San Francisco halts $39 million in HomeRise contracts following allegations of mismanagement and abuse

San Francisco’s efforts to address homelessness through nonprofit partnerships have faced another setback. The city’s homelessness department has decided not to renew $39 million in contracts with HomeRise, a nonprofit that provides supportive housing for over 1,500 residents across 17 buildings. This decision follows a series of scandals and mismanagement issues that have plagued the organization.

The San Francisco Chronicle reported that HomeRise was plagued by severe understaffing, alleged sexual abuse of residents that went unaddressed for two years, and a tragic incident in which a man died and decomposed in his room for days. Additional concerns included tenant violence, infestations of vermin, broken elevators, and a lack of heating and hot water. A 2024 city audit also found evidence of financial mismanagement.

Department spokesperson Emily Cohen emphasized the city’s commitment to accountability, stating, “Public dollars cannot be used to support projects not achieving their outcomes.” The decision reflects a broader pattern of San Francisco’s approach to nonprofit partnerships, where repeated failures have led to the termination of contracts and the pursuit of legal action.

HomeRise still holds contracts for supportive services worth $22.5 million, which will expire next summer. The city has pledged to closely monitor these remaining agreements and is already seeking a replacement provider before the current contracts end. The nonprofit’s chief executive resigned in March, following an investigation by the city attorney’s office.

This is not the first time San Francisco has severed ties with a homeless service nonprofit. Last year, the city terminated agreements with the Providence Foundation after an investigation uncovered fraud, nepotism, and wage theft. In 2023, the city also removed its partnership with United Council of Human Services.

The city’s actions underscore the challenges of managing public funds in the context of homelessness, where the stakes are high and the need for accountability is urgent. As Proverbs 31:8-9 reminds us, we are called to speak up for those who cannot speak for themselves, ensuring that vulnerable neighbors are treated with dignity and provided with the care they deserve.

Source: Read the original report