The San Francisco nonprofit HomeRise is facing heat after accusations of misuse of public funds intended to aid the homeless have surfaced. San Francisco's Controller's Office delivered a scathing report on the organization's financial mismanagement, according to findings by outside auditors Sjoberg Evashenk Consulting Inc. and recently published by SF Standard. HomeRise is accused of spending millions of taxpayer money on enhanced staff salaries and bonuses while housing units remained vacant.
Despite what the organization claims to be significant strides in restructuring its management, the Controller's Office audit suggests that HomeRise attempted to enrich some employees with pay unjustly raises surpassing 20%, even while grappling with insufficient cash flow. "Diverting any portion of city funding to questionable uses when it's earmarked to benefit residents is careless and irresponsible," Controller Greg Wagner said in a statement obtained by CBS News San Francisco. The nonprofit also came under fire for recording a high vacancy rate at many facilities, leading to over $6 million in losses throughout the audited period.
Within the sprawling city of San Francisco, some of the most glaring inadequacies are captured in properties like the Senator Hotel at 519 Ellis St., where a staggering 29.2% of units sat empty. This contributes to a critical concern as the city battles ongoing homelessness issues. Oversight by city entities had initially flagged this issue, yet the nonprofit continued to struggle with proper record keeping, limiting the capability of auditors to trace HomeRise's spending with precision, as per an audit reported by CBS News San Francisco.
The organization's CEO, Janéa Jackson, who joined the nonprofit in June 2023, acknowledged the severity of the situation but insisted that the audit reflected past issues. "This is the past, and many of the concerns have been resolved or are continuing to be resolved," Jackson told SF Standard. She announced HomeRise's commitment to make all necessary adjustments to mend its relationship with the city and assure effective governance and financial practices. The audit found inappropriate borrowing from restricted accounts to cover cash flow problems and failed to allocate finances to their intended uses appropriately.
HomeRise is not the only nonprofit facing scrutiny. Recently, the United Council of Human Services was effectively cut off from city contracts due to allegations of financial misconduct, and J&J Community Resource Center was accused of improper billing for extravagant expenses.
