Grand jury urges standardized outcomes and tighter monitoring for homelessness contracts

The Government Audit and Oversight Committee on Dec. 19 considered a civil grand jury report titled 'Hitting the Performance Bullseye,' which examined contracting practices at the Department of Homelessness and Supportive Housing (HSH).

Rick Ulrich, presenting for the civil grand jury, said the jury found inconsistent use of outcome‑oriented measures across homelessness service contracts, variable contract monitoring (many contracts fall below established audit thresholds), and insufficient public reporting on subpopulations. "Inconsistent use of specific results based outcomes inhibits HSH's ability to measure and evaluate the success of programs and the performance of community based organizations," Ulrich said, urging timelines and milestones for implementation.

Ulrich highlighted the need for outcome measures that are specific, measurable and aligned to strategy rather than activity counts. He recommended HSH work with the controller's office and the Homelessness Oversight Commission to develop consistently applied contract performance measures and monitoring standards.

Deputy Director Emily Cohen of HSH said the department accepts most findings and is implementing reforms tied to its 'Home by the Bay' strategic plan. Cohen told the committee HSH has consolidated several legacy data systems into a single "1 system" and is developing a comprehensive performance measurement plan that will include core metrics, common data points and a program monitoring policy. "We are now in the process of standardizing all of that," Cohen said.

Supervisors raised concerns about sole‑source contracting authority and asked whether recently proposed waivers to continue sole‑source grants to certain providers would be compatible with stronger monitoring and performance standards. Ulrich said sole‑source authority had been useful for rapid pandemic responses but said extending that authority would heighten the need for standardized outcomes and active contract oversight.

Supervisor Stephanie told the committee she is pursuing legislation to strengthen nonprofit accountability and contracting practices; she said the measure received a favorable Rules Committee recommendation and will be refined to accommodate nonprofit feedback before returning to the board.

The committee heard public comment urging improved public dashboards and subpopulation reporting, and then voted to file the grand jury report and to accept the recommendations for follow‑up oversight.

What’s next: HSH said it will roll out its performance measurement plan on a rolling basis, update agreements to align outcomes as contracts are reprocured through a multiyear procurement plan, and coordinate with the controller’s office and the Board on implementation milestones.