office of housing
development
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Committee on Commerce and Economic Development |
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Committee on Human Services |
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Caucus and COW |
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As Passed the House |
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SB 1123 is an emergency measure that authorizes the Arizona Department of Commerce Office of Housing Development to act as the contract administrator for the Section 8 Project-Based Rental Housing Assistance Payment Program, and provides restricted authority for the Section 8 Tenant-Based Program.
The United States Department of Housing and Urban Development [HUD] currently administers the Section 8 rental subsidy program by awarding funds to the local public housing authorities [PHAs] to assist eligible families with renting housing. Assistance may be either tenant-based, in which case a voucher or certificate is issued to the family by the PHA, or project-based, in which case the assistance is "attached" to a privately owned/managed housing development.
The project-based housing program allows a developer to receive a low interest HUD loan to construct the low income housing, with a subsequent subsidization of the rent. Historically, HUD has been involved throughout the development process, and therefore administered the program. However, the federal government announced recently that it would transfer administration of the Section 8 project-based housing assistance program from HUD to either the state PHA or another regional contract administrator. This prompted the Department of Commerce to apply through HUD to act as the contract administrator on behalf of the State of Arizona. However, current statutory limitations restrict the Department from serving as the statewide administrator.
Present law designates the Arizona Department of Commerce as the state public housing authority, but only in those areas where there is no local PHA. This limitation extends to both project and tenant based programs. Additionally, Laws 1999, First Special Session, Chapter 3, the Public Finance Omnibus Reconciliation Bill [ORB], amended statute to allow the Department to administer the programs in areas of the state where a local PHA exists, but only if the assistance involved persons with serious mental illness [SMI] or other disabilities. This provision was inadvertently repealed shortly after its enactment.
SB 1123 provides authorization for the Department to act as the contract administrator for Section 8 project-based rental housing. In addition, the bill reinstates an amended version of the 1999 public finance ORB so that the Department may also administer tenant-based programs when there is no local PHA, and only to persons with SMI or other disabilities.