BILL ANALYSIS �
AB 505
Page 1
ASSEMBLY THIRD READING
AB 505 (Harkey)
As Amended May 27, 2011
Majority vote
HOUSING 5-0 APPROPRIATIONS 16-1
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|Ayes:|Torres, Atkins, Bradford, |Ayes:|Fuentes, Harkey, |
| |Jeffries, Miller | |Blumenfield, Bradford, |
| | | |Charles Calderon, Campos, |
| | | |Davis, Donnelly, Gatto, |
| | | |Hall, Hill, Lara, |
| | | |Nielsen, Norby, Solorio, |
| | | |Wagner |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Mitchell |
| | | | |
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SUMMARY : Requires on or before January 1, 2013, and every four
years after, the Bureau of State Audits (BSA) to conduct a
performance audit of special fund and General Fund (GF) 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 : GF costs of approximately $350,000 for BSA to
conduct an audit every four years.
AB 505
Page 2
COMMENTS : HCD administers programs that receiving funding from
federal, state housing bond, special fund and the GF. 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
programs that are not audit on a regular basis by an outside
entity like the BSA or HUD are the special fund and GF 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 GF.
This bill would require the BSA to audit the special fund and GF
programs operated by HCD in the next two years and would require
an audit every four years after that.
Analysis Prepared by : Lisa Engel / H. & C.D. / (916) 319-2085
FN: 0000951