State Auditor finds HCD's housing data overestimates by 200000 units

The San Francisco City Council convened on July 4, 2025, to address several pressing issues concerning housing and community development. The meeting began with a call for public comments, where Eileen Vulcan from the Coalition for San Francisco Neighborhoods raised concerns regarding the state auditor's findings on the Housing and Community Development (HCD) department's Regional Housing Needs Allocation (RHNA) methodology.

Vulcan highlighted that the state auditor deemed HCD's vacant housing rate unrealistic, leading to a significant overcount of housing units statewide—estimated at 200,000 units. Furthermore, she pointed out that the auditor could not assess HCD's overcrowding and cost burdening methodology, labeling it as incomprehensible. Independent research suggested an even larger overcount of 700,000 units. Vulcan criticized HCD for not adjusting its methodology to account for the impacts of COVID-19 and noted that the audit only examined a limited number of penalties, excluding broader regional agencies like ABAG and SCAG.

The discussion transitioned to the implications of SB 35, which introduces penalties for not meeting RHNA goals. Vulcan warned that if the city fails to meet its mid-cycle targets, it could trigger streamlined review processes.

Following public comments, the council moved to its regular agenda, addressing case number 2019-016230 CWP related to the housing element for 2022. Commissioner Ruiz recused herself from this discussion due to a conflict of interest stemming from her employment. The council unanimously approved her recusal, allowing the meeting to proceed.

The session underscored ongoing challenges in San Francisco's housing strategy and the need for accurate data to inform policy decisions. The council's next steps will likely involve further discussions on the housing element and strategies to address the identified discrepancies in housing data.