The CAPER report represents a collaborative effort between the Arizona Department of Housing and the Arizona Department of Economic Security. This document outlines the State’s affordable housing and community development resources, their methods of distribution, geographic funding objectives, and actions by the State to meet those objectives during the past fiscal year.

Housing plays a major role in the United States and Arizona economies. It is estimated that the housing industry accounts for one-fifth of our nation’s Gross Domestic Product. Despite the economic importance of housing, Arizona did not have a comprehensive approach or strategy for dealing with housing policy issues. In 1994, a Housing Summit addressed increasing concerns about the cost of housing. Participants from across the state met to discuss growing housing needs. A major outcome of the summit was the formation of the Affordable Housing Task Force, designed to review the state’s housing market and suggest ways the state could address housing affordability. Its principal recommendation was the creation of a permanent body that would focus attention on workable housing solutions. The Arizona Housing Commission was created by Executive Order in 1996 to serve as an advisory body to the Governor, the Legislature and the Arizona Department of Commerce, which is the primary agency currently responsible for housing programs. In 1997, the passage of House Bill 2011 formally established the Commission in statute.

The U.S. Department of Housing and Urban Development requires all government entities receiving federal low-income housing and community development funds to prepare an Annual Action Plan. This is a one-year plan to address the low-income housing and community development needs in the state of Arizona, with a special focus on serving the small cities and rural areas of the state. It consolidates the planning, application, and funding requirements for several programs funded by the U.S. Department of Housing and Urban Development: Community Development Block Grant; HOME Investment Partnerships Program; Emergency Solutions Grant; and Housing Opportunities for Persons with AIDS. The federal and state-funded housing and community development projects and programs described within the Action Plan are administered and implemented by ADOH, the Arizona Department of Economic Security, units of local or regional government, or non-profit agencies.

The Arizona Department of Transportation was authorized in 1996 to administer a State Infrastructure Bank under a cooperative agreement with the Federal Highway Administration. The Highway Expansion and Extension Loan Program (HELP) was established. The financial statements present only the funds comprising the Fund and are not intended to present fairly the financial position or results of operations of the Department.

The HELP program is meant to be a funding tool to accelerate needed highway projects throughout the state. Board Funding Obligations are an important part of the HELP capitalization and the current stress on the State's General Fund has impacted our ability to use BFOs as a funding source for new loans. Though $140 million of BFOs are authorized by statute to capitalize the HELP, the State Treasurer was required to call all outstanding BFOs in April 2009. Consequently, the State Transportation Board and the Department have suspended the HELP program given the uncertainty of a long term funding source.

The Arizona Department of Transportation, the Arizona Game & Fish Department and the Arizona State Parks Board are required to conduct a study every three years on watercraft fuel consumption and recreational watercraft usage. The fuel consumption data is collected to determine the allocation of motor vehicle fuel tax to the State Lake Improvement Fund. The information on recreational watercraft usage patterns on Arizona’s lakes and rivers is necessary, in part, to determine the distribution of SLIF funds to applicants.

One goal of the SDCP was to obtain a permit from the U.S. Fish and Wildlife Service under Section 10 of the Endangered Species Act to enable incidental take of species protected by the ESA in the course of development in Pima County. This report provides the county with the framework to go forward and further its analysis of the final funding costs for a Section 10 Permit.