via email from Livablecalifornia

Yesterday, the Joint Legislative Audit Committee approved a request by Senator Glazer to audit HCD related to Housing Element Reviews, Procedures and Oversight.

Audit scope  It was recommended the State Auditor select no fewer than 10 cities that are diverse in population and geography, and select an equal proportion of cities whose housing elements are in compliance with HCD’s standards, and cities whose housing elements are not in compliance. Adhering to those selection criteria will ensure the audit has a wide breath of data, and the results will better capture the experiences of all cities.

The audit’s scope will include, but is not limited to, the following:

1. Review and evaluate the laws, rules, and regulations pertinent to the audit’s objectives
2. Scrutinize how clear HCD’s standards and regulations are for housing elements to begin with. Are HCD’s standards and regulations detailed enough for local governments to apply to their housing elements? Is HCD available for assistance when local governments are completing their initial draft and, if so, what is the median amount of time local governments must wait for assistance?
3. Assess how responsive HCD has been to local governments. What is the median amount of time and full range of time it takes for HCD to return a set of comments to a jurisdiction? What is the median amount of time and full range of time it takes for HCD to approve a housing element? How do these lengths of time compare to the fifth cycle review period? What is the median amount of occasions a jurisdiction can meet with their reviewer to ask questions?
4. Measure how many different reviewers evaluate a jurisdiction’s housing element. What is the median number and full range of reviewers
5. Determine the consistency of HCD’s comments and reviews. How consistent is the feedback between all reviewers assigned to one jurisdiction? How consistent is the feedback on similar topics across multiple jurisdictions?
6. Evaluate the clarity of HCD’s feedback. Are the reviewer’s comments precise and measurable? Do the comments follow any specific criteria?
7. Focus on the Affirmatively Furthering Fair Housing standards and site analysis. In terms of clarity, do the comments related to these standards differ? Are the comments for these new standards precise, measurable, and following specific criteria?
8. Assess how HCD communicated housing element submission deadlines to local governments. Is there a documented and clear line of communication from HCD on when a local government must submit its housing element for review? How far in advance of the deadline did HCD communicate this, and is it different than past cycles?
9. Evaluate HCD staffing levels and the turnover rate. Compared to the fifth cycle review period, how many housing element reviewers does HCD have? What is the median amount of time that reviewers work at HCD and how does that compared to the fifth cycle? What is the median amount of time one reviewer stays assigned to the same local government to review their housing element, and how does that compare to the fifth cycle?
10. Analyze how HCD trains its new and existing staff assigned to review housing elements. How long is a new employee’s initial training and what procedures does training consist of? Does HCD offer additional training to existing staff and, if so, how often? What does the additional training consist of? Does HCD’s training set reviewers up to adequately review housing elements and provide clear comments to local governments?
11. Review and assess any other issues pertinent to the audit.

Now that the Senator’s request has been approved, it will move to the State Auditor’s Office to conduct the audit and report back to the Legislature. The timing for the audit will be based on the State Auditor’s currently workload, as well as the depth and breadth of the audit request. Currently, the State Auditor is still working on audit requests that were made by the Joint Legislative Audit Committee last year, so it will likely be early 2025 before the audit is complete. In the coming weeks, the State Auditor will update their website and provide an estimated completion date.