Assigned to APPROP & COM FOR COMMITTEE ARIZONA STATE SENATE Fifty-Sixth Legislature, First Regular Session FACT SHEET FOR S.C.R. 1011 homelessness; facilities; housing Purpose Subject to voter approval, statutorily requires the Arizona Department of Housing (ADOH) to accept and allocate Arizona Housing Trust Fund (Fund) monies that are appropriated by the Legislature for services for individuals experiencing homelessness. Background ADOH is responsible for establishing policies, procedures and programs to address affordable housing issues including housing issues of low-income families, moderate income families, housing affordability, special needs populations and decaying housing stock. ADOH does not itself directly own, construct, operate or rehabilitate any housing units but provides state assistance to qualified housing participants and political subdivisions for the development of safe, decent and affordable housing (A.R.S. § 41-3953). The Fund is administered by ADOH and consists of: 1) an annual $2.5 million allocation from unclaimed property sales; 2) the Arizona Industrial Development Authority single-family mortgage program year-end balance; and 3) interest earnings generated by the Fund. The Fund provides grants to develop projects and programs connected with providing housing opportunities for low- and moderate-income households and for housing affordability programs. A portion of the Fund monies must be used exclusively for housing in rural areas. Fund monies may be spent on constructing or renovating facilities and on housing assistance, including support services, for persons who have been determined to be seriously mentally ill and to be chronically resistant to treatment (A.R.S. §§ 41-3955 and 44-313). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Allows Fund monies to be spent on services for individuals experiencing homelessness. 2. Requires ADOH to accept and allocate monies that are appropriated by the Legislature for services for individuals experiencing homelessness. 3. Requires the monies to be used for the following: a) parking areas that have access to potable water, electric outlets and bathrooms that are sufficient to serve that parking area; b) camping facilities that are limited to individual experiencing homelessness and each individual's personal property; FACT SHEET S.C.R. 1011 Page 2 c) individual shelters that meet all the following requirements: i. are suitable to house no more than three individuals; ii. provide basic sleeping accommodations and access to electricity; and iii. allow individuals to occupy the shelter for no more than two years; d) shelters that house at least four individuals in a single space and that monitor and provide programs to improve the employment and income of, and to prevent a return to homelessness for all individuals leaving the shelters; and e) services to assist individuals experiencing homelessness with substance abuse treatment, mental health treatment and other services, including short term housing. 4. Specifies that individuals experiencing homelessness may camp and store personal property only at facilities in areas designate by the agency providing the camping facility. 5. Requires each camping facility to offer mental health and substance abuse evaluations as designated by a state or local agency. 6. Requires ADOH to prioritize spending for services for individuals experiencing homelessness before spending monies on permanent housing for individuals experiencing homelessness. 7. Exempts the owner, or an employee or officer of a private campground from liability in any civil action that arises out of the ownership, operation or management of the campground unless the claim involves intentional or grossly negligent conduct. 8. Allows ADOH to use legislatively appropriated monies to construct permanent housing for individuals experiencing homelessness. 9. Prohibits ADOH from providing more than 25 percent of the baseline allocation for any grant to construct permanent housing as a bonus payment for political subdivisions in Arizona or nonprofit organizations that can meet predetermined goals for reducing, for people experiencing homelessness: a) days in jail or prison; and b) days hospitalized. 10. Prohibits any political subdivision that has a higher per capita rate of homelessness than the state average and that receives monies from ADOH for services for individuals experiencing homelessness from receiving further funding until ADOH determines that: a) the political subdivision has a per capita rate of individuals experiencing homelessness at or below the state average; and b) the political subdivision has not prohibited or discouraged, directly or indirectly, the enforcement of an ordinance that prohibits public camping or sleeping or obstructing a public-right-of-way. 11. Specifies that a political subdivision is not precluded from offering diversion programs or services instead of issuing a citation or making an arrest if the individual does not continue to use the land for prohibited purposes. FACT SHEET S.C.R. 1011 Page 3 12. Prohibits a person from using, or allowing to be used, state or local government owned lands for unauthorized sleeping, camping or long-term shelter. 13. Prescribes the following penalties for a person who uses state or local government owned lands for unauthorized sleeping, camping or long-term shelter: a) for the first offense, a warning without a citation; and b) for a second or subsequent offense, a class 3 misdemeanor, except that services or shelter may be offered in lieu of a criminal citation if the individual does not continue to use the land for prohibited purposes. 14. Precludes a political subdivision from: a) adopting or enforcing a policy that directly or indirectly prohibits or discourages the enforcement of an order or ordinance that prohibits public camping or sleeping or obstructing a public right-of-way, including roads and sidewalks; and b) directly or indirectly prohibiting or discouraging a peace office or prosecuting attorney who is employed by or under the direction or control of the political subdivision from enforcing an order or ordinance that prohibits public camping or sleeping or obstructing a public right-of-way, including roads and sidewalks. 15. Allows the Attorney General to bring a civil action against any political subdivision to enjoin the political subdivision from violating any outlined prohibition. 16. Allows the Attorney General to recover reasonable expenses incurred in any civil action, including court costs, attorney fees, investigative costs, witness fees and deposition costs. 17. Requires ADOH to adopt rules related to the allocation of monies for services for individuals experiencing homelessness. 18. Makes technical changes. 19. Contains a severability clause. 20. Requires the Secretary of State to submit the proposition to the voters at the next general election. 21. Becomes effective if approved by the voters and on proclamation of the Governor. Prepared by Senate Research February 6, 2023 JT/FB/sr