Report 2021-114 Recommendation 11 Responses

Report 2021-114: State Surplus Property: The State Should Use Its Available Property More Effectively to Help Alleviate the Affordable Housing Crisis (Release Date: March 2022)

Recommendation #11 To: Housing and Community Development, Department of

To better promote development of affordable housing on local surplus land, HCD should, by January 2023, update its guidelines on the local surplus property law to indicate how it will respond to instances where local agencies do not notify it of their intention to sell property before disposing of it, and where DGS was unable to issue a notice of violation before the sale. Further, HCD should seek legislative changes to the extent it believes they are needed to clarify its authority or the law.

1-Year Agency Response

HCD is in the process of updating the Surplus Land Act guidelines to address the recommendations of the audit. Draft guideline language has been prepared to clarify how HCD will respond in instances where a local agency disposes of a property prior to notifying HCD.

The project schedule for the SLA Guidelines Revision process includes an internal review of needed changes (complete), drafting of a strike out and underline version of revisions (currently in progress), and a 30-day public comment and review period. The timeline for this project estimates a release of draft guidelines by April 2023.

HCD will evaulate opportunites to address audit recommendations that require statutory changes in the coming legislative session.

Estimated Completion Date: 05/31/2023
Response Date: March 2023

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

HCD has made progress on updating its guidelines, and expects to release draft guidelines by April 2023.

Annual Follow-Up Agency Response From March 2023

HCD will evaulate opportunites to address audit recommendations that require statutory changes in the coming legislative session.

Estimated Completion Date: 05/31/2023

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

HCD has made progress in the revision of its guidelines and expects to release draft guidelines in April 2023.

6-Month Agency Response

The project schedule for the SLA Guidelines Revision process includes an internal review of needed changes, an external stakeholder engagement and review process, drafting of a strike out and underline version of revisions, and a 30-day public comment and review period. The timeline for this project estimates a release of final guidelines by April 2023.

HCD will evaluate opportunities to address audit recommendations that require statutory changes in the coming legislative session

Estimated Completion Date: 05/31/2022
Response Date: September 2022

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

HCD has begun updating its guidelines and expects to release the approved update by April 2023.

60-Day Agency Response

o HCD has developed a draft timeline/work plan and a list of changes (including this one) to include in the update, and it is currently developing and reaching out to a list of stakeholders to engage early in the process.

o A number of current bills have proposed changes to the Surplus Land Act (SLA), including strengthening the consequences of non-compliance with the SLA. HCD is providing its analysis and input.

Estimated Completion Date: 01/31/2023
Response Date: May 2022

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

All Recommendations in 2021-114

Agency responses received are posted verbatim.