BILL ANALYSIS �
AB 505
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Date of Hearing: April 27, 2011
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Norma Torres, Chair
AB 505 (Harkey) - As Amended: April 25, 2011
SUBJECT : Housing programs: audits
SUMMARY : Requires on or before January 1, 2013, and every two
years after, the Bureau of State Audits (BSA) to conduct a
performance audit of special fund and General Fund programs
administered by the Department of Housing and Community
Development (HCD).
EXISTING LAW (Health & Safety Code 53545):
1)Requires the BSA to conduct periodic audits to ensure that
bond proceeds from Proposition 1C are awarded in a timely
fashion, in a manner consistent with the requirements of the
bond, and that awardees of bond proceeds are using funds in
compliance Proposition 1C. Requires the first audit to be
conducted no later than one year from when the bond was
approved by the voters.
2)Requires HCD in its annual report to the Legislature to report
how Proposition 1C funds were expended in the prior year.
Requires HCD to make the report available the public on its
Internet Web site.
FISCAL EFFECT : Unknown
COMMENTS :
HCD administers programs that receiving funding from federal,
state housing bond, special fund and the General Fund. HCD
administers federal programs for non-entitlement jurisdictions
that are typically smaller and do not have the capacity to
receive the funds directly from the Department of Housing &
Urban Development (HUD). These federal programs are audited by
HUD on a regular basis.
HCD also administered housing bond programs funded by
Proposition 1C and 46. The voter-approved bonds required that
the BSA conduct period audits to ensure that the proceeds are
spent according to the requirements of the bonds. The only
AB 505
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programs that are not audit on a regular basis by an outside
entity like the BSA or HUD are the special fund and General Fund
programs. The Mobilehome Parks Inspection Program, the
Enterprise Zone Program, and Mobilehome Park Resident Ownership
Program (MPROP), Predevelopment Loan Fund, Codes and Standards
are funded through fees which are deposited into a special fund.
The Emergency Housing & Assistance Program (EHAP), which will
likely not get funding this year, and Office and Migrant
Services, and the Housing Policy Development Division are funded
through the General Fund.
This bill would require the BSA to audit the special fund and
General Fund programs operated by HCD in the next two years and
would require an audit every two years after that.
Staff comments : The committee may wish to consider whether the
special fund and General Fund programs have enough of a
financial investment to require an audit every two years.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Lisa Engel / H. & C.D. / (916) 319-2085