Tenants facing eviction or coming up short before the first of the month could see rental assistance from the state under legislation underway in both chambers. 

Sen. Analise Ortiz introduced a bill to create a statewide rental assistance program in the Senate, and Rep. Alma Hernandez is following suit in the House. Though the two proposals sponsored by Democrats split on the cut of funding, both aim to prevent evictions and eventual homelessness by providing up to three-months in monetary assistance.

“It is a short-term relief for families,” Hernandez said. “Perhaps they got sick, and they’re not able to work for a few weeks, or God forbid, something happens and someone in their family passes away, and that’s who they depend on in the household. Things happen all the time. We can never plan ahead for emergencies. It is a way for us to be able to alleviate some of that pressure on families, ensuring that we’re able to help keep them in their home until they get back on their feet.” 

The bills come as a coalition of the lawmakers from both sides of the aisle make housing and homelessness a priority this session.

“We can’t just support rental assistance in the same way, we can’t just support supply solutions,” Ortiz said. “We have to look at it as a holistic problem. I think there really is the appetite this year to stop talking about the problem and finally take action.”

But given the current balance of both chambers, Hernandez said shoring up Republican support, finding common ground and landing on a bipartisan agreement remains a priority. 

Ortiz first introduced Senate Bill 1554. The legislation directs 10% of the state’s portion of proceeds received from prime contracting sales tax to a minted Arizona Rental Assistance Fund, with half the money allocated to rental assistance and the other to emergency housing needs and grants.

Ortiz noted in FY2024, prime contracting sales tax brought in $1.1 billion, with a speculative 10% cut raking in about $100 million. 

Hernandez’s bill takes a smaller cut and tempers the draw from prime contracting tax to 5%, as she said doing so could prove more feasible in the Republican-controlled Legislature. 

Under both bills, applications would be open to anyone behind or anticipating falling behind on rent. Applicants would be eligible for up to 3 months of rental assistance within a 12-month cycle. 

If approved, funds would go directly to the landlord and would bar eviction on the basis of non-payment of rent the same month assistance is received. Tenants would also be required to demonstrate the ability to pay future rent.

Both proposals task the Department of Economic Security with administering the program and developing an application for tenants and landlords. 

The proposal would not be DES’s first swing at such a program. In 2021, with federal funds, the department oversaw the Emergency Rental Assistance Program. 

That program was brought on by the federal Consolidated Appropriations Act in 2021, which provided up to $3,500 per month in rental and utility assistance. 

People whose income was less than or equal to 80% of the Area Median Income who had experienced financial hardship as a result of the Covid pandemic, and who had received an eviction notice, utility shutoff notice, past due notice or could provide any evidence of unsafe or unhealthy living conditions or housing instability were eligible. 

DES also administered the Arizona Rental Assistance Program, which stemmed from funds from the Arizona Rescue Plan Act. The program provided a lump-sum payment up to three times a household’s monthly rent with a cap at $10,500. 

To be eligible, a household had to have a child under the age of 18 or a senior aged 60 or older, have an income below 80% of the Area Median Income and must have received an eviction notice or a past due rent notice or past due utility bill. 

Applicants also had to show full-time employment, or qualify for unemployment, worker’s compensation or disability benefits or show a full-time job start in the coming months. 

In total, DES approved 26,228 applications and disbursed $273.7 million in the Emergency Rental Assistance Program, and approved 5,742 applications and disbursed $25.95 million in assistance in the Arizona Rental Assistance Program, which ceased accepting applications at the end of August. 

“Money that had poured into the state from Covid and ARPA (Arizona Rescue Plan Act) is very quickly drying up, so there are fewer and fewer options for people to get help to pay their rent when they are in an emergency situation,” Ortiz said. 

“DES was instrumental in getting the Covid relief rental assistance money out the door, so they have the infrastructure and they have the processes necessary to make sure that this is distributed effectively.” Ortiz said. 

DES did not immediately respond to a request for comment on whether it planned to support the bills. 

Both Hernandez and Ortiz said they would continue to work on garnering bipartisan support. 

“It doesn’t matter if you are a Republican or a Democrat, if you can’t pay your rent and you need help, there should be options available to you,” Ortiz said. “I’m hoping my Republican colleagues can agree with that sentiment.”