[{"_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",6384743,"mediaKeyId","2121549-7921e25ffba6283b543c5f2ef42f19e6","parentId",2121549,"title","Auditor General Flags Oversight Shortfalls at Arizona Department of Housing; Committee Continues Sunset Review with Revisions","audioSeconds",2242,"startMs",4207975,"endMs",6450505,"viewUrl","/Search/View?dp=1&key=2121549-7921e25ffba6283b543c5f2ef42f19e6&start=4207&end=6450","thumbnailUrl","https://assets.pipeline.soar.com/2121549-7921e25ffba6283b543c5f2ef42f19e6/thumbnail_4207975.jpg","articleUrl","/articles/6384743/Arizona/Auditor-General-Flags-Oversight-Shortfalls-at-Arizona-Department-of-Housing-Committee-Continues-Sunset-Review-with-Revisions","mediaUrl","https://secure.pipeline.soar.com/6384743-5d730ce1a6fa102dcaa95a589ceb05b5/orig.mp4?Expires=1771135750&Signature=dSuZe7F08dJxGL~BRURqjzxabvcLE4K5FRSCCOYGZ~8BUFabFDbMwwb27Mp~tS9BlARsX2vu6~3SexWhr0jSaiWdT~cpEYABghMeghNcCUurIGm~pVTcGF9cT-gRtV~WMKnL2ZbMsV0qaWCzMYnVZ4SoU1nP0ipWtUXs3hlz56C~cEgTGO1iN6e5fFSFID~Gj6UZffWKIHlFRV78jY1kTNO6PZn2n9OVzl2GABeFTfyBmenOd7WTzyPrz~CWVldZYJU5eOCrJiiRz-q6ubrQ7qel3c9xlVOgBReRQCmjKZGlowavXiPd~D3pDPUc8~oYwFtSwBT1HlXOfeuV4UBcBw__&Key-Pair-Id=KUT5TJCACFTXG","author","Arizona State Legislature","date","2025-01-15T00:00:00Z","article","The Senate Regulatory Affairs and Government Efficiency Committee heard two reports from the Arizona Auditor General on the Arizona Department of Housing and then voted to continue the department’s sunset review with revisions.

Auditor General staff presented two linked reviews: a performance audit of the department’s oversight of selected housing programs and a sunset review of the department’s operations. The audit found multiple oversight deficiencies affecting special‑needs and emergency shelter projects, including missed site inspections, incomplete or missing grantee reports, lack of required risk assessments and approval of payments lacking adequate documentation.

Auditor General staff described a case illustrating the findings: a June 2023 complaint about the Old Concho Community Assistance Center, a grantee providing housing and supportive services in Apache and Navajo counties. The office reported that Old Concho received nearly $1,900,000 between 2021 and 2023; a December 2023 monitoring review found health and safety problems at participant housing — including rodent infestations and cracked walls — and documented misuse or inadequate documentation of grant funds, such as a $2,000 payment to an executive staff member. The Auditor General said the department had not conducted an annually required monitoring review of that grantee since 2019.

Across a sample of grantees the audit team reviewed, the office said the department had not performed required site inspections for several projects since early 2021 and had approved 22 of 29 payment requests totaling more than $8,100,000 without adequate supporting documentation. The audit also identified more than $7,800,000 in unsupported emergency shelter expenses, more than $190,000 in unsupported housing assistance costs and more than $88,000 in unsupported administrative and supportive services costs; auditors also noted a small number of payments later determined to be unallowable.

The Auditor General recommended the department develop and implement a written plan to adopt key oversight practices consistent with federal and state requirements. Those practices include conducting site inspections, verifying that payment requests are supported and allowable before reimbursements, ensuring grantees submit required reports, performing risk assessments and providing staff training on oversight policies and practices. The office also recommended reviewing payments since 2021 to identify unallowable expenses and recover funds where appropriate. The Auditor General said it will begin formal follow‑up work on the audit in March 2025.

Director Joan Servais, representing the Arizona Department of Housing (ADOH), said the department accepted most of the recommendations and described steps already underway: implementing a tracking system for corrective actions, hiring a business strategist to coordinate implementation, updating wire transfer and conflict‑of‑interest procedures and beginning review of prior payments to identify recoverable amounts. Servais said the department has submitted an insurance claim after a September 2023 wire‑transfer fraud incident that led to a $2,000,000 diversion; the amount was recovered through the state insurance program, and the nonprofit grantee’s award was reduced by the insurance deductible.

Committee members pressed for specifics and timelines. Senators asked about staff turnover and training in the special needs division, how the department is implementing site inspections and whether prior payment reviews had begun. Servais said the department had accepted the recommendations, had started a review of payments made from 2021 to 2023 and was implementing SMART goals and other process changes; she said the department had implemented annual conflict‑of‑interest reporting and would provide annual financial management training for staff handling wires.

Public testimony included two housing sector speakers who urged continuation of the department: Nicole Newhouse, executive director of the Arizona Housing Coalition, and Heather Lafferty of Ulysses Development Group. Both described the department as a necessary statewide partner in producing low‑income and workforce housing and emphasized the importance of preserving the agency while addressing audit recommendations.

After discussion, the vice chair moved that the committee recommend continuation of the Department of Housing with revisions. The motion passed on a voice vote; no roll‑call tally appears in the transcript. Auditor General staff said they will follow up starting March 2025 to verify implementation of recommendations.

","mediaType","Video","parentTitle","01/15/2025 - Senate Regulatory Affairs & Government Efficiency Committee of Reference","oneSentenceSummary","The Auditor General reported weaknesses in the Arizona Department of Housing’s oversight of selected programs, including missed site inspections, unsupported payments and incomplete risk assessments. The department agreed to most recommendations; the committee voted to continue the agency’s sunset review with revisions and follow-up.","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},6384748,"Committee Continues Arizona Exposition and State Fair Board Review after Presentation on Economic Impact and Capital Needs",1713,27605,1740960,"/Search/View?dp=1&key=2121549-7921e25ffba6283b543c5f2ef42f19e6&start=27&end=1740","https://assets.pipeline.soar.com/2121549-7921e25ffba6283b543c5f2ef42f19e6/thumbnail_27605.jpg","/articles/6384748/Arizona/Committee-Continues-Arizona-Exposition-and-State-Fair-Board-Review-after-Presentation-on-Economic-Impact-and-Capital-Needs","https://secure.pipeline.soar.com/6384748-30df9e1271b0a4886db62b0babc16d8c/orig.mp4?Expires=1771135750&Signature=JjrRW2KkMw-93WnHZ0ARou5x8JkIntfcAg023zBysbrgRLjGxkhW4kt5Qea6ppeD8UCgurp1oILgqR4JMpe4Ashpmn2PXL7wpAefMIGMQK3EFrnm7jOWvtlzn1gFWIkX1BSPuH-rrgLruUbspPr-N9k0t0L67SyCJO07b5SY8aNIUQsobvfJDKioEShHQdeiwGJu8-5-B-5pg6PHaglaK1-K90cRsB3YThMTSRgYlSRbULYQ8ul8gwzmb2XCT0G6gLTF~JaiVSePEiS9SW~K7-bcPFonKVAd0QuR1hzqJGPSAXeSt7MtTrGMHWDF7l~kRxoXXoU09X41GXoPqYIKtA__&Key-Pair-Id=KUT5TJCACFTXG","The Senate Regulatory Affairs and Government Efficiency Committee voted to continue the review of the Arizona Exposition and State Fair Board with revisions after a presentation by Juanel Costello, executive director of the Arizona Exposition and State Fair.

Costello told the committee the fairgrounds generate substantial annual economic activity and community programming while operating as a largely self-funded agency. She cited an economic-output estimate of about $138,000,000, $48,200,000 in annual wages tied to fairgrounds activity, about 1,400,000 fair guests annually and roughly 2,000,000 year‑round visitors. Costello also said the agency reinvested roughly $18,000,000 into the grounds since 2016 and contributed $5,000,000 in agency‑generated funds to the state general fund in 2024.

Committee members pressed Costello on several issues: the agency’s claim of being self funded, rising event and concession prices, availability of facilities for emergency responses, and the state of aging buildings and capital planning. Senator Epstein noted the agency has received state general fund appropriations for capital projects in the past — for example, funding for a coliseum fire alarm system and a building roof — and asked Costello to clarify the “self funded” characterization. Costello responded that day‑to‑day operations are primarily supported by agency revenues, and that general fund assistance has historically been limited to specific capital projects.

On pricing and vendor costs, Senator Ortiz and other members raised concerns about rising ride and food costs that can limit access for lower‑income families. Costello said vendor fees have not increased in more than a decade and are charged as a roughly 23% revenue share that also covers electricity and vendor access; she said rising food and labor costs drive consumer prices and that the agency works with vendors to identify discount days and other affordability measures.

Members asked about emergency use of the coliseum during heat events; Costello said existing event contracts and building renovations limit long multi‑month availability, and noted the coliseum is about 60 years old but remains in regular use and in workable condition. On whether the fairgrounds might move to a new site, she said prior analyses showed moving was not economically feasible because of utility and infrastructure demands and that the current location is centrally accessible via regional freeways.

Costello described capital appropriations in recent fiscal years as an important step; she said the fairgrounds were appropriated just over $3,000,000 in the most recent budgets (compared with prior appropriations of about $1,000,000) and that more funding would be needed to address all needs. She also said the agency is beginning work on a capital plan with the state procurement and general services offices.

After questions, the vice chair moved that the committee recommend the continuation of the Arizona Exposition and State Fair Board with revisions. The motion passed on a voice vote; no roll‑call tally was recorded in the transcript.

The committee said it will produce guidance and recommendations as part of the continuation and indicated it expects additional follow‑up with agency staff on capital planning, building condition and community access issues.

","The Senate Regulatory Affairs and Government Efficiency Committee voted to continue the sunset review of the Arizona Exposition and State Fair Board with revisions after hearing a presentation on the fairgrounds’ economic output, community programs and aging infrastructure.","actionData","errors"]

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Auditor General Flags Oversight Shortfalls at Arizona Department of Housing; Committee Continues Sunset Review with Revisions

Committee Continues Arizona Exposition and State Fair Board Review after Presentation on Economic Impact and Capital Needs