On Monday morning, Hobbs spoke to the press in a courtyard at Soluna Apartments, an affordable apartment complex in Phoenix that opened its doors last year thanks to state and federal funding. She highlighted her administration's investment in affordable housing projects — promising that they would "not be the exception" under her administration.
The new budget, which takes effect July 1, includes $150 million for the state Housing Trust Fund, which is managed by the Arizona Department of Housing. Hobbs said the money was "more than double the largest-ever deposit that's been made" to the program, which receives an average of about $10 million per year, according to housing department data.
"These funds will be used to finance additional affordable housing projects, prevent evictions, and develop new shelter facilities, each of which are crucial to addressing the current housing crisis," Hobbs said.
The state housing department has until September to come up with a plan for spending the money. Joan Serviss, the agency's newly appointed director, said the $150 million for the Housing Trust Fund will be used for rental assistance programs and eviction prevention, among other investments.
The state budget passed with bipartisan support, though it caused some conflict within Hobbs' own party. Some Democrats voted against it, arguing that the governor conceded too much to Republicans and cut out Democratic leadership from negotiations.
"I know not everyone got what they wanted, including me," Hobbs said. But she was "proud" of the final product, she added.
Joan Serviss, director of the Arizona Department of Housing, has until September to detail how the agency will spend $150 million to address housing issues in the state.
Katya Schwenk
Hobbs on the Zone: ‘We have significant challenges’
Just blocks from Hobbs' office in downtown Phoenix is the Zone, a sprawling homeless encampment where hundreds of people are living on the streets.On May 10, the city began clearing out the encampment in response to a court mandate. City staff said they offered shelter beds to the 35 people living in the first block that was cleared. But there simply are not enough beds available for all 700 or so people living in the encampment — and for the hundreds more people who are sleeping on the streets elsewhere in the city.
Asked about the Zone on Monday, Hobbs pointed to $60 million for homeless services and shelters in the new budget that's in addition to $150 million for the Housing Trust Fund. "The $60 million will help provide some of those needed services to start tackling this problem in a way that the state hasn't come to the table for before," Hobbs said. "So it's a really critical investment."
When pressed again about the ongoing evictions in the Zone, she said, "We have significant challenges when it comes to housing affordability and homelessness. It's going to take a multifaceted approach."
The $60 million will pay for a new homeless shelter and services fund, which will be administered by the state housing department. Some $20 million will be directed to the fund for the remainder of the current fiscal year and another $40 million will be added in the budget year that starts in July.
Bill Morlan, the president of Electric Supply, spoke alongside Hobbs at the press conference. Morlan's business is located in the Zone — although he was not one of the property owners who sued the city over conditions in the area. Morlan also serves on the board of Central Arizona Shelter Services, which operates an emergency shelter in the Zone.
"We have never seen this kind of investment before," Morlan said. "[Hobbs] came to CASS in March, and she told us that she was going to do something about housing and homelessness in a way the state had never done before. And man, did she deliver."
But when asked when the $210 million in funding might start to make a tangible difference for unsheltered people in Phoenix or renters facing steep hikes, Hobbs didn't have a clear answer. "We didn't get here overnight," she said. "It's going to take a long time to get us out of it."
In March, Hobbs signed legislation boosting financial aid to mobile home residents facing eviction.
