Arizona Housing Advocates Warn: GOP Proposals Could Fuel Homelessness Crisis During Unprecedented Housing Shortage

Arizona remains among the top ten states grappling with homelessness, facing criticism for a lack of effective legislative measures. As advocates urge bipartisan collaboration, Republican lawmakers are reportedly taking a stringent approach that many believe will worsen the ongoing crisis.

Nicole Newhouse, executive director of the Arizona Housing Coalition, condemned recent legislative advancements she views as detrimental to efforts addressing chronic homelessness. “The crisis is pretty enormous,” Newhouse stated. She highlighted the significant political divisions impeding necessary action to prevent worsening humanitarian conditions in the state, during a news conference focused on highlighting the adverse impacts of GOP proposals.

A January report from the Arizona Department of Economic Security revealed an alarming estimate of nearly 14,737 individuals experiencing homelessness, marking the highest rate in five years. The situation has deteriorated steadily since 2019, emphasizing the growing urgency for intervention.

Newhouse pointed out that resources for homeless individuals and low-income families are already insufficient. Arizona is currently lacking more than 133,000 affordable housing units, with only about 10,000 shelter beds and vouchers available for assistance.

In light of these challenges, House Bill 2437 has emerged as a focal point of contention. The proposed legislation looks to designate all shelters and facilities serving homeless populations as drug-free zones, accompanied by increased penalties for drug-related activities in these areas. Current laws classify drug sales as a class 2 felony, imposing fines and minimum sentences. The new measures would add stringent penalties for shelter employees who allow drug use.

Another contentious proposal includes banning state and local funds for paying for temporary hotel accommodations for individuals experiencing homelessness. This approach could directly affect those needing immediate assistance, such as families or individuals fleeing domestic violence, by limiting their options when shelters are full.

The GOP’s plan also includes reallocating $1.25 million from the Housing Trust Fund, originally established to enhance housing assistance programs, to conduct an analysis of homelessness spending across the state. This move has raised concerns among advocates regarding its potential to divert essential funding away from immediate housing assistance.

Housing advocates are vocal about the damaging implications of these proposals. John Godfrey, from Native American Connections, criticized the approach of enforcing punitive measures in shelters, emphasizing that such actions would hinder the ability of staff to provide genuine support. He warned that creating a fear of legal repercussions could deter individuals from seeking necessary assistance.

Ross Schaefer of Flagstaff Shelter Services shared a poignant example from recent months, highlighting the dangers faced by homeless individuals during extreme weather conditions. She underscored the critical role that mixed hoteling plays in offering shelter when traditional accommodations are unavailable.

Echoing this sentiment, George Campbell from the Arizona Veterans StandDown Alliance emphasized the necessity of mixed hoteling, characterizing the proposed funding cuts as detrimental. He stated, “Not only is it not a solution, it’s exacerbating a problem that already exists.”

Newhouse strongly criticized the move to redirect funds from the Housing Trust Fund, calling it a misallocation of vital resources. She expressed concern that a one-year renewal for the Arizona Department of Housing could hinder long-term planning and project development. Such instability can deter federal grant considerations and developer investment in affordable housing initiatives.

As a countermeasure to these challenges, Newhouse advocates for the renewal and expansion of Arizona’s Affordable Housing Tax Credit, which is set to expire at the year’s end. This program has successfully contributed to the creation of over 1,500 affordable housing units since its inception and could play a crucial role in alleviating the housing crisis.