By Matthew Holloway |
As Sunshine Residential Homes remains at the center of an ongoing investigation into alleged “pay-to-play” conduct involving Gov. Katie Hobbs, public records link founder and CEO Simon Kottoor to a Paradise Valley residence that Zillow estimates is worth nearly $10 million. The property has drawn renewed attention amid scrutiny of Sunshine’s political donations and subsequent state-approved rate increases.
Arizona campaign finance records reviewed by AZ Free News show that Gov. Katie Hobbs was the only Arizona candidate to receive contributions from Simon and Elizabeth Kottoor during the 2022 and 2024 election cycles. Simon Kottoor’s only other recorded contribution to a political candidate was a 2023 donation to New York Democratic congressional candidate Kevin Thomas.
Simon Kottoor founded Sunshine Residential Homes (formerly Sunshine Group Homes) in 1996, according to the company’s website. Sunshine says it provides congregate foster placements for Arizona children, has served more than 25,000 children since its founding, and currently has more than 300 children in care with approximately 200 employees.
Maricopa County property records reviewed by AZ Free News list the residence under the Kottoor Family Trust, with Simon M. Kottoor and Elizabeth Kottoor named as trustees. AZ Free News has withheld the street address from publication.
Zillow describes the property as a 7,719-square-foot, five-bedroom, six-bathroom home on 1.08 acres and estimates its value at approximately $9.53 million. Realtor.com estimates the property’s value at about $8.71 million and reports it last sold for $1.55 million in 2020.
Sunshine Residential Homes and Kottoor have faced scrutiny over political donations connected to Hobbs and subsequent state-approved rate increases. The Arizona Republic reported in June 2024 that Sunshine Residential Homes received a large rate hike from the Arizona Department of Child Safety (DCS) after making six-figure contributions to Hobbs’ inauguration fund and the Arizona Democratic Party. The outlet reported that Sunshine applied for a rate increase in December 2022, was denied in February 2023, then applied again in May 2023 and was approved, citing DCS records.
The Republic reported in July 2024 that both the Kottoors’ and Sunshine Residential Homes’ donations to Hobbs and the Arizona Democratic Party amounted to approximately $420,000 from 2022-2024.
According to the Arizona Capitol Times, Sunshine Residential Homes gave $100,000 to Hobbs’ inaugural fund and separately gave $300,000 to the Arizona Democratic Party. The outlet also reported that the Arizona Republic found Hobbs personally called Kottoor shortly after winning the 2022 election and asked him to serve as a gold-level sponsor of her inauguration. The same report said the Department of Child Safety later increased payments to Sunshine in 2023 to nearly 40 percent above the average for other group homes.
Kottoor was also on Hobbs’ inaugural committee, and he and his wife made maximum contributions to Hobbs’ campaign, according to reporting cited by Governing. That report also noted that Hobbs attended a private event at the Kottoor’s Paradise Valley residence.
Calls for investigation from Arizona lawmakers followed within days of the initial reporting.
The Arizona Attorney General’s Office opened an investigation into the Sunshine Residential matter in June 2024. The office’s public records archive lists communications and records related to the Sunshine Residential Homes investigation, including correspondence with Maricopa County Attorney Rachel Mitchell and Auditor General Lindsey Perry, as well as a criminal referral.
Hobbs’ office has denied wrongdoing. Axios reported that Hobbs spokesman Christian Slater said the administration would be “cleared of wrongdoing” and called the allegations partisan. Slater and DCS spokesman Darren DaRonco told Axios that Hobbs and her office had no involvement in agency decisions regarding Sunshine Residential Homes. Sunshine told the Arizona Republic that it remained committed to cooperating with any inquiry, Axios reported.
The investigation remains a prominent political issue in Arizona well into 2026. In April, KJZZ reported that Mayes’ team had asked Hobbs for an interview as part of the investigation and that Hobbs would not publicly commit to sitting for one. KJZZ reported that Hobbs continued to deny wrongdoing.
Republican lawmakers have cited the Sunshine controversy as they advance legislation requiring more disclosure from companies seeking state contracts. The Arizona Senate Republican Caucus announced last week that SB 1186, sponsored by Arizona Senate President Pro-Tempore T.J. Shope (R-LD16), had been sent to Hobbs’ desk. The bill would require companies seeking taxpayer-funded contracts and grants to disclose political donations, gifts, and other things of value connected to the governor and affiliated political organizations. A House summary of SB 1186 states that the measure establishes disclosure requirements for the request-for-proposal and grant-application processes.
Hobbs announced her own ethics reform proposal in February, calling it a sweeping transparency package intended to strengthen public trust in government. According to the Governor’s Office, the proposal includes a public transparency and disclosure database, contracting reforms, and a lobbyist gift ban.
The Sunshine Residential Homes matter remains under investigation, and no public finding of wrongdoing by Hobbs, Kottoor, or Sunshine Residential Homes has been announced.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
