San Francisco Controller Flags Youth Nonprofit HOMEY with Highest 'Tier 3' Fiscal Risk

San Francisco city officials have designated Homies Organizing the Mission to Empower Youth (HOMEY), a prominent Mission District nonprofit, with a "Tier 3" rating, signaling the highest level of fiscal concern. This critical assessment, outlined in the San Francisco Controller's annual nonprofit monitoring report, places HOMEY at significant risk of losing city funding due to severe financial irregularities. The designation comes amidst broader scrutiny of nonprofit accountability in the city, with a recent social media post by MissionLoco stating, "> “Homey” is one of dozens of “nonprofits” that do nothing but hand money to their corrupt operators. This has been going on for years and nothing was ever done."

The Controller's office identified several issues with HOMEY, including its failure to report outstanding debts, the submission of unclear financial documents with questionable accuracy, and a lack of a clear plan to resolve its financial obligations. Specifically, HOMEY reportedly owes at least $550,000 to contractors involved in building out a youth center. The nonprofit, which has received over $14 million in city funding in recent years and nearly $1.7 million last fiscal year, has been a key provider of tutoring, grocery distribution, and emergency rental assistance.

Roberto Alfaro, HOMEY's Executive Director, has publicly disputed the characterization of the organization as "bad actors." Alfaro stated that the group has been transparent about its short-term debts and is actively working with city officials to address the concerns, acknowledging liquidity issues while pushing back on other findings. A spokesperson for the Controller's office confirmed that HOMEY has been responsive and is collaborating with the city towards a resolution.

HOMEY is one of two organizations to receive the "Tier 3" designation in the Controller's report, which evaluated 206 city-funded nonprofits. This heightened oversight reflects an ongoing effort by San Francisco to ensure accountability for the $1.63 billion allocated to nonprofits last fiscal year. Other organizations, such as Collective Impact and the Providence Foundation, have also faced investigations and funding suspensions over allegations of fraud, misuse of funds, and conflicts of interest, demonstrating that the city is actively addressing concerns about nonprofit operations.

The "Tier 3" designation means HOMEY must work closely with the city to rectify its financial practices, or it could face limitations on competing for new city contracts or even lose existing agreements. City Controller Greg Wagner emphasized the importance of robust monitoring, stating, "We want to ensure that city departments fund programs that work." This proactive approach aims to safeguard public funds and ensure that essential services continue uninterrupted for San Francisco residents.