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ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
AMENDED
trade or commerce; technical correction
now: rural business development advisory council(NOW: housing grants; military; veteran; homeless)
As passed by the Senate, S.B. 1136 added, to the duties of the Rural Business Development Advisory Council, the requirement to provide research on limitations and challenges to securing economic development projects, including challenges related to water certainty, broadband and infrastructure.
The House of Representatives adopted a strike-everything amendment that does the following:
Purpose
Establishes the Housing Grant Program (Program) under the Arizona Department of Housing (ADOH) for the construction of military transitional housing, veteran housing, affordable housing or homeless housing in Arizona. Adds that the Military Transitional Housing Fund (Fund) consists of monies from legislative appropriations. Requires Fund monies to be spent for constructing a transitional comprehensive care facility for military members who are transitioning into civilian life.
Background
ADOH is responsible for establishing policies, procedures and programs to address affordable housing issues, including housing issues of low-income families, moderate income families, housing affordability, special needs populations and decaying housing stock. ADOH does not directly own, construct, operate or rehabilitate any housing units but provides state assistance to qualified housing participants and political subdivisions for the development of safe, decent and affordable housing (A.R.S. § 41-3953).
Laws 2022 Chapter 382 established the Fund under ADOH. The Fund consists of monies allocated from any federal sources, including monies provided by affordable housing legislation, unused or undesignated donations and undesignated federal monies for which military transitional housing is eligible. Monies must be deposited in the Fund by order of the Governor. Fund monies must be used in cooperation with veteran owned nonprofit organizations and for-profit organizations that serve military members who are transitioning to veteran status for the development of projects and programs to provide transitional housing opportunities for military members separating from the military to be housed in newly constructed housing facilities. Before proceeding on a project, ADOH must notify and seek comment from the applicable city, town, county or tribal government (A.R.S. § 41-3955.03).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Housing Grant Program
1. Establishes the Program for the construction of military transitional housing, veteran housing, affordable housing or homeless housing in Arizona.
2. Authorizes ADOH to administer the Program.
3. Requires ADOH to award grants to for-profit or nonprofit companies and organizations for the construction of military transitional housing, veteran housing, affordable housing or homeless housing using renewable building materials, innovative building materials and renewable energy and innovative energy for utilities.
4. Allows ADOH to award grants to a municipality or county or a consortium of municipalities and counties for the construction of military transitional housing, veteran housing, affordable housing or homeless housing using renewable building materials, innovative building materials and renewable energy and innovative energy for utilities.
5. Allows ADOH to establish priorities for funding for grant projects, including indoor encampment structures, tiny homes or similar low-cost structures that can be assembled quickly.
6. Allows grant monies to be used by for-profit or nonprofit companies and organizations, a municipality or county or a consortium of municipalities and counties for any of the following:
a) to manufacture and construct renewable building materials and innovative buildings; or
b) to install renewable energy and innovative energy components, machinery or equipment.
7. Requires each grant project to optimize energy performance and comply with the state energy conservation code.
8. Allows each grant project to include any of the following features:
a) solar modules;
b) geothermal heating and cooling technologies;
c) air-powered electric generators;
d) suber corks;
e) water plants;
f) solar well and water pumps;
g) optimized energy performance for new construction;
h) graphene supercapacitor batteries;
i) synthetic catalysts that are leadership in energy and environmental design-certified and engineered specifically to eliminate oil fouling that occurs in air conditioning and refrigeration systems;
j) pathogen defense-certified technologies that reduce viruses, bacteria, odors, and volatile organic compounds both on surfaces and in the air; or
k) physical water electrostatic conditioners that are installed with the primary water main source to prevent scaling buildup and corrosion throughout the pipe system.
9. Requires ADOH to issue grants that are conditional on a municipality, county or consortium of municipalities and counties adopting by rule, policy, mandate or otherwise the requirement that the project being built with grant monies complies with any of the following standards:
a) a version of the building rating system published by the U.S. Green Building Council; or
b) any of the other standard authorized by the U.S. Green Building Rating System.
10. Requires projects paid for with grant monies to include any of the following:
a) the installation or replacement of heating, ventilation and air conditioning systems that are designed and constructed to reduce energy costs by a minimum of five percent; or
b) the installation or replacement of plumbing systems, including plumbing fixtures that are designed and constructed to reduce potable water consumption in the aggregate by a minimum of 30 percent.
11. Repeals the Program on January 1, 2029.
Military Transitional Housing Fund
12. Adds that the Fund consists of monies from legislative appropriations.
13. Adds that Fund monies must be spent for constructing a transitional comprehensive care facility that provides supportive housing services in the facility and on-site outpatient medical care and behavioral health services for military members who are transitioning into civilian life.
Miscellaneous
14. Defines terms.
15. Makes technical and conforming changes.
16. Becomes effective on the general effective date.
Amendments Adopted by the House of Representatives
ˇ Adopted the strike-everything amendment relating to housing grants and the Fund.
House Action
MAPS 3/27/23 DPA/SE 14-0-0-1
3rd Read 5/9/23 31-24-4-0-1
Prepared by Senate Research
May 9, 2023
JT/sr