On January 15th, the California State Auditor released a report on the Department of Housing and Community Development’s (HCD) procedures and oversight regarding housing element reviews, finding that HCD has met its statutory deadlines for reviewing housing elements and issuing findings. The audit also found that HCD generally provided consistent feedback among jurisdictions and letters sent to jurisdictions were precise, measurable, and criteria based.

California requires all cities and counties to complete a housing element, or housing plan, that will adequately plan for their fair share of the statewide housing need at all income levels. HCD reviews each housing element to determine whether it complies with state law and then submits written findings back to each local jurisdiction. HCD’s approval is required before a local jurisdiction can adopt its housing element as part of its overall general plan.

The 6th cycle posed unique challenges for local governments and HCD, as many new statutory requirements went into effect. Local governments emphasized that one-on-one assistance was vital to understanding and addressing required changes. However, HCD’s capacity to provide individualized support was strained by heavy workloads, turnover, and overlapping submission deadlines. 

We are hopeful that the launch of the California Housing and Homelessness Agency (CHHA) in July 2026, a new, cabinet-level agency consolidating most State housing and homelessness functions, will better support HCD in this important work ahead of the 7th housing element cycle. SV@Home will support efforts to ensure that HCD is resourced to provide effective support and oversight for housing element review and compliance efforts to help cities do their best work to meet the housing needs of all their residents, regardless of income.

HCD largely agrees with the CSA findings and recommendations and will implement suggested changes to strengthen the program. Visit the California State Auditor website to view the report.