Official Summary Text
SB1505 - 572R - Senate Fact Sheet
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ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
FACT SHEET FOR
S.B. 1505
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
Current Bill Text
Read the full stored bill text
SB1505 - 572R - I Ver
REFERENCE TITLE:
transitional housing; grant program;
appropriation.
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SB 1505
Introduced by
Senator
Gowan
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.