CA State Auditor Finds HCD Meets Deadlines on Housing Element Reviews and Provides Jurisdictions Consistent, Detailed Feedback and Guidance

Sacramento, CA

The California State Auditor (CSA) today 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. CSA 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.

HCD provides technical assistance and resources to help local jurisdictions create comprehensive housing elements. The report recognizes that HCD provides many forms of guidance to local jurisdictions, which include memos, a comprehensive online how-to guide titled Building Blocks, and other online resources, and that the guidance is sufficiently detailed. CSA also reports that a combination of HCD's written findings and individualized assistance allows local jurisdictions to understand and make necessary revisions to their housing elements.

"HCD's Housing Accountability Unit and housing element reviewers have worked tirelessly to help local jurisdictions adopt housing plans that meet both legal requirements and the needs of their residents, reaching 90-percent housing element compliance in the 6th RHNA cycle," said HCD Director Gustavo Velasquez. "I am pleased the California State Auditor recognizes HCD's commitment to providing timely, consistent, and constructive feedback to local jurisdictions as we continue to implement Newsom Administration housing reforms to deliver much-needed housing."

The scope of the audit covered the 6th housing element cycle. As noted in the report, HCD experienced extreme workload conditions for a two-year period during the 6th housing element cycle. The 6th cycle posed unique challenges for local governments and HCD, as many new statutory requirements went into effect and there was a 33-percent surge in housing elements submitted from the 5th cycle. From August 2021 to August 2023, HCD reviewed 1,049 housing elements for 389 jurisdictions, often managing reviews for two-thirds of the state at the same time. Despite these challenges, HCD successfully supported jurisdictions in achieving a record level of compliance. As of January 12, 2026, 90.2 percent of jurisdictions have adopted housing elements found to be in compliance with state law.

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.