Housing Department Receives Mixed Review From County Auditors

SANTA ANA —  The county’s Housing and Community Development Department has made strides to improve operations over the last year but still has some work to do, according to an audit released Tuesday.

The Board of Supervisors requested the audit after several residents complained that contractors performed shoddy and potentially hazardous work as part of a low-cost housing rehabilitation program.

The study, performed by the county’s office of internal audits, praised the new management team that took over the department late last year for “demonstrating a renewed emphasis on monitoring and enforcing policies and procedures.” Overall, the audit found that the department is “effective in accomplishing its mission of initialing and administering low-income housing.”

But audits did uncover areas of concern. For example, morale in the department remains a problem, according to the study, and employees complained that some sections of the department lack written policies and procedures.

David Sundstrom, the county’s director of internal audits, said his staff did not review the department’s inspections of housing rehabilitation jobs in large part because the Sheriff’s Department was conducting its own criminal investigation into potential wrongdoing.

Supervisor Todd Spitzer, who requested the audit a year ago, said the missing analysis of the housing-rehabilitation office leaves a critical hole in the review. But the remainder of the audit shows that “we no longer have a time bomb waiting to happen over there.”

“It’s the new level of board scrutiny that has forced [the department] to completely reevaluate and begin to make much-needed changes,” Spitzer said. “I’m fairly pleased to see this professional opinion.”

He said Sheriff Brad Gates told him before Christmas that investigators were meeting with officials from the district attorney’s office to discuss the status of the rehabilitation program investigation.

“For more than two years, the sheriff been conducting an investigation, and we’re still waiting to hear,” Spitzer said. “Two years is enough time to do any investigation.”

He said the board will decide later this month whether to continue its voluntary involvement with the rehabilitation program, which is overseen by the federal Housing and Urban Development Department. Board members also will consider whether to turn over the program to a private entity.

Times staff writer Shelby Grad contributed to this report.