SB1661 - 551R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Housing assistance program; oversight committee; annual report; delayed repeal; definitions

A. The housing assistance program is established within the Arizona department of housing to support, promote and encourage comprehensive intergovernmental collaborations and the development of strategies to reduce homelessness and preserve housing and to fund programs to increase access to housing, community and legal resources.

B. The housing assistance program oversight committee is established consisting of the following members:

1. The director of the department of economic security or the director's designee.

2. The director of the department of health services or the director's designee.

3. The director of the governor's office of youth, faith and families or the director's designee.

4. The director of the state department of corrections or the director's designee.

5. The director of the administrative office of the courts or the director's designee.

6. A presiding justice of the peace or the presiding justice's designee.

7. A constable who is appointed by the governor.

8. The director of the Arizona department of housing or the director's designee.

C. The oversight committee shall do all of the following:

1. Review and approve housing assistance program grant awards.

2. Develop strategies aimed at reducing homelessness through the preservation of housing.

3. Coordinate statewide resources to promote access to housing, community and legal resources for those at risk of losing or those who have lost their homes.

D. A nonprofit legal services organization, community action agency, or HUD-approved housing counseling agency may apply to participate in the housing assistance program for up to three fiscal years by submitting a program proposal to the Arizona department of housing. A nonprofit legal services organization, community action agency, or HUD-approved housing counseling agency that receives approval for a three-year program may annually submit a modified spending plan for its approved program.

E. A housing navigator program proposal that is submitted by a nonprofit legal services organization, community action agency or HUD-approved housing counseling agency must include:

1. A detailed description of the housing related needs of the community to be served.

2. A plan for implementing a community-based tenant housing program or a plan that demonstrates the existence of a tenant housing program as an eviction mitigation strategy.

3. A plan to use trained housing navigators in collaboration with community service and local governmental agencies.

4. Information on the success, compliance and implementation of the most recent grant, if applicable, that the nonprofit legal services organization, community action agency or HUD-approved housing counseling agency received to participate in the housing assistance program.

F. The Arizona department of housing shall review and administer the housing navigator program proposals in accordance with the best practices for proposal review and award a funding contract pursuant to section 41-2534, Arizona Revised Statutes, to approved nonprofit legal services organizations, community action agencies or HUD-approved housing counseling agencies, subject to review and approval by the oversight committee. The Arizona department of housing and program proposal reviewers shall use relevant housing, foreclosure and eviction statistics to assess the needs of each program proposal. The Arizona department of housing shall contract to provide program guidelines, curricula for training and support resources for housing navigators to use in implementing the housing assistance program.

G. Subject to the review and approval of the oversight committee, the Arizona department of housing shall distribute monies to the nonprofit legal services organizations, community action agencies or HUD-approved housing counseling agencies that are compliant with program requirements and whose program proposals have been approved by the housing assistance program oversight committee.

H. The Arizona department of housing shall review program proposals submitted by nonprofit legal services organizations, community action agencies or HUD-approved housing counseling agencies for participation in the housing assistance program and shall select program sites that are eligible to receive funding based on community housing needs. The Arizona department of housing may prioritize program proposals for housing assistance program grants to nonprofit legal services organizations, community action agencies or HUD-approved housing counseling agencies that have agreements to share the cost of housing navigators with governmental agencies, courts or other housing service providers.

I. On or before November 1 of each year, the Arizona department of housing shall evaluate the effectiveness of all the approved program proposals submitted pursuant to this section within the housing assistance program and report on the activities of the program and the participants in the housing assistance program to the president of the senate, the speaker of the house of representatives and the governor and shall provide a copy of this report to the secretary of state. The evaluation and report shall include survey results from participating community services and data from participating individuals on the impact of participating in the housing assistance program. The Arizona department of housing shall establish data guidelines for housing assistance program participants to follow in reporting pursuant to this subsection.

J. The Arizona department of housing shall adopt a housing assistance program guidance manual that requires a dispute resolution process to be included in the service agreement entered into by a nonprofit legal services organization, community action agency or HUD-approved housing counseling agency that submits a program proposal and receives a housing assistance program grant from the Arizona department of housing.

K. Monies received by a nonprofit legal services organization, community action agency or HUD-approved housing counseling agency under the program shall be spent to implement the approved program proposals.

L. On or before October 1 of each year, the Arizona department of housing shall submit to the governor, the president of the senate and the speaker of the house of representatives a report containing a detailed description of the number of housing navigators hired, the geographic distribution of the housing navigators, the number of tenants served and the outcomes achieved by the pilot program and shall provide a copy of the report to the secretary of state.

M. This section is repealed from and after June 30, 2024.

N. For the purposes of this section:

1. "Housing assistance program" means a program that is designed to provide Arizona homeowners and tenants with knowledge and skills pertaining to owner and tenant rights and responsibilities, housing law and housing-related legal processes and to reduce homelessness and increase housing stability by improving access to housing-related programs and services.

2. "Housing navigator" means a housing or legal professional who is employed to provide community outreach, education and resources related to general housing matters, effective tenancy, leases and rental agreements, eviction and foreclosure processes and referrals to housing programs. Housing navigators who are licensed to practice law in this state must maintain professional liability insurance consistent with the requirements established by the department of administration.

3. "HUD" means the United States department of housing and urban development.

4. "Tenant" means a person against whom an eviction action has been filed.

Sec. 2. Appropriation; Arizona department of housing; housing assistance program; exemption

A. The sum of $10,000,000 is appropriated from the state general fund in fiscal year 2021-2022 to the Arizona department of housing for the purpose of implementing the housing assistance program, including contracting with nonprofit organizations that qualify for tax exemption under section 501(c)(3) of the internal revenue code to hire housing navigators.

B. The appropriation made in subsection A of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.