Beyond the MHDC crisis

THE MISSION HOUSING Development Corporation is quickly becoming a case study in why San Francisco needs to tighten up requirements on the vast array of nonprofits that get large amounts of city money for community projects.

As Rachel Brahinsky reports, the MHDC is embroiled in a bitter internal struggle, pitting longtime board members against staff and raising serious concerns about the group's legitimacy in the neighborhood. Board members, led by chair Larry Del Carlo, are interested in moving the organization away from its historic role of creating low-income rental housing in the Mission District. There's talk of developing higher-end home ownership opportunities and possibly taking on projects outside of the city.

But it's hard to pin down exactly who is pushing what, or why, because most of the real discussions have taken place in closed-door board meetings. The MHDC's board is entirely self-appointing, and some members have been there for more than two decades.

At the same time the staff is involved in a union organizing effort and is making demands that include the appointment of some new board members and term limits for all directors. Under pressure from the San Francisco Board of Supervisors, which has scheduled a hearing on the controversy, the board is finally talking about possible changes.

The MHDC is a community icon with a long track record of valuable service. But the lack of accountability among board members, and the pervasive secrecy, has damaged its reputation. The supervisors should go ahead with their hearing – but the agenda should be more than just this one organization. Any nonprofit that gets more than a modest amount of public money ought to be required to abide by most provisions of the Sunshine Ordinance, including holding regular, open board meetings (not just once or twice a year). The supervisors should also consider some sort of community-accountability provisions for the board of city-funded nonprofits, including, possibly, a provision for the election or appointment of some board members from outside, independent stakeholders.

The quantity of city money that goes to nonprofits is vast and generally well spent. But it's public money, and it ought to come with accountability strings attached.