Hobbs’ Rejected Housing Nominee Remains as Deputy Director

Governor Katie Hobbs’ nominee for the Department of Housing, Joan Serviss, will now serve as the deputy director following a party-line rejection by the Senate Republicans. This outcome marks a significant shift in Serviss’ role within the department after her nomination was declined last week.

Serviss, who has held the director role since 2023, has faced ongoing resistance from Republican lawmakers. Previously, she was turned down by the Senate Committee on Director Nominations during her first year in office. The final vote on Serviss’ nomination occurred on February 25.

In light of the Senate’s decision, Serviss confirmed her new status as deputy director with the Arizona Department of Housing. Serviss expressed her commitment to address the state’s housing crisis despite the political challenges she faces, stating her dedication on LinkedIn soon after the rejection, emphasizing the “partisan politics” surrounding her confirmation process.

“The current political climate at the Legislature… creates an environment where, frankly, it’s hard to imagine how qualified individuals stepping up to lead a state agency can endure what amounts to a political circus,” she wrote. “At the end of the day, whether I hold the Director title or not, I’m still a leader in the fight to end homelessness and address our state’s affordable housing crisis,” Serviss added.

Following Serviss’ rejection, Ruby Dhillon-Williams has been appointed as the interim director. Hobbs has yet to outline the next steps for addressing the directorship vacancy.

While Hobbs has consistently defended Serviss, stating she is the best candidate to manage Arizona’s housing initiatives amid rising costs, skepticism remains among Senate Republicans. Senator Jake Hoffman, who leads the Senate Committee on Director Nominations, criticized the move as a failure in accountability, referring to it as the “friends and family plan by Katie Hobbs.”

Hoffman expressed his discontent with Hobbs’ administration, asserting that it reflects poor management of taxpayer resources. He reiterated that Serviss should resign, citing her previous rejection and a report detailing a mishap where the Department of Housing unintentionally transferred $2 million in state funds to scammers.

Prior instances illustrate a pattern, as Hobbs has previously allowed director nominees to continue in deputy roles following similar rejections from the Senate. However, criticism has arisen over the retention of these individuals at director-level salaries. A bill to prevent this practice recently passed in the House.

The political tensions surrounding Hobbs’ nominations began early in her tenure, with multiple nominees facing rejection from the DINO committee. The committee’s upcoming hearings will continue on March 6, where nominees for the Residential Utility Consumer Office and the State Lottery Commission will be evaluated.