AZ SB1505

Appropriates $7,000,000 from the state general fund in fiscal year 2026-2027 to establish a Military Transitional Housing Grant Program administered by the Arizona Department of Housing.

Grants will be awarded to veteran-owned and veteran-operated nonprofit organizations founded or led by Arizona resident veterans to construct military transitional housing, veteran housing, affordable housing, or homeless housing.

Amends the existing Military Transitional Housing Fund to allow monies for project and construction planning, supportive services, and transitional unit rehabilitation for veterans, restricting grants to veteran-managed nonprofits (removing for-profit eligibility).

Expands permissible uses of fund monies to include constructing transitional comprehensive care facilities providing supportive housing, on-site outpatient medical care, behavioral health services, and assistance navigating wraparound services.

The Department may use up to 10% of fund monies annually for administration, and appropriated funds are exempt from statutory lapsing requirements.