Update: Scandalous SF nonprofit's replacement also tainted by alleged misconduct

Supervisor Catherine Stefani voiced her concerns at a recent committee meeting that SF's chosen replacement for partner org UCHS—which is the Felton Institute—might be just as dangerous. FI has been accused of disrupting union organization via withholding raises, not-good-faith bargaining, and bullying behavior; yet SF still hedges on enforcing accountability in nonprofit partners' contracts. The SF Standard's report below.

Prompted by an audit that placed the United Council of Human Services on a red flag list, the Department of Homelessness and Supportive Housing has stripped the organization of its contracts until it regains good standing with the state Attorney General’s Office.

But at a Thursday committee hearing, members of the Board of Supervisors probed the department over its decision to allow the Felton Institute, which is dealing with controversies of its own, to take over the charity’s operations.

Moreover, Supervisor Catherine Stefani questioned how the department and the Controller’s Office plan to prevent the city from being caught blindsided by other nonprofits.

The city flagged its findings about the United Council of Human Services to the FBI and the District Attorney’s Office as a criminal matter.

“I have serious concerns as to how the city is managing our contracts with nonprofits,” Stefani said.

The city distributes about $1.5 billion to over 600 nonprofit organizations annually, according to the Controller’s Office. But the city’s oversight of that spending has fallen under scrutiny amid numerous scandals.

Performance reports obtained by The Standard show inconsistent monitoring practices that seemingly overlooked underperforming programs....

In April, the department tapped the Felton Institute to take over for the scandalized charity due to its familiarity with its programs and ability to take over operations expediently.

Employees of the Felton Institute have recently accused the organization of disciplining, harassing and surveilling employees looking to expand union representation. Board President Aaron Peskin threatened to impose consequences on the nonprofit at a recent hearing if the situation isn’t fixed.

This article originally appeared in the San Francisco Standard. Read the whole thing here.

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