litigants against the city, the definition of “basic oversight” often becomes a point of political and legal contention.

What is the conflict between the City Attorney and LAFLA?

Hydee Feldstein Soto previously urged the council not to award the contract to LAFLA, citing concerns about using taxpayer dollars for organizations that sue the city. LAFLA and SAJE have both lobbied the council for increased tenant protections.

Housing and Homelessness Committee – Feb 04, 2026 02:00 PM

In February, LAFLA lead attorney Shayla Myers won a court ruling that blocked the city from removing inoperable RVs from streets. Both LAFLA and SAJE have joined lawsuits challenging city homelessness policies.

Schultz alleged that Soto has spent the past year interfering with eviction protections. She described the current contract delay as “retaliation” for LAFLA’s work in holding the city accountable for its homelessness response and affordable housing efforts.

What happens next for Stay Housed LA?

The organizations involved are urging the City Council to advance the April allocation of funds. This move could ensure that workers are paid and services continue while negotiations with the City Attorney’s Office persist.

If the contracts are finalized, they are expected to expire on June 30, 2027. The Wednesday hearing may determine if the council will bypass the City Attorney’s objections or require further reporting from the non-profits.

Frequently Asked Questions

What is the Stay Housed LA program?
It is a city-county initiative designed to help tenants remain in their homes through a range of tenant-related services.

Where is the funding for these contracts coming from?
The primary funding source is Measure ULA revenue, with additional support for the Southern California Housing Rights Center coming from the Senate Bill 2 Permanent Local Housing Allocation Fund.

Why does the City Attorney object to the LAFLA contract?
According to Hydee Feldstein Soto, LAFLA has failed to meet reporting and transparency requirements and has sued the city over its homelessness policies.

Do you believe city-funded organizations should be allowed to sue the city that provides their funding?