San Jose City Auditor finds Housing Department let one affordable-housing property pay $1,700 toward $7.6 million owed the city, missed a third of compliance reviews
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A June 2026 City of San Jose Office of the City Auditor report, 'Affordable Multifamily Housing Loan Portfolio: Clearer Goals and Stronger Oversight Would Improve Monitoring' (Report 26-03), found the Housing Department failed to complete about one-third of required annual compliance reviews for 2024-2025, had a three-month property-inspection backlog, and found 110 of 880 sampled apartments had tenants exceeding income limits. One property paid only $1,700 toward $7.6 million owed to the city, and one property needed eight reinspections before a violation notice was issued; auditors attributed the failures to department vacancies, high turnover, and a lack of formal processes across a $745 million loan portfolio covering roughly 25,000 apartments. The City Council formally accepted the audit's findings and recommendations on August 18, 2026, and a Housing Department spokesperson said the department is implementing each recommendation on or ahead of schedule.
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- San José Spotlight
One property paid only $1,700 toward $7.6 million owed to the city
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