FOR IMMEDIATE RELEASE
Tuesday February 25, 2025
Arizona Senate Republicans Reject Governor Hobbs'
Failed Department of Housing Director Nominee
PHOENIX, ARIZONA—In a vote today, Senate Republicans are rejecting the nomination of the Arizona Department of Housing (ADOH) Director appointee under the Hobbs Administration, after she failed to resign amid serious findings of waste, fraud, and abuse of taxpayer dollars.
A report from the Arizona Auditor General revealed the agency, led by Joan Serviss, wired $2 million in State Housing Trust Fund monies to fraudsters impersonating officers from a title company and nonprofit housing organization in June of 2023 and did not realize the fraud occurred until six months later. The Auditor General concluded ADOH failed to develop and implement wire transfer policies to prevent and detect fraud, waste, and abuse.
In September of 2023, the Senate Committee on Director Nominations (DINO) found Serviss was unfit to serve as Director of ADOH after a troubling history of pervasive plagiarism was alleged while she served as Executive Director of the Arizona Housing Coalition. As a result, the committee recommended the Senate reject her confirmation. Following the recommendation, Hobbs attempted to evade the confirmation process and withdrew all nominees. The Senate sued, and Hobbs was found to have broken the law. This year, the governor renominated Serviss over the objections of Senate Republicans, forcing legislative leaders to take action.
"As we warned the governor and her team, the Senate could not confirm this Director in good conscience due to the disturbing fraud, waste, and abuse that occurred under her watch," said Senate President Warren Petersen. "The governor had the opportunity to do the right thing here, but she was stubbornly committed to a nominee who repeatedly proved her incompetence and demonstrated a severe lack of concern for the stewardship of taxpayer dollars. Because the Governor did not desire to work with the state legislature in a bipartisan manner, Senate Republicans had no choice but to act to protect the interests of our citizens. With this vote today by the Senate, we call on the governor to submit a new nominee to lead this agency who is both competent and qualified to serve all of Arizona."
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For more information, contact:
Kim Quintero
Director of Communications | Arizona State Senate Republican Caucus
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