HB2536 - 561R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 9, chapter 4, article 6, Arizona Revised Statutes, is amended by adding section 9-461.18, to read:

START_STATUTE9-461.18. Residential housing; design standards; prohibition; applicability; definitions

A. NOTWITHSTANDING ANY OTHER LAW, A MUNICIPALITY MAY NOT ADOPT OR ENFORCE ANY ORDINANCE, CODE, STANDARD, REGULATION, GUIDELINE, AGREEMENT, STIPULATION OR OTHER LEGAL REQUIREMENT RELATED TO OR REGULATING RESIDENTIAL HOUSING DESIGN ELEMENTS. THE MUNICIPALITY MAY NOT WITHHOLD A BUILDING PERMIT OR OTHER APPROVAL THAT IS NECESSARY AS A CONDITION OF CONSTRUCTION FOR FAILing TO COMPLY WITH ANY ORDINANCE, CODE, STANDARD, REGULATION, GUIDELINE, agreement, STIPULATION OR OTHER LEGAL REQUIREMENT RELATED TO OR REGULATING RESIDENTIAL HOUSING DESIGN ELEMENTS. A MUNICIPALITY MAY:

1. LIMIT THE NUMBER OF TIMES AN ELEVATION CAN BE BUILT NEXT TO OR ACROSS FROM THE SAME ELEVATION.

2. Regulate THE HEIGHT OF THE DWELLING PURSUANT TO SECTIONS 9-462.01 AND 9-462.10.

3. REgulate THE LOCATION AND SIZE OF OPEN SPACE TO THE EXTENT REQUIRED BY THE MUNICIPALITY SOLELY FOR STORMWATER RETENTION AS OF THE EFFECTIVE DATE OF THIS SECTION AND FOR WATER CONSERVATION.

B. ANY APPLICANT FOR AN APPROVAL THAT IS NECESSARY TO OBTAIN A BUILDING PERMIT TO CONSTRUCT A SINGLE-FAMILY, TWO-FAMILY OR MULTIFAMILY BUILDING OR ANY HOUSING ORGANIZATION MAY BRING AN ACTION IN SUPERIOR COURT TO ENFORCE THE REQUIREMENTS OF THIS SECTION.

C. SUBSECTION A OF THIS SECTION DOES NOT APPLY TO ANY ORDINANCE, CODE, STANDARD, REGULATION, GUIDELINE, AGREEMENT, STIPULATION OR OTHER LEGAL REQUIREMENT THAT IS:

1. A REQUIREMENT OF AN ADOPTED MINIMUM STANDARD BUILDING CODE, INCLUDING ANY LOCAL AMENDMENTS THAT ARE LESS RESTRICTIVE THAN THE UNAMENDED MINIMUM STANDARD BUILDING CODE.

2. APPLICABLE SOLELY TO STRUCTURES LOCATED IN AN AREA DESIGNATED AS A DISTRICT OF HISTORICAL SIGNIFICANCE PURSUANT TO SECTION 9-462.01, subsection a, paragraph 10 OR AN AREA DESIGNATED AS HISTORIC ON THE NATIONAL REGISTER OF HISTORIC PLACES.

3. APPLICABLE SOLELY TO STRUCTURES INDIVIDUALLY DESIGNATED AS LOCAL, STATE OR NATIONAL HISTORIC LANDMARKS.

4. APPLIED TO MANUFACTURED HOMES IN A MANNER CONSISTENT WITH TITLE 41, CHAPTER 37, ARTICLE 3 OR APPLICABLE FEDERAL LAW.

5. REQUIRED AS A CONDITION OF PARTICIPATING IN THE NATIONAL FLOOD INSURANCE PROGRAM.

6. A STIPULATION ON A RECORDED SUBDIVISION PLAT ADOPTED BY THE MUNICIPALITY BEFORE THE EFFECTIVE DATE OF THIS SECTION.

7. REQUIRED TO MEET THE SOUND ATTENUATION STANDArDS AS prescribed by SECTION 28-8482.

D. THIS SECTION DOES NOT:

1. AFFECT THE VALIDITY OR ENFORCEABILITY OF PRIVATE COVENANTS OR OTHER CONTRACTUAL ELEMENTS AMONG PROPERTY OWNERS RELATING TO DWELLING DESIGN ELEMENTS BY PARTIES OTHER THAN THE MUNICIPALITY.

2. APPLY TO A MUNICIPALITY LOCATED ON TRIBAL LAND OR WITH A POPULATION of LESS THAN thirty THOUSAND PERSONS.

E. FOR THE PURPOSES OF THIS SECTION:

1. "DESIGN ELEMENTS" MEANS:

(a) THE NUMBER AND VARIATIONS OF FLOOR PLANS AND EXTERIOR ELEVATIONS, INCLUDING THE SELECTION OF THE FLOOR PLAN TO BE BUILT ON EACH LOT.

(b) THE SIZE AND NUMBER OF STORIES OF THE DWELLING.

(d) THE TYPE OF STYLE OF EXTERIOR CLADDING MATERIALS.

(e) THE STYLE, MATERIALS, SHAPE, PITCH AND ARTICULATION OF THE ROOF STRUCTURE.

(f) THE STYLE, MATERIALS, SIZE, SHAPE AND INCLUSION OF PORCHES AND PATIOS.

(g) THE EXTERIOR NONSTRUCTURAL ARCHITECTURAL ORNAMENTATION.

(h) THE LOCATION, ARCHITECTURAL STYLING, MATERIALS AND SIZES OF GARAGES, GARAGE DOORS AND DRIVEWAYS.

(i) The pLACEMENT AND ORIENTATION OF GARAGE DOORS RELATIVE TO THE FRONT FAÇADE OF THE LIVING SPACE.

(j) THE INTERIOR LAYOUT AND SIZE OF ROOMS, INCLUDING THE INTERIOR OF THE GARAGE, HALLWAYS AND FLOOR PLANS.

(k) THE LOCATION, SIZE AND DESIGN OF OPEN SPACE AND AMENITIES, INCLUDING AMENITIES IN COMMON AREAS MAINTAINED BY THE PROPERTY OWNER, AN ASSOCIATION OR THE MEMBERS OF AN ASSOCIATION.

(l) SIDEWALK PLACEMENT AND DESIGN, INCLUDING REQUIRING DETACHED SIDEWALKS, EXCEPT AS REQUIRED BY TITLE 41, CHAPTER 9, ARTICLE 8 AND APPLICABLE FEDERAL LAW.

(m) THE DESIGN, DECORATION AND LANDSCAPING OF THE REAR YARD, SIDE YARD AND ANY AREA THAT IS NOT VISIBLE OR ACCESSIBLE TO THE PUBLIC.

(n) ANY OTHER ARCHITECTURAL OR AESTHETIC ELEMENT THAT DOES NOT DIRECTLY AFFECT AN OBJECTIVE AND IDENTIFIED HEALTH OR SAFETY CONDITION.

2. "HOUSING ORGANIZATION" MEANS A TRADE OR INDUSTRY GROUP WHOSE MEMBERS ARE ENGAGED IN THE DEVELOPMENT OR CONSTRUCTION OF SINGLE-FAMILY, TWO-FAMILY OR MULTIFAMILY HOUSING UNITS.

3. "MINIMUM STANDARD BUILDING CODE" MEANS AN UNAMENDED MODEL BUILDING CODE, INCLUDING THE INTERNATIONAL BUILDING CODE AND INTERNATIONAL RESIDENTIAL CODE, HOWEVER DENOMINATED.

4. "OBJECTIVE" MEANS INVOLVING NO PERSONAL OR SUBJECTIVE JUDGMENT BY A MUNICIPAL EMPLOYEE OR OFFICIAL AND BEING UNIFORMLY VERIFIABLE BY REFERENCE TO AN EXTERNAL AND UNIFORM BENCHMARK, STANDARD OR CRITERION THAT IS AVAILABLE AND KNOWABLE BY BOTH AN APPLICANT OR PROPONENT AND A MUNICIPAL EMPLOYEE OR OFFICIAL.

5. "RESIDENTIAL HOUSING" MEANS A SINGLE-FAMILY, TWO-FAMILY OR MULTIFAMILY BUILDING DESIGNED FOR RESIDENTIAL USE AND COMMON AREAS AND IMPROVEMENTS THAT ARE OWNED OR MAINTAINED BY THE OWNER, A TENANT ON BEHALF OF THE OWNER, AN ASSOCIATION OR THE MEMBERS OF AN ASSOCIATION. END_STATUTE

Sec. 2. Section 9-462.01, Arizona Revised Statutes, is amended to read:

START_STATUTE9-462.01. Zoning regulations; public hearing; applicability; definitions

A. Pursuant to this article, the legislative body of any municipality by ordinance, in order to conserve and promote the public health, safety and general welfare, may:

1. Regulate the use of buildings, structures and land as between agriculture, residence, industry, business and other purposes.

2. Regulate signs and billboards.

3. Regulate the location, height, bulk, number of stories and size of buildings and structures, the size and use of lots, yards, courts and other open spaces, the percentage of a lot that may be occupied by a building or structure, access to incident solar energy and the intensity of land use.

4. Establish requirements for off-street parking and loading.

5. Establish and maintain building setback lines.

6. Create civic districts around civic centers, public parks, public buildings or public grounds and establish regulations for the civic districts.

7. Require as a condition of rezoning public dedication of rights-of-way as streets, alleys, public ways, drainage and public utilities as are reasonably required by or related to the effect of the rezoning.

8. Establish floodplain zoning districts and regulations to protect life and property from the hazards of periodic inundation. Regulations may include variable lot sizes, special grading or drainage requirements, or other requirements deemed necessary for the public health, safety or general welfare.

9. Establish special zoning districts or regulations for certain lands characterized by adverse topography, adverse soils, subsidence of the earth, high water table, lack of water or other natural or man-made hazards to life or property. Regulations may include variable lot sizes, special grading or drainage requirements, or other requirements deemed necessary for the public health, safety or general welfare.

10. Establish districts of historical significance provided that:

(a) The ordinances may require that special permission be obtained for any development within the district if the legislative body has adopted a plan for the preservation of districts of historical significance that meets the requirements of subdivision (b) of this paragraph, and the criteria contained in the ordinance are consistent with the objectives set forth in the plan.

(b) A plan for the preservation of districts of historical significance shall identify districts of special historical significance, state the objectives to be sought concerning the development or preservation of sites, area and structures within the district, and formulate a program for public action, including providing public facilities and regulating private development and demolition necessary to realize these objectives.

(c) The ordinance establishing districts of historical significance shall set forth standards necessary to preserve the historical character of the area so designated.

(d) The ordinances may designate or authorize any committee, commission, department or person to designate structures or sites of special historical significance in accordance with criteria contained in the ordinance, and no designation shall be made except after a public hearing on notice of the owners of record of the property designated of special historical significance. The ordinances may require that special permission be obtained for any development respecting the structures or sites.

11. Establish age-specific community zoning districts in which residency is restricted to a head of a household or spouse who must be of a specific age or older and in which minors are prohibited from living in the home. Age-specific community zoning districts shall not be overlaid over property without the permission of all owners of property included as part of the district unless all of the property in the district has been developed, advertised and sold or rented under specific age restrictions. The establishment of age-specific community zoning districts is subject to all of the public notice requirements and other procedures prescribed by this article. outside of an age-specific community zoning district, a municipality with a population of more than thirty thousand persons shall allow a single-room occupancy to be occupied by a person who is fifty-five years of age or older in other zoning districts as determined by the municipality.

12. Establish procedures, methods and standards for the transfer of development rights within its jurisdiction. Any proposed transfer of development rights from the sending property or to the receiving property shall be subject to the notice and hearing requirements of section 9-462.04 and shall be subject to the approval and consent of the property owners of both the sending and receiving property. Before any transfer of development rights, a municipality shall adopt an ordinance providing for:

(a) The issuance and recordation of the instruments necessary to sever development rights from the sending property and to affix development rights to the receiving property. These instruments shall be executed by the affected property owners and lienholders.

(b) The preservation of the character of the sending property and assurance that the prohibitions against the use and development of the sending property shall bind the landowner and every successor in interest to the landowner.

(c) The severance of transferable development rights from the sending property and the delayed transfer of development rights to a receiving property.

(d) The purchase, sale, exchange or other conveyance of transferable development rights before the rights being affixed to a receiving property.

(e) A system for monitoring the severance, ownership, assignment and transfer of transferable development rights.

(f) The right of a municipality to purchase development rights and to hold them for resale.

(g) The right of a municipality at its discretion to enter into an intergovernmental agreement with another municipality or a county for the transfer of development rights between jurisdictions. The transfer shall comply with this paragraph, except that if the sending property is located in an unincorporated area of a county, the approval of the development rights to be sent to a municipality shall comply with section 11-817.

B. For the purposes of subsection A of this section, the legislative body may divide a municipality, or portion of a municipality, into zones of the number, shape and area:

1. It deems best suited to carry out the purpose of this article and articles 6, 6.2 and 6.3 of this chapter.

2. In an effort to ensure an adequate supply of land zoned for housing for the municipality's current and future residents.

C. All zoning regulations shall be uniform for each class or kind of building or use of land throughout each zone, but the regulations in one type of zone may differ from those in other types of zones as follows:

1. Within individual zones, there may be uses permitted on a conditional basis under which additional requirements must be met, including requiring site plan review and approval by the planning agency. The conditional uses are generally characterized by any of the following:

(a) Infrequency of use.

(b) High degree of traffic generation.

2. Within residential zones, the regulations may permit modifications to minimum yard lot area and height requirements.

3. Within zones that allow single-family residential uses in a municipality with a population of more than thirty thousand persons, the regulations shall allow one accessory dwelling unit per lot that may be occupied by a PERSON other than the owner. A municipality may allow more than one accessory dwelling unit per lot and may require a lease for an accessory dwelling unit to have a duration of at least three months. This paragraph does not apply to areas designated as a district of historical significance pursuant to subsection a, paragraph 10 of this section or an area that is designated as historic on the national register of historic places.

D. To carry out the purposes of this article and articles 6 and 6.2 of this chapter, the legislative body may adopt overlay zoning districts and regulations applicable to particular buildings, structures and land within individual zones. For the purposes of this subsection, "overlay zoning district" means a special zoning district that includes regulations that modify regulations in another zoning district with which the overlay zoning district is combined. Overlay zoning districts and regulations shall be adopted pursuant to section 9-462.04.

E. The legislative body may approve a change of zone conditioned on a schedule for development of the specific use or uses for which rezoning is requested. If, at the expiration of this period, the property has not been improved for the use for which it was conditionally approved, the legislative body, after notification by certified mail to the owner and applicant who requested the rezoning, shall schedule a public hearing to take administrative action to extend, remove or determine compliance with the schedule for development or take legislative action to cause the property to revert to its former zoning classification.

F. All zoning and rezoning ordinances or regulations adopted under this article shall be consistent with and conform to the adopted general plan of the municipality, if any, as adopted under article 6 of this chapter. In the case of uncertainty in construing or applying the conformity of any part of a proposed rezoning ordinance to the adopted general plan of the municipality, the ordinance shall be construed in a manner that will further the implementation of, and not be contrary to, the goals, policies and applicable elements of the general plan. A rezoning ordinance conforms with the land use element of the general plan if it proposes land uses, densities or intensities within the range of identified uses, densities and intensities of the land use element of the general plan.

G. A regulation or ordinance under this section may not prevent or restrict agricultural composting on farmland that is five or more contiguous acres and that meets the requirements of this subsection. An agricultural composting operation shall notify in writing the legislative body of the municipality and the nearest fire department of the location of the composting operation. If the nearest fire department is located in a different municipality from the agricultural composting operation, the agricultural composting operation shall also notify in writing the fire department of the municipality in which the operation is located. Agricultural composting is subject to sections 3-112 and 49-141. Agricultural composting may not be conducted within one thousand three hundred twenty feet of an existing residential use, unless the operations are conducted on farmland or land leased in association with farmland. Any disposal of manure shall comply with section 49-247. For the purposes of this subsection:

1. "Agricultural composting" means the controlled biological decomposition of organic solid waste under in-vessel anaerobic or aerobic conditions where all or part of the materials are generated on the farmland or will be used on the farmland associated with the agricultural composting operation.

2. "Farmland" has the same meaning prescribed in section 3-111 and is subject to regulation under section 49-247.

H. A municipality may not adopt a land use regulation or impose any condition for issuance of a building or use permit or other approval that violates section 9-461.16.

I. In accordance with article II, sections 1 and 2, Constitution of Arizona, the legislative body of a municipality shall consider the individual property rights and personal liberties of the residents of the municipality before adopting any zoning ordinance.

J. Before adopting any zoning ordinance or zoning ordinance text amendment of general applicability, the legislative body of a municipality shall consider the probable impact of the proposed zoning ordinance or text amendment on the cost to construct housing for sale or rent.

K. A municipality may not adopt or enforce a land use regulation that requires the property on which a nongovernmental primary or secondary school operates to be larger than one acre.

L. For the purposes of this section:

1. "Accessory dwelling unit":

(a) mEANS A RESIDENTIAL LIVING UNIT THAT PROVIDES COMPLETE INDEPENDENT LIVING FACILITIES, WHICH MAY INCLUDE A KITCHEN WITH A rANGE, FOR ONE OR MORE PERSONS ON THE SAME PARCEL AS A SINGLE-FAMILY DWELLING AND THAT IS SMALLER IN TOTAL SQUARE FOOTAGE THAN THE PRIMARY DWELLING UNIT.

(b) iNCLUDES EITHER OF THE FOLLOWING:

(i) a DETACHED UNIT in the rear or side yard of the lot on which the primary dwelling unit is located.

(ii) a UNIT THAT IS ATTACHED TO THE SINGLE-FAMILY UNIT ON THE SAME PARCEL.

1. 2. "Development rights" means the maximum development that would be allowed on the sending property under any general or specific plan and local zoning ordinance of a municipality in effect on the date the municipality adopts an ordinance pursuant to subsection A, paragraph 12 of this section respecting the permissible use, area, bulk or height of improvements made to the lot or parcel. Development rights may be calculated and allocated in accordance with factors including dwelling units, area, floor area, floor area ratio, height limitations, traffic generation or any other criteria that will quantify a value for the development rights in a manner that will carry out the objectives of this section.

2. 3. "Receiving property" means a lot or parcel within which development rights are increased pursuant to a transfer of development rights. Receiving property shall be appropriate and suitable for development and shall be sufficient to accommodate the transferable development rights of the sending property without substantial adverse environmental, economic or social impact to the receiving property or to neighboring property.

3. 4. "Sending property" means a lot or parcel with special characteristics, including farmland, woodland, desert land, mountain land, floodplain, natural habitats, recreation or parkland, including golf course area, or land that has unique aesthetic, architectural or historic value that a municipality desires to protect from future development.

5. "Single-room occupancy":

(a) means a dwelling unit in which a resident rents a private bedroom with a shared kitchen and bathroom facility.

(b) Does not include a sober living home as defined in section 36-2061 or an assisted living facility as defined in section 36-401.

4. 6. "Transfer of development rights" means the process by which development rights from a sending property are affixed to one or more receiving properties. END_STATUTE

Sec. 3. Section 9-463.01, Arizona Revised Statutes, is amended to read:

START_STATUTE9-463.01. Authority

A. Pursuant to this article, the legislative body of every municipality shall regulate the subdivision of all lands within its corporate limits.

B. The legislative body of a municipality shall exercise the authority granted in subsection A of this section by ordinance prescribing:

1. Procedures to be followed in the preparation, submission, review and approval or rejection of all final plats.

2. Standards governing the design of subdivision plats.

3. Minimum requirements and standards for the installation of subdivision streets, sewer and water utilities and improvements as a condition of final plat approval.

C. By ordinance, the legislative body of any municipality shall:

1. Require the preparation, submission and approval of a preliminary plat as a condition precedent to submission of a final plat.

2. Establish the procedures to be followed in the preparation, submission, review and approval of preliminary plats.

3. Make requirements as to the form and content of preliminary plats.

4. Either determine that certain lands may not be subdivided, by reason of adverse topography, periodic inundation, adverse soils, subsidence of the earth's surface, high water table, lack of water or other natural or man-made hazard to life or property, or control the lot size, establish special grading and drainage requirements and impose other regulations deemed reasonable and necessary for the public health, safety or general welfare on any lands to be subdivided affected by such characteristics.

5. Require payment of a proper and reasonable fee by the subdivider based upon the number of lots or parcels on the surface of the land to defray municipal costs of plat review and site inspection.

6. Require the dedication of public streets, sewer and water utility easements or rights-of-way, within the proposed subdivision.

7. Require the preparation and submission of acceptable engineering plans and specifications for the installation of required street, sewer, electric and water utilities, drainage, flood control, adequacy of water and improvements as a condition precedent to recordation of an approved final plat.

8. Require the posting of performance bonds, assurances or such other security as may be appropriate and necessary to assure the installation of required street, sewer, electric and water utilities, drainage, flood control and improvements meeting established minimum standards of design and construction.

D. The legislative body of any municipality may require by ordinance that land areas within a subdivision be reserved for parks, recreational facilities, school sites and fire stations subject to the following conditions:

1. The requirement may only be made upon on preliminary plats filed at least thirty days after the adoption of a general or specific plan affecting the land area to be reserved.

2. The required reservations are in accordance with definite principles and standards adopted by the legislative body.

3. The land area reserved shall be of such a size and shape as to permit the remainder of the land area of the subdivision within which the reservation is located to develop in an orderly and efficient manner.

4. The land area reserved shall be in such multiples of streets and parcels as to permit an efficient division of the reserved area in the event that it is not acquired within the prescribed period.

E. The public agency for whose benefit an area has been reserved shall have a period of one year after recording the final subdivision plat to enter into an agreement to acquire such reserved land area. The purchase price shall be the fair market value of the reserved land area at the time of the filing of the preliminary subdivision plat plus the taxes against such reserved area from the date of the reservation and any other costs incurred by the subdivider in the maintenance of such reserved area, including the interest cost incurred on any loan covering such reserved area.

F. If the public agency for whose benefit an area has been reserved does not exercise the reservation agreement set forth in subsection E of this section within such one year one-year period or such extended period as may be mutually agreed upon on by such public agency and the subdivider, the reservation of such area shall terminate.

G. The legislative body of every municipality shall comply with this article and applicable state statutes pertaining to the hearing, approval or rejection, and recordation of:

1. Final subdivision plats.

2. Plats filed for the purpose of reverting to acreage of land previously subdivided.

3. Plats filed for the purpose of vacating streets or easements previously dedicated to the public.

4. Plats filed for the purpose of vacating or redescribing lot or parcel boundaries previously recorded.

H. Approval of every preliminary and final plat by a legislative body is conditioned upon on compliance by the subdivider with:

1. Rules as may be established by the department of transportation relating to provisions for the safety of entrance upon on and departure from abutting state primary highways.

2. Rules as may be established by a county flood control district relating to the construction or prevention of construction of streets in land established as being subject to periodic inundation.

3. Rules as may be established by the department of health services or a county health department relating to the provision of domestic water supply and sanitary sewage disposal.

I. If the subdivision is comprised composed of subdivided lands, as defined in section 32-2101, and is within an active management area, as defined in section 45-402, the final plat shall not be approved unless it is accompanied by a certificate of assured water supply issued by the director of water resources, or unless the subdivider has obtained a written commitment of water service for the subdivision from a city, town or private water company designated as having an assured water supply by the director of water resources pursuant to section 45-576 or is exempt from the requirement pursuant to section 45-576. The legislative body of the municipality shall note on the face of the final plat that a certificate of assured water supply has been submitted with the plat or that the subdivider has obtained a written commitment of water service for the proposed subdivision from a city, town or private water company designated as having an assured water supply, pursuant to section 45-576, or is exempt from the requirement pursuant to section 45-576.

J. Except as provided in subsections K and P of this section, if the subdivision is composed of subdivided lands as defined in section 32-2101 outside of an active management area and the director of water resources has given written notice to the municipality pursuant to section 45-108, subsection H, the final plat shall not be approved unless one of the following applies:

1. The director of water resources has determined that there is an adequate water supply for the subdivision pursuant to section 45-108 and the subdivider has included the report with the plat.

2. The subdivider has obtained a written commitment of water service for the subdivision from a city, town or private water company designated as having an adequate water supply by the director of water resources pursuant to section 45-108.

K. The legislative body of A municipality that has received written notice from the director of water resources pursuant to section 45-108, subsection H or that has adopted an ordinance pursuant to subsection O of this section may provide by ordinance an exemption from the requirement in subsection J or O of this section for a subdivision that the director of water resources has determined will have an inadequate water supply because the water supply will be transported to the subdivision by motor vehicle or train if all of the following apply:

1. The legislative body determines that there is no feasible alternative water supply for the subdivision and that the transportation of water to the subdivision will not constitute a significant risk to the health and safety of the residents of the subdivision.

2. If the water to be transported to the subdivision will be withdrawn or diverted in the service area of a municipal provider as defined in section 45-561, the municipal provider has consented to the withdrawal or diversion.

3. If the water to be transported is groundwater, the transportation complies with the provisions governing the transportation of groundwater in title 45, chapter 2, article 8.

4. The transportation of water to the subdivision meets any additional conditions imposed by the legislative body.

L. A municipality that adopts the exemption authorized by subsection K of this section shall give written notice of the adoption of the exemption, including a certified copy of the ordinance containing the exemption, to the director of water resources, the director of environmental quality and the state real estate commissioner. If the municipality later rescinds the exemption, the municipality shall give written notice of the rescission to the director of water resources, the director of environmental quality and the state real estate commissioner. A municipality that rescinds an exemption adopted pursuant to subsection K of this section shall not readopt the exemption for at least five years after the rescission becomes effective.

M. If the legislative body of a municipality approves a subdivision plat pursuant to subsection J, paragraph 1 or 2 or subsection O of this section, the legislative body shall note on the face of the plat that the director of water resources has reported that the subdivision has an adequate water supply or that the subdivider has obtained a commitment of water service for the proposed subdivision from a city, town or private water company designated as having an adequate water supply pursuant to section 45-108.

N. If the legislative body of a municipality approves a subdivision plat pursuant to an exemption authorized by subsection K of this section or granted by the director of water resources pursuant to section 45-108.02 or 45-108.03:

1. The legislative body shall give written notice of the approval to the director of water resources and the director of environmental quality.

2. The legislative body shall include on the face of the plat a statement that the director of water resources has determined that the water supply for the subdivision is inadequate and a statement describing the exemption under which the plat was approved, including a statement that the legislative body or the director of water resources, whichever applies, has determined that the specific conditions of the exemption were met. If the director subsequently informs the legislative body that the subdivision is being served by a water provider that has been designated by the director as having an adequate water supply pursuant to section 45-108, the legislative body shall record in the county recorder's office a statement disclosing that fact.

O. If a municipality has not been given written notice by the director of water resources pursuant to section 45-108, subsection H, the legislative body of the municipality, to protect the public health and safety, may provide by ordinance that, except as provided in subsections K and P of this section, the final plat of a subdivision located in the municipality and outside of an active management area will not be approved by the legislative body unless the director of water resources has determined that there is an adequate water supply for the subdivision pursuant to section 45-108 or the subdivider has obtained a written commitment of water service for the subdivision from a city, town or private water company designated as having an adequate water supply by the director of water resources pursuant to section 45-108. Before holding a public hearing to consider whether to enact an ordinance pursuant to this subsection, a municipality shall provide written notice of the hearing to the board of supervisors of the county in which the municipality is located. A municipality that enacts an ordinance pursuant to this subsection shall give written notice of the enactment of the ordinance, including a certified copy of the ordinance, to the director of water resources, the director of environmental quality, the state real estate commissioner and the board of supervisors of the county in which the municipality is located. If a municipality enacts an ordinance pursuant to this subsection, water providers may be eligible to receive monies in a water supply development fund, as otherwise provided by law.

P. Subsections J and O of this section do not apply to:

1. A proposed subdivision that the director of water resources has determined will have an inadequate water supply pursuant to section 45-108 if the director grants an exemption for the subdivision pursuant to section 45-108.02 and the exemption has not expired or if the director grants an exemption pursuant to section 45-108.03.

2. A proposed subdivision that received final plat approval from the municipality before the requirement for an adequate water supply became effective in the municipality if the plat has not been materially changed since it received the final plat approval. If changes were made to the plat after the plat received the final plat approval, the director of water resources shall determine whether the changes are material pursuant to the rules adopted by the director to implement section 45-108. If the municipality approves a plat pursuant to this paragraph and the director of water resources has determined that there is an inadequate water supply for the subdivision pursuant to section 45-108, the municipality shall note this on the face of the plat.

Q. If the subdivision is composed of subdivided lands as defined in section 32-2101 outside of an active management area and the municipality has not received written notice pursuant to section 45-108, subsection H and has not adopted an ordinance pursuant to subsection O of this section:

1. If the director of water resources has determined that there is an adequate water supply for the subdivision pursuant to section 45-108 or if the subdivider has obtained a written commitment of water service for the subdivision from a city, town or private water company designated as having an adequate water supply by the director of water resources pursuant to section 45-108, the municipality shall note this on the face of the plat if the plat is approved.

2. If the director of water resources has determined that there is an inadequate water supply for the subdivision pursuant to section 45-108, the municipality shall note this on the face of the plat if the plat is approved.

R. Every municipality is responsible for the recordation of all final plats approved by the legislative body and shall receive from the subdivider and transmit to the county recorder the recordation fee established by the county recorder.

S. Pursuant to provisions of applicable state statutes, the legislative body of any municipality may itself prepare or have prepared a plat for the subdivision of land under municipal ownership.

T. The legislative bodies of cities and towns may regulate by ordinance land splits within their corporate limits. Authority granted under this section refers to the determination of division lines, area and shape of the tracts or parcels and does not include authority to regulate the terms or condition of the sale or lease nor does it include the authority to regulate the sale or lease of tracts or parcels that are not the result of land splits as defined in section 9-463.

U. For any subdivision that consists of ten or fewer lots, tracts or parcels, each of which is of a size as prescribed by the legislative body, the legislative body of each municipality may expedite the processing of or waive the requirement to prepare, submit and receive approval of a preliminary plat as a condition precedent to submitting a final plat and may waive or reduce infrastructure standards or requirements proportional to the impact of the subdivision. Requirements for dust-controlled access and drainage improvements shall not be waived.

V. At the applicant's request, after preliminary plat submittal and after the applicant receives any required approval from the department of environmental quality, the municipality shall issue an at-risk permit for grading and earthmoving that relates to the property that is the subject of the preliminary plat. The municipality issuing an at-risk permit does not constitute final preliminary plat approval or final approval of any grading or drainage plans. Any work, services or materials accomplished or acquired by the applicant or its agents is done at the financial risk of the applicant with no financial liability to the municipality for issuing the at-risk permit. The municipality may require that all grading and earthmoving be done in compliance with all municipal codes, ordinances and standards and other legal requirements. This subsection does not apply to the municipality with a population of less than thirty thousand persons, a municipality that is located on tribal land, land in an area that is designated as a district of historical significance pursuant to section 9-462.01 or an area that is designated as historic on the national register of historic places. END_STATUTE

Sec. 4. Title 9, chapter 4, article 6.4, Arizona Revised Statutes, is amended by adding section 9-469, to read:

START_STATUTE9-469. Municipal housing needs assessment; annual report; applicability

A. Beginning January 1, 2024 and every five years thereafter, a municipality shall publish a housing needs assessment that includes at least the following:

1. The total population growth projected for the subsequent five-year period.

2. The total job growth projected for the subsequent five-year period.

3. The total need for additional residential housing units for rent and for sale in the municipality to meet:

(a) Any deficiencies in housing the existing population.

(b) Any deficiencies in housing the existing workforce.

(d) The job growth projections.

(e) The housing needs across all various income levels.

B. Beginning January 1, 2025 and every year thereafter, each municipality shall submit an annual report accounting for the total number of proposed residential housing units submitted to the municipality, the total number of net new residential housing units submitted to the municipality and the total number of new residential housing units that are entitled, have been platted, have been issued a building permit and have received a certificate of occupancy by the municipality. The report shall be submitted to the Arizona department of housing. The annual report shall also include the following:

1. The number of housing development applications received in the prior year.

2. The number of lots and multifamily units included in all development applications in the prior year.

3. The number of lots and multifamily units approved and disapproved or otherwise not approved in the prior year.

4. The total amount of vacant area zoned for single-family, commercial and multifamily residential uses as a percentage of the municipality's total area at the time of the housing needs assessment.

5. The status and progress in meeting the municipality's housing needs.

6. A plan that specifies how the municipality intends to satisfy the identified need for additional housing units within the municipality.

C. This section does not require a municipality to meet or otherwise fulfill the projections in the housing needs assessment required by subsection a of this section.

D. This section does not apply to a municipality that is located on tribal land or a municipality with a population of less than thirty thousand persons. END_STATUTE