SAN JOSE — San Jose's affordable housing program is facing renewed scrutiny after a city audit found significant gaps in how the city monitors properties and tracks compliance.
The audit found that the Housing Department failed to complete roughly one-third of required annual compliance reviews during 2024 and 2025. Inspectors also faced a backlog of property inspections.
Housing Oversight Under Pressure
San Jose has invested heavily in affordable housing as housing costs have remained among the highest in the United States.
The city manages a substantial portfolio of properties intended to serve lower-income residents.
However, overseeing that portfolio requires significant administrative resources.
The audit found that staff vacancies, employee turnover and outdated software contributed to problems within the department.
Some inspections were delayed by months.
That can make it more difficult for the city to determine whether properties are being properly maintained and whether residents continue to meet eligibility requirements.
Affordable housing advocates say strong oversight is important because public resources are being used to support the developments.
The city also has a responsibility to ensure that residents receive the services and housing conditions promised by housing programs.
Officials now face pressure to improve internal systems.
Modernizing software could make it easier to track properties, loans and compliance reviews.
Hiring additional staff could also help reduce inspection backlogs.
The problems identified by the audit come at a time when San Jose is under pressure to create more affordable homes.
The region's housing shortage remains one of Silicon Valley's biggest economic challenges.
High housing costs can make it difficult for teachers, healthcare workers, service employees and technology workers to live near their jobs.
Affordable housing therefore plays an important role in the region's overall economy.
The audit does not mean that the city's entire affordable housing program is failing.
Instead, it identifies administrative weaknesses that officials must address.
San Jose's response will likely be watched closely as the city continues expanding its affordable housing investments.
