Supervisor Preston urges hearing after BLA audit flags MOHCD reporting gaps and $537 million year-end balance

Supervisor Ahsha Safa? No. Supervisor Preston asked the Board of Supervisors on April 4 to hold a public hearing on the Budget and Legislative Analyst’s audit of the Mayor’s Office of Housing and Community Development (MOHCD), saying the audit raises questions about transparency and the department’s ability to account for its funds.

Preston said the audit found MOHCD does not comply with quarterly reporting requirements and lacks formalized processes for funding decisions. “We have basically about a half a billion dollars, most of which is unaccounted for,” Preston said, referring to a $537 million year‑end fund balance the department reported but could not fully break down for the BLA.

The supervisor told colleagues the BLA spent nearly two years compiling the review and that its findings show systemic issues: MOHCD “does not have formalized processes, workflows, or record keeping practices that provide clarity on how decisions are made,” Preston said. He argued that without clearer reporting and performance metrics the board and public cannot judge whether MOHCD is meeting affordable‑housing goals.

Why it matters: The board recently adopted a new, more ambitious housing element with much larger production targets. Preston said entrusting those goals to a department that cannot account for hundreds of millions of dollars raises risks for future affordable‑housing production and public trust.

What Preston asked for: He called for a hearing to review the BLA’s findings, probe how MOHCD tracks committed versus uncommitted funds, and discuss structural changes to restore transparency and oversight. He also praised the BLA staff by name for the report’s preparation.

Background and supporting detail: The BLA report — referenced in the meeting and distributed to supervisors — cites failures on MOHCD’s quarterly milestone reporting, lack of formal decision workflows, and an unexplained $537,000,000 fiscal year‑end balance. Preston said MOHCD claimed some balances were “committed, but not spent” but did not provide a breakdown the BLA could verify.

Next steps: Preston requested the hearing be scheduled so the board can consider follow‑up actions. The transcript records the request and the BLA findings; the meeting did not record a formal vote on a referral in the public record excerpt.

Provenance (transcript excerpts): “Because of these systemic deficiencies, quote, overall transparency of MOCD’s funding decisions and processes is impaired.” — Supervisor Preston (transcript block at s=3756.26). “We have basically about a half a billion dollars, most of which is unaccounted for…” — Supervisor Preston (transcript block at s=3851.5212 to s=3885.365).

Ending: Preston said the audit should guide policy changes to ensure MOHCD can meet the city’s housing goals; he asked the board to schedule a hearing to examine the department’s record keeping, commitments, and how funds are being allocated.