Supplemental Comnunication 12/20/22 ltem#33 (22-10915
March 17, 2022
COMMITMENT Report 2021-125
INTEGRITY
LEADERSHIP FACT SHEET
Michael S. Tilden Acting State Auditor CONTACT: Public Affairs Office | (916) 445-0255 Regional Housing Needs Assessments
The Department of Housing and Community Development Must Improve Its Processes to Ensure That Communities Can Adequately Plan for Housing Key Findings
Background
• HCD has not sufficiently reviewed and supported housing In order for California's cities and counties to plan and develop needs assessments. sufficient housing for their residents, HCD periodically conducts » It made errors when completing its needs assessments
regional housing needs assessments. For HCD's needs
because it does not sufficiently review and verify all of the assessments to accurately portray current housing needs and data it uses. anticipate what those needs will be in the future, the » It did not demonstrate that it adequately considered certain agency relies on data from multiple sources. Some of factors that state law requires for housing needs assessments these data come from consortia of local governments, in some regions. some are projections that Finance provides, and others are » It was not able to adequately support the healthy housing adjustments that HCD develops on its own to account for vacancy rate that it used to adjust the number of new factors like vacancy rates and housing replacement needs. housing units needed » It did not identify a problematic proposal from a region and inappropriately reduced its needs assessment.
HCD Provides Housing • Although Finance provides reasonable population projections, Needs Assessments to: it has not provided sufficient support for its projections of the number of households that are likely to be formed in the future.
Councils of Governments Counties Without a Key Recommendations (20 in California) Council of Governments
Generally Every 8 Years (19 in California) • HCD should do the following:
Every 5-11 Years » Institute a process to ensure that its staff performs multiple reviews of data in its assessments and establish a formal process to document its consideration of all factors required Councils Then Provide HCD Then Provides
Housing Need Allocations Housing Need Allocations by state law in needs assessments. to Counties and Cities to County and Cities » Perform a formal analysis of healthy housing vacancy rates and historical trends to inform its adjustments in this area. » Develop a formal process to review the appropriateness of data that consortia of local governments submit.
Counties and Cities Then Counties and Cities Then
Develop the Housing Element Develop the Housing Element • Finance should conduct and document a comprehensive review of General Plans of General Plans of some of its assumptions about household formation rates it uses in projections.
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