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ARIZONA HOUSE OF REPRESENTATIVESFifty-seventh Legislature First Regular Session |
House: APPROP DPA 11-6-1-0 |
HB 2209: Arizona department of housing; continuation
Sponsor: Representative Livingston, LD 28
Caucus & COW
Overview
Continues the Arizona Department of Housing (ADOH) for one year through July 1, 2026.
History
Established in 2002, the ADOH is responsible for: 1) establishing policies, procedures and programs to address the affordable housing issues confronting Arizona, including issues of low income families, moderate income families, housing affordability, special needs populations and decaying housing stock; 2) providing, to qualified housing participants and political subdivisions of Arizona, financial, advisory, consultative, planning, training and educational assistance for the development of safe, decent and affordable housing, including housing for low and moderate income households; and 3) maintaining and enforcing standards of quality and safety for manufactured homes, mobile homes and factory-built buildings. Programs administered by the ADOH include rental development, rental assistance, home ownership assistance, housing rehabilitation, foreclosure prevention and homeless prevention (A.R.S. § 41-3953).
The ADOH is primarily funded through federal resources and fees. According to the Joint Legislative Budget Committee, the ADOH administered approximately $190 million in federal and non-appropriated state housing and community development funds per year (JLBC).
The House Commerce Committee of Reference (COR) held a public meeting on Tuesday, January 14, 2025, to review the Auditor General's Performance Audit and Sunset Review Report and consider ADOH's responses to the statutorily outlined sunset factors. The COR recommended that ADOH be continued with revisions. ADOH is statutorily set to terminate on July 1, 2025, unless legislation is enacted for its continuation (A.R.S. § 41-3025.06).
Provisions
1. Continues, retroactive to July 1, 2025, the ADOH until July 1, 2026. (Sec. 2, 4)
2. Repeals the ADOH on January 1, 2027. (Sec. 2)
3. Contains a legislative intent clause. (Sec. 3)
Amendments
Committee on Appropriations
1. Subjects all programs established by ADOH and funded by the Housing Trust Fund to review by the Joint Legislative Budget Committee (JLBC).
2. Prohibits Housing Trust Fund monies from being spent on any down payment assistance programs that aid with the purchase of properties in this state, except as authorized by law.
3. Requires ADOH to establish and implement a comprehensive performance measurement system within 12 months after the effective date of this act.
4. Outlines requirements for the comprehensive performance measurement system.
5. Requires ADOH to conduct a biennial:
a) evaluation of all housing programs in this state to assess program alignment with state housing goals and ensure compliance with state law;
b) review of regulatory fees associated with manufactured housing in this state.
6. Directs ADOH to establish secure wire transfer protocols to mitigate fraud risks.
7. Requires any proposed regulatory fees changes to be submitted to the Board of Manufactured Housing for approval.
8. Establishes requirements for ADOH related to complaints and complaint tracking.
9. Requires any instance of fraud involving state monies to be reported to the Governor, JLBC and the Auditor General within 10 business days.
10. Directs ADOH to provide quarterly reports to the Speaker of the House and the President of the Senate regarding the use of monies from the Housing Trust Fund until December 31, 2026.
11. Outlines requirements for the quarterly report.
12. Requires the Auditor General to conduct a special audit on the amount of monies spent on programs and services for individuals experiencing homelessness in this state for the past five years.
13. Outlines requirements for the special audit.
14. Establishes a reporting requirement for the special audit and requires the report to be submitted by December 31, 2026.
15. Appropriates $1,650,000 from the Housing Trust Fund in FY 2026 to the Auditor General for the special audit.
16. Exempts the appropriation from lapsing.
17. Expands the reporting requirements for ADOH's annual report to the Governor and Legislature.
18. Expands the reporting requirements for the Department of Economic Security's report on the efforts to prevent and alleviate homelessness.
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