San Francisco's Department of Homelessness and Supportive Housing has announced it will not renew $39 million in contracts with the nonprofit HomeRise, a provider for over 1,500 residents in 17 supportive housing buildings. The decision follows a series of reports detailing significant issues within the organization's operations.
Recent reporting by the San Francisco Chronicle uncovered allegations of severe understaffing, ignored reports of sexual abuse, and a case where a resident's death went unnoticed for days. Additional concerns raised include tenant violence, infestations, malfunctioning elevators, and a lack of essential services like heating and hot water. A city audit conducted in 2024 also alleged financial mismanagement by HomeRise.
"We want to make very clear to HomeRise as well as other providers that this level of failure is not acceptable," a spokesperson for the homelessness department told the Chronicle. "Public dollars cannot be used to support projects not achieving their outcomes."
HomeRise still holds contracts for supportive services totaling $22.5 million, which are set to expire next summer. The city department stated these contracts will be closely monitored. Efforts to find a replacement housing provider will begin before the current contracts conclude at the end of the year.
The nonprofit's leadership has faced scrutiny, with the city attorney's office opening an investigation in March. Shortly after, HomeRise's chief executive resigned.
Layoffs are anticipated for HomeRise staff as a result of the contract terminations. This action is part of a larger pattern where San Francisco has previously severed ties with homeless service nonprofits following the emergence of scandals. In the past year, the city did not renew agreements with Providence Foundation due to findings of fraud, nepotism, and wage theft. In 2023, San Francisco also ended its relationship with United Council of Human Services after its CEO faced felony charges related to the organization's management.