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Effective Date:Sep 24, 2026
The Ninth Circuit on September 24 largely rejected HUD's request to pause an injunction protecting the Los Angeles Homeless Services Authority's federal homelessness roles. The order restored LAHSA's ability to serve as the region's collaborative applicant while HUD's appeal continues, but did not require immediate payment of the approximately $239 million earmarked for Los Angeles for fiscal year 2026.
The ruling was interim relief, not a final decision on whether HUD lawfully suspended LAHSA. It lifted the appeals court's September 10 administrative stay and kept most of U.S. District Judge David O. Carter's preliminary injunction in effect.
The order denied HUD's request for a stay of LAHSA's reinstatement in four roles: collaborative applicant, Homeless Management Information System lead, Coordinated Entry System coordinator and Point-in-Time count administrator.
It also preserved the requirement that HUD respond to the Los Angeles Continuum of Care's evaluation of candidates for those roles for fiscal year 2027. The region's longer-term transition therefore remains separate from LAHSA's immediate ability to perform its current responsibilities.
The panel found that HUD had not adequately explained why an immediate suspension was necessary during an application cycle, after approving LAHSA as the collaborative applicant. The majority questioned whether a new direct-to-HUD process could work in the time available. Judge Ryan Nelson dissented.
HUD's June suspension cited alleged financial mismanagement and inadequate safeguards. The court did not resolve those allegations. Its order said HUD retained the ability and duty to address them.
For approved fiscal year 2025 grants, the panel directed HUD to countersign agreements and release money on the standard schedule required by law where LAHSA's involvement was the sole reason for withholding execution.
For fiscal year 2026, HUD obtained narrower relief. The order did not require the approximately $239 million to be disbursed before it would otherwise be due. Instead, it directed HUD to proceed with the competition under the 2026 Appropriations Act.
The distinction matters for providers: preserving an application role and requiring grant agreements to be signed do not establish that every delayed payment has arrived.
On October 13, the Los Angeles CoC's general membership selected the county's Department of Homeless Services and Housing to handle the collaborative application and annual homeless count. The transition still requires court review; the vote did not itself complete the transfer from LAHSA.
The broader selection process also involves the homelessness database and coordinated entry system. Those responsibilities should not be treated as transferred simply because the county was selected for the application and count roles.
The September 24 order expressly identified October 14 as the Los Angeles application deadline. HUD's public competition page, however, still displays earlier guidance saying the 2026 NOFO was vacated and applications cannot be accepted pending further instructions. That conflicts with the later court order and reporting on the reopened competition. Providers should confirm current submission instructions directly with HUD and the collaborative applicant rather than rely on the older page alone.
The September 24 order set oral argument on the preliminary-injunction appeal for October 19. At the October 27 district court hearing, Judge Carter kept the suspension on hold at the joint request of LAHSA, HUD and the Continuum of Care, extending the injunction on the day it had been set to expire. LAHSA continues to run the federal homelessness systems while roles shift to the county, and lawyers for both sides told the court they are close to settling the lawsuit. Neither the county selection nor the September ruling ends the legal dispute.
On September 24 the Ninth Circuit granted HUD's stay request in part and denied it in part. LAHSA keeps its Continuum of Care roles for now and HUD must countersign the FY2025 grant agreements and release funds on the normal legal schedule where LAHSA's involvement was the sole barrier. HUD must run the FY2026 competition but does not have to disburse the roughly $239 million early. The order names October 14 as the Los Angeles application deadline, while HUD's public page still carries older conflicting guidance. The appeal continues, with oral argument that was set for October 19. The county's October 13 selection for the application and homeless-count roles remains subject to court review.
LAHSA, the Los Angeles Continuum of Care, participating housing and service providers, county agencies, and residents who depend on supported housing and homelessness services.
The Ninth Circuit's September 24 order preserved LAHSA's federal homelessness roles during HUD's appeal, required execution of approved FY2025 grant agreements on the normal schedule and did not require early disbursement of FY2026 funding. The Los Angeles CoC selected the county for the application and homeless-count roles October 13, with transition still subject to court review.
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