Gov. Katie Hobbs is providing a new plan to override city regulations to increase production of starter homes.
Cities have claimed her plan is more restrictive than what was recently approved by the Senate. Hobbs’ plan also contains a provision that reserves homes for Arizonans and limits ownership by outside real estate investors.
Approximately a year ago, Hobbs vetoed a measure that was intended to make housing more affordable for Arizona residents. In her denial, she expressed the legislation was an experiment that did not have clear outcomes. Despite this, seven of the Senate’s 13 Democrats are pushing for changes, saying the regulations have outpriced what many Arizonans can afford.
Sen. Shawnna Bolick’s Senate Bill 1229 alters the bill vetoed by Hobbs. This iteration of the bill will continue to allow cities to charge impact fees on developments to make sure developers are putting money into public services to serve communities. The League of Arizona Cities and Towns, an organization that pushed Hobbs to veto the bill, is not content with the changes.
The League is backing a less restrictive bill written by Sen. Vince Leach. This bill has, thus far, not been scheduled for a hearing. The proposal places limited restrictions on a city council’s ability to decide what developments and homes look like.
Hobbs expressed support for aspects of SB1229, such as barring cities from requiring lot sizes more than 3KSF in size. Leach’s bill would mandate 4KSF lots. Hobbs stated she wants the restriction to only impact some of the homes to be developed in the future. This, she believes, would create a mixture of housing options.
Hobbs also said homes should not be required to be sat back more than 10 feet from the street. Many cities want a 20-foot setback. Hobbs countered by saying that it is only appropriate for houses with a garage to allow for driveway parking. She also will not support any rules on requirements for new homes to contain garages.
The governor believes cities should have less of an impact on enforcing aesthetic elements upon developers. An example of this is cities mandating new houses contain rear yard patios and designs that do not affect the structure of the home.
The bill would remove mandates for amenity centers like clubhouses, pools and sports areas. Walls, screens and fences would also not be required along perimeters, aside from land bordering nonresidential areas.
Hobbs’ proposal would apply to cities with at least 30,000 residents, impacting 30 of the 92 cities in the state. The Senate bill, on the other hand, would affect cities with populations exceeding 70,000 residents, meaning it would only be implemented in 15 cities.
The largest concern with this type of legislation is ensuring new housing is purchased by people who need it. Cities stated the initial sale of starter homes should be capped to people whose income is less than 120% of the median household income, which equates to $121K.
Another alternative would be to allow cities to require residents to live in starter homes for a minimum of 15 years, with which Hobbs disagrees. Her proposal states at least half of the homes on smaller lots should be sold to people who intend to live there. The proposal also indicates any sale within the first five years of construction must be to an owner-occupant.
Many don’t support a multi-year occupancy requirement, as some people may have to move for work or sell their homes in the face of layoffs during the restricted period. (Source)