Governor Hobbs Voices Discontent Over Latest Appointment Rejection in Media Spotlight

By Staff Reporter |

Governor Katie Hobbs expressed her dissatisfaction with the Arizona Senate’s recent rejection of her appointee, Joan Serviss, as director of the Arizona Department of Housing (DOH). This decision came just days ago, prompting Hobbs to voice her frustrations in a widely circulated interview.

Hobbs asserted her authority as governor, insisting that her appointments should be confirmed based on her elected position. “They’re using her to push a political agenda that makes no sense, and it holds Arizonans hostage,” Hobbs said. She challenged State Senator Jake Hoffman, suggesting that if he seeks to control agency hires, he should consider running for governor himself.

Hoffman, who has been a focal point of Hobbs’ criticism, dismissed her comments as a “full blown temper tantrum.” Though he clarified he is not pursuing a gubernatorial run, he voiced his support for Congressman Andy Biggs, another candidate in the race.

Serviss characterized her rejection as a product of partisanship, labeling the criticism against her as “unconscionable and politicized scrutiny.” In a LinkedIn post, she lamented the current political environment, stating it creates challenges for qualified individuals aiming to lead state agencies. Nevertheless, she affirmed her commitment to addressing homelessness and the affordable housing crisis in Arizona.

An auditor general’s report from last October raised serious concerns during Serviss’ tenure. The report revealed that, in June 2023, DOH inadvertently transferred $2 million to a fraud scheme involving individuals masquerading as a legitimate nonprofit. The agency did not uncover the fraud until December, and it failed to notify the auditor general within the required timeframe, taking nearly 80 days to respond to information requests from the Arizona Department of Administration. The loss was ultimately covered by the state’s self-insurance funds.

The auditor general also noted that ADOH lacks a comprehensive process to assess program performance, hindering its ability to effectively address housing issues in the state. This was a critical factor in the Senate’s previous rejection of Serviss, who faced allegations of plagiarism during her leadership at the Arizona Housing Coalition.

Serviss has held the role of ADOH director since September 2022, but she now continues her service as deputy director.