San Diego City Auditor Eduardo Luna released a report analyzing 31 loans from the last fiscal year and it shows $14.6 million in interest is owed to the city.
The article claimed the housing commission only collected around $4 million. It also pointed out that no payments were made to seven out of the 10 highest outstanding loans.
The San Diego Housing Commission uses city and federal funding, along with public money, in these loans for low-income or affordable housing.
San Diego Housing Commission President Richard Gentry responded that there’s no cash available to pay the interest. If there’s no cash flow no payment is required with these loans.
“It’s important to me the public understand the Housing Commission is fulfilling its responsibilities. The auditors noted that the developers we deal with are decent, reputable people who pay their bills, meet their obligations and there are no unpaid payments, as was alleged in the newspaper article this morning,” Gentry said.
Gentry explained the housing commission has no complaint with the audit.