Arizona Department of Housing announced late this summer it will use a one-time appropriation of $15 million in Arizona’s FY 2020 budget to provide critical resources to assist individuals and families in Arizona by adding new beds or affordable rental units, to help vulnerable Arizonans overcome homelessness. Resources will be distributed in two major metro areas, along with a rural project, and the ability for applicants in any portion of the state to apply for funds to be used towards the development of Supportive Housing Units for formerly homeless.

“Arizona is committed to being a place of opportunity for all,” said Governor Ducey. “Working together with public, private and nonprofit partners, these dollars will help expand housing options and help homeless Arizonans get back on their feet.”

The Arizona Department of Housing addresses a myriad of housing needs on a statewide level and oversees resources of over $300 million annually, primarily made up of federal resources. The Trust Fund receives an annual allocation of $2.5 million from the State’s Unclaimed Property Fund, as well as funding from other sources, and has averaged $10 million in funding a year, if averaged over its 30-year history.

The additional $15 million appropriation in this year’s budget to the Housing Trust Fund has been set aside to invest in projects with long-term benefits for communities across the state, to include:

• $3 million - Development of Supportive Housing Units for formerly Homeless, combined with Federal funding to provide up to $10M in total investments
• $3 million - Transitional Shelter for Homeless with a Behavioral Health emphasis
• $2.5 million – “Center of Hope Apartments” affordable rental units, available adjacent to Tucson’s Center of Opportunity homeless campus
• $3 million – Fort Whipple Homeless Veterans Housing Project
• $3.5 million – Secure Behavioral Health Residential Facility

In addition to these five investments, the Department has also set aside funding for transitional housing or homeless shelter projects and expansions for projects that are recommended by local Homeless Continuums of Care and have obtained local government approval. The Department will also utilize other Trust Funds available this year to continue its Rapid Rehousing Program, as well as its Eviction Prevention Pilot Program, which launched in the spring of 2019. To date, over 500 households have received either financial assistance to avoid eviction or counseling services through the pilot. 

Department Director Carol Ditmore said, “We are grateful for the additional State funding entrusted to the Department of Housing this year. The flexibility of this funding source makes the Trust Funds one of our most valuable resources for addressing housing needs. Every one of these investments will provide critical resources in expanding Arizona’s ability to help develop resources that will, over time, assist countless individuals and families to stabilize their living situations.”

A detailed summary of the $15 million in planned Housing Trust Fund investments for State Fiscal Year 2020 can be found on the Department’s website.

Housing Matters | Fall 2019