A housing development reform measure aiming to increase supply and improve affordability is going to the desk of Gov. Katie Hobbs.
Last week, the Arizona House approved HB 2721, which will require cities with populations greater than 75,000 to allow the development of duplex, triplex, fourplex and townhome units under single-family zoning within a mile of their central business districts.
Under the so-called “middle housing bill,” they will also have to allow at least 20% of new single-family developments larger than 10 acres to be zoned for those uses.
The House also passed HB 2720, which will require those cities to allow Accessory Dwelling Units—also known as ADUs or casitas—to be built in existing neighborhoods. Both bills had already passed the Arizona Senate.
The bills are intended to increase construction of smaller, less expensive homes to increase the housing supply and deliver more affordable options.
In March, Hobbs vetoed a major housing bill that was more expansive in its restriction of cities’ options and control of development, saying it was too far-reaching and that she wanted more negotiations.
HB 2721 came about after negotiations between the development community, affordable housing advocates, Rep. Michael Carbone (R-Phoenix) and the League of Arizona Cities and Towns. The League, which lobbies for municipalities, was a primary opponent of the original bill. It has expressed its support for the new, more restrained legislation.
Hobbs has recently signed other housing-related bills, including legislation allowing older commercial buildings to be demolished and replaced with apartments and a reduction in the timeline for cities to approve or deny zoning change requests.
Some cities have continued to express opposition to HB 2721, saying it will drastically impact existing neighborhoods. Carbone countered that neighborhoods are already experiencing change and that the smaller developments permitted by the bill are less disruptive than larger, denser developments.
HB 2720, however, has proven more controversial. The League and some neighborhood associations continue to oppose it, alleging the casitas will be used as short-term rentals, which they claim do nothing to contribute to the available housing supply and often prove to be disruptive to neighborhood residents.
Supporters counter that the legislation requires an owner to live in one unit on the property if a casita is to be used as an STR.
Opponents also object to language in the bill that prevents cities from requiring new building exteriors to match the homes currently on the property. (Source)