San Francisco's Department of Homelessness addresses audit findings with key improvements

The San Francisco County government meeting held on July 4, 2025, focused on the findings of a performance audit conducted on the Department of Homelessness and Supportive Housing (HSH). The audit, initiated in 2019, aimed to assess the department's administration of programs and identify areas for improvement in governance, staffing, contracting, program monitoring, and information systems.

The meeting began with a presentation summarizing the audit's findings, which highlighted significant challenges faced by the department. Notably, the audit revealed that the homeless population in San Francisco had increased by approximately 19% from 2015 to 2019, with many individuals remaining unsheltered. The department, created in 2016 to consolidate homeless services, was found to have consistently carried unspent funds in its contracts, averaging 16-17% of the revised budget each year.

Key issues identified included inadequate program monitoring practices, with only 9 out of 20 contracts reviewed providing sufficient performance reports. The audit recommended the establishment of standardized policies and procedures for monitoring, including the development of performance metrics and corrective action processes for underperforming contractors.

Staffing was another critical area of concern, as the department had a high vacancy rate, with 36 positions unfilled as of July 2020. The audit urged the department to prioritize hiring to address these vacancies, especially given the ongoing homeless crisis. An update indicated that the vacancy rate had improved to 9% by May 2021, but reliance on temporary staff remained an issue.

The audit also pointed out limitations in the department's primary data system, which hindered effective tracking of clients and housing availability. Recommendations included enhancing this system to improve service delivery.

In response to the audit, HSH Director Shereen McSpadden presented the department's progress on implementing the recommendations. She noted that significant strides had been made in program monitoring, hiring, and stakeholder engagement, despite challenges posed by the COVID-19 pandemic. The department is working on standardizing performance metrics in contracts and enhancing the functionality of its data system.

The meeting concluded with a call for public comment, allowing community members to share their perspectives on the audit findings and the department's responses. Overall, the discussions underscored the ongoing efforts to improve the effectiveness of homeless services in San Francisco, while acknowledging the challenges that remain.