OpenTheBooks Accuses Homelessness Nonprofit HomeRise of Misusing $240M in Taxpayer Funding

A government watchdog organization called OpenTheBooks has accused HomeRise, a San Francisco homelessness nonprofit group that receives $240 million in funding from taxpayers annually, of being “careless and irresponsible” with public funds. The report by the watchdog found evidence of misused funds and practices that heightened fraud risks at HomeRise, which runs 1,500 units across 19 properties on a $34 million annual budget. It is unclear how much taxpayer money was wasted or misappropriated, but OpenTheBooks CEO Adam Andrzejewski said the organization should never have been trusted with public funds in light of its behavior. The city’s funding for HomeRise includes $110m in loans to develop and upgrade properties, $90m for operations, and over $40m in grants for support services. After discovering discrepancies in the organization’s financial records, the Mayor’s Office of Housing and Community Development and Department of Homelessness and Supportive Housing hired Sjoberg Evashenk Consulting to conduct an audit into HomeRise’s activities. The auditors found that HomeRise had violated rules by using city dollars for fundraising, staff bonuses, lunches, and gifts. One employee received a 74% wage increase of $87,00 in just nine months alone, while some vacant properties caused the group to lose millions of dollars due to empty buildings, with two reportedly being around one-third uninhabited on average at their sites near the city’s notorious Tenderloin district. The auditors also noted that HomeRise had lost a total of $21m over four years because it was unable to fill some units in its properties fully, which is particularly concerning given the organization’s significant reliance upon public funds for operations and development purposes alike. Despite these issues, however, city officials have stated their belief that HomeRise should remain an active housing operator due to a perceived vested interest in ensuring existing tenants are served well while also encouraging further low-income property construction through the organization’s efforts as part of its broader remit for tackling homelessness. The Washington Examiner contacted Mayor London Breed’s office regarding this matter, but they did not respond by press time.