Report 2019-111 Recommendation 22 Responses

Report 2019-111: Mobile Home Park Inspections: The Department of Housing and Community Development Must Improve Its Inspection Processes to Better Protect Park Residents (Release Date: July 2020)

Recommendation #22 To: Housing and Community Development, Department of

To ensure that it is aware of any potential conflicts of interest that inspectors may have involving real property, HCD should by January 2021 amend its conflict-of-interest code to require inspectors to disclose financial interests in real property.

Annual Follow-Up Agency Response From August 2022

Per our last response:

The Conflict of Interest Code Amendment has been approved by FPPC on 5/6/2022. Forthwith will be sent to OAL for file and print so it can be provided to Secretary of State for official endorsement thereafter it will be effective 30 days after endorsement.

The Secretary of State has endorsed and filed the Conflict of Interest as of July 9, 2022. The Notice Publication was provided to the CSA. It is also currently available on Westlaw.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

HCD has fully implemented this recommendation.

Annual Follow-Up Agency Response From July 2022

The Conflict of Interest Code Amendment has been approved by FPPC on 5/6/2022. Forthwith will be sent to OAL for file and print so it can be provided to Secretary of State for official endorsement thereafter it will be effective 30 days after endorsement.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

1-Year Agency Response

HCD is working with senior management and the Fair Political Practices Commission (FPPC) to properly revise the Department's Conflict-of-Interest (COI) Code. The COI Code update will specifically: (1) require inspectors, i.e., Codes and Standards Administrators and District Representatives with the Field Operations Unit of the Division of Codes and Standards, to disclose financial interest in real property (as recommended by the audit); and (2) update the list of all other designated positions within HCD (that make or participate in making governmental decisions that may foreseeably have a material effect on any financial interest) and their corresponding disclosure category (specifying the financial interests the employee/official must disclose on their Form 700). HCD has been in regular communication with the FPPC to ensure that this comprehensive COI Code update is completed as soon as possible.

HCD submit the Department's proposed COI Code with explanation for changes to the FPPC for initial on May 28, 2021. Further benchmarks include the following: (1) complete HCD/FPPC review and discussion by the end of June 2021, with routing and approval by the Director's Office to follow; (2) File the Form 400 with the Office of Administrative Law (OAL) and conduct the 45-day public notice period by the end of July 2021; and (3) provide the proposed COI Code to the FPPC for final approval by the end of September 2021. Upon the FPPC Director or designee approving HCD's proposed COI Code and notifying HCD of its approval, HCD will then file the now-approved COI Code with OAL, who in turn will send it to the Secretary of State (SOS) for endorsement. Thereafter, the now-approved COI Code will become effective 30 days from the SOS's endorsement.

California State Auditor's Assessment of 1-Year Status: Pending

6-Month Agency Response

Amended Conflict of Interest code language was sent to the Fair Political Practices Commission (FPPC) for initial review on September 15, 2020, to be included in an expedited rulemaking so it can be implemented by January 1, 2021, due date. FPPC will not approve the proposed change without further updates to COI appendix. The Department's Legal Affairs Division is taking on updates as they impact entire Dept. Codes and Standards Division will likely miss the January 1, 2021 implementation deadline by state auditor; notified Department audit team of risk and have been advised to document efforts for reporting to State.

California State Auditor's Assessment of 6-Month Status: Pending

60-Day Agency Response

HR and Legal Affairs Division (LAD) are working on a new statement of incompatible activities. LAD has requested and received copies of statement of incompatible activities from other agencies and is currently reviewing those drafts and working on a revision version. Draft revision will be circulated on or before September 18.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2019-111

Agency responses received are posted verbatim.