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ARIZONA STATE SENATE

Forty-seventh Legislature, Second Regular Session

FACT SHEET FOR S.B. 1211

industrial development bonds, review exception.

Purpose

            Exempts projects from approval by the Arizona Department of Housing if an industrial development authority has reviewed and approved the bond issuance and the project is for a nonprofit nursing home, rest home, skilled nursing facility or life care facility. 

Background

            Legislation enacted in 1968 authorized municipalities and counties to cause the formation of industrial development authorities (IDAs).   This legislation provided that IDAs, which are incorporated as Arizona nonprofit corporations, are political subdivisions of the state and authorized IDAs to issue revenue bonds and to use the proceeds from the sale of the bonds to finance certain types of projects. 

            The Arizona Department of Housing (ADOH) is required to review and approve IDA bond issuances for multifamily residential rental projects, sanitariums, clinics, medical hotels, rest homes, nursing homes, skilled nursing facilities and life care facilities.  The review considers the following:

• the demand and feasibility of the project in the area where the facility is located.
• the terms and conditions of the proposed bonds.
• the proposed use of bond proceeds.
• the benefit of the project to the public if it involves rental housing for persons of low and moderate income.
• the benefit of the project including rent, fees and other charges to the public if it is a nursing home or life care facility. 

            ADOH is required to either approve or disapprove the project no later than 30 days after a request for an approval.  If the project is approved, the IDA may issue the bonds described in the approval request.

            S.B. 1211 exempts nonprofit nursing homes, rest homes, skilled nursing facilities or life care facilities from receiving approval from ADOH if the project is approved by an IDA.

            There is a potential positive fiscal impact to the Housing Trust Fund due to a potential decrease in the administrative functions of ADOH.

Provisions 

1. Exempts IDA reviewed and approved projects for nonprofit nursing homes, rest homes, skilled nursing facilities or life care facilities from the ADOH approval process.

2. Becomes effective on the general effective date.

Prepared by Senate Research

February 13, 2006

BP/HG/jas