>> Ted: COMING UP NEXT ON ARIZONA HORIZON, IT'S THE DAY AFTER THE 2022 MIDTERM ELECTIONS AND WE WILL UPDATE THE LATEST NUMBERS WITH ANALYSIS.

LATER IN THE HOUR, HOW A TRUCK DRIVER SHORTAGE IS AFFECTING GARBAGE PICKUP IN ONE VALLEY CITY.

QUESTION >> STATE-WIDE POLITICAL RACES ARE STILL CLOSE TO CALL AND MANY RACES CONTINUE TO TIGHTEN.

JOINING US FOR ANALYSIS SO FAR, WE WELCOME ROYAL ROY HARRARA AND KIRK ADAMS AND THANK YOU FOR JOINING US.

KIRK, WE'LL START WITH YOU.

WE GOT A FEW HUNDRED THOUSAND IN MARICOPA THOUSAND AND AROUND THE STATE TO COUNT AND SOUNDS LIKE THINGS ARE TIGHTENING UP.

EVERY TIME SOMETHING DROPS, IT'S TIGHTENING UP.

>> WE'LL CONTINUE TO SEE THAT HAPPEN AS MORE BALLOT DROPS COME IN.

THE TRENDS WE'RE SEEING ARE A LOT OF THE REPUBLICAN CANDIDATES WHO LOOKED LIKE THEY WERE BEHIND AND WE'LL SEE A LOT OF THEM COME OUT VICTORIOUS.

>> Ted: THE REMAINING BALLOTS, PEOPLE DIDN'T MAIL IN THIS MANY RESPECTS NOW AS WE GET CLOSER AND CLOSER.

THEY DROPPED THEM OFF AT THE POLLING LOCATIONS AND VOTING CENTERS.

>> TWO TYPES OF BALLOTS OUTSTANDING AND IT'S ELECTION DAY DROP-OFFS AND THESE ARE EARLY VOTERS AND EARLY BALLOTS THAT ARE LATE AND ARRIVED ON FRIDAY, SATURDAY, SUNDAY AND MONDAY OF LAST WEEK AND COUNTED.

THE BIG QUESTION RIGHT NOW IS WHAT ARE THE TRENDS IN THOSE BALLOTS AND EVERY PROGNOSTICATORS SAYING WHAT DOES THAT MEAN?

>> Ted: WHAT DOES IT MEAN SO FAR FROM WHERE YOU SIT?

>> ONE OF THE BIG THINGS, THERE'S A COMPLETE SORTING IN POLITICAL BEHAVIOR BETWEEN THE TWO PARTIES BETWEEN HOW THEY VOTE AND THE DEMOCRATS HISTORICAL HAVE VOTED HEAVILY ON ELECTION DAY AND WE'VE SEEN THAT FLIP WHERE THEY'RE EARLY VOTERS AND REPUBLICANS HAVE BEEN THE OPPOSITE AND EARLY VOTERS AND NOW ELECTION DAY VOTERS.

THE BIG QUESTION, THE EARLY VOTERS DROPPING OFF, MORE LIKE THE EARLY VOTERS OR ELECTION DAY VOTERS.

>> Ted: IT WOULD SEEM, KIRK, THOUGH, THINK DAY-OF VOTING, EARLY BALLOT OR STOOD IN LINE, SEEMS LIKE THOSE ARE SKEWING REPUBLICAN?

>> THAT'S WHAT THE NUMBERS TELL US RIGHT NOW.

IN THE CLOSE RACES, THAT COULD MAKE A BIG DIFFERENCE.

ESPECIALLY ON THE STATEWIDE RACES AND IT'S MORE DIFFICULT TO TELL HOW THE REMAINING BALLOTS AFFECT THOSE AND NUMBERS HAVE BEEN BREAKING TOWARD THE REPUBLICAN CANDIDATES, THE MORE THE BALLOTS GET COUNTS.

>> Ted: IT'S JUST AMAZING.

OUR SHOW LAST NIGHT, WE HAD TO BASICALLY SAY, YOU SEE THAT PERSON WITH A 10-TO 12-POINT LEAD, IT'S ESSENTIALLY TIED AND IS IT SIMPLY BECAUSE REPUBLICANS IN GENERAL DON'T TRUST EARLY BALLOTS?

>> IT'S BEEN A COMPLETE FLIP IN VOTER BEHAVIOR AND WE SAW IT IN 2020 A LOT OF REPUBLICAN VOTERS ARE CONCERNED ABOUT ELECTION INTEGRITY FOR WHATEVER REASON AND HOLDING ONTO THE BALLOTS LONGER AND SHOWING UP AT THE POLLS.

THIS CREATES ITS OWN SET OF PROBLEMS AS MORE PEOPLE SHOW UP ON ELECTION DAY.

>> Ted: ESPECIALLY WITH THOSE THAT THEY FILLED OUT BECAUSE THAT MUCKS UP THE SYSTEM AND YOU HAVE TO GO THROUGH THEM.

>> IN ARIZONA, IT TAKES A FEW DAYS FOR BALLOTS TO BE COUNTED AND WHY DON'T WE HAVE THE RESULTS.

IT'S ALL A PART OF THE NORMAL PROCESS TAKING SEVERAL DAYS FOR OUR ELECTION ADMINISTRATORS TO GET THROUGH BALLOTS AND WE'RE LOOKING AT FRIDAY OR SATURDAY WHEN WE HAVE THE FULL COUNT.

>> THERE'S NOTHING NEW ABOUT THE PROCESS AND I AGREE WITH ROY.

WHAT'S DIFFERENT IS THE ELECTION DAY VOTES THAT HAVE TO PROCESSED AND COUNTS.

>> Ted: THE DIVIDING LINES BETWEEN DEMOCRATS AND REPUBLICANS.

YOU'RE SEEING 10 FOR 15 15 POINTS.

>> IT'S UNPRECEDENTED.

>> Ted: ANY ANGRY THINGS HAPPENING AT POLLS OR VIOLENCE?

I DIDN'T SEE ANYTHING.

DID YOU?

>> I DIDN'T AND THAT WAS A POSITIVE DEVELOPMENT.

THERE WAS LITIGATION RELATED TO VOTER INTIMIDATION AND ON ELECTION DAY, IT WAS QUIET WHICH IS A GOOD DEVELOPMENT AND PEOPLE RESPECTED THE PROCESS AND CERTAINLY, THE SHERIFF'S OFFICE AND ELECTION ADMINISTRATIONS ARE PREPARED FOR THESE THINGS AND IT SEEMED TO GO WITHOUT A HITCH.

>> Ted: THERE WERE PRINTS AT POLLING LOCATIONS AND THESE SORTS OF THINGS AND TECHNICIANS FIGURED OUT WHAT THE PROBLEM WAS AND FIXED EVERYTHING AND A QUOTE FROM BILL GATES AND BASICALLY SAID THAT THE CHAIRMAN OF THE BOARD OF SUPERVISORS, MARICOPA BOARD SAYS NO VOTERS WERE LOST.

>> WHAT HAPPENED YESTERDAY SHOULD NOT BE USED TO QUESTION THE INTEGRITY.

EVERYONE WHO SHOWED UP AND HAD THE OPPORTUNITY TO VOTE AND VOTES WILL COUNT.

THE 17,000 OR SO THAT I MENTIONED TO YOU THAT DIDN'T GO THROUGH THE TABULATOR, THEY HAVE BEEN SECURE SINCE THEY WERE PLACED IN THE BOX THREE AND THEY WERE TRANSPORTED BY A BIPARTISAN BOARD REPUBLICAN AND DEMOCRAT.

LIKE I SAID, TODAY WE WILL START THE PROCESS OF COUNTING THOSE AT THE CENTRAL COUNT FACILITY WHERE ALL OF OUR EARLY BALLOTS ARE.

>> Ted: THAT'S THE EXPLANATION, SEEMS TO MAKE SENSE AND MOST FOLKS BUY IT.

IF YOU'RE A REPUBLICAN ELECTION DENIER AND YOU LOSE BY A SMALL AMOUNT, YOU'LL BUY THAT?

>> LOOK, I THINK THE ELECTION DENIERS ARE GOING SEIZE ON ANYTHING THEY PERCEIVE AS A MISTAKE.

BUT THE FACT OF THE MATTER IS, THE VAST MAJORITY OF VOTERS EXPERIENCED A SMOOTH, SECURE AND FAIR PROCESS YESTERDAY.

THAT'S ALL YOU CAN ASK FOR AS A VOTER.

THERE ARE THOSE PROBLEMS THAT I THINK THE COUNTY AND THE POLICY MAKERS HAVE TO GRAPPLE WITH.

IF WE'LL BE FACED WITH HUNDREDS OF THOUSANDS OF NEW VOTERS ON ELECTION DAY, THEN DO WE HAVE THE BEST PROCESS IN PLACE TO MAKE SURE IT REMAINS SECURE AND FAIR AND SMOOTH FOR EVERYONE?

>> Ted: DO YOU AGREE WITH THAT, ROY IN.

>> I DO.

>> I SAID ARIZONA HAS SOME OF THE BEST IN THE COUNTRY AND WE'RE A MODEL AND WE'VE BEEN THAT WAY AND THAT'S WHY I'VE BEEN OFFENDED BY THE ELECTION DENIER RHETORIC WE'VE BEEN.

AT THE SAME TIME, ELECTIONS ARE RUN BY HUMAN BEINGS AND WITH HUMAN BEINGS, THERE WILL BE SOME ERROR.

WITH THE EXPECTATIONS BY, LET'S SAY, THE ELECTION DENIERS THERE WILL NEVER BE A MISTAKE, A STANDARD NEVER MET AND I AGREE WITH KIRK THAT THE ACTUAL ELECTIONS ARE SAFE AND ACCURATE.

>> Ted: A DIFFERENCE BETWEEN MISTAKES AND FRAUD.

>> THERE'S AN OPPORTUNITY TO IMPROVE ANY PROCESS AND THAT'S A NORMAL PART OF RUNNING GOVERNMENT TO IMPROVE THINGS.

SO WE SHOULDN'T FORECLOSE ON IMPROVEMENTS, BUT THIS ELECTION WAS SECURE AND FAIR, JUST LIKE IN 2020.

>> Ted: KIRK, LET'S STICK WITH THE GOVERNOR'S RACE AND NIGHT, KATIE HOBBS HAD A LEAD AND UP BY 4,000 VOTES HERE AND THE TREND SEEMS TO SUGGEST THAT THINGS ARE GOING KARI LAKE'S WAY.

>> I THINK WE'RE LOOKING AT GOVERNOR ELECT KARI LAKE.

I THINK THE TRENDS ARE OBVIOUS AND A MATTER OF MATH.

>> Ted: THE MATH RIGHT NOW ON THE SCREEN, 50.1% AND 49.9 AND FOUR THOUSAND VOTES AND THE TRAIN NOT GOING IN KATIE HOBBS' DIRECTION.

>> IT CERTAINLY HASN'T AND I SAID THAT WAS TO BE EXPECTED.

WE KNEW IT WOULD BE TAKEN AWAY.

I GO BACK TO THE FIRST POINT.

WE'RE WONDERING AND WE'LL FIND OUT SHORTLY IN THE NEXT FEW HOURS, WHAT DO THOSE REMAINING VOTES LOOK LIKE AND WHAT DO THE ELECTION DROP-OFF KAY LOOK DAY LOOK LIKE?

KATIE HOBBS WILL BE OK AND IF THEY'RE NOT THE ELECTION DAY VOTER, THEY WILL NOT.

>> WHAT WILL THE EARLY VOTER LOOK LIKE?

>> Ted: INFORMATION DATA POINT FOR FUTURE ELECTIONS.

MARKETMARK KELLY HAD THE LEAD AND STILL HAS A LEAD HERE AND NOT 20%, BUT THAT LOOKS SECURE FOR HIM.

>> I WOULD SAY I WOULD MUCH RATHER BE IN MARK KELLY'S SHOES TONIGHT THAN BLAKE MASTER'S.

BUT BLAKE MASTERS HAS A CHANCE TO CATCH UP AND SURPASS MARK KELLY.

I WOULD RATHER BE ON THE KELLY CAMPAIGN THAN MASTER'S CAMPAIGN AND IT'S NOT OVER YET AND I DON'T THINK WE KNOW THE RESULT OF THAT RACE PROBABLY UNTIL FRIDAY EVENING.

>> Ted: WOW!

YOU THINK A FRIDAY DETERMINATION THERE.

>> MAYBE EARLIER THAN THAT AND I AGREE WITH KIRK AND WE'RE STILL TRYING TO FIGURE OUT WHAT'S LEFT.

IT'S A GOOD OPPORTUNITY TO THINK ABOUT OVERALL, EITHER FOCUSED AND CONCERNED MOST WITH ARIZONA AND NATIONALLY SPEAKING, THE DEMOCRATS HAD A GOOD NIGHT LAST NIGHT.

WHAT I MEAN, WE ALWAYS KNEW THIS MIDTERM ELECTION WOULD BE BAD FOR DEMOCRATS BECAUSE WE CONTROL ALL LEVERS OF GOVERNMENT IN D.C. AND IT'S BAD FOR THAT IN A MIDTERM ELECTION.

YOU LOOK AT PENNSYLVANIA, IT WAS A GOOD NIGHT AND NOT A RED TSUNAMI, NATIONALLY.

THAT'S FAIR.

>> WHEN YOU LOOK AT ARIZONA, WE STARTED ELECTION NIGHT WITH THE DEMOCRATS HOLDING FOUR STATEWIDE SEATS.

AT THE END OF THIS, THEY MAY HOLD ONTO TOO.

TWO AND MAYBE LESS THAN TWO, RIGHT?

WE SAW THEM ALSO LOSE TWO HOUSE SEATS.

ELI CRANE BEATING JUAN OHALERAN.

THERE'S AN A FUNDAMENTAL SHIFT AND NOT LARGE.

>> Ted: IT'S NOT A WAVE.

>> I WOULD NEVER CALL IT A WAVE BUT REPUBLICANS HAVE IMPROVED THEIR POSITION FROM WHERE THEY WERE BEFORE ELECTION NIGHT.

>> Ted: KIRK, SECRETARY OF STATE, JUST AND RIGHT NOW, IT LOOKS AGAIN PRETTY GOOD FOR FONTES.

>> MY SECOND STATEWIDE RATE THE DEMOCRAT CANDIDATE TO HOLD ON AND THAT MARGIN IS TOUGH, I THINK FOR FINCHEM COULD OVERCOME AND SECRETARY OF STATE DOESN'T HAVE THE RESOURCES LIKE A SENATE RACE DOES.

MASTERS HAS A BETTER CHANCE OF CATCHING MASH MARK KELLY THAN FONT SESSION AND STILL POSSIBLE.

>> Ted: WHAT DID YOU THINK, ROY?

>> I WOULD RATHER BE FONTES THAN FINCHEM.

HE HAS AN 80,000 VOTE LEAD EVEN IF THINGS TIGHTEN.

>> Ted: BEFORE WE WENT ON THE AIR BEFORE THE ATTORNEY GENERAL'S RACE, THAT ONE FLIPPED.

HE HAD BEEN BEHIND CHRIS MAYS AND SURPASSED CHRIS MAYS.

WHEN YOU SURPASS CONSCIENCE -- WHEN A REPUBLICAN SURPASSES A DEMOCRAT, IS THAT A BALLGAME?

>> WE'RE STILL TALKING ABOUT HUNDREDS OF THOUSANDS OF ROTE TAZVOTESTHAT ARE LEFT AND THINGS COULD THEORETICALLY FLIP BACK.

>> Ted: FOR THE FIRST TIME, AHMADE HAS THAT FAR IMAGINE.

IF YOU'RE CHRIS MAYS, CAN YOU EXPECT THAT FLIP AGAIN?

>> IT'S POSSIBLE, BUT I THINK WE'RE LOOKING AT THE WINNER AS ABLE HAHMADE BASED ON THE NUMBERS WE SEE TODAY.

>> Ted: THIS IS PRETTY MUCH YE'S TO USE AND TIGHT LAST NIGHT AND HAD A SLIGHT WIN AND THERE'S ONE MORE AND SUPERINTENDENT OF PUBLIC INSTRUCTION AND KATHY HOFFMAN AND TOM HORN AND HOFFMAN HAD THE LEAD LAST NIGHT AND HORN OVERNIGHT, YOU KNOW, THAT'S OVER AND TOM HORN WILL BE EDUCATION CHIEF AGAIN.

>> YEAH, CRAZY, RIGHT?

>> YEAH.

I THINK HE'S WON THAT RACE.

AND SO THAT'S GOING TO BE A SIGNIFICANT CHANGE IN THAT POSITION.

>> Ted: WE DON'T WANT TO JUMP THE GUN, BUT YOU'RE TALKING DIRECTION AND TREND.

>> THAT'S RIGHT.

THIS GETS TO ANOTHER POINT, AND SOME ELEMENT OF TICKET SPLITTING AND A SIZEABLE AMOUNT FROM THE RESULTS OF REPUBLICANS VOTING FOR MARK KELLY AND FONTES.

AT CERTAIN POINT ON THE BALLOT, PEOPLE PARTISAN GO TO THEIR PARTISAN HOME AND THE FURTHER DOWN THE BALLOT, THAT'S WHEN THAT HAPPENS AND THAT'S A QUESTION THAT I WOULD PROBABLY HAVE IN THE TREASURER'S RACE AND SUPERINTENDENT'S RACE.

>> Ted: IF YOU'RE A REPUBLICAN AND START VOTING FOR DEMOCRATS, YOU START LOOKING AND SOMETHING IS NOT RIGHT.

>> THEY'LL VOTE THEIR AFFILIATION THE FURTHER DOWN THE BALLOT.

>> Ted: ROY, THE STATE SENATE AND STATE HOUSE, WHAT ARE YOU SEEING AND LEADERSHIP, WHAT ARE YOU SEEING?

>> I WOULD DEEM A BRIGHT SPOT ON THE DEMOCRATIC SIDE FROM THE RESULTS LAST NIGHT.

IT IS LIKELY THAT REPUBLICANS CONTROL BOTH CHAMBERS.

ALTHOUGH, AGAIN, WE'RE WAITING FOR A LOT OF VOTES.

EVEN IF THEY DO, IT'S LARGELY WITH THE MAJORITIES THAT THEY HAVE OR SOMETHING SIMILAR, LIKE A 28-32 HOUSE AND THIS IS SPEAKING FOR THE DEMOCRATIC SIDE AND NARROW LEADERSHIP.

AND THEN, AGAIN, WHAT'S INTERESTING TO ME, PARTICULARLY WITH THAT MAJORITY OF THE REPUBLICANS, HOW MUCH CONTROLLED BY THE TRUMP CAUCUS VERSUS ESTABLISHMENT REPUBLICANS?

>> Ted: A LIVELY CAUCUS.

>> INTERESTING FOR LEGISLATIVE LEADERSHIP.

WHEN YOU LOOK AT THE MAJORITIES IN THE LEGISLATURE, IT'S EMBLEMATIC ACROSS THE STATE AND IT'S A MUCH MORE CLOSELY CONTESTED STATE AT EVERY LEVEL AND A LOT OF THE LEGISLATIVE RACES ARE GOING TO BE DECIDED BY VERY, VERY NARROW MARGINS, EVEN AFTER REDISTRICTING.

SO YOU LOOK AT THE STATEWIDE RACES.

WE KNOW CANDIDATES MATTER AND HOW THEY RUN THEIR CAMPAIGNS MATTER AND PLAYING OUT AND THIS STATE WILL BE COMPETITIVE.

I THINK BOTH PARTIES WILL HAVE TO KEEP THAT IN MIND GOING FORWARD IN 2024.

>> Ted: AS FAR AS THE NEXT LEGISLATIVE SESSION.

LEADERSHIP AND WHERE THAT GOES WITH POSSIBLY, A GOVERNOR LAKE OR GOVERNOR HOBBS.

>> I THINK LEGISLATIVE LEADERSHIP, I WOULD EXPECT THAT WE'LL SEE EXPERIENCED FOLKS THAT HOLD ON OR ARE ELECTED TO THE LEADERSHIP POSTS AND THAT'S HELPFUL BECAUSE THERE'S A RECORD NUMBER OF NEW MIDTERM MEMBERS AND A LOT OF TURNOVER AND TRAINING AND THINGS TO GO OVER WITH THE NEW FOLKS.

SO THERE WILL BE BUMPS ALONG THE WAY AND I THINK SO IN THE INTERCAUCUS BATTLES WILL BE EPIC AND THAT WILL PLAY OUT FOR US ALL TO WATCH.

>> ABSOLUTELY.

THERE'S THE EXTREMIST IN EACH CAUCUS AND MIDDLE-OF-THE-ROAD FOLKS AND AT WAR WITH EACH OTHER.

>> Ted: CAN'T WAIT FOR THAT.

GOOD TO HAVE YOU.

UP NEXT, HOW BEST TO TAKE ON THE STATE'S PERSISTENT HOUSING CRISIS.

>> ARIZONA IS FACING A HOUSING CRISIS AND THE STATE DEPARTMENT OF HOUSING ESTIMATES 270,000 HOUSING UNITS ARE NEEDED TO MEET CURRENT DEMAND.

A NEW GOVERNOR AND LEGISLATURE WILL TAKE ON THIS GROWING PROBLEM.

WE HAVE THE DIRECTOR OF THE ARIZONA DEPARTMENT OF HOUSING AND GOOD TO SEE YOU AGAIN.

WE'RE CALLING IT A CRISIS AND IS IT A CRISIS?

>> NOT ONLY IN ARIZONA BUT ACROSS THE COUNTRY.

>> Ted: WHAT ARE WE SEEING AND WHY IS IT HAPPEN.

>> THEING?

>> THERE'S MORE DEMAND THAN UNITS AVAILABLE AND HOW DID WE GET HERE?

WE HAVE TO LOOK BACK DECADES AGO WHEN IN THE 1980'S AND '90S, ARIZONA FACED AN ANTIGROWTH MOVEMENT AND THINKING BACK TO WHAT THE STATE LEGISLATURE DID, THEY CREATED GENERAL PLANS AND A PATH FOR MORE NEIGHBORHOOD INVOLVEMENT AND ENGAGEMENT AND THE VERY PURPOSE OF ALL OF THAT MOVEMENT WAS TO SLOW DOWN THE PACE OF DEVELOPMENT.

WE SUCCEEDED IN SLOWING DOWN THE PACE OF DEVELOPMENT.

WE FACED HUGE JOB GROWTH UNDER GOVERNOR DUCEY AND NOT ENOUGH TO KEEP UP WITH THE PACE.

>> Ted: BASICALLY, YOU KEPT DEVELOPMENT IN CHECK AND NOT KEEPING PEOPLE FROM COMING HERE.

>> THAT'S RIGHT, ESPECIALLY WHEN YOU LOOK AT THE TRAVEL TOURIST AREAS IN ARIZONA.

THE THOUGHT IS IF YOU DON'T BUILD IT, THEY WON'T COME.

>> Ted: EVEN WITH THE SLOW GROWTH IDEAS, LET'S PUMP THE BRAKES, COULD IT HAVE BEEN FORESEEN THAT PEOPLE ARE STILL GOING TO COME OUT HERE?

>> IT SHOULD HAVE BEEN FORESEEN AND PERHAPS NOT TO THIS EXTENT AND THE GREAT RECESSION IMPACTED THE MODEL, AS WELL.

WE HAD SUCH A SURPLUS OF HOUSING AND WE ATE THAT UP IN A FEW YEARS AND JUST NEVER CAUGHT UP.

>> Ted: INFLATION, THE RECESSION WAS MOVING THE GOAL POSTS AND NOW YOU HAVE INFLATION AND RENTS INCREASING AND 30%.

IT'S GOT TO BE A FACTOR.

>> ABSOLUTELY.

IT'S THE LAW OF SUPPLY AND DEMAND AND NOT ENOUGH APARTMENTS TO RENT.

IN ARIZONA, THE MODEL USED MODEL WAS A WATERFALL AND IT WOULD GO FURTHER DOWN TO THE POINT WHERE THINGS BECAME AFFORDABLE FOR THE WORKFORCE AND THAT MODEL DOESN'T EXIST ANYMORE.

WE DON'T HAVE ENOUGH LAND TO BUILD ON.

THE RULES AND REGULATIONS HAVE CHANGED THE GAME.

>> Ted: WHAT DO YOU DO AS FAR AS PUBLIC POLICY AND LOW AND MIDDLE-INCOME FOLKS AND SHELTER, WHETHER IT'S REAL ESTATE AND RENTALS AND WHAT DID YOU DO?

WHAT POLICIES CAN YOU PUT IN PLACE AND WHAT CAN THE LEGISLATURE LOOK AT?

>> WELL, AS A MATTER OF FACT, LAST YEAR, THE LEGISLATURE LOOKED AT A BILL AND THEY QUICKLY SHOT IT DOWN AND LOOKED AT A BILL TO PROVIDE BUY-RIGHT IN CITIES.

FOR EXAMPLE, THE BILL CALLED FOR SINGLE FAMILY HOMES IN INDUSTRIAL OR AGRICULTURAL AREAS AND WHAT CAME UP IN ITS PLACE WAS A STUDY COMMITTEE BY THE STATE LEGISLATURE AND THAT HAS BEEN GOING ON FOR THE PAST SIX MONTHS AND THEY'VE GONE ON THE ROAD AND WENT AROUND THE STATE GETTING INPUT FROM LOCAL AFFECTED OFFICIALS AND ECONOMIC DEVELOPMENT FOLKS AND THEIR CHARGE IS TO CREATE A LIST OF RECOMMENDATIONS FOR THE NEXT LEGISLATURE.

>> Ted: WHAT ABOUT INCENTIVES TO DEVELOPERS TO BUILD THESE ESPECIALLY LOW AND MIDDLE INCOME HOMES?

>> WE ACTUALLY HAVE AN INCENTIVE, THE FEDERAL AND LOCAL OR STATE LOW INCOME TAX CREDIT.

THE LOW INCOME TAX CREDIT HAS BEEN IN PLACE SINCE PRESIDENT REAGAN IN 1986.

SO HERE IN ARIZONA, IT'S DISTRIBUTED TO EVERY STATE, EVERY STATE IS ALLOCATED A CERTAIN AMOUNT OF TAX CREDITS AND IT'S TO DETERMINE WHAT THAT TRACY FOR THAT STATE.

SO HERE IN ARIZONA TO INCENTIVIZE, THEY WOULD TAKE A LOOK AT ARIZONA AND NOT FLY OVER US ON THE WAY TO CALIFORNIA.

>> Ted: ARE THEY TAKING A LOOK?

>> THEY ARE AND FOR THE PAST 8 18 MONTHS, WE ISSUED A RECORD NUMBER OF TAX CREDITS LAST YEAR INCLUDING A RECORD NUMBER IN RURAL AREAS TO BUILD MORE HOUSING, AFFORDABLE HOUSING, WORKFORCE AND PERMANENT SUPPORTIVE HOUSING AND THE HOUSING WE NEED FOR THE LOWEST ECONOMIC FACTOR.

>> Ted: CAN THE PROCESS BE FURTHER STREAMLINED?

>> I'M FEELING PROUD OF OUR TEAM AND OUR STAFF WENT FROM A PROCESS OF 300 PAGES LONG WITH SEVERAL UNDERWRITINGS THAT WERE NOT DICTATED AND REDUCED THAT TO 50 PAGES.

IF YOU'RE A DEVELOPER, YOU'RE NOW LOOKING AT ARIZONA AND YOU KNOW THAT ARIZONA IS THE STATE OF ARIZONA IS SERIOUS ABOUT BUILDING MORE HOUSING.

>> Ted: WHEN SOMEONE SAID WE NEED TO CUT BACK ON THIS, THAT AND THE OTHER, YOU SAY IT'S ALREADY BEEN CUT BACK?

>> OH, YES.

WE NEED TO DO THE OPPOSITE AND ENCOURAGE OUR CITY MAYORS AND TOWN MAYORS AND COUNTY SUPERVISORS TO TAKE A LOOK AT THEIR ZONING REGULATIONS AND GENERAL PLANS AND THE PROCESSES INVOLVED AND ENGAGED.

WE NEED TO BE ABLE TO BUILD MORE HOUSING AND TED, YOU MENTIONED THAT NUMBER, 270 US TO.

270 US TO NUMBER.

IF WE'RE INCREASING POPULATION BY, WHAT, ROUGHLY 150 A DAY IF ARIZONA, WE'LL NEVER CATCH UP.

>> Ted: THAT'S NOT WORKING UP OUT.

AS FAR AS THE ARIZONA TRUST FUND, THAT WAS A THING AND IS IT STILL A THING?

>> IT'S A BIG THING AND AS A MATTER OF FACT, BACK IN THE GREAT RECESSION, IT WAS WIPED OUT, BUT WE HAVE THAT SURPLUS, RIGHT?

HOW MAIN YEARS LATER, TEN, 12 YEARS LATER P. THE LEGISLATURE APPROPRIATATED $60 MILLION FOR THE TRUST FUND AND THAT IS THE MOST FLEXIBLE FUND WE USED TO BUILD HOUSING IN ARIZONA.

WE HAVE COMMITTED THAT ENTIRE 60 MILLION AND IT TOOK OUR AGENCY ROUGHLY TWO MONTHS TO DO THAT AND THE NEED AND DESIRE IS THERE AND THOSE ARE FOR SHOVEL-READY PROJECTS.

>> Ted: THE IDEA OF LIMITING RENT INCREASING, WILL THAT EVER FLY IN ARIZONA?

>> INCREASE,FIRST, WE HAVE TO REALIZE IN ARIZONA, IT'S NOT LEGAL TO DO THAT AND RENT CONTROL, NOT LEGAL AND THAT'S A LEGISLATIVE ACT.

>> Ted: COULD IT BE SOMETHING AND WON'T HAPPEN?

>> THE ANSWER ISN'T CONTROLLING RENT.

IT'S BUILDING MORE APARTMENTS.

[ Laughter ] >> Ted: SO LAST QUESTION HERE, WE TALKED ABOUT A CRISIS AND WHAT NEEDS TO BE DONE, WHAT SHOULD BE DONE AND CAN BE DONE AND ARE YOU OPTIMISTIC SOMETHING WILL BE DONE?

>> I AM AND OPT MISTAKE OPTIMISTIC.

IT'S ACROSS THE COUNTRY AND EVERY STATE FACING THAT SHORTAGE TO SOME DEGREE AND NO LONGER ARE STATE LEGISLATEORS SAYING IT'S THE CITY'S PROBLEM.

THEY'RE TACKLING THIS AT THE STATE LEVEL TO ENCOURAGE CITIES AND TOWNS OR FORCING CITIES AND TOWNS TO OPEN UP THAT PIPELINE.

>> Ted: LET'S SEE HOW IT GOES.

GOOD TO SEE YOU AND INFORMATION FOR JOINING US.

AND THAT IS IT FOR NOW.

THANK YOU SO MUCH FOR JOINING US AND JUST A GREAT EVENING.

COMING UP NEXT ON ARIZONA PBS, ON CRONKITE NEWS, A NEW ARIZONA LAW MAY LEAD TO FURTHER DELAYS IN DECLARING ELECTION WINNERS.