CalHFA presents Slate Report: economic volatility, workforce and changing laws top risks

Kelly (presented in the meeting as Kelly Masson/Mattson), CalHFA’s director of enterprise risk management and compliance, briefed the board on the State Leadership Accountability Act report process and the agency’s top enterprise risks.

Kelly said the Slate Report is a mandated, enterprise‑wide risk assessment submitted to the Department of Finance and publicly available through the California State Library. "The Slate Report is an enterprise wide risk assessment," Kelly said, describing a process that begins with an anonymous survey of executive and operational leaders, cross‑functional mitigation work, and compilation into a formal report due to the Department of Finance by year‑end.

Staff identified economic volatility — especially rising construction costs and interest rates — as a top risk because it directly affects multifamily production and program participation. Kelly summarized other top risks as workforce development and talent acquisition, and a newly identified risk: the complex and dynamic nature of laws and regulations at federal, state and local levels.

On portfolio exposure, Kelly told the board CalHFA currently has approximately "800 active projects," of which about "200" have some local operating funding and only "17" draw continuum‑of‑care funding, illustrating the team's ability to narrow specific exposure quickly when federal or programmatic rules shift.

Board members urged ongoing vigilance, noting that evolving statutes and federal policy shifts require nimble interpretation and collaboration with counsel and partner agencies. Kelly asked the board to consider these risks as the agency finalizes its three‑year strategic plan and to target audit and risk committee work accordingly.