Gov. Katie Hobbs has signed a bill into law that could help address a surplus of commercial building vacancy and a shortage of housing units.
Under House Bill 2297, developers may convert or demolish some commercial, office or mixed-use buildings without rezoning starting next year.
Cities with more than 150,000 residents will have to allow for reuse or demolition of up to 10% of all commercial buildings considered functionally or economically obsolete so they can be used for new housing development. Approximately 10% of those new residential units would be dedicated to moderate- or low-income residents.
Buildings identified under the law and targeted for conversion or redevelopment will not be subject to applications for conditional use permits, rezoning or other applications requiring public hearings.
Primary sponsor and House Majority Leader Rep. Leo Biasiucci said the program is intended to spur investor and developer interest by removing roadblocks.
Experts are uncertain how much impact the new law will have, as there are several economic, logistical and other challenges associated with converting commercial buildings to residential and the metro Phoenix market has shown only scattered interest in undertaking those kinds of projects.
Some housing experts also expressed concern over removing the redevelopment projects from the public hearing process, saying the hearings let stakeholders work together to determine a project’s best fit within area communities.
It could also, however, decrease the scope and intensity of neighborhood opposition and “Not In My Backyard” activity that has staunched many developments, they say. (Source)