The Little Hoover Commission released their anticipated report on the Governor’s reorganization plan for the Business, Consumer Services and Housing Agency (BCSH) last Monday. The report has been sent to the legislature for their consideration before taking their decisive action on the proposed plan by July 4th.  The report represents the commission’s perspective on the proposed reorganization plan with specific recommendation, but nothing contained in the report has to be taken up or voted on by the legislature or the Governor. The Commission recommends the approval of the reorganization plan, along with five pieces of companion legislation to improve the state’s effectiveness in this achieving its goals with the reorganization.

As part of our advocacy efforts on the reorganization plan, CCAH submitted a written response to the Commission with our thoughts on the final report. We support the intent of this reorganization plan and recognize the need to realign the policy domains currently in place at BCSH. While we are in support of the reorganization generally, this is not without reservations towards other unintended impacts that arise with the establishment of an overarching housing agency and the effects this could have on the operational independence of the California Tax Credit Allocation Committee (CTCAC) and the California Debt Limit Allocation Committee (CDLAC). CCAH continues to sound the alarm bell on the essential roles CDLAC and CTCAC play in the financing of affordable housing and how any changes to these entities should not jeopardize their current high operational efficiency. 

As this reorganization plan continues through the legislative process, we will stay engaged in voicing the perspective and concerns of our membership. Stay on the lookout for more updates on the topic as the final days of the reorganization plan deliberations approach.