California State Auditor

Report 2009-037 Highlights - November 2009

Department of Housing and Community Development:

Housing Bond Funds Generally Have Been Awarded Promptly and in Compliance With Law, but Monitoring Continues to Need Improvement

HIGHLIGHTS

Our review revealed the following for the Housing and Emergency Shelter Trust Fund acts of 2002 and 2006:

  • As of December 2008 the Department of Housing and Community Development (HCD) and the California Housing Finance Agency (Finance Agency) had awarded nearly all the November 2002 bond funds.
  • Although both HCD and the Finance Agency awarded housing bond funds authorized in November 2006 for eight of 10 programs in a timely fashion, HCD has not yet issued any awards for the remaining two programs.
  • Both HCD and the Finance Agency have established and generally adhered to policies intended to ensure that only eligible applicants receive awards.
  • For disbursement of the housing bond awards, both agencies generally have processes in place to ensure that recipients meet legal requirements; however, as we reported in September 2007, HCD continues to advance funds to recipients at amounts greater than the established limit for its CalHome Program.
  • Because of state budget difficulties, HCD restricted travel, beginning in July 2008, for performing on-site monitoring visits. Thus, it has not met the goals it established for conducting such visits for its Emergency Housing, CalHome, and Supportive Housing programs.
  • HCD has not yet completed its verification of data transferred to its new Consolidated Automated Program Enterprise System, which it uses to administer and manage the housing bond programs.














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