Report 2010-123 Recommendation 2 Responses

Report 2010-123: California Housing Finance Agency: Most Indicators Point to Continued Solvency Despite Its Financial Difficulties Created, in Part, by Its Past Decisions (Release Date: February 2011)

Recommendation #2 To: Housing Finance Agency

Within its annual resolutions delegating authority to CalHFA staff, the CalHFA board should include language restricting staff's actions regarding debt strategies and mortgage products to those specified in the annual delegations themselves, the approved business plans, or subsequent board resolutions.

6-Month Agency Response

Board resolutions approved in January 2011 and amended in March 2011 include restrictions on actions CalHFA staff may take regarding debt strategies and mortgage products. When taken together with the May 2011 board resolution (See Recommendation 1), these actions restrict CalHFA staff to implementing only financing strategies and loan products approved by the board. (See 2012-406 p. 32)

California State Auditor's Assessment of 6-Month Status: Fully Implemented

All Recommendations in 2010-123

Agency responses received after June 2013 are posted verbatim.