An annual audit of a government agency responsible for Sacramento’s public housing found parts of some programs failed to comply with federal regulations.
The Sacramento Housing and Redevelopment Agency oversees public and affordable housing complexes, and receives millions of dollars in federal, state and local funding. SHRA is a joint powers authority overseen by both the city of Sacramento and Sacramento County.
The audit found material weaknesses or significant deficiencies related to five “core programs” of the joint powers authority. The City Council and Board of Supervisors heard presentations Tuesday about the audit related to housing choice vouchers, public and Indian housing programs and a federal grant.
“Overall, staff observations and findings from SHRA’s external auditors present significant concerns,” according to a letter dated Feb. 20 and signed by finance directors for both the city and county.
The audit’s findings come as the Sacramento County Board of Supervisors and the City Council selected a new executive director to lead the agency. Its new leader, Kris Warren, was previously a senior vice president of consulting firm CVR Associates, and her appointment marks a shift from choosing leadership from inside SHRA’s ranks.
The Sacramento County Board of Supervisors approved a separate audit of SHRA by consulting firm CVR Associates. The firm was selected through a request for proposal process in which multiple firms vied for a $650,000 bid, according to the county.
SHRA is responsible for overseeing housing choice vouchers, once known as Section 8, in which the federal government helps pay a portion of a tenant’s rent. The audit found some files under this program had not been processed in a “timely manner,” according to a presentation given by the city.
MaryLiz Paulson, the director of Housing Choice Vouchers for SHRA, said her staff will be monitoring each program to ensure its compliance.
The agency had also not given its audit results to the city and county since 2019, according to the letter.
The Sacramento County Board of Supervisors approved the separate audit of SHRA by consulting firm CVR Associates in January. The City Council has not signed on to the audit.
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Ishani Desai is a government watchdog reporter for The Sacramento Bee. She previously covered crime and courts for The Bakersfield Californian.