Report 2018-037 Recommendation Responses
Report 2018-037: California Department of Housing and Community Development: Its Oversight of Housing Bond Funds Remains Inconsistent (Release Date: September 2018)
Recommendation for Legislative Action
Given HCD's long-standing history of inadequate monitoring for some of its programs and the additional funds HCD could receive for CalHome under the November 2018 ballot measure, the Legislature should require HCD to disclose information about such monitoring in its annual report, which it should submit to the Assembly Committee on Housing and Community Development and the Senate Committee on Transportation and Housing. The report should identify all of the awards that HCD monitors for the CalHome and BEGIN programs and should include performance metrics such as the amount of funds awarded but not disbursed to recipients and therefore not issued to potential homeowners. The Legislature should also require HCD to disclose in its annual report—at a minimum—the following information for all awards that HCD is responsible for monitoring in the CalHome and BEGIN programs:
- The amount of the original awards to recipients, the portions not yet disbursed to recipients, and an estimate of how many individuals could benefit from the remaining balance.
- Any extensions HCD granted to the standard agreement and the number of and reason for those extensions.
- The total balance of all recipients' CalHome and BEGIN reuse accounts, detailing the loan repayments recipients are required to reissue for program purposes and an estimate of how many households could benefit from the balance.
- A section describing HCD's monitoring efforts, including the collection of performance reports and the results of the risk assessments and on-site monitoring.
Description of Legislative Action
AB 795 (Patterson, 2021) would have required HCD to include in its annual reports specified information relating to the two programs, including the amount of the original awards to recipients, the portions not yet disbursed to recipients, and an estimate of how many individuals could benefit from the remaining balance. This bill died in the Assembly.
- Legislative Action Current As-of: September 2022
California State Auditor's Assessment of Annual Follow-Up Status: Legislation Proposed But Not Enacted
AB 795 (Patterson, 2021) died in the Assembly.
Description of Legislative Action
AB 795 (Patterson, 2021) would require HCD to include in its annual reports specified information relating to grant-based programs administered by HCD, including the amount of the original awards to recipients, the portions not yet disbursed to recipients, and an estimate of how many individuals could benefit from the remaining balance. This bill is pending in the Assembly Housing and Community Development Committee.
- Legislative Action Current As-of: September 2021
California State Auditor's Assessment of Annual Follow-Up Status: Legislation Introduced
Description of Legislative Action
As of September 20, 2020, the Legislature has not taken any new action to address this specific recommendation.
AB 195 (Patterson) would have required HCD to take certain actions by January 1, 2021, with respect to monitoring its housing bond programs, including developing, and begin implementing, a plan for performing onsite visits of CalHome Program recipients. This bill was substantially amended to address a different subject and was not enacted.
- Legislative Action Current As-of: September 2020
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
Description of Legislative Action
AB 195 (Patterson) would require HCD to take certain actions by January 1, 2021, with respect to monitoring its housing bond programs, including developing, and begin implementing, a plan for performing onsite visits of CalHome Program recipients. As of June 2019, this bill is pending action in the Senate Housing Committee.
- Legislative Action Current As-of: October 2019
California State Auditor's Assessment of 1-Year Status: Legislation Proposed But Not Enacted
Description of Legislative Action
Assembly Bill 195 (Patterson) was introduced on January 10, 2019, and would require the Department of Housing and Community Development (HCD) to include in its annual legislative report the following information for each grant-based program administered by HCD:
a) The amount of the original awards to recipients, the portions not yet disbursed to recipients, and an estimate of how many individuals could benefit from the remaining balance.
b) Any extensions the department granted to the standard agreement and the number of, and reason for, those extensions.
c) The total balance of all recipients' reuse accounts, detailing the loan payments recipients are required to reissue for program purposes and an estimate of how many households could benefit from the balance.
d) A description of the department's monitoring efforts, including the collection of performance reports and the results of the risk assessments and on-site monitoring.
- Legislative Action Current As-of: March 2019
California State Auditor's Assessment of 6-Month Status: Legislation Introduced
Description of Legislative Action
The Legislature has not taken action to address this specific recommendation.
- Legislative Action Current As-of: November 2018