SAN JOSE’S LACK OF OVERSIGHT on its affordable housing portfolio has led to repeated property violations and some families making above the income limit, a city audit has found.

The City Auditor’s Office found that the Housing Department didn’t complete one-third of its annual compliance reviews in 2024 and 2025, and property inspections have a three-month backlog. This is due to vacancies in the department, high employee turnover and a lack of proper processes. In addition, outdated software makes it difficult for staff to keep track of loans and properly oversee properties in an audit released in June. The City Council accepted the auditor’s report and its recommendations on Aug. 18.

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