San Francisco will not renew about $39 million in housing contracts with HomeRise after investigative reporting and a 2024 city audit revealed understaffing, alleged sexual abuse left unaddressed for years, a resident found decomposed, and signs of financial mismanagement. HomeRise still holds roughly $22.5 million in supportive-services contracts that the city says it will closely monitor. The city attorney has opened an investigation, the nonprofit's CEO resigned, layoffs are likely, and officials plan to seek a replacement provider before year-end to protect residents.
San Francisco Pulls $39M From HomeRise After Reports of Abuse, Neglect and Financial Mismanagement
San Francisco's Department of Homelessness and Supportive Housing has declined to renew roughly $39 million in contracts with HomeRise, the nonprofit that houses more than 1,500 residents across 17 supportive-housing buildings, following investigative reporting and a city audit that uncovered serious problems.
Reporting by the San Francisco Chronicle and a 2024 city audit documented chronic understaffing, allegations that sexual abuse of residents went unaddressed for two years, an incident in which a resident died and his body decomposed in his unit for several days, and widespread maintenance and safety failures including tenant-on-tenant violence, rodent infestations, broken elevators, and repeated heating and hot-water outages. The 2024 audit also raised concerns about the organization's financial management.
HomeRise, which offers supportive housing, won't see renewed contracts. Homerise
"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."
HomeRise did not respond to requests for comment. The organization still holds separate supportive-services contracts valued at about $22.5 million; the homelessness department said it will closely monitor those agreements, many of which begin expiring next summer. City officials also said they will begin searching for an alternative housing provider before the current housing contracts end at the close of the year to help ensure continuity of care for residents.
The city's attorney opened an investigation into HomeRise in March, and the nonprofit's chief executive resigned amid the controversy. With the $39 million in renewals canceled, layoffs at HomeRise are now likely as the group adjusts to the funding reduction.
San Francisco is attempting to solve its homelessness issue through nonprofits. Jason Henry
Broader Context
San Francisco has in recent years severed or declined to renew contracts with other nonprofits after investigations revealed misconduct. In 2023 and 2024 the city ended or curtailed ties with organizations including the United Council of Human Services and the Providence Foundation following allegations ranging from criminal charges to fraud, nepotism and wage theft. City leaders say the HomeRise decision reflects an effort to protect vulnerable residents and ensure public funds support safe, effective services.
What Comes Next
The department's next steps include intensified monitoring of remaining contracts, a competitive search for replacement providers where needed, and transition planning intended to minimize disruption for residents. Officials say resident safety and continuity of housing services are priorities as the city moves forward.
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