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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
transitional housing; grant program; appropriation.
Purpose
Establishes the Military Transitional Housing Grant Program (Grant Program) to construct military transitional housing and modifies the Military Transitional Housing Fund (Fund). Appropriates $7,000,000 from the state General Fund (state GF) in FY 2027 to the Arizona Department of Housing (ADOH) for the Grant Program.
Background
Established
in 2002, ADOH is responsible for: 1) establishing policies, procedures and
programs to address the affordable housing issues confronting Arizona,
including issues of
low-income and moderate-income families, housing affordability, special needs
populations and decaying housing stock; 2) providing, to qualified housing
participants and political subdivisions of the state, 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 homelessness prevention (A.R.S.
§ 41-3953).
Laws 2022, Chapter 382 establishes the Fund which is administered by 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 are deposited in the Fund by order of the Governor and must be spent on newly constructed transitional housing, in cooperation with veteran-owned and operated nonprofit and for-profit organizations that serve military members who are transitioning to veteran status. Fund monies may also be used for supportive services and transitional housing unit rehabilitation for veterans. For any construction project financed by ADOH, ADOH must notify the city, town, county or tribal government that a project is planned for its jurisdiction and, before proceeding, must seek comment from the local jurisdiction's governing body. ADOH may not interfere with or attempt to override the local jurisdiction's planning, zoning or land use regulations (A.R.S. § 41-3955.02).
S.B. 1505 appropriates $7,000,000 in FY 2027 from the state GF to ADOH.
Provisions
1. Establishes the Grant Program to provide grants to veteran-owned and veteran-operated nonprofit organizations that are founded or led by veterans who are residents of the state and to construct military transitional housing, veteran housing, affordable housing or homeless housing in Arizona.
2. Appropriates $7,000,000 in FY 2027 from the state GF to ADOH for the Grant Program.
3. Requires ADOH to administer the Grant Program.
4. Allows ADOH to adopt rules, policies and procedures for the Grant Program.
5. Requires an applicant for the Grant Program to apply on a form prescribed by ADOH.
6. Modifies the composition of the Fund to include designated, rather than undesignated, federal monies for which military transitional housing is eligible.
7. Requires Fund monies to be deposited in the Fund by legislation, in addition to the Governor.
8. Requires
Fund monies to be spent on project and construction planning for military
transitional housing, rather than newly constructed transitional housing, in
cooperation with
veteran-managed and operated nonprofit organizations, rather than nonprofit and
for-profit organizations.
9. Expands the allowable uses of Fund monies to include:
a) constructing transitional comprehensive care facilities that provide supportive housing services and on-site outpatient medical care and behavioral health services for military members who are transitioning into civilian life; and
b) transitional housing and supportive services for homeless or at-risk veterans who are separating or have recently separated from military service.
10. Specifies that the services provided may also include wraparound services through agencies in the state.
11. Removes the requirement for ADOH to notify a city, town, county or tribal government of a project planned for its jurisdiction.
12. Removes the prohibition on ADOH interfering with or attempting to override a local jurisdiction's planning, zoning or land use regulations.
13. Exempts the appropriation from lapsing.
14. Defines designated federal monies as federal stimulus monies and monies originating from federal affordable housing legislation, the U.S. Department of Veterans Affairs or the U.S. Department of Housing and Urban Development that have not been allocated or approved for military transitional housing.
15. Removes the definition of undesignated federal monies.
16. Makes technical and conforming changes.
17. Becomes effective on the general effective date.
Prepared by Senate Research
February 5, 2026
KJA/KM/ci