The Department of Housing and Urban Development (HUD) is cutting off funds to a Los Angeles agency that coordinates homeless programs, saying the agency is engaged in "obvious fraud" and "wanton mismanagement" of federal funding. 

The funding is being suspended while the inspector general investigates potential offenses, Fox News reported, citing a letter from HUD to the CEO of the Los Angeles Homeless Services Authority (LAHSA). 

The letter details a variety of issues with the California agency's handing of federal funds, including conflicts of interest, financial mismanagement, fraud and lack of oversight. 

According to HUD, the agency has received nearly $1 billion in federal funding since 2021, and it also receives local and state funding. Despite the funding, Los Angeles' homelessness crisis has grown. 

"LAHSA’s failures have been so severe and pervasive that Los Angeles County has withdrawn its funding for the agency, and the City of Los Angeles is considering doing so as well," the letter states.