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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
homelessness; data; performance audit; appropriation
Purpose
Appropriates $1,250,000 from the Housing Trust Fund in FY 2027 to the Auditor General (OAG) for a special audit on programs and services for individuals experiencing homelessness.
Background
The OAG is appointed to a five-year term by the Joint Legislative Audit
Committee (JLAC), upon approval of a concurrent resolution of the Legislature.
The OAG is charged with several powers and duties, including: 1) preparing an
audit plan for approval by JLAC;
2) conducting audits relating to the finances and performance of state
agencies, government functions and school districts; 3) performing special
research requests, special audits and investigations of state agencies as
requested by JLAC; 4) reporting the results of each audit, investigation or
review to JLAC; and 5) establishing a uniform expenditure reporting system for
political subdivisions (A.R.S.
§ 41-1279.03).
The Department of Economic Security (DES) offers programs and services to assist persons who are in a time of need, including homelessness resources and services. While DES does not directly administer or provide homeless programs or services, the DES Homeless Coordination Office uses a combination of federal and state funds to contract with local nonprofit and governmental entities to provide services to individuals who are homeless in Arizona. Services include rapid rehousing, emergency shelter, homeless prevention and street outreach. The nonprofits and governmental entities may partner with cities, towns or counties and local organizations to provide individuals in need, including individuals who are homeless, with assistance and resources (DES; ADOH).
The Housing Trust Fund, administered by the Director of the Arizona Department of Housing, consists of monies from unclaimed property, fees from the Arizona Industrial Development Authority's single-family mortgage program and legislative appropriations. Monies in the Housing Trust Fund may be spent on constructing or renovating facilities and on housing assistance that includes support services (A.R.S. § 41-3955). The estimated FY 2026 ending balance of the Housing Trust Fund is $10,142,900 (JLBC).
H.B. 2532 appropriates $1,250,000 from the Housing Trust Fund in FY 2027 to the OAG.
Provisions
1. Requires the OAG to conduct a special audit of the monies spent on programs and services for individuals experiencing homelessness in Arizona, including:
a) expenditures by the state;
b) expenditures by municipalities and counties with homeless populations higher than the per capita average in the state;
c) expenditures of federal monies allocated to the state for homeless programs; and
d) expenditures by state and local law enforcement agencies to address homelessness, including transportation to emergency shelters, responding to crisis calls, providing overnight shelter in jail and enforcing camping bans.
2. Requires all state and government entities to cooperate with the special audit and grant access, at no cost, to all financial records and any other information necessary to complete the special audit.
3. Requires the special audit to examine:
a) the awarding of any contracts and grants relating to homeless services and support;
b) any metrics used to examine the success of any expenditures;
c) the efficiency of the use of data management systems in relation to the programs; and
d) the expenditure for each individual experiencing homelessness for each service provided.
4. Requires the OAG, by December 31, 2027, to submit copies of the special audit report to the Governor, the President of the Seante, the Speaker of the House of Representatives and provide a copy to the Secretary of State.
5. Appropriates $1,250,000 from the Housing Trust Fund to the OAG for the special audit.
6. Exempts the appropriation from lapsing.
7. Repeals the special audit requirements on July 1, 2028.
8. Becomes effective on the general effective date.
House Action
GOV 1/22/26 W/D
APPROP 1/28/26 DP 11-6-0-1
3rd Read 2/25/26 31-22-7
Prepared by Senate Research
March 12, 2026
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