Staff Reports
A recent report by the government watchdog group OpenTheBooks revealed shocking findings that a San Francisco homelessness nonprofit, HomeRise, has been careless and irresponsible, with a whopping $240 million in taxpayer money. This nonprofit, which operates 1,500 units across 19 properties, has been accused of misusing funds and engaging in practices that raise the risk of fraud.
The city of San Francisco has allocated $240 million to HomeRise, including $110 million in loans for property development, $90 million for operations, and over $40 million in support service grants. OpenTheBooks CEO Adam Andrzejewski strongly criticized the nonprofit, stating that it should never have been trusted with public funds.
San Francisco homelessness nonprofit group accused of mismanaging $240 million of taxpayer dollars: ‘Irresponsible’ https://t.co/T8NpaixE7G
— Washington Examiner (@dcexaminer) April 30, 2024
In response to the disturbing findings, the Mayor’s Office of Housing and Community Development and the Department of Homelessness and Supportive Housing enlisted Sjoberg Evashenk Consulting to perform an audit.
The auditors discovered significant discrepancies in HomeRise’s financial records, including violations of rules such as utilizing municipal funds for fundraising, awarding staff bonuses, and offering extravagant perks to staff.
Furthermore, the audit revealed significant financial losses for HomeRise attributed to vacancies in its properties, with two buildings reportedly being approximately one-third unoccupied. Notwithstanding these concerning findings, auditors underscored the city's commitment to ensuring HomeRise's continued operation as a housing provider for its current tenants and as a developer of low-income housing in the future.
This troubling misuse of taxpayer money by a housing nonprofit underscores the need for greater accountability and oversight to ensure that public funds are effectively and responsibly utilized for the benefit of those in need.
