Assigned to HHS & APPROP                                                                             AS PASSED BY COMMITTEE

ARIZONA STATE SENATE

Fifty-Fourth Legislature, First Regular Session

AMENDED

FACT SHEET FOR S.B. 1098

housing assistance pilot program; appropriation

Purpose

            Establishes the Housing Assistance Advisory Board (Board) to administer the Housing Assistance Pilot Program (Program) and appropriates $10,000,000 for the Program.

Background

            The Arizona Department of Housing (ADOH) administers the Housing Trust Fund (HTF) that provides funding for developing projects and programs that provide housing opportunities for low-income and moderate-income households, including housing affordability programs. The HTF consists of monies received from unclaimed property deposits, interest on unexpended funds, loan repayments and recaptured funds (A.R.S. § 41‐3955). A portion of HTF monies is required to be used exclusively for housing in rural areas. ADOH designates the following as priority populations for the purpose of applying for HTF monies: 1) individuals or families experiencing homelessness; 2) seriously mentally ill  (SMI) persons; 3) persons with a physical disability;
4) persons with a developmental disability; 5) families with children under 18 years of age;
6) persons with Acquired Immune Deficiency Syndrome or Human Immuno-deficiency Virus;
7) persons experiencing domestic violence; 8) persons with chronic substance abuse; 9) the elderly; 10) individuals or families with extremely low income; and 11) other special needs groups. Statute requires the Director of ADOH to give priority to funding projects that provide for the operation, construction or renovation of facilities for housing for low-income families and that provide housing and shelter to families with children.

            The Arizona Health Care Cost Containment System (AHCCCS) administers the SMI Housing Trust Fund (SMI Fund) that provides housing projects for individuals that have SMI. The SMI Fund consists of monies received from the sale of unclaimed property and investment earnings (A.R.S. § 41-3955.01). Statute defines SMI as an individual who, as a result of a mental disorder, exhibits emotional or behavioral functioning which is so impaired that it substantially interferes with their capacity to remain in the community without supportive treatment or services of a long-term or indefinite duration. SMI individuals experience severe and persistent mental disability that results in a long-term limitation of their functional capacities for daily living activities (A.R.S. § 36-550).

            S.B. 1098 appropriates $10,000,000 from the state General Fund in FY 2020 for the Program.

Provisions

1. Establishes the Board consisting of the Directors of AHCCCS, the Arizona Department of Corrections, ADOH and the Department of Economic Security, or their designees.

2. Directs the Board to administer the Program for the purpose of providing grants to assist individuals who are transitioning from public assistance to secure housing.

3. Requires the Board to:

a) establish criteria for housing assistance grants;

b) establish the application process for housing assistance grants;

c) award housing assistance grants to qualified applicants; and

d) submit a report on the Board's activities, the number of housing assistance grants awarded and the results of the Program by December 15, 2022, to the Governor, the President of the Senate, the Speaker of the House of Representatives and the Secretary of State.

4. Allows the housing assistance grants to be used for housing in both contained and
non-contained community settings for individuals who have SMI and demonstrate the inability to successfully live in an independent setting.

5. Permits the Board to accept matching grant monies from any other lawful source.

6. Appropriates $10,000,000 from the state General Fund in FY 2020 to the Board for the Program.

7. Repeals the Board and the Program on October 1, 2023.

8. Contains a legislative intent clause.

9. Becomes effective on the general effective date.

Amendments Adopted by the Health and Human Services Committee

· Allows the housing assistance grants to be used for housing persons with SMI.

Amendments Adopted by the Appropriations Committee

1. Allows the housing assistance grants to be used for housing persons with SMI.

2. Specifies the amount appropriated for the Program.

Senate Action

HHS                2/6/19        DPA       8-0-0

APPROP         2/26/19      DPA       9-0-0

Prepared by Senate Research

February 27, 2019

CRS/AB/kja