Thousands of Los Angeles renters may soon lose access to legal aid and eviction prevention services after City Attorney Hydee Feldstein Soto stalled a key city contract. Despite approval from both the City Council and the mayor, the contract extension for Stay Housed L.A. remains unsigned, putting vulnerable tenants at risk just days before the current agreement ends.

Longstanding Tenant Aid Program Faces Sudden Halt

Stay Housed L.A., a coalition of nonprofit groups offering legal help and rental assistance to renters facing eviction, has been supported by city funds for the past four years. The program is credited with helping thousands of tenants stay in their homes during the housing crisis. However, its future is now uncertain, as its current contract is set to expire on June 30, 2025.

City Council and Mayor Approved the Extension

In April 2025, the Los Angeles City Council voted to renew Stay Housed L.A.’s contract for another five years. The extension would total nearly $34 million in funding. On May 1, Mayor Karen Bass gave her approval by signing off on the deal, signaling support from the city’s top leadership.

City Attorney Refuses to Approve Deal

Despite approval from both the council and the mayor, City Attorney Hydee Feldstein Soto informed housing officials last week that she would not approve the contract. Her office raised concerns about the process by which the contract was awarded. According to a statement from spokesperson Ivor Pine, the City Charter requires contracts to go through competitive bidding unless specific exemptions apply.

Concerns Over Competitive Bidding Process

The City Attorney’s Office now claims that the sole-source contract awarded to Stay Housed L.A. may violate city procurement rules. However, tenant advocates say no such objections were raised during the earlier approval stages. The contract passed City Council review and was publicly supported without any indication that the process was improper.

Tenant Advocates Caught Off Guard

Those involved with Stay Housed L.A. say the City Attorney’s decision came as a shock. Barbara Schultz, a lawyer with the Legal Aid Foundation of L.A., which helps manage the Stay Housed program, said her team was blindsided. She warned that tenants could lose access to essential legal services starting July 1 if the contract is not approved.

Immediate Risk for Renters Facing Eviction

Without a contract extension, Stay Housed L.A. would be forced to halt operations at the end of June. That could leave thousands of tenants without legal support during eviction proceedings, a critical resource in a city where many renters are already struggling with rising housing costs and limited affordable options.

Legal Aid Foundation Warns of Service Gaps

Barbara Schultz emphasized that the absence of Stay Housed services would create a major gap in tenant protections. The program connects renters with lawyers and tenant organizers who help them fight wrongful evictions and navigate housing court. Ending these services could increase homelessness and displacement, especially for low-income households. While Mayor Bass and the City Council had supported the contract extension earlier this year, none of the city leaders have publicly commented on the City Attorney’s refusal to sign the deal. With the contract deadline fast approaching, advocates are pressing for urgent action to avoid disruption of services.