Assigned to GOV AS PASSED BY COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
FACT SHEET FOR H.B. 2435
homelessness; data; performance audit
Purpose
Requires the Office of the Auditor General (OAG), by December 31, 2026, to conduct a
special audit of the amount of monies spent on programs and services for individuals experiencing
homelessness in Arizona. Appropriates $1,250,000 from the Housing Trust Fund to the OAG in
FY 2026 to conduct the special audit.
Background
The Auditor General is appointed to a five-year term by the Joint Legislative Audit
Committee (JLAC), upon approval of a concurrent resolution of the Legislature. The OAG is
charged with several powers and duties, including: 1) preparing an audit plan for approval by
JLAC; 2) conducting audits relating to the finances and performance of state agencies, government
functions and school districts; 3) performing special research requests, special audits and
investigations of state agencies as requested by JLAC; 4) reporting the results of each audit,
investigation or review to JLAC; and 5) establishing a uniform expenditure reporting system for
political subdivisions (A.R.S. § 41-1279.03).
The Arizona Department of Economic Security (DES) offers programs and services to
assist persons who are in a time of need including homelessness resources and services. While
DES does not directly administer or provide homeless programs or services, the DES Homeless
Coordination Office uses a combination of federal and state funds to contract with local nonprofit
and governmental entities to provide services to individuals who are homeless in Arizona. Services
include rapid rehousing, emergency shelter, homeless prevention and street outreach. The
nonprofits and governmental entities may partner with cities, towns or counties and local
organizations to provide individuals in need, including individuals who are homeless, with
assistance and resources (DES; ADOH).
The Director of the Arizona Department of Housing (ADOH) administers the Housing
Trust Fund. Monies from the Housing Trust Fund must be spent on approval of the ADOH for
developing projects and programs connected with providing housing opportunities for low and
moderate income households (A.R.S. § 41-3955).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the OAG to conduct a special audit of the amount of monies spent on programs and
services for individuals experiencing homelessness in Arizona including:
a) expenditures by the state; FACT SHEET – Amended
H.B. 2435
Page 2
b) expenditures by municipalities and counties with homeless populations higher than the per
capita average in Arizona;
c) expenditures of federal monies allocated to the state for homeless programs; and
d) expenditures by state and local law enforcement agencies to address homelessness,
including transportation to emergency shelters, responding to crisis calls, providing
overnight shelter in jail and enforcing camping bans.
2. Requires all state and local government entities of the state to cooperate with the special audit
and grant access, at no cost, to all financial records and any other information necessary to
complete the special audit.
3. Requires the special audit to examine:
a) the awarding of any contracts and grants relating to homeless services and support;
b) any metrics used to examine the success of any expenditures;
c) the efficiency of the use of data management systems in relation to the programs; and
d) the expenditure for each individual experiencing homelessness for each service provided.
4. Requires the OAG, by December 31, 2026, to submit copies of the special audit report to the
Governor, 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.
5. Appropriates $1,250,000 from the Housing Trust Fund in FY 2026 to the OAG to conduct the
special audit.
6. Exempts the appropriation from lapsing.
7. Repeals this legislation on July 1, 2027.
8. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Appropriates $1,250,000 from the Housing Trust Fund to the OAG for the special audit.
2. Exempts the appropriation from lapsing.
House Action Senate Action
GOV 2/5/25 DP 4-3-0-0 GOV 3/19/25 DPA 4-3-0
3
rd
Read 2/26/25 33-27-0
Prepared by Senate Research
March 20, 2025
AN/DL/mg