Assigned to COM                                                                                                              AS PASSED BY COW

 


 

 

 


ARIZONA STATE SENATE

Fifty-Sixth Legislature, First Regular Session

 

FACT SHEET FOR h.b. 2536

 

AMENDED

administrative review; approvals; developments.

(NOW: housing; zoning; regulation; preemption)

Purpose

Establishes municipal housing needs assessments and limitations of residential housing design standards. Outlines procedures for a municipality to issue at-risk permits prior to final plat approval. Modifies current municipal zoning requirements.

Background

Statute authorizes municipalities to adopt zoning ordinances and codes to conserve and promote the public health, safety, convenience and general welfare and outlines zoning guidelines and requirements (A.R.S. Title 9, Ch.4, Art. 6.1). The governing body of a municipality must adopt by ordinance a citizen review process that applies to all rezoning and specific plan applications that require a public hearing. The citizen review process must include at least: 1) notifying adjacent landowners and other potentially affected citizens of the application; 2) informing adjacent landowners and other potentially affected citizens of the substance of the proposed rezoning; and 3) providing adjacent landowners and other potentially affected citizen an opportunity to express any issues or concerns regarding the rezoning. Any zoning ordinances that propose changes to property from one zone to another, that impose any regulation not previously imposed or that remove any such regulation previously imposed must be adopted following the procedure prescribed in the citizen review process and in the manner set for public hearings (A.R.S.
§ 9-462.03
).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

Residential Housing Design Standards

1.   Prohibits a municipality from adopting or enforcing any ordinance, code, standard, regulation, guideline, agreement, stipulation or other legal requirement related to or regulating residential housing design elements.

2.   Prohibits a municipality from withholding a building permit or other approval that is necessary as a condition of construction for failure to comply with any ordinance, code, standard, regulation, agreement, guideline, stipulation or other legal requirement related to or regulating residential housing design elements.

3.   Allows a municipality to:

a)   limit the number of times an elevation can be built next to or across from the same elevation;

b)   regulate the height of the dwelling in accordance with statute; and

c)   regulate the location and size of open space to the extent required by the municipality solely for stormwater retention as of the effective date and for water conservation.

4.   Allows 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 to bring action in the superior court to enforce the requirements on residential housing design standards.

5.   Specifies that the requirements on residential housing design standards do not apply to any ordinance, code, standard, regulation, guideline, agreement, stipulation or other legal requirement that is:

a)   a requirement of an adopted minimum standard building code, including any local amendments that are less restrictive than the unamended minimum standard building code;

b)   applicable solely to structures located in an area designated as a local district of historical significance by a municipality in accordance with statute or as historic on the National Register of Historic Places;

c)   applicable solely to structures individually designated as local, state or national historic landmarks;

d)   applied to manufactured homes in a manner consistent with state and federal law;

e)   required as a condition of participating in the National Flood Insurance Program;

f) a stipulation on a recorded subdivision plat adopted by the municipality before the effective date; and

g)   required to meet the sound attenuation in accordance with statute.

6.   Specifies that the requirement on residential housing design standards does not 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.

7.   Specifies that the requirement on residential housing design standards does not apply to:

a)   a municipality with a population of fewer than 30,000 persons; or

b)   a municipality that is located on tribal land.

8.   Defines design element as:

a)   the number and variation 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;

c)   the exterior building color and materials;

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 size 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 or rooms, including the interior of the garage, hallways and floor plan;

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 statute 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; and

n)   any other architectural or aesthetic element that does not directly affect an objective and identified health or safety condition.

Municipal Zoning Regulations

9.   Requires a municipality with a population of more than 30,000 persons, outside of the
age-specific community zoning districts, to allow a single-room occupancy to be occupied by persons 55 years of age and older in other zoning districts as determined by the municipality.

10.  Specifies that the ability of the municipality's legislative body to divide a municipality into zones is for the purpose of ensuring an adequate supply of land zoned for housing for the municipality's current and future residents.

11.  Requires zoning regulations, within zones that allow single-family residential uses in municipalities with a population of more than 30,000 persons, to allow one accessory dwelling unit per lot.

12.  Allows the accessory dwelling unit to be occupied by a person other than the owner.

13.  Allows a municipality to allow more than one accessory dwelling unit per lot and require a lease for an accessory dwelling unit to have a duration of at least three months.

14.  Stipulates that the accessory dwelling unit requirement does not apply to areas designated as a district of historical significance by a municipality in accordance with statute or as historic on the National Register of Historic Places.

15.  Eliminates the requirement for preliminary and final plats to be approved by a legislative body.

16.  Defines accessory dwelling unit as a residential living unit that provides complete independent living facilities, which may include a kitchen with a range, with 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.

17.  Stipulates that the definition of accessory dwelling unit includes:

a)   a detached unit in the rear or side yard of the lot on which the primary dwelling unit is located; and

b)   a unit that is attached to a single-family unit on the same parcel.

18.  Defines single-room occupancy as dwelling units in which residents rent a private bedroom with shared kitchen and bathroom facilities.

19.  Excludes, from the definition of single-room occupancy, sober living homes or assisted living facilities regulated by the Department of Health Services.

At-Risk Permits

20.  Requires a municipality, at the applicant's request and after preliminary plat submittal and approval from the Arizona Department of Environmental Quality, to issue an at-risk permit for grading and earthmoving that relates to the property that is subject of the preliminary plat.

21.  Specifies that the municipality issuing an at-risk permit does not constitute final preliminary plat approval or final approval of any grading and drainage plans.

22.  Specifies that any work, services or materials accomplished or acquired by the applicant or the applicant's agents is done at the financial risk of the applicant with no financial liability to the municipality for issuing the at-risk permit.

23.  Allows the municipality to require that all grading and earthmoving be done in compliance with all municipal codes, ordinances and standards and other legal requirements.

24.  Stipulates that the requirement to issue an at-risk permit prior to final plat approval does not apply to:

a)   a municipality with a population of fewer than 30,000 persons;

b)   a municipality that is located on tribal land; or

c)   land in an area that is designated as a district of historic significance by a municipality in accordance with statute or as historic on the National Register of Historic Places.

Municipal Housing Assessments

25.  Requires each municipality, beginning January 1, 2024, and every five years thereafter, to publish a housing needs assessment that includes:

a)   the total population growth projected for the subsequent five-year period;

b)   the total job growth projected for the subsequent five-year period; and

c)   the total need for additional residential housing units for rent and for sale in the municipality to meet:

i.   any deficiencies in housing the existing population;

ii.   any deficiencies in housing the existing workforce;

iii.   the population growth projections;

iv.   the jobs growth projections; and

v.   the housing needs across all various income levels.

26.  Stipulates that a municipality is not required to meet or otherwise fulfill the projections in the housing needs assessment.

27.  Requires each municipality, beginning January 1, 2025, and every year thereafter, to submit an annual report that provides:

a)   the total number of proposed residential housing units submitted to the municipality;

b)   the total number of net new residential housing units submitted to the municipality; and

c)   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.

28.  Requires the annual report to also include:

a)   the number of housing development applications received in the prior year;

b)   the number of lots and multifamily units included in all development applications in the prior year;

c)   the number of lots and multifamily units approved and disapproved or otherwise not approved in the prior year;

d)   the total number 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;

e)   the status and progress in meeting the municipality's housing needs; and

f) a plan that specifies how the municipality intends to satisfy the identified need for additional residential housing units within the municipality.

29.  Requires the annual report to be submitted to the Arizona Department of Housing (ADOH).

30.  Stipulates that the municipal single-family housing needs assessment and annual report requirements do not apply to a municipality that is located on tribal land or with a population of fewer than 30,000 persons.

Miscellaneous

31.  Defines terms.

32.  Makes technical and conforming changes.

33.  Becomes effective on the general effective date.

Amendments Adopted by Committee

· Adopted the strike-everything amendment.

Amendments Adopted by Committee of the Whole

1.   Applies the prescribed zoning regulations to municipalities with a population of more than 30,000 persons, rather than more than 25,000 persons.

2.   Restores the zoning authority of a municipality to establish requirements for off-street parking and loading.

3.   Specifies that the definition of accessory dwelling unit includes a detached unit in the rear or side yard of the lot on which the primary dwelling unit is located.

4.   Eliminates the requirement for preliminary and final plats to be approved by a legislative body.

5.   Requires a municipality, at the applicant's request and after preliminary plat submittal and approval from the Arizona Department of Environmental Quality, to issue an at-risk permit for grading and earthmoving that relates to the property that is subject of the preliminary plat.

6.   Specifies that the municipality issuing an at-risk permit does not constitute final preliminary plat approval or final approval of any grading and drainage plans.

7.   Specifies that any work, services or materials accomplished or acquired by the applicant or the applicant's agents is done at the financial risk of the applicant with no financial liability to the municipality for issuing the at-risk permit.

8.   Allows the municipality to require that all grading and earthmoving be done in compliance with all municipal codes, ordinances and standards and other legal requirements.

9.   Stipulates that the requirement to issue an at-risk permit prior to final plat approval does not apply to:

a)   a municipality with a population of fewer than 30,000 persons;

b)   a municipality that is located on tribal land; or

c)   land in an area that is designated as a district of historic significance by a municipality in accordance with statute or as historic on the National Register of Historic Places.

10.  Requires each municipality, beginning January 1, 2024, and every five years thereafter, to publish a housing needs assessment that includes:

a)   the total population growth projected for the subsequent five-year period;

b)   the total job growth projected for the subsequent five-year period; and

c)   the total need for additional residential housing units for rent and for sale in the municipality to meet:

i.   any deficiencies in housing the existing population;

ii.   any deficiencies in housing the existing workforce;

iii.   the population growth projections;

iv.   the jobs growth projections; and

v.   the housing needs across all various income levels.

11.  Stipulates that a municipality is not required to meet or otherwise fulfill the projections in the housing needs assessment.

12.  Requires each municipality, beginning January 1, 2025, and every year thereafter, to submit an annual report that provides:

a)   the total number of proposed residential housing units submitted to the municipality;

b)   the total number of net new residential housing units submitted to the municipality; and

c)   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.

13.  Requires the annual report to also include:

a)   the number of housing development applications received in the prior year;

b)   the number of lots and multifamily units included in all development applications in the prior year;

c)   the number of lots and multifamily units approved and disapproved or otherwise not approved in the prior year;

d)   the total number 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;

e)   the status and progress in meeting the municipality's housing needs; and

f) a plan that specifies how the municipality intends to satisfy the identified need for additional residential housing units within the municipality.

14.  Requires the annual report to be submitted to ADOH.

15.  Stipulates that the municipal single-family housing needs assessment and annual report requirements do not apply to a municipality that is located on tribal land or with a population of fewer than 30,000 persons.

16.  Removes the state preemption and zoning amendment requirements prescribed for residential zoning districts.

17.  Eliminates the modifications to the municipal licensing time frame requirements.

18.  Makes technical and conforming changes.

Senate Action

COM               3/22/23      DPA/SE    5-2-0

Prepared by Senate Research

June 12, 2023

JT/sr