[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6388606,"mediaKeyId","2113970-631d71c946ba33494c185ef48646a86e","parentId",2113970,"title","Commerce Committee recommends continuing Department of Housing after audit finds inconsistent grantee oversight, lacking performance measures","audioSeconds",6634,"startMs",4381000,"endMs",11015000,"viewUrl","/Search/View?dp=1&key=2113970-631d71c946ba33494c185ef48646a86e&start=4381&end=11015","thumbnailUrl","https://assets.pipeline.soar.com/2113970-631d71c946ba33494c185ef48646a86e/thumbnail_4381000.jpg","articleUrl","/articles/6388606/Arizona/Commerce-Committee-recommends-continuing-Department-of-Housing-after-audit-finds-inconsistent-grantee-oversight-lacking-performance-measures","mediaUrl","https://secure.pipeline.soar.com/6388606-c0bad176e8e95f5294d3ea628e80ddf6/orig.mp4?Expires=1771027068&Signature=bZt5ikLeHsY~tHflUypbyqzHor66-uYVUraf5gNZ4UO2K3XgFgIlr2JzpRq3StJ1GtxHIJOgFjp5Ir6-cw-VgaiitjzKW4~cL1nxpbObupdfeBwLvhj0NDSZkhGCsP~xhmFsplJoK5tqCH6YgY8n7b415A~tMhfIfq1iSUHGaQ~EWb2~pZ3Bcrv8aL4J3Onm0RMKWH~GxqEqPwDmfwSHUZfQ~eyVqPv2q3WFSwzH1XoyozEImNM58DoZ9-IhpIPew~gPxQbIUQ7Edp-Vx0jw6ViDLF5jmfolTEm7WYRg8e-~Usx-kNyLiJcCQwI5WOBjjY-WFTqGgLUkDmpsqb3czw__&Key-Pair-Id=KUT5TJCACFTXG","author","Arizona State Legislature","date","2025-01-14T00:00:00Z","article","The Arizona House Commerce Committee voted to continue the Arizona Department of Housing with revisions after an Auditor General sunset review found gaps in grantee monitoring, incomplete documentation for payments and a lack of systematic performance measurement across housing programs.

Auditor General staffer Cassie Deacoe told the committee ADOH “failed to provide sufficient oversight for the projects we reviewed, including not ensuring grantees used monies to provide safe and sanitary housing or needed services for individuals experiencing or at risk of homelessness.” Auditor General Mark Owen (presenting the sunset factor review) said the department committed roughly $1.26 billion in federal and state monies and tax credits in fiscal 2023 but lacked a documented performance‑management system to measure outcomes across programs.

Key findings: The Auditor General’s office reported four main oversight shortfalls in its review of selected projects: required site inspections were missing for multiple projects; 22 of 29 grantee payment requests (more than $8.1 million) were approved without adequate supporting documentation; some grantees failed to submit required reports and the department did not pursue enforcement; and annual risk assessments were not conducted for many special‑needs projects.

The audit included a case example: Old Concho Community Assistance Center, a grantee serving more than 80 people, which was the subject of a complaint alleging misuse of federal and state funds and unsafe housing conditions. The department’s monitoring review found health and safety issues, a $2,000 loan payment to an executive staff member and other concerns; the department had not conducted the grantee’s required annual monitoring review since 2019 despite paying nearly $1.9 million from 2021–2023.

Department response and corrective actions: Joan Service, director of the Arizona Department of Housing, said the department accepts the majority of the recommendations and has begun implementing changes, including developing measurable performance goals, improving grantee monitoring practices and strengthening internal controls. Service said the agency has revised its wire transfer procedures after a June 2023 incident in which $2,000,000 wired for a grant was diverted to a fraudulent account and later recovered; she said the recovered amount was reduced by an insurance deductible of $25,100 that the nonprofit partner absorbed.

On manufactured housing, the Auditor General recommended the department ensure manufactured‑home complaints are assigned to licensees within 120 days as federal regulations require; the department said some delays resulted where consumers and licensees were working together on a resolution and asserted it is meeting federal requirements. The Auditor General recommended the department either meet the 120‑day assignment requirement or work with HUD to document acceptable exceptions; the department disagreed it would implement that recommendation.

Committee action and votes: After questioning and testimony from auditors, the department and housing partners, the committee moved that ADOH be continued with revisions. The motion passed by roll call: 10 Aye, 0 Nay, 0 Present, 0 Absent.

What’s next: The Auditor General will follow up on the department’s progress on implementing recommendations in March 2025. The committee’s recommendation to continue the agency with revisions will be transmitted to the Legislature for further consideration.

Quotes in this article are taken from Auditor General staff and agency testimony during the Commerce Committee hearing recorded in the committee transcript.","mediaType","Video","parentTitle","01/14/2025 - House Commerce","oneSentenceSummary","The Arizona House Commerce Committee recommended continuation of the Arizona Department of Housing (ADOH) with revisions after the Auditor General’s sunset review found insufficient, inconsistent oversight of grantees, missing site inspections, unsupported payments and a lack of comprehensive outcome‑focused performance measurement.","taxTitle","2025 Legislature Arizona, Arizona","taxId",78572,"location","Arizona","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6388611,"Commerce Committee recommends continuing Department of Insurance and Financial Institutions with revisions after audit finds inconsistent enforcement and grant‑",4192,91000,4283000,"/Search/View?dp=1&key=2113970-631d71c946ba33494c185ef48646a86e&start=91&end=4283","https://assets.pipeline.soar.com/2113970-631d71c946ba33494c185ef48646a86e/thumbnail_91000.jpg","/articles/6388611/Arizona/Commerce-Committee-recommends-continuing-Department-of-Insurance-and-Financial-Institutions-with-revisions-after-audit-finds-inconsistent-enforcement-and-grant","https://secure.pipeline.soar.com/6388611-7bda30b046b6c6fa2e45fe9449e651c1/orig.mp4?Expires=1771027069&Signature=M-rBAgANBo0wfnA-8SX6uFCNM2ZyUF0lsTYtDrvNPLHFS6eR9vj6SidI5zn-9QdtJ5QlZNnNT1pEO3uIgmtvOtCHTmgt2xXzZ1SV4f3Y6ugyN3geNPEtwCmoW68TKAdtoEqHUTduLdG2vWp78npr5nUW4B0amrk~B-HfhqayR95p54wSTDGHwfKrL2uVAAFxFTr23GYSdTAEAv0SXUlV92LgAAC9SuOikFX3ebxeRrW9lDpYS7U8RNeJvBa4C3yNox0WJ0qFro0-XaS54ffl0cFqNizXFgYNZ~Hn0Yos~tYu74XA6yRpYJyKynrQ24uAKHrM~7M3pITB1LqYc2ABUQ__&Key-Pair-Id=KUT5TJCACFTXG","The Arizona House Commerce Committee recommended continuing the Arizona Department of Insurance and Financial Institutions with revisions following a sunset review that identified shortcomings in enforcement, conflict‑of‑interest processes and oversight of automobile‑theft grant funds.

Auditor General senior performance auditor Liam Van Pelt told the committee the office’s review found the department \"did not follow recommended practices for consistently considering licensing disciplinary and non disciplinary history when determining enforcement actions, and lacked documentation explaining how it determines some enforcement actions.\" Van Pelt said auditors reviewed enforcement files and found similar violations produced different levels of documentation and escalation.

Why it matters: Inconsistent enforcement or missing documentation can leave consumers at greater risk of repeated violations, inhibit the department’s ability to deter future misconduct and raise equal‑treatment concerns, the Auditor General said. Van Pelt also told members the audit identified conflict‑of‑interest disclosure forms that did not capture all statutorily required information and noted the department’s special file was missing some disclosures.

DIFI Director Barbara Richardson told the committee the agency has been implementing the audit recommendations and described steps the department has taken since the review. \"The department does intend to implement all of the Auditor General's recommendations and has been making great progress to do so,\" Richardson said. She described a revised enforcement policy that requires staff to document mitigating and aggravating factors in a violation scoring matrix and said the department adopted a four‑tier system for penalties and is encouraging corrective action plans.

The Auditor General also raised concerns about oversight of monies appropriated from the Automobile Theft Authority (ATA) Fund. Van Pelt said the department required monthly reports from the Department of Public Safety’s vehicle theft task force but those reports did not demonstrate that the statutorily required 75 percent of certain appropriations were spent on personnel and employee‑related expenses. Van Pelt noted auditors reviewed a grant file where documentation was incomplete yet payments were made.

James McGuffin, executive director of the Arizona Automobile Theft Authority and an assistant director within DIFI, described the vehicle theft task force funded from ATA grants. McGuffin said the task force included 12 DPS officers fully funded and seven outside‑agency detectives funded at 75 percent. He said the task force recovered about 2,050 stolen vehicles in fiscal 2024 with an estimated value of $43,600,000, and told the committee the program provides a strong return on investment.

Committee action and votes: After question‑and‑answer exchanges and testimony by DIFI leaders and audit staff, the committee moved to recommend continuation of DIFI with revisions. The motion passed by roll call: 10 Aye, 0 Nay, 0 Present, 0 Absent. The committee’s recommendation will be transmitted for further legislative consideration.

What’s next: The Auditor General reported the department agreed with most findings and later indicated it would implement all recommendations; auditors will follow up on implementation in April 2025, the office said. The committee noted it expects to track updates to the department’s policies and the status of implementation while legislation is considered.","The Arizona House Commerce Committee voted to continue the Arizona Department of Insurance and Financial Institutions (DIFI) with revisions after the Auditor General’s sunset review identified inconsistent enforcement decisions, gaps in conflict‑of‑interest disclosures, and incomplete oversight of Automobile Theft Authority grant spending.","actionData","errors"]

Article not found

Commerce Committee recommends continuing Department of Housing after audit finds inconsistent grantee oversight, lacking performance measures

Commerce Committee recommends continuing Department of Insurance and Financial Institutions with revisions after audit finds inconsistent enforcement and grant‑