SAN DIEGO (KGTV) — According to a new audit released this week, the City of San Diego likely overpaid for a Mission Valley Hotel, possibly by more than $6.5 million.
The city's independent auditor specifically looked at the San Diego Housing Commission's Property Acquisition Process. In 2020, the Housing Commission bought what used to be the Residence Inn in Mission Valley.
The audit found the Housing Commission did not follow best practices and may have overpaid because it used an appraisal that potentially overvalued the property by millions of dollars.
The appraisal predated the change in the hotel's value from the impact of the coronavirus pandemic.
The city bought the hotel to create more affordable housing affordable housing units and address the homelessness problem.
The audit recommended the Housing Commission create a documented acquisition strategy and annual acquisition goal to improve transparency around future property purchases like this.
You can read the independent auditor's findings below:
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