San Francisco Nonprofit Gave Huge Raises to Staff as Housing Units Sat Vacant, Says Audit

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San Francisco has referred the nonprofit that operates a large portfolio of housing for formerly homeless people to the FBI and district attorney's office over allegations of "gross mismanagement and wasteful spending," the San Francisco Chronicle reports.

An audit released Tuesday by the San Francisco Controller's Office found that HomeRise, which operates nearly one-third of city-funded supportive housing units for formerly homeless people, gave large pay raises to employees as much as 20%, created at least three new corporate positions without considering the impact on the city's budget, and paid out $200,000 in bonuses.

"Diverting any portion of city funding to questionable uses when it's earmarked to benefit residents is careless and irresponsible," Controller Greg Wagner says.

HomeRise CEO Jan Jackson tells the Chronicle that "many of the concerns have been resolved" and the organization is "willing to make all changes necessary to restore its good standing with the city."

She says HomeRise has been working closely with the Controller's Office to correct its fiscal and organizational issues.

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