AZ HB2608

Establishes a military transitional housing grant program to provide grants to veteran-owned and veteran-operated nonprofit organizations founded or led by Arizona resident veterans for constructing military transitional housing, veteran housing, affordable housing, or homeless housing in the state.

Appropriates $7,000,000 from the state general fund in fiscal year 2026-2027 to the Arizona Department of Housing to administer the new grant program.

Modifies the existing military transitional housing fund to expand eligible uses to include project and construction planning, transitional comprehensive care facilities with on-site medical and behavioral health services, and supportive services for homeless or at-risk veterans.

Restricts fund recipients to veteran-managed and operated nonprofit organizations (removing for-profit organizations from eligibility) and removes the notification requirement for local jurisdictions regarding planned construction projects.

Makes appropriated monies exempt from lapsing provisions under Arizona law, allowing funds to remain available beyond the standard expenditure deadline.