The Housing Authority of the County of San Joaquin: Progressing from Caretaker to Developer

1 Personnel and procedural changes have improved the efficiency and quality of services provided by the Housing Authority. F1.2 Morale among employees of the Housing Authority has improved, increasing employee satisfaction. F1.3 An aggressive approach to development has resulted in the submission of a grant application to begin the process of Sierra Vista Homes redevelopment. F1.4 The current Executive Director is now the spokesperson for the Housing Authority, resulting in a clarification of roles. F1.5 Communication between the Housing Authority Board of Commissioners and the current Executive Director has improved, resulting in less confusion between leadership and staff. F1.6 The Housing Authority has improved relationships with public and private community organizations, which creates opportunities for public and private partnerships. F1.7 Lease agreements are being enforced rigorously, leading to increased tenant pride and safety. F1.8 The General Counsel’s time cards do not include sufficient detail, as required by the contract. Recommendation R1.1 By September 30, 2017, the Board of Commissioners assures the General Counsel’s time cards are completed in compliance with the requirements of the General Counsel’s contract. 2.0 A succession plan would help to ensure stability. The Housing Authority has no succession plan for the Executive Director position. If, the current Executive Director were to suddenly leave, who would lead the agency until another director was hired? The Deputy Executive Director position was vacant for 10 months. Recently a new Deputy Director has been appointed. Even though that position has been reinstated, there appears to be no written, board-approved procedure for filling executive vacancies. The Grand Jury notes that steady, strong leadership is essential for successful operations at the Housing Authority. Persons with the administrative skill set for accomplishing the complex tasks at the Housing Authority are not easy to find. To maintain stability and continued progress, consistent leadership is essential. History has shown that any gap in strong leadership at the Housing Authority creates difficulties and jeopardizes operations. Finding F2.1 There is no written succession plan or procedure for the replacement of executive staff. Recommendation R2.1 By December 31, 2017, the Board of Commissioners for the Housing Authority of the County of San Joaquin develop, adopt and implement a succession plan for executive staff. 3.0 Board selection. A. The commissioner selection process can be strengthened. The San Joaquin County Board of Supervisors is responsible for the appointment of more than 115 persons to boards and commissions each year. https://www.sjgov.org/uploadedfiles/sjc/departments/board/boards_commissions/local_appointm ents_list.pdf The 2016-2017 Grand Jury interviewed members of the Board of Supervisors and county personnel. The quality of boards and commissions directly affects the quality of county agencies. The BOS process for selection was explored. The vice-chair of the board is usually the point person for the appointment process, although many appointments are apportioned in specific supervisorial districts. The supervisor of that district recommends a person to fill the position in these cases, sometimes after interviewing the candidates. In all cases, the full board votes to approve the appointment. Appointees oversee a wide variety of agencies. Some are small, some are large. Some oversee small budgets and some, like the Housing Authority, oversee multi-million dollar budgets. B. Full-board interviews strengthen the selection of commissioners. In the selection of the most recent appointment to the Port Commission, the entire Board of Supervisors interviewed candidates. The rationale had to do with the substantial size of the organization, budget and political and financial impact on the entire community. It would not be possible for the supervisors to interview over 100 candidates. The supervisors, however, are positive about exploring the expanded interview process for some appointments, such as the Housing Authority. C. Agency “Fact Sheet” provides minimal expectations. The following link to the Fact Sheet details the position of Housing Authority Commissioner: https://www.sjgov.org/WorkArea/DownloadAsset.aspx?id=6689 . The description of the commissioner’s duties only states the following; “To establish policy and provide general direction for the operation of the District.” “Fact Sheets” on the county website vary in the amount of detail included in the “Duties” section. The “Fact Sheet” for the Council for Quality Education and Care of Children has two pages of listed duties. Findings F3.1 The quality of boards and commissions directly affects the quality of agencies in San Joaquin County. F3.2 The full Board of Supervisors interviewed the candidates for the Port Commission, strengthening that selection process. F3.3 With a budget of nearly $50 million, the Housing Authority of the County of San Joaquin is one of the largest and most impactful agencies in the county, requiring a more thorough candidate selection process. F3.4 The “Fact Sheet” for the Housing Authority provides minimal details about the duties, and does not allow potential commissioner candidates to fully understand the requirements of the position. Recommendations R3.1 By September 30, 2017, the San Joaquin County Board of Supervisors develop, adopt and implement a policy that requires the full board interview final candidates for the Board of Commissioners of the Housing Authority of the County of San Joaquin. R3.2 By September 30, 2017, the Board of Commissioners of the Housing Authority of the County of San Joaquin develop a thorough list of duties for the appointments “Fact Sheet.” 4.0 Board training is not mandated. Grand Jurors attended Housing Authority Board meetings which are held on the third Thursday of each month. At these meetings some commissioners appeared confused about the Ralph M. Brown Act, as it applied to the Commission. The ability to insert items into the agenda as the meeting was underway is not allowed, though this was unclear to at least one commissioner. The General Counsel and the current Executive Director, along with the chairperson, were able to clarify this at the time, and no Brown Act violation occurred. Some commissioners were unfamiliar with Robert’s Rules of Order, which is used to organize and facilitate meetings. Understanding the issues of housing, specifically in San Joaquin County, is a complex and time- consuming task. San Joaquin County is one of the most impoverished counties in the state, and the need is great. Commissioners make decisions about how to spend large amounts of public money. They must understand the policies and proposals in order to decide whether to approve complicated recommendations. This requires training. There are ample opportunities for the commissioners to obtain this training, but there is no requirement to do so. If the San Joaquin County Board of Supervisors includes questions in the interview process regarding the candidates’ commitment to attend the necessary training, it would make it more likely that the selected commissioners attend. Finding F4.1 Members of the Board of Commissioners of the Housing Authority of the County of San Joaquin are not required to attend a thorough orientation or ongoing training. Recommendation R4.1 The San Joaquin County Board of Supervisors seek a commitment to receive necessary training from each candidate for the Board of Commissioners of the Housing Authority of the County of San Joaquin. Conclusion The need for affordable housing in San Joaquin County is great. The history of the Housing Authority is marked by controversy and has at times created chaos. This is at least a part of the reason that no tenant has stepped up to fill the tenant commissioner vacancy on the Commission. A chart of the agency’s morale over time would look like a roller coaster. Currently morale is on the upswing. Many employees are pleased with the new positive direction of the Housing Authority. Staff are excited about the move from caretaking to developing. They understand it is needed to meet the challenges for providing affordable housing needs in San Joaquin County. Relationships among employees have improved and those who were once looking for other jobs have now found the Housing Authority is the place they want to work. Relationships with the residents have improved, thanks to an attentive and respectful administration. Residents understand the need for accountability. Community organizations are now willing to work with the Housing Authority, and there should be many opportunities for future projects. The key to sustaining this progress is found in a stable environment with positive leadership and employee engagement. Leadership starts at the top, and the quality of the Board of Commissioners correlates with the success of the organization. The person the commissioners choose to lead the Housing Authority is critical to the success of the enterprise. This is the reason the Grand Jury recommends strengthening the process for the selection of commissioners and assuring that commissioners receive the necessary training. The development of a succession plan is also critical for the Housing Authority to continue moving toward reaching its ambitious goals. Change can happen suddenly, but if properly prepared, the Housing Authority need not fall back into past difficulties. It is important the Housing Authority continues to move toward reaching the goal of providing affordable housing for residents most in need. The citizens of San Joaquin County deserve no less. Disclaimers Grand Jury reports are based on documentary evidence and the testimony of sworn or admonished witnesses, not on conjecture or opinion. However, the Grand Jury is precluded by law from disclosing such evidence except upon the specific approval of the Presiding Judge of the Superior Court, or another judge appointed by the Presiding Judge (Penal Code section 911. 924.1 (a) and 929). Similarly, the Grand Jury is precluded by law from disclosing the identity of witnesses except upon an order of the court for narrowly defined purposes (Penal Code sections 924.2 and 929). Response Requirements California Penal Code sections 933 and 933.05 require that specific responses to all findings and recommendations contained in this report be submitted to the Presiding Judge of the San Joaquin County Superior Court within 90 days of receipt of the report. The Board of Supervisors shall respond to the following findings and recommendations within 90 days of receipt: F3.1, F3.2, and F4.1 R3.1, R4.1 The Board of Commissioners of the Housing Authority of the County of San Joaquin shall respond to all other findings and recommendations within 90 days of receipt. Mail or hand deliver a hard copy of the response to: Honorable José L. Alva, Presiding Judge Superior Court of California, County of San Joaquin 180 E. Weber Avenue, Suite 1306 Stockton, CA 95202 Also, please email the response to Ms. Trisa Martinez, Staff Secretary to the Grand Jury at [email protected] 29 Appendix Asset Manager http://www.hacsj.com/home/depart/public-housing.html Conway Homes http://hacsj.com/housing/conway-homes.html HCVP http://www.hacsj.com/home/depart/hcvp.html HUD https://portal.hud.gov/hudportal/HUD LIHTC https://www.occ.gov/topics/community- affairs/publications/insights/insights-low-income-housing- tax-credits.pdf OIG https://www.hudoig.gov/ Sierra Vista Homes http://hacsj.com/housing/sierra-homes.html STAND http://standaffordablehousing.org/ Housing Authority www.hacsj.com/home/about.html 2009 Final Grand Jury Report https://www.sjcourts.org/grandjury/2009/Final_Report_- _SJCGJ-0809_-_0808_Housing_Auth_Report.pdf 2008 OIG audit https://www.hudoig.gov/sites/default/files/documents/audit- reports//ig0891008.pdf ED search brochure http://executivesearchneher.com/pdf/HACSJExecDirBrochure.pdf Boards and appointments list https://www.sjgov.org/uploadedfiles/sjc/departments/board/boards_commissions/local_appointm entslist.pdf HA Fact sheet https://www.sjgov.org/WorkArea/DownloadAsset.aspx?id=6689 CQECC Fact sheet https://www.sjgov.org/WorkArea/DownloadAsset.aspx?id=25018 30 Photographs Fourplex in Sierra Vista Homes Duplex in Conway Homes 31 32

1 There is no written succession plan or procedure for the replacement of executive staff. 25

1 The quality of boards and commissions directly affects the quality of agencies in San Joaquin County. 26

1 Members of the Board of Commissioners of the Housing Authority of the County of San Joaquin are not required to attend a thorough orientation or ongoing training. 27

Morale among employees of the Housing Authority has improved, increasing employee satisfaction.

An aggressive approach to development has resulted in the submission of a grant application to begin the process of Sierra Vista Homes redevelopment.

The current Executive Director is now the spokesperson for the Housing Authority, resulting in a clarification of roles.

Communication between the Housing Authority Board of Commissioners and the current Executive Director has improved, resulting in less confusion between leadership and staff.

The Housing Authority has improved relationships with public and private community organizations, which creates opportunities for public and private partnerships.

Lease agreements are being enforced rigorously, leading to increased tenant pride and safety.

The General Counsel’s time cards do not include sufficient detail, as required by the contract.

There is no written succession plan or procedure for the replacement of executive staff. 25

The quality of boards and commissions directly affects the quality of agencies in San Joaquin County. 26

The full Board of Supervisors interviewed the candidates for the Port Commission, strengthening that selection process.

With a budget of nearly $50 million, the Housing Authority of the County of San Joaquin is one of the largest and most impactful agencies in the county, requiring a more thorough candidate selection process.

The “Fact Sheet” for the Housing Authority provides minimal details about the duties, and does not allow potential commissioner candidates to fully understand the requirements of the position.

Members of the Board of Commissioners of the Housing Authority of the County of San Joaquin are not required to attend a thorough orientation or ongoing training. 27