ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

HB 2151: land division; acting in concert

Sponsor: Representative Kavanagh, LD 23

Committee on Land, Agriculture & Rural Affairs

Overview

Authorizes a county or the State Real Estate Department to deny a building permit or certificate of occupancy if a group is under investigation for attempting to violate land division laws and increases penalties for selling or leasing subdivided lands without obtaining a public report.

History

Land divisions and subdivisions are two processes of dividing a piece of land into smaller components. Counties can adopt land division ordinances to split a parcel land into five or fewer lots, parcels or fractional interests, each of which is ten acres or smaller. A land division application will be approved if:

· The resulting lots, parcels or fractional interests comply with applicable county zoning requirements;

· The applicant provides documentation demonstrating legal access to the lots, parcels or fractional interests and evidence whether each lot, parcel or fractional interest is physically accessible by a two-wheel drive passenger motor vehicle;

· The applicant reserves the necessary and appropriate utility easements to serve each resulting lot, parcel or fractional interest.

An application can still be approved if it does not comply with these requirements if the applicant confirms that no building or use permit will be issued until the lot, parcel or fractional interest complies with all the above requirements. A county may also grant a variance to any of the requirements. Statute expressly prohibits acting in concert to avoid the requirements for land division or subdividing lands by dividing a parcel into six or more lots to sell or lease six more lots through a series of owners or conveyances (A.R.S. § 11-831).

By contrast, subdividing lands is more regulated process that involves dividing lands into six or more lots, parcels or fractional interests for lease or sale (A.R.S. § 32-2101). A subdivision plat, which is a map that contains information on the development and design of subdivided lands, must either be reviewed or approved by a county board of supervisors or a municipality (A.R.S. §§ 9-463.01 and 11-821). Additionally, a subdivider must provide certain information to the State Real Estate Commissioner before offering subdivided lands or sale or lease. If the information is satisfactory, this official will issue a public report authorizing the sale or lease of the subdivided lands. The subdivider may also be required to post a surety bond and pay fees (A.R.S. §§ 32-2101 and 32-2181 et seq.).

Provisions

1. Allows a county or the State Real Estate Department to deny a building permit for lots if a cease and desist or other similar notice has been sent to those under investigation for acting in concert to violate the land division statute. (Sec. 1 and 2)

2. Requires, for a land division application to be approved, the applicant to sign an affidavit or similar document acknowledging the applicant is aware that:

a) It is unlawful to attempt to avoid the land division or subdivision laws by acting with others to divide a parcel into six or more lots to sell or lease those lots using a series of conveyances that leads to dividing the land into a subdivision or subdivided land; and

b) The county or State Real Estate Department may enforce this prohibition against those under investigation for unlawful acting in concert by denying building permits, certificates of occupancy, issuing fines or a combination of penalties. (Sec. 2)

3. Requires the affidavit of disclosure that the seller records at the time the deed is recorded to include language indicating that the property is not currently subject to an investigation or finding that the lot was divided to avoid Arizona subdivision laws. (Sec. 4)

4. Increases the penalty for a subdivider who sells or leases lots, parcels, or fractional interest in a subdivision without obtaining a public report from $5,000 to $10,000 for each infraction. (Sec. 3)

5. Makes technical changes and conforming changes. (Sec. 1 and 2)

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9. HB 2151

10. Initials PAB Page 0 Land, Agriculture & Rural Affairs

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