ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

HB 2616: subdivisions; leased properties

Sponsor: Representative Bliss, LD 1

Committee on Natural Resources, Energy & Water

Overview

Repeals the exemption for leasehold offerings of one year or less from the definition of subdivided lands.

History

Subdivided lands function as the building blocks for residential development in Arizona. Subdivided lands are improved or unimproved lands that have been or will be divided into six or more lots, parcels or fractional interests for sale or lease. These lands also include stock cooperatives, lands that have been or will be divided as part of a common promotional plan and residential condominiums. However, subdivided lands do not include leasehold offerings of one year or less (A.R.S. § 32-2101).

In Arizona's six active management areas (AMAs), someone who plans to sell or lease subdivided lands in an AMA must obtain a certificate of assured water supply from the Arizona Department of Water Resources (ADWR) or obtain a commitment for water service from a city, town or private water company with a designation of assured water supply. Otherwise, a municipality or county cannot approve that subdivision plat, and the State Real Estate Commissioner will not authorize the sale or lease of the subdivided lands. An assured water supply means:

1) Sufficient groundwater, surface water or effluent of adequate quality that will be legally, physically, and continuously available to meet proposed water needs for at least 100 years;

2) Any projected groundwater use is consistent with the AMA's management plan and achieving its management goal; and

3) Demonstrating the financial capability to build the infrastructure necessary to make water available for the proposed use (A.R.S. § 45-576).

Having a sufficient water supply is generally not a requirement for subdividing lands in areas outside of AMAs. Instead, a developer must disclose if proposed subdivided lands have an adequate water supply. ADWR will make this determination by evaluating the subdivision's proposed water source and projected water needs. The criteria for an adequate water supply are largely similar to those for an assured water supply except that the applicant does not need to show the projected groundwater use is consistent with a management plan or management goal. This evaluation is not required if the developer obtains a commitment for water service from a city, town or private water company designated as having an adequate water supply (A.R.S. § 45-108). However, counties and municipalities may adopt ordinances to require an adequate water supply as a condition for approving proposals to subdivide lands (A.R.S. §§ 9-463.01 and 11-823). Only Cochise and Yuma Counties and the Towns of Patagonia and Clarksdale have adopted these ordinances.

Provisions

1. Repeals the exemption for leasehold offerings of one year or less from the definition of subdivided lands. (Sec. 1)

2. Makes conforming changes. (Sec. 1)

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6. HB 2616

7. Initials PAB Page 0 Natural Resources, Energy & Water

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