The future of tenant aid in Los Angeles hangs in the balance as a dispute between city officials and the Legal Aid Foundation of Los Angeles (LAFLA) intensifies. At the heart of the controversy is a $177 million contract approved months ago but still awaiting finalization due to allegations of non-compliance with reporting requirements.
The outgoing City Attorney Hydee Feldstein Soto has refused to authorize the new long-term funding, citing LAFLA’s alleged failure to provide adequate accounting of how city funds are spent. This delay has raised concerns among tenant advocates, who warn that critical services could be disrupted if the funding is not released soon.
City Attorney and LAFLA Clash Over Contract Compliance
Feldstein Soto has been vocal about her concerns, stating that LAFLA did not comply with the required monthly reporting. “They didn’t comply with the monthly reporting that they were supposed to do,” she said. “They still haven’t done so.” This stance has led to a stalemate, with the contract still unsigned despite approval from the mayor and City Council in April.
LAFLA, however, strongly disputes these claims. Barbara SchultzLAFLA’s housing director, maintains that the organization has fully complied with the contract terms. “After months of highly unusual investigations, document requests, and audits that extend well beyond the scope of [the city attorney’s] office, she has failed to identify any misconduct — because there isn’t any,” Schultz said. The Los Angeles Housing Department also supports LAFLA, stating that the organization has provided all requested information.
A History of Tension Between City Attorney and LAFLA
The dispute between Feldstein Soto and LAFLA is not new. The organization has been a frequent litigant against the city, challenging its homelessness policies and advocating for greater tenant protections. Feldstein Soto has expressed reservations about awarding large contracts to organizations that sue the city, suggesting that the city should reconsider such allocations.
Despite these tensions, LAFLA has played a crucial role in Los Angeles’ efforts to prevent evictions. Since the early days of the COVID-19 pandemicLAFLA has led the Stay Housed L.A. initiative, providing eviction defense, rent relief, and other aid to tenants at risk of losing their housing. The city has also tasked LAFLA with scaling up the Right To Counsel ordinance, which provides free attorneys to low-income renters facing eviction.
Data on Tenant Outcomes and the Future of Funding
Feldstein Soto has expressed skepticism about the information provided by LAFLA, stating that it is insufficient to determine the outcomes of eviction cases or the cost per case. However, data from the city’s housing department tells a different story. According to a recent report, Stay Housed L.A. has assisted tenants in 27,273 eviction caseswith 6,522 cases involving full legal representation. Over the last four years, 53% of fully represented tenants stayed in their homes, while 41% negotiated agreements with their landlords. Less than 3% of tenants lost their cases in court.
As the dispute continues, tenant advocates are growing increasingly concerned about the potential impact on services. Smaller legal aid nonprofits that receive city funding as subcontractors are at risk of running out of money soon, which could lead to layoffs and increased homelessness. Schultz has suggested that the City Council may need to explore alternative ways to approve the funding without the involvement of Feldstein Soto, who is not seeking re-election.
The City Council has introduced a motion calling on the city attorney’s office to explain the delay. However, the request was canceled due to an earlier meeting of the full City Council that ran over schedule. As the situation unfolds, the future of tenant aid in Los Angeles remains uncertain.
