technical correction; housing trust fund

HB2981 - 572R - I Ver

REFERENCE TITLE:
technical correction; housing trust fund

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2981

Introduced by

Representative
Tsosie

AN
ACT

Amending section 41-3955, arizona revised
statutes; relating to housing.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 41-3955, Arizona Revised
Statutes, is amended to read:

START_STATUTE
41-3955.

Housing trust fund; purpose; annual report

A. The housing trust fund
is established, and the director shall administer the fund. The fund
consists of monies from unclaimed property deposited in the fund pursuant to
section 44-313, monies transferred pursuant to section 35-751 and
investment earnings.

B. On notice from the
department, the state treasurer shall invest and divest monies in the fund as
provided by section 35-313, and monies earned from investment shall be
credited to the fund.

C. Except as provided in
subsection D of this section, fund monies shall be spent on approval of the
department for developing projects and programs connected with providing
housing opportunities for low and moderate income households and for housing
affordability programs. A portion of fund monies shall be used
exclusively for housing in rural areas.

D. Fund monies may be
spent on constructing or renovating facilities and on housing assistance,
including support services. Fund monies shall be awarded in the
following order of priority for the first four months of each fiscal year:

1. Constructing or
renovating emergency shelter facilities or for any operational expenses for
emergency shelter services.

2. Constructing or
renovating transitional housing units.

3. Constructing or renovating other types of shelter
or housing as determined by the department to best serve the needs of
individuals who have been determined to be seriously mentally ill and
chronically resistant to treatment.

E. For the purposes of
subsection C of this section, in approving the expenditure of monies, the
director shall give priority to funding projects that provide for operating,
constructing or renovating facilities for housing for low-income families
and that provide housing and shelter to families that have children.

F. After the four-month
period prescribed in subsection D of this section, fund monies that have not
been awarded or encumbered pursuant to the priority list prescribed in
subsection D of this section may be spent based on stakeholder feedback.

G. The department shall
submit for review by the joint legislative budget committee all programs
established by the department and funded by the housing trust fund pursuant to
this section.

H. The director shall
report annually to the legislature on the status of the housing trust fund.�
The report shall include a summary of facilities for which funding was provided
during the preceding fiscal year and shall show the cost and geographic
location of each facility and the number of individuals benefiting from the
operation, construction or renovation of the facility.� The report shall also
include the number of individuals who benefit from housing assistance pursuant
to subsection D of this section.� The report shall be submitted to the
president of the senate and the speaker of the house of representatives, and a
copy provided to the secretary of state, not later than September 1 of each
year.

I. Monies in the housing
trust fund are exempt from the provisions of section 35-190 relating to
lapsing of appropriations.

J. An amount
not to exceed

not more than
ten percent of
the housing trust fund monies may be appropriated annually by the legislature
to the department for administrative costs in providing services relating to
the housing trust fund.

K. 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 shall not interfere with or attempt to
override the local jurisdiction's planning, zoning or land use regulations.
END_STATUTE