Auditors have criticized a San Francisco-based homelessness nonprofit, HomeRise, for misusing taxpayer money, lacking financial controls, and heightening the risk of fraud, according to a damning city report. The organization, which has a $34 million annual budget and operates 1,500 units across 19 properties, was found to have questionable spending practices, including using city funds for fundraising, staff bonuses, and excessive credit card use. The audit, commissioned after financial issues were discovered, revealed an alarming lack of oversight and mismanagement.
Despite losing millions of dollars due to empty buildings and high staff turnover, HomeRise received more than $240 million in city payouts, with $110 million going towards property development or upgrades, $90 million for operations, and over $40 million in support services grants. The auditors recommended enhancing oversight but did not suggest cutting off city funding to the organization. The current CEO, Janéa Jackson, has emphasized addressing financial problems by improving budgeting processes and reducing the number of credit card users.
This scandal comes amid a homelessness crisis in California, with over 180,000 people experiencing homelessness last year, a 6% increase from the previous year. The state has seen a significant rise in homelessness since 2013, further exacerbating the need for effective solutions. These challenges have prompted public frustration and demands for action, with a majority of Americans expressing support for relocating homeless individuals to official camps outside towns and cities. The issue of homelessness has become a focal point in the political landscape, with differing views on how best to address the crisis.
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