Leaders of group home with ties to Gov. Hobbs maxed out donations

The leaders of a group home whose ties to Gov. Katie Hobbs are the focus of multiple investigations gave nearly $11,000 to the governor's reelection campaign earlier this year, political fundraising records show.

The donations from Simon and Elizabeth Kottoor, the husband and wife who lead Sunshine Residential Homes Inc., were made in early February, according to a report filed with the Arizona Secretary of State's Office. Each gave $5,400 to Hobbs' campaign, the maximum state law allows a person to contribute to a candidate.

At the time, Sunshine Residential Homes was renegotiating its contract with the Arizona Department of Child Safety to provide housing for children who have been removed from their families.

Sunshine Residential Homes and Hobbs are under scrutiny after The Arizona Republic revealed the company's political spending earlier this year, which came as it received more favorable state contract terms.

The latest donations, which have not been previously reported, bring the Kottoors' and Sunshine Residential Homes' support of Hobbs and the Arizona Democratic Party to about $420,000 since September 2022, when Hobbs was the Democratic nominee for governor.

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Since the donations began, Sunshine Residential Homes won a nearly 60% increase in the daily rate it charges taxpayers to house a child. That increase could be worth millions of dollars.

The donations made in February were part of Hobbs' overall fundraising of $2.6 million for the reporting period. The contributions would have been hidden from the public were it not for a law enacted this year .

The law requires four-year officeholders, like the governor and attorney general, to make public their political finances four times a year during the three years between elections. Previously, they only had to report at the end of three years — leaving the public in the dark as to the individuals and special interest groups that were supporting a candidate, who could also be a sitting officeholder.

Republican lawmakers Rep. Matt Gress, of Phoenix, and Sen. T.J. Shope, of Coolidge, sponsored the changes to the law after reporting by The Arizona Republic revealed the reporting gap . Most statewide officeholders filed more frequent reports, even though they weren't previously required. Hobbs did not, however, meaning she would not have reported fundraising details until January 2026, the year she will seek reelection.

The reports filed under the provisions of the new law reveal additional financial support that could be used as part of two pending law enforcement investigations of Sunshine Residential and Hobbs.

"This donation continues a concerning relationship between a business seeking favor with the government and Governor Hobbs," Gress said in a text message on Monday. He said the most recent donations affirmed why the new law was necessary.

Arizona Attorney General Kris Mayes, a Democrat, and Maricopa County Attorney Rachel Mitchell, a Republican running for reelection this year, both launched investigations based on The Republic's reporting. Mitchell's probe is being conducted alongside the Arizona Auditor General, which scrutinizes state agencies and how they use taxpayer dollars.

Those investigations are ongoing, spokespeople for the prosecutors confirmed Monday.

Christian Slater, Hobbs' spokesperson, said Monday it was "outrageous to think (Hobbs') administration wouldn't do what's right for children in foster care," noting Hobbs was a social worker before running for office. Slater previously said the Governor's Office had no role in DCS' decision as to Sunshine Residential's rate, and Hobbs has said the investigations will find no wrongdoing.

Nicole DeMont, Hobbs' chief political strategist, declined comment on the Kottoors' donations.

Tommy McKone, a spokesperson for Sunshine Residential Homes, said Sunshine Residential supported Hobbs "given her background in social work and her passion and experience in giving Arizona’s youth the opportunity to thrive no matter what obstacles are present."

McKone said Sunshine Residential has approached the state contract process with "integrity and ethical standards" and will cooperate with the investigating authorities.

Simon Kottoor founded Sunshine Residential Homes nearly 30 years ago, and the Glendale-based company operates about 30 homes for children in the state system. It is the largest provider of group homes for children and siblings. DCS has said it cannot lose Sunshine Residential's services, justifying the higher rates awarded to the company.

The political donations were made both before and after Hobbs was elected governor. Sunshine Residential Homes and Simon Kottoor had no history of political donations in Arizona in the decade prior.

But they did have several connections to Hobbs: Simon Kottoor served on her inaugural committee, and the Kottoors hosted Hobbs and her husband at a private event earlier this year.

Reach reporter Stacey Barchenger at stacey.barchenger@arizonarepublic.com or 480-416-5669 .

This article originally appeared on Arizona Republic: Leaders of group home with ties to Gov. Hobbs maxed out donations