Report 2018-112 Recommendation 12 Responses

Report 2018-112: California Department of Veterans Affairs and Department of General Services: The Departments' Mismanagement of the Veterans Home Properties Has Not Served the Veterans' Best Interests and Has Been Detrimental to the State (Release Date: January 2019)

Recommendation #12 To: Veterans Affairs, Department of

To better manage its employee housing, beginning in June 2019 CalVet should comply with CalHR requirements by annually reviewing the rental rates for its employee housing units to ensure their consistency with market value and adjusting the rental rates accordingly.

1-Year Agency Response

The CalVet State Asset Manager conducted this assessment in 2019 and will continue to do so each year. Currently, all tenants of state owned housing, either, are paying a rate that represents fair market value, or are paying incrementally increasing rates in accordance with CalHR guidelines and state law.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

CalVet provided evidence that it complied with CalHR requirements by conducting and submitting to CalHR an assessment of the market value of the employee housing units in 2019. CalVet also provided evidence that it has raised rent on its employee housing units to market value where possible, and that it is incrementally increasing rental rates for the remaining tenants in accordance with CalHR guidelines.


6-Month Agency Response

CalVet has begun the market research and assessments associated with implementing this recommendation. This recommendation is partially complete, and work continues by headquarters staff and the State Asset Manager hired earlier this year. In keeping with CalHR's guidelines, CalVet anticipates completing this effort by September 30, 2019.

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


60-Day Agency Response

CalVet agrees with and will implement this recommendation beginning in June 2019.

California State Auditor's Assessment of 60-Day Status: Pending


All Recommendations in 2018-112

Agency responses received are posted verbatim.