Ariz. Rev. Stat. § 36-1408
Use of revenues; determining rentals
Operative Text
It is the policy of the state that each public housing authority, city, town or county shall manage and operate its housing projects in an efficient manner to enable it to fix the rentals for dwelling accommodations at the lowest possible rates consistent with its providing decent, safe and sanitary dwelling accommodations, and that a public housing authority, city, town or county shall not construct or operate the project to obtain net revenue unless and to the extent that any net revenues are used only for the provision and support of low income housing and support services. To this end a public housing authority, city, town or county shall fix the rentals for dwellings in its housing projects at no higher rates than it finds necessary to produce revenues which, together with any grants or subsidies from the federal government or other sources for housing projects, will be sufficient: 1. To pay, as they become due, the principal and interest on bonds of the public housing authority, city, town or county issued under the provisions of this article. 2. To meet the cost of and to provide for maintaining and operating the projects and the provision of related support services for the tenants, including the cost of any insurance, and the administrative expenses of the public housing authority, city, town or county incurred in connection with maintaining and operating the projects and support services. 3. To create, during not less than the six years immediately succeeding the issuance of any bonds, a reserve sufficient to meet the largest principal and interest payments which will be due on the bonds in any one year thereafter and to maintain the reserve.
Under A.R.S. § 36-1408 et seq., Arizona public housing authorities, cities, towns, and counties are required to run their housing projects efficiently and to keep rents as low as possible while still maintaining decent, safe, and sanitary conditions. These entities may not generate net revenue from their projects unless that surplus is directed exclusively toward low-income housing and related support services. Rents may only be set at levels sufficient to cover bond obligations, operating and maintenance costs, insurance, administrative expenses, and a required debt-reserve fund built up over at least six years following any bond issuance.
Plain English — not legal advice.
Public housing operators and local government entities subject to A.R.S. § 36-1408 et seq. generally demonstrate compliance by documenting that rental rates are calculated to cover only allowable costs—bond principal and interest, maintenance, operations, insurance, administrative expenses, and the mandated reserve fund—rather than to generate surplus revenue. When net revenues do arise, compliant operators ensure those funds are applied solely to low-income housing provision or support services. Maintaining clear financial records that show how rental rates were determined, and how any surplus was used, reflects the operational standard this statute establishes.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in public housing covered by A.R.S. § 36-1408 et seq. have an interest in knowing that the law limits how high their rents can be set, tying allowable rates to actual project costs rather than profit generation. If a tenant believes a public housing authority or local government is setting rents in excess of what the statute permits, general enforcement paths include raising the issue with the relevant housing authority's governing board, contacting the Arizona Department of Housing, or reaching out to a local tenant-rights organization for guidance. Consulting with a legal aid provider familiar with Arizona public housing law can help tenants understand how this provision may apply to their circumstances.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 9, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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