Flawed Information, Flawed Decisions:

Conclusions 9

• CL1 Page 31
  SCCHA executive management pr esented incomplete and financially incorrect analytical documents about the Property to the Board, omitting viable options for occupying, using, or selling the Property.
• CL2 Page 31
  SCCHA’s current five-year plan does not establish measurable objectives, goals, or accomplishments that would enable a comprehensive review of its programs and progress.
• CL3 Page 31
  SCCHA’s existing five-year term plan does not identify specific SCCHA space needs and a funding plan to support them.
• CL4 Page 32
  The BOS does not have established qualifications for selecting SCCHA Board of Commissioners.
• CL5 Page 32
  The BOS does not have an established training program for its SCCHA Board appointees specific to the roles and responsibilities of a housing Commissioner.
• CL6 Page 32
  The BOS has multiple deficiencies in its SCCHA Commissioner appointment process, including long vacancies and incomplete documentation.
• CL7 Page 30
  The Board approved the sale of the Property, a six-acre parcel in north San José, merely 14 months following the purchase of the Property, incurring a total loss of $16.2 million. SCCHA executive management persuaded the Board to approve the sale of the Property based on incomplete and financially incorrect information. Significant factors, such as knowing the passage of SB 6 was imminent (easily enabling zoning changes for affordable housing), the site’s location on a transit hub, the opportunity to establish a presence in the future growth area for North San José, and the increasing demand for low- to -moderate income housing, could have led to a decision to land- bank the Property for future housing development needs. SCCHA executive management and the Board deliberately chose to eschew the value of owning (without material cost to SCCHA) such a unique asset. Instead, the Board’s decision to sell lost considerable public funds, and to date, they remain without an adequate headquarters to meet the needs of both staff and clients. Additionally, this investigation identified many fundamental SCCHA management and leadership issues that contributed to the loss. These issues, which span SCCHA executive management, the Board, and the BOS, need to be addressed. Flawed analysis and the inability to recognize the errors and omissions within it increases the risk of flawed, potentially costly decisions such as the one documented in this report. The SCCHA is a valuable asset and a key player in the County’s efforts to reduce homelessness and the burden of high housing costs. The Findings and Recommendations on the next two pages are intended to help SCCHA remain a strong, well-governed, and effective contributor to county residents’ housing needs. .
• CL8 Page 31
  FINDINGS AND RECOMMENDATIONS Finding 1 SCCHA executive management pr esented incomplete and financially incorrect analytical documents about the Property to the Board, omitting viable options for occupying, using, or selling the Property. Recommendation 1 The Board should establish a standard operating procedure requiring executive management to use either internal or external experts to validate that financial analytical documents prepared for Board review, are accurate, complete, and present an unbiased evaluation of the matter under consideration. This recommendation should be implemented by December 31, 2024. Finding 2 SCCHA’s current five-year plan does not establish measurable objectives, goals, or accomplishments that would enable a comprehensive review of its programs and progress. Recommendation 2 SCCHA should amend its current five-year plan to include actionable performance targets and measurable objectives. These performance targets should be incorporated into annual reviews for the SCCHA Executive Director and staff. This recommendation should be implemented by December 31, 2024. Finding 3 SCCHA’s existing five-year term plan does not identify specific SCCHA space needs and a funding plan to support them. Recommendation 3 SCCHA should include an assessment of space needs and the associated funding requirements as part of their five-year plans. The assessment should include the financial impact of expected program growth, staffing, services, accessibility, and operating performance requirements on future office space needs. This recommendation should be implemented by December 31, 2024.
• CL9 Page 32
  Finding 4 The BOS does not have established qualifications for selecting SCCHA Board of Commissioners. Recommendation 4a The BOS should use established HUD guidelines to develop County-specific guidelines for the selection and appointment of SCCHA Board members. This recommendation should be implemented by December 31, 2024. Recommendation 4b The BOS should develop a collaborative process that ensures the SCCHA Board, in total, contains a balance of skills, knowledge, and experience required to perform their assigned roles and responsibilities. This recommendation should be implemented by December 31, 2024. Finding 5 The BOS does not have an established training program for its SCCHA Board appointees specific to the roles and responsibilities of a housing Commissioner. Recommendation 5 The BOS should use established HUD guidelines to develop County-specific training programs for its housing Commissioners. This recommendation should be implemented by December 31, 2024 . Finding 6 The BOS has multiple deficiencies in its SCCHA Commissioner appointment process, including long vacancies and incomplete documentation. Recommendation 6 The BOS should develop processes to ensure that the appointment process and related documentation requirements are completed in a timely manner. This recommendation should be implemented by December 31, 2024.

No Responses Found 2

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