A recent audit has uncovered concerning financial mismanagement within one of San Francisco’s major housing providers for the formerly homeless, HomeRise. The audit, conducted by Sjoberg Evashenk Consulting, revealed that the nonprofit organization “misused” millions of dollars in taxpayer funds, with questionable practices diverting resources away from essential tenant services and facility maintenance.
HomeRise, responsible for managing over 1,500 units across 19 properties in San Francisco, operates with an annual budget of approximately $34 million and employs 250 individuals. However, despite its substantial funding, the organization’s financial decisions have raised significant red flags.
Among the findings of the audit were instances of inflated salaries, unwarranted bonuses, and the creation of new corporate positions without adequate consideration of the financial implications. HomeRise reportedly provided 20% pay raises to some employees despite facing financial constraints, and over $200,000 in bonuses were distributed.
Furthermore, concerns were raised about HomeRise’s contribution to violent incidents at its Mission Bay complex, prompting scrutiny from city residents and officials. Despite assurances from CEO Janéa Jackson regarding a commitment to resolving the issues highlighted in the audit, the situation has sparked outrage among the public and city officials.
This revelation adds to a growing trend of fiscal mismanagement within San Francisco’s nonprofit sector, with other organizations facing similar accusations in recent years. The city’s district attorney’s office is currently investigating allegations of financial misconduct at SF Safe, another nonprofit group, while the operator of Providence Foundation of San Francisco is under investigation for wage theft and labor law violations.
With the misuse of public funds jeopardizing essential services for vulnerable residents, including the homeless and those struggling with mental illness and addiction, there is a pressing need for greater accountability and oversight within San Francisco’s nonprofit sector.
As investigations unfold and pressure mounts for reform, the spotlight remains on organizations like HomeRise to ensure transparency and responsible stewardship of taxpayer dollars allocated for critical social services.