Another Large SF Nonprofit Shutting Down After Audit Finds Fiscal Mismanagement and Misuse of City Funds

HomeRise, a significant provider of services for the homeless and formerly homeless in San Francisco, is ceasing operations following a series of financial and ethical controversies. The city auditor’s report from early 2024 revealed serious fiscal mismanagement, including the misuse of taxpayer funds for social events, staff bonuses, and other questionable expenses. These practices were found to have diverted resources from essential housing and support services.

The audit covered a four-year period, from 2019 to 2023, and highlighted systemic issues within the organization. City funds were improperly allocated for non-essential costs, raising concerns about the effectiveness of services intended for vulnerable neighbors. The findings prompted a reevaluation of HomeRise’s role in the city’s homeless services network.

HomeRise managed 17 properties offering housing and supportive services. The organization’s closure will require the city to find new operators for these facilities, though the transition is expected to take one to two years. A spokesperson for the city’s Department of Homelessness and Supportive Housing stated that the organization’s current model is unsustainable.

The organization’s leadership faced scrutiny as well. Former CEO Janéa Jackson resigned in May amid growing financial concerns. Her departure followed a tragic incident at one of HomeRise’s properties, where a resident was found deceased after missed wellness checks. This incident led to heightened oversight and the suspension of four of the organization’s nine city contracts.

In July, additional allegations emerged regarding a case manager accused of sexual misconduct with both employees and clients. The nonprofit was reportedly aware of these complaints for two years but failed to address them. These revelations have intensified calls for accountability and transparency in the nonprofit sector.

The situation underscores the challenges of ensuring ethical and effective service delivery in a system where public funds are critical. As Proverbs 31:8-9 reminds us, we are called to speak up for those who cannot speak for themselves. The closure of HomeRise serves as a sobering reminder of the need for integrity and care in serving the vulnerable.

Source: Read the original report