Assigned to HHS & APPROP                                                                                           AS PASSED BY COW

 

 

 

 


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 $5,000,000 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 $5,000,000 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 persons with SMI in:

a)      a community living home for persons who hold their own lease, that has embedded
in-home support that meets the individualized needs of the person and up to 24 hours of support and supervision as indicated by their treatment plan; or

b)      a licensed behavioral health residential facility (BHRF) that provides in-house wraparound services and secure 24-hour on-site support, treatment and supervision for persons with SMI who require assistance to live in the community and who are subject to a plan of care that is:

i.        ordered by a mental health court or mental health division of a probate court;

ii.      ordered by a criminal court as part of a plea agreement or judgment and conviction;

iii.    ordered by a court as part of guardianship proceedings; or

iv.    is part of a diversion agreement with a law enforcement agency.

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

6.      Appropriates $5,000,000 from the state General Fund in FY 2020 to the Board for the Program.

7.       Directs AHCCCS to issue a request for proposals for a third-party to conduct a program study that:

a)      measures the outcomes of SMI residents in the aforementioned housing settings in a
one-year period;

b)      includes an analysis of the costs and efficacy of the provided services in the housing settings; and

c)      considers the encounters of SMI residents related to inpatient care, emergency department visits, hospitalization, civil commitment proceedings, incarceration, homelessness, employment, community engagement and encounters with police and fire personnel.

8.      Permits the Director of the Department of Health Services (DHS) to classify secure BHRFs.

9.      Directs DHS, by January 1, 2020, to adopt rules to allow a BHRF to be a secure BHRF if it is the least restrictive environment that satisfies the resident's treatment needs, the resident is an incapacitated person and the resident is ordered by a court or diversion agreement to a secure BHRF.

10.  Allows the Director of DHS to use the assisted living facility rules as guidelines in determining standards for a secure BHRF.

11.  Exempts DHS from prescribed rulemaking requirements for one year and requires DHS to provide an opportunity for public comment on the proposed rules.

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

13.  Contains a legislative intent clause.

14.  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.

Amendments Adopted by Committee of the Whole

1.      Committee amendments were withdrawn.

2.      Appropriates $5,000,000 from the state General Fund in FY 2020 to the Board for the Program.

3.      Allows grant monies to be used for persons with SMI in specified community living homes and licensed BHRFs.

4.      Directs AHCCCS to issue a request for proposals for a third-party to conduct a program study.

5.      Permits the Director of DHS to classify secure BHRFs.

6.      Directs DHS, by January 1, 2020, to adopt rules that allow a BHRF to be a secure BHRF if it meets certain requirements.

7.      Exempts DHS from prescribed rulemaking requirements for one year and requires DHS to provide an opportunity for public comment on the proposed rules.

Senate Action

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

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

3rd Read          3/14/19                     27-3-0

Prepared by Senate Research

March 15, 2019

CRS/AB/kja