Legislative act.

An Act to reform residential zoning to ensure affordable housing

Chapter 48, Arizona Session Laws 2023 · Co-sponsors: Sen. Jim Bowie (R-LD12), Sen. Priya Nair (D-LD27)

Purpose and scope

This Act is enacted to remove structural barriers to increasing the supply of affordable housing in the State of Arizona. The Act applies to all incorporated municipalities of the state.

Municipalities with a population over 50,000 shall bring their zoning regulations into conformity with the requirements of this Act within eighteen (18) months of its effective date.⁵ Municipalities with a population of 10,000 to 50,000 — within thirty-six (36) months.

This Act does not limit the right of municipalities to set affordable-housing standards exceeding the minimum requirements of this Act.

Abolition of exclusive single-family zoning

Within one mile of public transit stops with regular service at intervals of no more than fifteen minutes, the application of single-family-only residential zoning standards is prohibited.

On lots larger than 4,000 square feet within the zones covered by this Section, a landowner may, by right, build residential structures of no fewer than four (4) dwelling units without obtaining a discretionary permit or a conditional use permit.⁶

Municipalities retain the right to regulate setbacks, building height, lot coverage ratio, and parking requirements within the limits set by Section 4 of this Act.

Affirmative obligations of municipalities

Each municipality subject to this Act shall:

(A) Adopt and publish a Housing Development Program specifying target indicators for a five-year period;

(B) Submit an annual report on the program's implementation to the Arizona Department of Housing;

(C) Ensure that no less than twenty percent (20%) of the dwelling units permitted for construction under this Act during each three-year period are affordable to households with income not exceeding eighty percent (80%) of the Area Median Income.⁴

(D) Designate an authorized official responsible for coordinating measures to implement this Act.

Limits on parking requirements

Municipalities are prohibited from setting minimum parking requirements for residential developments located within half a mile of a high-frequency public transit stop.³ This restriction applies to all types of residential structures, including single-family homes.

Municipalities may set maximum, but not minimum, parking requirements within the zones covered by this Section.

Enforcement mechanisms and accountability

The Arizona Department of Housing oversees compliance with this Act and may conduct audits of municipal activities.

If a municipality fails to comply with the requirements of this Act within the established deadlines, the Department may suspend the provision of state infrastructure-development subsidies to the municipality for up to two (2) years.³

Any developer who, in violation of this Act, is wrongfully denied a building permit may seek judicial relief in the manner established by ARS §12-901.