Despite Federal Budget Uncertainty, County Remains Committed to Serving Local Housing and Community Development Needs

Federal Investments Enable Better Lives and Better Neighborhoods

June 25, 2025 - At a time when families are struggling to afford the cost of rent, households are facing eviction, and homelessness, or the risk of homelessness, the Administration’s Federal Fiscal Year (FFY) 2026 budget request proposes to reduce funding to the U.S. Department of Housing and Urban Development (HUD) by 44%. Included in the budget reduction is a steep cut in rental assistance by an astounding and historic 43%, along with substantial programmatic restructuring. For housing programs that routinely see annual underfunding and proration, if enacted, these reductions would cut a vital lifeline for Los Angeles County residents and communities.

The Los Angeles County Development Authority (LACDA) serves as the second largest Public Housing Agency (PHA) in Southern California and receives funding from HUD to administer the Section 8 Housing Choice Voucher (HCV) Program, as well as other grant-funded rental subsidy programs for approximately 31,000 families of limited means through partnerships with approximately 9,500 property owners. The agency also owns and operates 3,229 public and affordable housing units located on 68 properties serving more than 6,650 residents. Additionally, the LACDA administers the County’s Community Development Block Grant (CDBG) Program, the largest Urban County CDBG Program in the nation, working closely with elected representatives, cities, and communities within the unincorporated areas, to assess local needs and identify funding priorities.

Almost 70% of the LACDA’s funding comes from the Federal government, with 63% from HUD to provide subsidized housing, housing development and preservation, community development, and economic development. The Administration’s proposed cuts pose significant concerns as these programs have already endured chronic underfunding for years.

The budget proposes to slash $26.72 billion from HUD’s rental assistance programs – including HCVs, Public Housing, and Project-Based Rental Assistance, and combine them as a block grant to States, through the State Rental Assistance Block Grant. This funding reduction could jeopardize ongoing voucher renewals for current program participants who rely on the assistance to maintain stable housing for their families and may also impact developers who pledge voucher rental income to leverage additional funding in their affordable housing project financing structure.

The budget proposal would also impose a two-year time limit on receiving rental assistance for able-bodied adults. While able-bodied, there are vulnerable populations who struggle to secure and maintain housing, and need assistance that can’t be expedited. For example, Alberto, is an LACDA Voucher holder who served three tours of duty in Iraq and returned home unable to find stability which led to homelessness. After connecting with the Department of Veterans Affairs, Alberto was eventually enrolled in a vocational employment program and applied for subsidized housing. “Veterans want to come home and get housed when we fall on hard times,” he stated, “We don’t want a handout, we just want a hand up." 

The Administration’s budget also proposes the elimination of the CDBG and HOME Investment Partnerships (HOME) Programs. These two programs provide flexible funding that communities nation-wide have successfully used for activities that benefit low- to moderate-income individuals, support public services, affordable housing, and economic development. Every dollar of CDBG invested, leverages $3.64 from other public and private sources. HOME is the largest Federal block grant designed exclusively to create affordable housing. Eliminating these programs would make it more difficult for communities to provide critical services and adapt to local needs.  For example, Jean, a senior homeowner shared, “I’m blind and I got handrails in the back to help me go up and down the stairs. I got a new shower and feel safe when I’m home alone. It was wonderful!”  Jean’s home improvements were made possible through the CDBG-funded Senior Grant Program.

The LACDA recognizes the importance of Federal investments to fund programs that are vital priorities for Los Angeles County residents, such as preserving and expanding rental assistance; operating and making much needed capital improvements to Public Housing; preventing evictions and homelessness; and ensuring people experiencing homelessness have the support needed to find and maintain stable, affordable housing.

For more information on the programs offered by the LACDA, please visit, www.lacda.org.