Report 2014-037 Recommendation 3 Responses
Report 2014-037: California Department of Housing and Community Development: Inconsistent Oversight Has Resulted in the Questionable Use of Some Housing Bond Funds (Release Date: September 2014)
Recommendation #3 To: Housing and Community Development, Department of
To meet the intent of the law, HCD should approve and fund for the Catalyst Program only those projects that more directly create or preserve housing opportunities.
Annual Follow-Up Agency Response From November 2015
HCD has revised its policy covering the Catalyst Program, via a management memo. The policy change satisfies the concerns raised in this finding. Supporting documentation has been provided.
- Completion Date: September 2015
California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented
HCD's policy changes should help it ensure that only projects that more directly create or preserve housing opportunities receive funding.
1-Year Agency Response
HCD maintains what was stated at the 6-month status report and emphasizes that staff will ensure all proposed scope of works for any future standard agreement are consistent with these requirements. Therefore, this finding is fully implemented.
- Completion Date: February 2015
- Response Date: September 2015
California State Auditor's Assessment of 1-Year Status: No Action Taken
As we stated in our assessment of HCD's 6-month status report, the guidance HCD indicates it provided to its staff regarding the four catalyst projects yet to sign a standard agreement does not ensure HCD will comply with state law. Specifically, as we indicated in our report, we do not believe state law allows funding for projects that do not create or preserve affordable housing.
6-Month Agency Response
Staff have reviewed the current status of all catalyst designees. Of the 10 designees, 6 have executed standard agreements with identified scopes of work. HCD is not proposing to amend existing standard agreements or disapprove fund disbursement requests on activities previously approved by HCD through an executed Standard Agreement. However, for the remaining 4 Catalyst Designees without a completed standard agreement process, staff have been notified to review proposed scopes of work to ensure all future activities funded through the Catalyst Program are in support of "creating or preserving affordable homeownership opportunities" consistent with the Statutory Authority. Staff will ensure all proposed scope of works for any future standard agreement are consistent with these requirements.
- Completion Date: February 2015
- Response Date: March 2015
California State Auditor's Assessment of 6-Month Status: No Action Taken
The guidance HCD indicates it provided to its staff regarding the four catalyst projects yet to sign a standard agreement does not ensure HCD will comply with state law. Specifically, as we indicated in our report, we do not believe state law allows funding for projects that do not create or preserve affordable housing.
60-Day Agency Response
The HCD Housing Policy Division (HPD) continues to assess projects, and will review those not currently under a standard agreement. HPD will complete the assessment by the 6-month status report.
- Estimated Completion Date: 3/11/2015
- Response Date: November 2014
California State Auditor's Assessment of 60-Day Status: Pending
All Recommendations in 2014-037
Agency responses received are posted verbatim.