In response to the council's direction, staffers from several city departments coordinated to craft a proposed audit scope, which was put before Burbank Housing Corporation Council sub-committee, Financial Services Director Bob Torrez said.
As proposed, the audit would trace the history of the agency, what led to its creation and its original and amended bylaws, he said. The audit would also evaluate several strategies through which the agency operates, including the concept of targeting focus neighborhoods for redevelopment and the process the agency uses to go about acquiring affordable housing, he said.
In examining overall Burbank housing operations, the audit will review the files of all transactions — including appraisals and other supporting documents — since the beginning of the agency's activities.
An outside-party review of the appraisal of the Verdugo property, which preceded the city's purchase of the property for $1.4 million, was also recommended as a part of the audit.
Since the housing corporation operates as an arm of the city, which provides funding for the agency, it is important to assure that the same system of checks and balances present in city business are at work at Burbank housing, said Councilman Dave Golonski, who served on the council subcommittee.
"I think what you see is a thorough, broad scope to take a look at everything — look at what practices are in place today, what practices should be in place, what things can be improved — really to strengthen the Burbank Housing Corporation and their role as a partner," Golonski said.
