San Francisco’s troubled homeless housing project stripped of millions after scandal-plagued run

San Francisco’s plans to keep its residents in homes and off the streets keep running into the same cycle of mismanagement and other issues plaguing homeless services nonprofits.

The latest in the saga: The city’s homelessness department recently said it won’t renew $39 million worth of contracts with HomeRise, which serves more than 1500 residents across 17 buildings as part of the city-funded “supportive housing” program.

HomeRise, which offers supportive housing, won’t see renewed contracts. Homerise

The decision comes after reporting by the San Francisco Chronicle that revealed severe understaffing, alleged sexual abuse of residents that was ignored for two years, and an incident where a man died and decomposed in his room for days.

There have also been reports of tenant violence, vermin infestations, broken elevators and a lack of heating and hot water. A 2024 city audit alleged financial mismanagement.

“We want to make very clear to HomeRise as well as other providers that this level of failure is not acceptable,” department spokesperson Emily Cohen told the Chronicle.

“Public dollars cannot be used to support projects not achieving their outcomes,” Cohen added.

HomeRise, which did not return a request for comment to the Chronicle, still has contracts for supportive services worth $22.5 million. The homeless department promised to “closely monitor” those contracts which begin expiring next summer.

The department also said it would begin looking for a replacement housing provider before the contracts finish at the end of the year.

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San Francisco is attempting to solve its homelessness issue through nonprofits. Jason Henry

The nonprofit’s troubles are not over. The city attorney’s office in March opened an investigation into HomeRise, and its chief executive soon resigned months later.

With the contracts not being renewed, layoffs are also now imminent for the organization, the Chronicle reported.

The city has a history of cutting ties with homeless nonprofits after scandals emerged.

Last year, the city opted to not renew agreements with the nonprofit Providence Foundation after a city investigation revealed fraud, nepotism and wage theft.

In 2023, San Francisco removed ties with United Council of Human Services, whose CEO was charged with nine felonies related to her management of the organization.