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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
land division; applicant submissions; review
Purpose
Modifies requirements for applications related to construction and sale of homes and the division of parcels of land.
Background
A subdivision or subdivided land is improved or unimproved land divided or proposed to be divided for the purpose of sale or lease, whether immediate or future, into six or more lots, parcels or fractional interests, including: 1) a stock cooperative; 2) lands divided or proposed to be divided as part of a common promotion plan; and 3) residential condominiums. Leasehold offerings of one year or more are exempt from the classification of subdivision or subdivided lands (A.R.S. § 32-2101).
A county board of supervisors (county BOS) must approve any land divisions of five or fewer lots, parcels or fractional interests, any of which is 10 acres or smaller in size, if the land division meets outlined requirements. A person or group of persons may not act in concert to attempt to avoid the requirements to divide a parcel of land or sell subdivision lots by using a series of owners or conveyances or by any other method that ultimately results in the division of lands into a subdivision or the sale of subdivided land (A.R.S. §§ 11-831 and 32-2181).
A creation of six or more lots, parcels or fractional interests in improved or unimproved land, lots or parcels of any size is exempt from requirements regarding the application for and division of subdivisions (lot creation exemption) in certain circumstances, including if the State Real Estate Commissioner (Commissioner), by special order, exempts offerings or dispositions of any lots, parcels or fractional interests from compliance on written petition and on a showing satisfactory to the Commissioner that compliance is not essential to the public interest or for the protection of buyers (A.R.S. § 32-2181).
Except in cities and towns that have no ordinance relating to the issuance of building permits, a county BOS must require a building permit for any construction within its jurisdiction of a building or an addition to a building exceeding a cost of $1,000 (A.R.S. § 11-231).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires an applicant for a building permit for new construction of a residential single-family home to identify any ownership interests in the property that is the subject of the permit.
2. Adds, to the qualifications required for a county BOS to approve an application to split a parcel of land, outlined questions regarding ownership and representation of property that is in the same tax parcel map or subdivision as the lots, parcels or fractional interests that are the subject of the application.
3. Requires an applicant for a land division to disclose any ownership interest in the properties that are the subject of the land division application.
4. Prescribes an attestation that must be included in an application for a land division.
5. Adds, to the list of lot creation exemptions, lots, parcels or fractional interests owned by a licensed financial institution in Arizona as a result of foreclosure and are being sold by the financial institution by an Arizona real estate licensee, if limited to those that have been included with a previous public report when the public report was approved within the last 10 years and no material changes have occurred within the public report.
6. Adds a specification to the special order exemption that lots, parcels or fractional interests where compliance is not essential to the public interest or for the protection of buyers include, but are not limited to, those that have been included with a previous public report approved within the last 10 years where the applicant for an exemption attests that there are no material changes altering the facts of the public report.
7. Makes technical and conforming changes.
8. Becomes effective on the general effective date.
House Action
LARA 1/29/24 DPA 9-0-0-0
3rd Read 2/15/24 58-0-1-0-1
Prepared by Senate Research
February 29, 2024
RA/SDR/cs