San Francisco scales back funding for homeless housing project after management issues

HomeRise contracts face major changes

San Francisco is making a major change to one of its largest supportive housing partnerships after concerns emerged about how a nonprofit managed several housing sites. City leaders say housing and support services for current residents will continue during the transition.

The decision could reshape how supportive housing contracts are awarded and monitored in the future. Here’s what led to the funding rollback and what it could mean for the city’s response to homelessness.

Investigation preceded the funding decision

The funding reduction followed months of scrutiny surrounding HomeRise’s operations and management. Reporting by the San Francisco Chronicle and UC Berkeley’s Investigative Reporting Program highlighted concerns involving staffing, resident safety, building oversight, and organizational management.

The reports prompted additional attention from city leaders responsible for overseeing homelessness programs. Officials later determined that major service contracts would not be renewed as they reassessed how supportive housing should be managed.

Operational concerns had been documented

City records showed HomeRise had been monitored over operational, fiscal, compliance, and performance concerns before the latest funding decision. Documents also described ongoing challenges involving staffing levels, administrative practices, and financial oversight.

Officials worked with the nonprofit on improvement plans, but records indicated concerns continued over time. Those documented issues became part of the broader review that preceded the city’s contract decisions.

Housing services are expected to continue

The city’s decision involves four supportive-services contracts and does not affect HomeRise’s ownership of its buildings or separate city funding for maintaining the properties. Residents are expected to remain housed while the city identifies replacement service providers.

The four contracts affect more than 400 residents. San Francisco is temporarily extending them through the end of 2026 to help prevent disruptions while new providers are selected.

HomeRise remains a major housing provider

HomeRise is one of San Francisco’s largest permanent supportive housing providers, serving more than 1,500 residents across 17 buildings. Its housing model combines long-term homes for formerly homeless residents with supportive services intended to help them remain housed.

The city’s decision affects four supportive-services contracts covering more than 400 residents. Officials are seeking replacement service providers while keeping residents housed and maintaining continuity during the transition.

Leadership changes added to the challenges

HomeRise announced a major leadership change in May when CEO Janéa Jackson said she would step down following a turbulent period involving financial and operational scrutiny. The organization subsequently moved under interim leadership while its board searched for a permanent replacement.

City officials continued reviewing HomeRise’s performance and compliance during the leadership transition. The homelessness department later decided not to renew four expiring supportive-services contracts and began planning for replacement service providers.

Budget review provides broader context

San Francisco is reviewing homelessness spending as part of its broader budget planning for upcoming fiscal years. At the same time, officials have continued evaluating the performance of nonprofit organizations that manage supportive housing and other homelessness programs.

City leaders have not identified budget pressures as the reason for ending the HomeRise contract renewals. Instead, the decision followed documented concerns about the nonprofit’s management, operational performance, and compliance.

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New providers will take over support services

San Francisco plans to select replacement providers for supportive services covered by four expiring HomeRise contracts. The transition is intended to keep case management and other support available to affected residents without displacing them from their homes.

The city is extending the four agreements through the end of 2026 while replacement providers are identified. HomeRise’s building ownership and separate maintenance funding are not affected by these nonrenewals.

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Oversight of nonprofit providers gains attention

The HomeRise case has drawn renewed attention to how San Francisco monitors nonprofit organizations that receive public funding for homelessness services. City officials have emphasized contract oversight, compliance reviews, and performance monitoring as they evaluate providers responsible for supportive housing.

The city’s actions involving HomeRise are specific to that organization’s documented performance concerns. Separately, San Francisco continues broader discussions about strengthening accountability across publicly funded homelessness programs.

Supportive housing remains a key strategy

Permanent supportive housing continues to play a major role in San Francisco’s response to chronic homelessness. These programs combine stable housing with services that can include case management, behavioral health support, and help accessing medical care.

Although providers for four HomeRise supportive-services contracts are changing, the city has not announced plans to remove affected residents from their housing. HomeRise’s building ownership and separate maintenance funding are not affected by the contract nonrenewals.

City review of HomeRise continues

HomeRise remains under scrutiny following reports describing operational, financial, and resident safety concerns at its supportive housing properties. The organization has also undergone leadership changes while city officials continue monitoring its performance.

San Francisco has not announced final decisions on all of HomeRise’s remaining agreements. The homelessness department has declined to renew four expiring supportive-services contracts and said it will closely monitor four other service agreements worth a combined $22.6 million.

Housing funding decisions continue

San Francisco continues making budget decisions affecting homelessness programs through its annual budget process. Those discussions include supportive housing, shelter services, behavioral health programs, and other initiatives designed to reduce homelessness across the city.

The HomeRise contract decision was announced separately from the broader budget process. Officials have consistently linked the nonrenewals to concerns about the nonprofit’s management, operations, and compliance rather than to citywide budget reductions.

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Transition enters the next phase

San Francisco’s immediate focus is finding replacement providers for four HomeRise supportive-services contracts without interrupting assistance for affected residents. The current agreements are being extended through the end of 2026 while the city completes that transition.

Residents are expected to remain housed throughout the process. The city will also continue monitoring HomeRise’s remaining supportive-service agreements and take additional action if officials determine it is necessary.

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What do you think about the city’s decision to scale back funding for HomeRise? Share your thoughts in the comments, and don’t forget to like it.

This slideshow was made with AI assistance and human editing.

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