San Francisco's Affordable Housing Crisis: Audit Reveals $482M in Unspent Funds

San Francisco has long been known for its high cost of living, making affordable housing a significant issue for the city. However, a recent audit of the Mayor's Office of Housing and Community Development has revealed that the department has had an average surplus of $482 million in unspent funds for the past five years.Show more

The audit found that the department did not comply with city reporting requirements, did not have a formalized record-keeping system on how financial decisions were made, and could not provide clarity on where unused funds are going. This lack of transparency and oversight has become a major concern for city officials, including Supervisor Dean Preston, who is calling for a hearing to find solutions to problems within the affordable housing production team.

San Francisco is aiming to build 46,500 new units of affordable housing by 2031, but the audit suggests that the Mayor's Office of Housing and Community Development may be a major barrier to reaching this goal. Supervisor Preston alleged that the office itself is a "major barrier" to the city reaching its ambitious affordable housing goals.

Eric Shaw, director of MOHCD, responded to the audit via letter, and said the department faces "substantial complexities" that make it difficult to make concrete policies. "Due to the complexity of aligning unpredictable funding streams in a volatile market, financing affordable housing projects is a complex process that cannot be replicated or standardized over years or across projects," reads the letter addressed to Severin Campbell, director of the Budget and Legislative Analyst's Office.

The audit cited that 93 percent of the department's unused funds were dedicated to housing developments, though it's unknown if 58 percent of those funds are officially set in stone with a committed loan. Therefore, it's crucial for the department to be more transparent and accountable for its financial decisions to ensure that the surplus funds are being allocated efficiently and effectively to build more affordable housing units.

In conclusion, the recent audit of the Mayor's Office of Housing and Community Development has highlighted a major concern regarding the lack of transparency and oversight in San Francisco's affordable housing projects. It's essential for the department to address these issues and be more accountable for its financial decisions to ensure that the surplus funds are being used efficiently to build more affordable housing units and help address the city's housing crisis.