SF Homeless Services Nonprofit to Pay $1 Million After Investigation Found Fraud | KQED

"Chiu's office also accused the nonprofit of hiring family members, including children of the executive director and vice president of the board, violating an anti-nepotism provision in a city grant agreement. Separately, San Francisco's Office of Labor Standards Enforcement started its own investigation after receiving complaints from employees who claimed labor violations. The city suspended funding for Providence to operate the Oasis Hotel and its other programs and threatened to debar it, permanently cutting off future funding."

"In the case of HomeRise, the city's report found the company had spent $12,500 on a social event and $200,000 in bonuses. The developer operates about 1,500 units across 19 properties, making up almost a third of city-funded homes. But rather than cut off funding, it instead urged other city agencies to strengthen oversight of HomeRise contracts and directed the housing provider to improve how it managed city funds."

""The city has spent an incredible amount of dollars in recent years investing in addressing the homelessness crisis in our streets and we need to make sure that every dollar is put to good use," he said. "I think today's announcement is a step forward toward that accountability and assuring that public dollars are addressing the needs and crises on our streets.""

The city's office accused Providence of hiring family members, including children of the executive director and vice president of the board, violating an anti-nepotism provision in a city grant agreement. The city's Office of Labor Standards Enforcement opened an investigation after employee complaints alleging labor violations. The city suspended funding for Providence's operation of the Oasis Hotel and threatened to debar the nonprofit, cutting off future funding. In HomeRise's case, the city's report found $12,500 spent on a social event and $200,000 in bonuses. The city urged stronger oversight of HomeRise contracts and directed the provider to improve management of city funds. The Board of Supervisors is expected to approve a settlement agreement in the coming months.

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