transitional housing; grant program; appropriation

Plain English Breakdown

The official text shows conflicting language (strikethroughs) regarding whether the fund supports 'newly constructed' housing versus 'project and construction planning.' The summary reflects the amendment to allow planning, but the final statutory intent on exclusive use for planning vs. construction may depend on how the strikethroughs are interpreted in the final enrolled bill.

HB2608: Military Transitional Housing Grant Program and Fund Updates

This bill creates a new grant program for veteran-led nonprofits in Arizona to build housing, provides $7 million from the state General Fund for fiscal year 2027, and changes how an existing fund can be used by allowing money for planning instead of just finished buildings.

What This Bill Does

• Creates the Military Transitional Housing Grant Program under the Arizona Department of Housing (ADOH).
• Provides $7,000,000 from the state General Fund in fiscal year 2027 to start this new program.
• Changes rules for the existing Military Transitional Housing Fund so money can be used for project planning and construction design instead of only newly constructed housing.
• Updates fund rules to allow spending on supportive services, including outpatient medical care and behavioral health services.
• Removes permission for the fund to work with for-profit organizations, limiting cooperation to veteran-managed nonprofit organizations.

Who It Names or Affects

• The Arizona Department of Housing (ADOH), which will run both the new program and manage the existing fund.
• Veteran-owned or veteran-operated nonprofit groups that are founded by or led by veterans living in Arizona.
• Military members who are leaving service, as well as homeless or at-risk veterans who recently separated.

Terms To Know

General Fund

The main account where the state keeps tax money to pay for government services and programs.

Transitional Housing

Temporary housing with support services designed to help people move from homelessness or military life into permanent homes.

Designated Federal Monies

Money sent by the federal government that is set aside specifically for a certain purpose, such as military transitional housing.

Limits and Unknowns

• The bill does not state when it will officially become law or if the Governor has signed it yet.
• It removes rules requiring ADOH to ask local city, county, or tribal leaders for comments before starting construction projects in their areas.

Official Summary Text

HB2608 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

HB
2608
: transitional housing; grant program; appropriation

Sponsor:
Representative Blackman, LD 7

Committee
on Federalism, Military Affairs & Elections

Overview

Establishes
the Military Transitional Housing Grant Program (Program) under the Arizona
Department of Housing (ADOH). Appropriates $7,000,000 from the state General
Fund (GF) in FY 2027 to ADOH for the Program. Amends acceptable uses of the
Military Transitional Housing Fund (Fund).

History

Laws 2002,
Chapter 283
established ADOH as Arizona's primary agency for
addressing housing issues. It is funded in part through federal resources and
administers and allocates housing and community development resources.

ADOH annually administers approximately $159 million in
federal and non-appropriated state housing and community development funds and provides
affordable housing opportunities in conjunction with the Arizona Industrial
Development Authority. ADOH's responsibilities include the Office of
Manufactured Housing (
JLBC FY2027
Baseline
).

Currently, statute outlines that the Fund consists of
legislative appropriations and monies allocated from federal sources, including
monies from affordable housing legislation and unused or undesignated donations
and
undesignated
federal monies for which traditional military housing
is eligible. Monies must be spent on
newly constructed
transitional
housing in cooperation with veteran owned and operated nonprofit organizations
and
for-profit organizations
that serve military members who are
transitioning to veteran status (
A.R.S. �
41-3955.02
).

Provisions

Establishing
the Military Transitional Housing Grant Program

1.

Establishes
the Program under ADOH and requires ADOH to administer the Program. (Sec. 2)

2.

Outlines the
purpose and responsibilities of the Program. (Sec. 2)

3.

Appropriates
$7,000,000 from the state GF in FY 2027 to ADOH for the Program and exempts the
appropriation from lapsing. (Sec. 3)

Amending Military Transitional
Housing Fund Statute

4.

Clarifies
that the Fund is in-part comprised of
designated

federal monies
,
rather than
undesignated federal monies
. (Sec. 1)

5.

Allows monies
to be deposited in the Fund by legislation. (Sec. 1)

6.

Requires monies
in the Fund be spent on
project and construction planning for military transitional
housing
, rather than
newly constructed transitional housing
. (Sec.
1)

7.

Broadens required
cooperation for Fund expenditures to include certain
veteran-managed
and
operated non-profit organizations. (Sec. 1)

8.

Strikes the
ability for Fund monies to be spent in cooperation with
for-profit
organizations
. (Sec. 1)

9.

Adds to the
list of required uses of the Fund the following:

a.

the
construction of facilities that provide supportive housing, outpatient and
behavioral services for military members transitioning into civilian life; and

b.

transitional
housing and supportive services for homeless or at-risk veterans who have
recently separated from the military service. (Sec. 1)

10.

Specifies
that the added required uses of the Fund may also include assistance in
navigating wraparound services though state agencies. (Sec. 1)

11.

Strikes language
that requires ADOH, for Fund-related construction projects, to notify and seek
comment from applicable municipal, county or tribal entities regarding projects
planned for their jurisdictions. (Sec. 1)

12.

Strikes
language that prohibits ADOH from interfering with the applicable local
jurisdiction's planning, zoning or land use regulations. (Sec. 1)

13.

Defines
designated
federal monies
. (Sec. 1)

14.

Makes
technical and conforming changes. (Sec. 1)

15.

16.

17.

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Current Bill Text

HB2608 - 572R - I Ver

REFERENCE TITLE:
transitional housing; grant program; appropriation

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2608

Introduced by

Representative
Blackman

AN
ACT

Amending section 41-3955.02, Arizona
Revised Statutes; amending title 41, chapter 37, article 2, Arizona Revised
Statutes, by adding section 41-3955.03; appropriating monies; relating to
the arizona department of housing.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 41-3955.02, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-3955.02.

Military transitional housing fund; purposes; annual report;
definition

A. The military
transitional housing fund is established consisting of legislative
appropriations and monies allocated from any federal sources, including monies
provided by affordable housing legislation and unused or undesignated donations
and
undesignated
designated
federal
monies for which military transitional housing is eligible. The
director shall administer the fund. Monies in the fund are
continuously appropriated.� Monies shall be
deposited
in the fund
by legislation or
by order of the
governor and shall be spent on
newly constructed transitional
housing
project and construction planning for military
transitional housing
, in cooperation with
veteran owned
veteran-managed
and operated nonprofit organizations
and for-profit organizations
that serve military members
who are transitioning to veteran status.� Monies may also be used for
supportive services and transitional unit rehabilitation for veterans.� Monies
in the fund are exempt from the provisions of section 35-190 relating to
lapsing of appropriations.

B. Fund monies shall be
spent
for
on any of the following:

1.
Developing
projects and programs to provide transitional housing opportunities for
military members separating from the military to be housed in newly constructed
housing facilities and rehabilitated housing for veterans.

2. 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. Services provided
may also include assistance in navigating wraparound services through agencies
in this state.

3. Transitional
housing and supportive services for homeless or at-risk veterans who are
separating or have recently separated from military service. SERVICES provided
MAY ALSO include wraparound services through agencies in this state.

C.
Monies

cannot
may not
be spent on
unoccupied hotels and motels designated for homeless veterans. Fund
monies may only be spent for the specific purpose of providing transitional
housing for military members who will be separating or who have recently
separated from the military or for veterans and may be spent on purchasing and
constructing transitional housing facilities for military members who are
transitioning into civilian life and rehabilitating housing units for veterans.

C.

D.
On or before September 1 of each year, the
director shall submit a report on the status of the military transitional
housing fund, including a summary of facilities for which funding was provided
during the preceding fiscal year, the cost and geographic location of each
facility and the number of individuals benefiting from the operation, purchase
or construction of the facility, to the president of the senate and the speaker
of the house of representatives and provide a copy of the report to the secretary
of state.

D.

E.
The department may use not more than ten percent
of the fund monies annually to administer the fund.

E. For any construction project financed
by the department pursuant to this section, the department shall notify a city,
town, county or tribal government that a project is planned for its
jurisdiction and, before proceeding, shall seek comment from the governing body
of the city, town, county or tribal government or an official authorized by the
governing body of the city, town, county or tribal government. The
department may not interfere with or attempt to override the local
jurisdiction's planning, zoning or land use regulations.

F. For the purposes of this section, "
undesignated
designated
federal
monies" means federal stimulus monies and monies originating from federal
affordable housing legislation, the United States department of veterans
affairs or the United States department of housing and urban development that
have
not
been allocated or approved for
a
specific purpose or project within three months after the applicable
expenditure deadline for the monies
military transitional
housing
.
END_STATUTE

Sec. 2. Title 41, chapter 37, article 2,
Arizona Revised Statutes, is amended by adding section 41-3955.03, to read:

START_STATUTE
41-3955.03.

Military transitional housing grant program; military
transitional housing; veteran housing; policies and procedures

The military transitional housing grant program
is established to provide grants TO VETERAN-OWNED AND VETERAN-OPERATED
NONPROFIT ORGANIZATIONs THAT are FOUNDED BY OR LED BY VETERANS WHO ARE
RESIDENTS OF THIS STATE to construct military transitional housing, veteran
housing, affordable housing or homeless housing in this state. The department
shall administer the grant program and may adopt rules, policies and procedures
to carry out the purposes of this section. An applicant shall submit an
application for a grant on a form prescribed by the department.
END_STATUTE

Sec. 3.
Appropriation;
Arizona department of housing; exemption

A. The sum of $7,000,000 is
appropriated from the state general fund in fiscal year 2026-2027 to the
Arizona department of housing for the military transitional housing grant
program established by section 41-3955.03, as added by 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.