ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature Second Regular Session
	House: GOV DP 5-4-0-0 | 3^rd Read 36-18-6-0 Senate: FICO DPA 6-1-0-0 | 3^rd Read 21-7-2-0

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HB 2721: municipal zoning; middle housing

Sponsor: Representative Carbone, LD 25

Senate Engrossed

Overview

Adopts requirements for middle housing development.

History

Current statute enumerates the general powers of cities and towns. Municipalities have the authority to buy, sell and lease property, provide for the construction or rehabilitation of housing development projects or areas and issue building permits (A.R.S. Title 9, Chapter 4).

Provisions

1. Stipulates that by January 1, 2026, a city or town with 75,000 or more people must authorize by ordinance and incorporate the development of duplexes, triplexes, fourplexes, fiveplexes and townhomes as a permitted use on all lots zoned for single-family residential use into its development regulations, zoning regulations and other official controls. (Sec. 1)

2. Prohibits a city or town from:

a) discouraging the development of middle housing through unreasonable costs, fees, or delays or other requirements and actions which individually or cumulatively make impracticable the permitting, siting or construction of middle housing;

b) restricting middle housing types to less than two floors or a floor area ratio of less than one;

c) setting restrictions or processes for middle housing that are more restrictive than single-family dwellings in the same zone;

d) requiring owner occupancy of structures on the lot; or

e) requiring structures to comply with commercial building codes or contain fire sprinklers. (Sec. 1)

3. Requires a city or town to allow a property owner to determine the location, number and form of off-street vehicle parking spaces. (Sec. 1)

4. Specifies that this Act does not prohibit a municipality governing body from allowing:

a) single-family dwellings in areas zoned for single-family dwellings; or

b) additional types of middle housing not required by this Act. (Sec. 1)

5. Exempts middle housing requirements from applying to:

a) unincorporated areas;

b) areas lacking sufficient urban services;

c) areas not serviced by municipal water and sewer services;

d) areas not zoned for residential use; and

e) unincorporated areas zoned under an interim zoning designation that maintains the area's potential for planned urban development. (Sec. 1)

6. Declares that middle housing is allowed on all lots zoned for single-family residential use in a municipality without limitations if the city or town does not adopt required middle housing regulations by January 1, 2026. (Sec. 1)

7. Defines:

a) duplex;

b) fiveplex;

c) floor area ratio;

d) fourplex;

e) household;

f) middle housing;

g) permitted use;

h) townhouses; and

i) triplex. (Sec. 1)

Senate Amendments

1. Clarifies that a municipality with a population exceeding 75,000 people must authorize, by ordinance and development regulations, middle housing as a permitted use on:

a) all lots zoned for single-family residential use within one mile of the central business district of the municipality; and

b) at least 20% of any new development more than 10 contiguous acres.

2. Removes the prohibition on a municipality from discouraging the development of middle housing through unreasonable costs, delays or fees.

3. Prohibits a municipality from restricting middle housing types to a floor area ratio less than 50%, rather than a floor area ratio less than one.

4. Prohibits a municipality from requiring more than one off-street parking space per unit.

5. Removes the requirement for a municipality to allow a property owner to determine the location, number and form of off-street vehicle parking spaces.

6. Clarifies that middle housing requirements do not apply to areas that are not served by water and sewer services, rather than by municipal water and sewer services. 

7. Asserts that middle housing requirements do not apply to:

a) areas covered under statute relating to alternative form of government for domestic water and wastewater improvement districts;

b) any land within the territory in the vicinity of a public airport or to the extent that middle housing requirements would interfere with a public airport's ability to comply with laws, regulations and requirements of the United States related to applying for, receiving or spending federal monies; or

c) any land within the territory in the vicinity of a military airport.

8. Establishes that middle housing requirements do not change or otherwise impair the terms of any development agreement that exists on the general effective date.

9. Stipulates that a utility provider impacted by a development being developed in accordance with middle housing requirements must have the opportunity to review and approve the site plan for the development.

10. Defines building code and central business district.

11. Redefines the following terms:

a) duplex;

b) fourplex; and

c) triplex.

12. Removes the definition of fiveplexes.

13. Makes technical and conforming changes.

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17.                   HB 2721

18. Initials SJ/AC      Page 0 Senate Engrossed

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