Cotnriirltee Agenda Date: February 26,2004
Agenda Item No, 16

County of Santa Clara
Office of the County Executive
Office of Affordable Housing

FGOC-CEOl 022604

Prepared by: Brandi Hoffman
Assistant Housing
Coordinator

Reviewed by; Marjorie Matthews
Director, Office of
Affordable Housing
DATE:

February 26, 2004

TO:

Supervisor Pete McHugh, Chairperson
Supervisor James T. Beall, Jr., Vice-Chairperson
Finance & Government Operations Committee

FROM:
Jane Decker

Deputy County Executive
SUBJECT:

Nine Month Implementation Status Report on the Internal Audit of the Housing Bond Fund.

RF.COMMFNDEr) ACTION

Accept the attached nine—month implementation status report from the Office of Affordable Housing on the Internal
Audit of the Housing Bond Fund (formerly referred to as the Housing Bond Trust Fund.

Board of Supervisors; Donald F. Gage, Blanca Alvarado, Pete McHugh,Jim Beall, Liz Kniss
County Executive: Peter Kutras Jr.
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Commrttee Agenda Date: February 26,2004
Agenda ttetn No. 16

CONTRACT HTSTORY

None

REASONS FOR RECOMMENDATION

Item 3.1 of the attached Status Report encourages management to seek the opinion of County Counsel regarding the

legality of the contract with Villa Vasona, Ltd. As of February 10, 2004, County Counsel has conducted a thorough
review of the 1995 bond refunding deal and subsequent letter agreement made between the previous Housing Bond
Coordinator and the Villa Vasona Project Owner. County Counsel will send a memo to the Board of Supervisors under
separate cover on this issue.

Item 4.1 states that the management should seek the advice of County Counsel regarding outside Bond Counsel services.
County Counsel is still reviewing the matter and will provide an opinion as to whether a new contract with current Bond
Counsel is recommended. If County Counsel advises in writing that a new Bond Counsel should be sought, the Office of
Affordable Housing will proceed according to the County contracting policies and procedures.
BACKGROUND

The Internal Audit Division of the Controller-Treasurer Department conducted a review of the County’s Housing

Bonds/MCC Programs Trust Fund for the three fiscal years 2000 through 2002, and issued their report dated April 15,
2003.

The six month status report regarding the implementation of the Internal Audit's Recommendations was approved on
October 23, 2003. Two remaining items were outstanding as of October 23, 2003; both items require legal advice from
County Counsel.

STEPS EOT J OWTNG APPROVAL

None.

ATTACHMENTS

•(Transmittal submitted on Feb 18, 2004 11:13:48 AM - PDF Version)
• Audit Matrix (Miscellaneous)

Board of Supervisors; Donald F. Gage, Blanca Alvarado, Pete McHugh,Jim Beall, Liz Kniss
County Executive: Peter Kutras Jr.
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