transitional housing; grant program; appropriation.

SB 1505 establishes a $7 million military transitional housing grant program funded through the Arizona state general fund for fiscal year 2026-2027. It provides grants to veteran-owned and veteran-operated nonprofit organizations in Arizona to construct or rehabilitate housing facilities specifically for military members separating from service and homeless or at-risk veterans. The program prohibits using funds for unoccupied hotels/motels and requires the Arizona Department of Housing to administer the grants, with annual reports detailing facility locations, costs, and beneficiaries. Key provisions include supporting on-site medical/behavioral health services and requiring local government input before construction projects.