To ensure that it complies with state law and maximizes the public benefits that its Multifamily Housing Program provides, HCD should improve its current process for awarding program funds by documenting its determination of whether the costs of proposed projects are reasonable.
The HCD Division of Financial Assistance (DFA) has revised the Notices of Funding Availability (NOFA) "Projects with Extraordinary High Development Costs" section to be more specific regarding the supportive documentation, analysis, and approval process to determine if proposed project costs are reasonable (See Attachment AF1a - highlighted text). An internal Management Memo has been approved and implemented memorializing the review, analysis, and documentation process (Attachment AF1b).
The HCD Division of Financial Assistance (DFA) staff and management are currently evaluating and drafting language to include in the Staff Recommendation Report that is submitted as part of the project review process. The language will be more specific regarding the analysis and approval process to determine if proposed project costs are reasonable.
Agency responses received are posted verbatim.