Back to Arizona

HB2532 • 2026

homelessness; data; performance audit; appropriation

HB2532 - homelessness; data; performance audit; appropriation

Budget Housing
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Matt Gress
Last action
2026-03-10
Official status
Senate second read
Effective date
Not listed

Plain English Breakdown

The official text states the repeal date as June 30, 2028, while the candidate explanation used July 1, 2028; these are effectively the same day but phrased differently.

HB2532: Special Audit on Homelessness Spending

This bill gives $1.25 million from the Housing Trust Fund for fiscal year 2027 to the Auditor General to check how money is spent on homelessness programs in Arizona.

What This Bill Does

  • Requires the Auditor General to conduct a special audit of spending on homeless services in Arizona.
  • Directs the audit to review costs paid by the state, municipalities and counties with higher-than-average homeless populations, federal funds allocated for homeless programs, and law enforcement agencies addressing homelessness.
  • Orders all state and local government entities to share financial records and other necessary information at no cost so auditors can finish their work.
  • Asks auditors to look at how contracts are given out, what data is used to measure success, the efficiency of data management systems, and how much money was spent per person served.
  • Sets a deadline of December 31, 2027, for the Auditor General to send the final report to state leaders.

Who It Names or Affects

  • The Arizona Office of the Auditor General (OAG)
  • State agencies and local governments that spend money on homeless services
  • Law enforcement agencies involved in homelessness issues, including those handling transportation to shelters or enforcing camping bans
  • Cities and counties with a higher-than-average number of people experiencing homelessness

Terms To Know

Auditor General (OAG)
The state official who checks government spending to make sure money is used correctly.
Housing Trust Fund
A pool of state money from unclaimed property, fees, and legislative appropriations that pays for housing projects and support services.
Special Audit
A detailed review ordered by the legislature to look at specific programs or spending areas.

Limits and Unknowns

  • The bill does not say what changes will happen after the audit is finished.
  • The law ends on July 1, 2028 (repealed from and after June 30, 2028), so it only covers this one-time review period.
  • The text does not list which specific cities or counties have higher homeless rates than the state average.

Bill History

  1. 2026-03-10 Senate

    Senate second read

  2. 2026-03-09 Senate

    Senate Rules: None

  3. 2026-03-09 Senate

    Senate Appropriations, Transportation and Technology: DP

  4. 2026-03-09 Senate

    Senate first read

  5. 2026-02-26 Senate

    Transmitted to Senate

  6. 2026-02-25 House

    House third read passed

  7. 2026-02-24 House

    House committee of the whole

  8. 2026-02-10 House

    House minority caucus

  9. 2026-02-10 House

    House majority caucus

  10. 2026-02-09 House

    House consent calendar

  11. 2026-01-21 House

    House second read

  12. 2026-01-20 House

    House Rules: C&P

  13. 2026-01-20 House

    House Appropriations: DP

  14. 2026-01-20 House

    House Government: W/D

  15. 2026-01-20 House

    House first read

Official Summary Text

HB2532 - 572R - Senate Fact Sheet

Assigned to
ATT�������������������������������������������������������������������������������������������������������������������� FOR
COMMITTEE

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

FACT SHEET FOR
H.B. 2532

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

3
rd
Read��������� 2/25/26����������������� 31-22-7

Prepared by Senate Research

March 12, 2026

LMM/ci

Current Bill Text

Read the full stored bill text
HB2532 - 572R - H Ver

House Engrossed

homelessness; data;
performance audit; appropriation

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2532

AN
ACT

Providing for a special audit of the
amount of monies spent on programs and services for INDIVIDUALS experiencing
HOMELESSNESS; appropriating monies.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section 1.
Performance
audit; report; delayed repeal

A. The auditor general
shall conduct a special audit as defined in section 41-1278, Arizona Revised
Statutes, of the amount of monies spent on programs and services for
individuals experiencing homelessness in this state, including all of the following:

1. Expenditures by this
state.

2. Expenditures by
municipalities and counties with homeless populations higher than the per
capita average of this state.

3. Expenditures of federal
monies allocated to this state for homeless programs.

4. 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.

B. All state and local
governmental entities of this state shall 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.

C. The special audit shall
examine all of the following:

1. The awarding of any
contracts and grants relating to homeless services and support.

2. Any metrics used to
examine the success of any expenditures.

3. The efficiency of the
use of data management systems in relation to the programs.

4. The expenditure for each
individual experiencing homelessness for each service provided.

D. On or before December
31, 2027, the auditor general shall submit copies of the special audit report
to the governor, the president of the senate and the speaker of the house of
representatives and provide a copy of this report to the secretary of state.

E. This section is repealed
from and after June 30, 2028.

Sec. 2.
Appropriation; auditor general; exemption

A. The sum of $1,250,000 is
appropriated from the housing trust fund established by section 41-3955,
Arizona Revised Statutes, in fiscal year 2026-2027 to the auditor general for
the purposes provided in this act.

B. The appropriation made
in subsection A of this section is exempt from the provisions of section
35-190, Arizona Revised Statutes, relating to lapsing of appropriations.