Arizona 2023 2023 Regular Session

Arizona Senate Bill SB1136 Comm Sub / Analysis

Filed 05/09/2023

                      	SB 1136 
Initials NM 	Page 1 	House Engrossed 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-sixth Legislature 
First Regular Session 
Senate: COM DPA/SE 5-0-2-0 | 3
rd
 Read DP 23-5-2-0  
House: MAPS DPA/SE 14-0-0-1 
 
SB 1136: rural business development advisory council 
NOW: housing grants; military; veteran; homeless 
Sponsor: Senator Borrelli, LD 30 
House Engrossed 
Overview 
Creates the Housing Grant Program (Grant Program), under the aegis of the Department of 
Housing (DOH), to construct military transitional housing, veteran housing, affordable housing or 
homeless housing (Program Housing) with grants awarded to for-profit or non-profit companies 
and organizations, municipalities or counties or consortiums of municipalities and counties 
(Housing Entities) using renewable building materials, innovative building materials and 
renewable energy and innovative energy for utilities (Sustainable Elements).  
History 
The DOH annually administers approximately $180 million in federal and non-appropriated state 
housing and community development funds. The department provides affordable housing 
opportunities in conjunction with the Arizona Industrial Development Authority (JLBC Baseline 
Budget FY 2024, DOH).  
The International Energy Conservation Code is a model building code that sets minimum energy 
efficiency standards in new construction which was developed by the International Code Council. 
The state of Arizona has not adopted a version of this code statewide, but many municipalities 
have adopted local versions of the code (National Homebuilders Association, IECC; Building 
Codes Assistance Project, Arizona; Office of Energy Efficiency and Renewable Energy, Arizona).  
The United States Green Building Council (USGBC) is a non-profit organization that promotes 
sustainability in building design, construction and operation. Its building rating system provides a 
framework for healthy, efficient, carbon and cost-saving green buildings (United States Green 
Building Council, LEED).  
Provisions 
1. Establishes the Grant Program, under the administration of DOH, for the construction of 
Program Housing in Arizona. (Sec. 2)  
2. Directs Grant Program grants to be awarded to Housing Entities for the construction Program 
Housing using Sustainable Elements. (Sec. 2)  
3. Allows Grant Program monies to also be awarded to Housing Entities for the: a) construction 
of renewable or innovative building materials; and b) installation of renewable or innovative 
energy components, machinery or equipment. (Sec. 2)  
4. Permits DOH to establish priorities for funding grant projects, which may include funding 
indoor encampment structures, tiny homes or similar low-cost structures that can be 
assembled quickly. (Sec. 2)  
☐ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☐ Fiscal Note    	SB 1136 
Initials NM 	Page 2 	House Engrossed 
5. Requires Grant Program projects to optimize energy performance and comply with the State 
Energy Conservation Code. (Sec. 2)  
6. Allows Grant Program projects to include various specified Sustainable Elements. (Sec. 2)  
7. Mandates that DOH issue Grant Program grants that are conditional on a municipality or a 
county, or a consortium of municipalities and counties, adopting requirements that a Grant 
Program project comply with the USGBC building rating system or a rating system authorized 
by the same. (Sec. 2)  
8. Requires Grant Program projects to include the installation or replacement of at least one of 
the following:  
a) A heating, ventilation and air conditioning system that is designed to reduce energy costs 
by at least 5%; or  
b) A plumbing system that is designed to reduce potable water consumption in the aggregate 
by at least 30%. (Sec. 2) 
9. Allocates monies in the Military Transitional Housing Fund to be used for the construction a 
transitional comprehensive care facility that provides specified housing and medical care for 
military members transitioning into civilian life. (Sec. 1)  
10. Permits the Military Transitional Housing Fund to receive monies by legislative appropriations. 
(Sec. 1)  
11. Defines relevant terms. (Sec. 2)  
12. Repeals the Grant Program on January 1, 2029. (Sec. 3)