♪ Music Playing ♪ >> COMING UP NEXT ON "ARIZONA HORIZON," THE ECONOMIC IMPACT O THE FEDERAL RESERVE'S RECENT INCREASE IN INTEREST RATES.

ALSO TONIGHT, AN INVESTIGATION SHOWS A MAJOR REASON WHY SO MAN ARIZONANS HAVE BEEN CUT FROM A FEDERAL FOOD ASSISTANCE PROGRAM AND, NEW LAWS LOOK TO PROTECT HOMEOWNERS AGAINST HOA REGULATIONS.

THOSE STORIES AND MORE NEXT, ON "ARIZONA HORIZON."

>> "Arizona Horizon" is made possible by contributions from the friends of Arizona PBS.

Members of your public television station.

>> GOOD EVENING AND WELCOME TO "ARIZONA HORIZON."

I'M TED SIMONS.

THE FEDERAL RESERVE RECENTLY RAISED INTEREST RATES.

IT WAS THE FIRST SUCH INCREASE IN MORE THAN THREE YEARS AND IT MEANS THAT IT WILL SOON COST MORE TO BORROW MONEY FOR EVERYTHING FROM BUYING A CAR TO GROWING A BUSINESS OR CARRYING CREDIT CARD BALANCE.

FOR MORE ON THE IMPACT OF THE INCREASE, WE WELCOME ASU ECONOMIST DALE ROGERS.

From the supply chain side at ASU, you guys are voted number one, weren't you?

>> Number one in the U.S., I will say the whole world by U.S.

news and world report.

They made ASU number one for innovation and us number one for supply chain.

>> You are going to be difficult to deal with here.

>> I don't know, really.

>> All right.

Interest rates up first time in three years.

Why?

>> Well, inflation has not really come down to the 2% target for five years, truthfully.

And this federal reserve wants to do something about that.

There is a problem with that, Ted, because this inflation is mostly due to the supply side.

And there is a great website, San Francisco federal reserve Dr.

Adam Shapiro who we worked with a little bit.

He's had research for the San Francisco fed and he breaks inflation down to demand driven, which raising the interest rates works great to crush demand-driven inflation, because you slow down demand, that's what you do.

But for supply shocks, for supply-driven inflation, raising the interest doesn't do that much.

>> Would lowering the interest rate do much?

>> Well, no, that will Jack up -- >> This affects everything -- >> Yeah.

Yeah.

That -- the tool really it was sort of pioneered I would say -- remember when -- during president Carter we got up to 20%.

And Paul the head of the feds said we are going on crush this down and he Jacked that interest rate up to 20%.

And it basically stopped everything.

And it worked.

And so that's what the world has copied and that's what we always do.

But it's not a great tool for the kind of inflation that we got now.

It will crush demand.

But we'll get another one and a quarter of a point is not that big of a raise anyway.

>> The win button.

>> President Ford.

Yeah, that was his strategy.

Let's print a put button and say W.I.N.

That wasn't a great strategy, I don't think.

>> The idea of having to raise interest rates to lower prices or stabilize prices suggest that is the economy is doing pretty well.

>> It is doing pretty well but we are seeing higher prices due to both the tariffs and also the war in the gulf, plus, you know, the Iran war, plus really Ukraine and Russia.

>> And disruptions strait of Hormuz, the Iran war.

Now Saudi Arabia and the Houthis and now you have the red sea they are not going through the red sea.

Goodness, gracious, the oil price.

>> Yeah.

I thought the solution -- we might have talked about it before five years from now, they'll be more pipelines across Saudi Arabia and they take it where you can go up through the strait of [ Inaudible ] but Iran has put the Houthis there.

And they -- plus they blew up the pipeline that's there and so we are going to see some bad stuff coming when it comes to fuel.

We have drained down the strategic petroleum reserves, and I am thinking that there is probably higher prices coming.

>> Well, higher prices coming.

We have higher interest rates coming.

What does it mean for the average American seeing these interest rates hiked by the fed?

>> Well, it means that everything is more expensive.

And one of the problems is, the biggest source of inflation is fuel costs.

And fuel is basically in everything.

We talked about a bunch of times, you know, before anything gets to the grocery store or wherever, it goes on a truck.

And so with diesel over $6 a gallon across the country, I think yesterday it was 6.19, 6.20 basically here just down the street in Phoenix.

And so that's a huge hit for the consumer.

Because there is a -- an amplification affect as it rolls forward in the supply chain.

>> That's the splay China, talk about things like real estate, buying a cash how are those industries affected?

>> Well, those -- you'll see the praise of getting a home loan, and it's already happening.

Credit card rates go up.

Price of buying a car, it has a dampening effect which that's the idea behind raising interest rates.

>> The only thing is that this time it doesn't really go to the source of most of the problem.

>> The demand as you mentioned earlier O were you surprised that the fed with this fed chair hand picked by Donald trump, came out and said, -- because president trump is constantly calling for a cut in rates.

And they came out said and, no, I think we'll raise them?

>> I wonder if he thought about man, man I should have kept with the old guy.

Not only did war, and it was a unanimous vote vote to raise rates, but he's also staying out of manipulating, manipulating bond rates all those years of Jerome towel and even above him we didn't see bond prices go up to the level they have been at the last couple of weeks and people are now talking about that we broke the 5% barrier for the first time in a very long time.

It's like are you we might hit 6% and Warsh is staying out of it.

Treasury department is trying to step in.

Truth.

I even though the treasury secretary says they have a bazooka, he has a bazooka, they don't really.

>> Real quickly, we keep hearing about bond yields.

Give us a 30-seconds elevator explanation of what they are and why they are so important.

>> 30 seconds is hard for me, Ted.

[ Laughter ] >> There is -- if you are looking for one of the big sources of money is interest rates and so there is lots of people looking for they want to put bonds in the market both government and private companies.

Particularly the A.I.

guys.

I am probably past 30 seconds.

>> That's all right, go ahead.

More demand for money than supply and nervousness around the world about how solid we are, given our dead and the interesting decisions being made in the federal government.

>> Thus the need are yields keep increasing.

>> And so if there is more demand than splay of money the interest rate goes up and the bond market doesn't listen to anybody else trump kept the stock market up by talking it up.

The bond market is cold blood.

>> Dale Rogers, WP carry school of business, supply chain guru.

Congratulations again on the ranking.

>> Number one, we'll take.

>> Good to have you here.

>> Good to be with you.

>> Theft mostly farmers we don't have a war society.

We had to transition into having a war society.

Because of the enemies that were attacking us.

That's a new thing that came to us with the Americans.

So this is a traditional war club that is made out of iron wood.

If you know iron wood it's very strong wood.

This is one of the old weapons and this was used by the bravest war because it's hand to hand.

It's close combat with the shield and a war club.

And so there is a whole ceremony behind warfare to take care of yourself.

And that's one of the things that was lacking during the American's time is that we lost that ceremony to take care of men that came back from war.

So we have a lot of men even in the modern wars, where we are trying to regain a ceremony to take care of them.

You know, clean them from what they have done and have them be good in the community again.

♪♪ >> A NEW INVESTIGATION SHOWS THAT D.E.S.

DROPPED MORE THAN 3-MILLION CALLS FROM POTENTIAL FOOD-STAMP BENEFICIARIES WHO WERE TRYING TO CONTACT THE AGENCY TO GET THEIR ELIGIBILITY VERIFIED.

THIS AS ARIZONA LEADS THE NATIO IN CUTTING THOSE ENROLLED IN TH FOOD-STAMP PROGRAM.

CAMRYN SANCHEZ HAS BEEN ON THIS STORY, SHE'S SENIOR FIELD CORRESPONDENT FOR KJZZ.

Good to see you, thanks for being here.

>> Thanks.

>> All right, so this report is that, what, they failed to -- it sounded like people are trying to confirm their eligibility, trying to apply and the phone, what, drops off?

Never answers?

What happened here.

>> Let's start from the beginning.

Basically everyone who is on snap has to apply for it.

You have to reapply for it also And D.E.S.

in Arizona is in charge of those application interviews.

So they determine your eligibility by doing these phone interviews and now it's phone interviews wrath they were in person you can technically request in person is.

That's a change that they have made.

What I was told by folks when I was reporting on the initial massive snap cut that makes Arizona such an outlayer is people were saying, well, I am still eligible.

But when I call I can't get through to D.E.S.

I can't get my appointment.

And then again dropped because yet complete my eligibility interview.

I am report on the ground public records request on this topic showing they were dropping a huge amount of calls and not completing interviews.

>> Do we know why?

>> They have been understaffed and overwhelmed and under funded and had to adjust in changes in H.R.

1 and it's been a process on their end of things.

The records confirm what we were told by folks who were saying, that they were eligible.

And that they got flashed.

>> 13% of calls were completed, 13% were completed interviews?

>> Right.

>> My math says 87% of those were not completed interviews.

>> 13% of requests for eligibility interviews did not result -- resulted in a complete interview.

>> Owe how does D.E.S.

explain this 87% we did not quite get it done mark?

>> Well, they really didn't respond to my initial request for comment on what this data shows and it's data that they are reporting to the federal government check a requirement.

D.E.S.

has a waiver that we have gotten from U.S.D.A.

because snap actually under federal U.S.D.A.

And thanks to this waiver, we are allowed to do these phone interviews, but you have to report certain information on how that is going.

And there is a report from October to May and, what that report covers is where this data is coming from.

So, you know, the federal government can look at that and say, maybe we don't want to let you do phone interviews anymore if you can't do them properly and D.E.S.

got back to me after my story came out and said actually, we have gotten better.

Oh, really?

>> Yeah.

>> Did they have numbers to back it up?

>> Yeah.

So D.E.S.

got infusion of funds to go bail them out Hobbs sent themselves 1/2 million dollars but then this the state budget which happened more recently they got another 11-ish million dollars to sort of beef up their services.

And so they have this new call center partnership and they say they have been answering the phone more.

>> Reporter: Since they have done that after my request was filed, they have actually increased enrollment slightly.

So you can see enrollment started up here.

Plummeting and now is every so slightly ticking up.

>> And David you reported they were blaming call center error and limb stations and other things.

>> It's gotten much bet.

>> Gotten better or or -- this not this.

>> Slightly better.

>> All right.

Talk about how you report.

You got to the public records request.

>> It's based on the data it took a long time to get the record back.

H.R.

1 the one beautiful build made change to snap.

At that pass was in the July of 2025 now sent of 2026, so there has been a long process of report on the ground this.

D70, again, we cut so many more people than any other state percentage wise where this huge massive outlier if you look on the map of all the states that have cut people and say that initially it was oh, we were ahead of the curve on implementing H.R.

1 and that's why it happened now they are saying, you now know, we were understaffed and it's the federal government's fall but we were adjustments.

Now that we are answering the phone more we are getting people back on the rolls.

>> Some Republicans out there that say actually this is proof of fraud.

This is prove that there are pima plying for this.

Who should not be applying and should not be accepted into this program.

Do they have a point there?

Is that a little after off targed.

>> Fraud is measured differently.

One of the main reasons we have heard for changes in Medicaid and snap and all these cuts to to made gate waste, fraud and abuse, we hear that all the time of but the indication of answering the phone more, and then bringing people back on to the rolls proves the point of those people being eligible even when heightened work requirements.

I don't think you can use that date to say there must have been massive fraud.

>> And DE70 responded by saying we are doing better.

We are doing better.

That's about the size of that?

>> I mean we are going to continue to report on it.

I think we are curious to sea going forward if that curve continues to go up or if it levels out.

And also if you, you know, if they keep things permanently at this level or if D.E.S.

needs more staff in the future on are say that they do.

Today keep improving their services.

>> And you mentioned ways that rectifying the space, anything in the future, anything more planning to be done?

>> Not that we know of.

And I -- in terms of response from Arizona state Republican Lawmakers I heard crickets on I had Democrats be this is so craze ask terrible bull I didn't hear from Republicans.

I don't know if there is an appetite for at that going forward on their sides of things.

>> You did have senator saying this is proof of fraud initially.

>> That was initially.

>> Yeah.

>> Nothing since then.

>> No.

But you are staying on the story.

>> Oh, yeah,.

>> All right we'll have you back and talk about it because you have been following this the whole way through.

Camryn Sánchez, K.J.

Z radio.

Great job, thank for being here >> Thank you.

♪♪ ♪ ♪♪ ♪ ♪♪ ♪ ♪♪ >> NEW LAWS DESIGNED TO PROTECT HOMEOWNERS AGAINST CERTAIN HOA REGULATIONS TOOK EFFECT THIS MONTH.

THOSE PROTECTIONS INCLUDE EVERYTHING FROM MISSED PAYMENT PENALTIES TO THE RIGHT TO INSTALL SHADE STRUCTURES AT ONE'S HOME.

JOINING US NOW IS ALEXIS GLASCOCK, AN ATTORNEY AT FENNEMORE.

WE SHOULD NOTE THAT ALEXIS REPRESENTS THE COMMUNITY ASSOCIATIONS INSTITUTE, THE LARGEST HOA ASSOCIATION IN ARIZONA.

But we don't want your opinion on this stuff.

We are talk about what actually exists as far as new laws and most of them are homeowner centric, correct?

>> That's absolutely right, Ted, and you'll see -- seen throughout these -- a theme throughout these of transparency, Grace, reasonableness while maintaining protections to HOAs so they can do the things they are supposed to do.

Repair the roads, get the swimming pool going, the parks are know mode that sort of agree.

>> You can't foreclose over less than $10,000.

>> This is a big change.

It creates Grace and leniency.

A law was passed law we're -- and this mirrors in planned communities with single-family homes now it applies to condominium associations.

So the old law was $1,200 or one year either would tricker a more are foreclosure.

Now the homeowner because they could be hit with an unexpected financial burden they lose their job or have a medical issue.

So in those circumstances or others when they have financial hardships they now have 18 months instead of 12 months.

And they can be behind up to $10,000.

>> Wow, that is a very big -- 18 months over the year limit.

That's biggy too,.

>> It is a big one.

And really, HOAs don't want to foreclose they want you to be on I payment plan.

They try very hard to create payment plans to get back to being a part of the association.

>> That was a big one.

I had okay now to install shade structures on your property.

What are we talking about?

Bass gas positions and canopies and these things.

>> Effectively, yes.

Many associations already allowed them.

And what this law does is it says, okay, everybody has to allow then now.

And there is a list there included in there in the statute from umbrellas to was goes.

What it sets up and what's most important is now there is a process so a homeowner says the H on.

A will have a reasonable standards.

That they put out.

This is what we would like them to be.

And then the HO -- the homeowner comes in and says, this is what I want to do.

And what's really important in this bill is they cannot unreasonably increase the cost.

So if somebody is, you know, they can't say you can't have this you need a more expensive whatever.

>> I got you.

>> Exactly.

So they have to work with the homeowners in order to facilitate them having the shade structure.

>> What about height limits.

What about sight line limits.

>> Absolutely can be restrictions on that within the rules but they have to be reasonable.

>> Okay.

That's interesting.

Because, I mean, I imagine some of these HOA communities you are next to each other if someone has a big old gazebo up there and blocking the sun.

>> Right.

And there is that.

That will come in to play the restrictions will be such that people's enjoyment of their property is not fundamentally changed.

>> Also somewhat similar is displaying flags.

Okay now?

>> Many HO As already allowed displaying flags some legislators decided a few years ago they wanted to clear there are certainly ones they couldn't prohibit.

The statute says you have to allow the American flag, the Arizona flag.

Every year we get more.

You can have the purchase play or the Betsy Ross original American flag.

They added two more.

And so any branch the military service their flag could be displayed.

As well as any flag -- the flag for the country -- for Israel can also be displayed now.

>> Interesting.

Do they have to be a certain size?

They put up an auto mall -- >> This is something each HOA can decide placement, and the size.

But not whether they can have it or not.

>> All right.

Another one is new homeowners have to be aware of upcoming -- you can't -- if there is upcoming rate hike going on, say I buy house a-actual and the oh, boy the way the HOA fee is doubled you can't do it without letting them.

>> That's right.

It wasn't doubling the initial HOA payment.

Those are always standard.

There is a special assessment.

When homeowners buy a house they enter into an association a contract.

And the contract sets forth their obligations.

They basically -- what this does is it says if there is a special assessment and that what be, you know, say the roof has to be repaired on the clubhouse and it's very expensive or there is plumbing that needs to be done in the condo HOA that much has to be disclosed to the buyer before they purchase the house.

Or the condo, so that they are not surprised after they move inch the way it works is, the seller, receives the buyer's office.

They accept the offer.

They then have 10 days to tell the HOA I am selling my house, you need disclose if there is any special assessments, the hot.

A then has 10 days to tell the buyers' agent they -- whether there is or is not a special assessment that's been approved.

And also give them the past three months of board meeting minutes and four months of all minutes.

>> Wow.

>> They can do a deep dive if they want to see what else they are talking about before they close on the home or the condominium.

>> So you are saying special assessments that have been approved.

What about if everyone is looking at a special assessment for the future.

>> That has to be disclosed as well.

>> How far into the future.

>> If they have talked about it in the last four months.

>> Okay.

>> Then in the board minutes it has to be disclosed.

>> This last one, you gotta explain this one to me.

HOAs have to act reasonably and without favoritism.

What is that all about?

>> Interestingly, this is actually cod identifying what was in a court holding.

But the reason it was being codified is because people felt that homeowners might not read -- they don't read the case decisions it's an ease way toy find this.

What it says is that homeowner associations have to treat homeowners reasonably and without favoritism.

Let me give you an example.

So I live in an association and they only allow tan or white walls outside.

House has to be painted those colors I say I want to it green and they say you can't.

And then you come up I month later and say I want to paint it blue and they say absolutely, you can paint it blue.

That mind of thing it can be regard to other committees as well but it's to make sure everybody is treated fairly and not different.

>> I that's so interesting.

All right.

There is so many other things, but obviously these are the big ones.

The trend is protecting homeowners against HOAs.

>> Yes.

>> Okay.

>> Well, it's not protecting them against H on.

As it's creating transparency and reasonableness.

>> Yes.

>> So it's doing that and you can see there is more lenience toy make it easier for people to succeed.

>> All right.

Alexis Glascock Fennemore, interesting stuff.

This is HOAs are fascinating.

Thank you so much for joining us.

>> Thank you for having me, Ted great to is he.

>> You bet.

And that is it for now I am Ted Simon thank you so much for joining us, you have a great evening.

♪♪ ♪ >> I like to think that at "Arizona Horizon" we are unique in that we present information, public policy sometimes news, these sorts of things, because we have conversations.

I don't want conversations the human interaction to go out of style and I hope with "Arizona Horizon", it never goes out of style.

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