House Engrossed

 

residential lease community; Prescott AMA

 

 

 

 

State of Arizona

House of Representatives

Fifty-sixth Legislature

Second Regular Session

2024

 

 

 

HOUSE BILL 2487

 

 

 

 

An Act

 

amending title 9, chapter 4, article 6.4, Arizona Revised Statutes, by adding section 9-469; amending title 11, chapter 2, article 9, Arizona Revised Statutes, by adding section 11-324; amending title 45, chapter 2, article 9, Arizona Revised Statutes, by adding section 45-581; relating to building permits.

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


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

Section 1. Title 9, chapter 4, article 6.4, Arizona Revised Statutes, is amended by adding section 9-469, to read:

START_STATUTE9-469. Residential lease communities; building permits; water supply; exception; definitions

A. The legislative body of a municipality may not approve a building plan for one or more residential dwelling units that are located in a residential lease community or multifamily residential property within the municipality and the prescott active management area unless one of the following applies:

1. The applicant has obtained a written commitment of water service for the relevant dwelling units from a city, town or private water company that is designated as having an assured water supply pursuant to section 45-576 and provided that commitment with the person's application for approval of the relevant building plan.

2. The applicant has acquired sufficient type one or type two non-irrigation grandfathered rights within the prescott active management area to meet the entirety of the annual water demand of the relevant dwelling units and the applicant has included with the person's application a copy of the relevant notice of change of use for the applicable non-irrigation grandfathered rights and proof that all withdrawals of groundwater that will be used to meet the annual water demand of the relevant dwelling units will be made from the same location as the original applicable non-irrigation grandfathered rights or, if from another location, that the director of the Department of water RESOURCES has approved a new groundwater withdrawal permit at the new location and that the new location complies with rules adopted pursuant to section 45-598, subsection a.

3. The applicant has retired sufficient irrigation grandfathered rights within the Prescott active management area to equal the entirety of the annual water demand of the relevant dwelling units and the applicant has included with the person's application a copy of the relevant notice of retirement for the applicable irrigation grandfathered rights and proof that all withdrawals of groundwater that will be used to meet the annual water demand of the relevant dwelling units will be made from the same location as the applicable irrigation grandfathered rights or, if from another location, that the applicant has received approval for a new groundwater withdrawal permit at the new location and that the new location complies with rules adopted pursuant to section 45-598, subsection A.

4. The applicant has acquired sufficient assured water supply extinguishment credits or effluent storage credits within the Prescott active management area, using the department of water resources' accounting procedures, to meet the entirety of the annual water demand of the relevant dwelling units and the applicant has included both of the following in the person's application:

(a) a copy of the relevant transfer of credits to the department of water resources.

(b) proof that all withdrawals of groundwater that will be used to meet the annual water demand of the relevant dwelling units will be made from the same location as the applicable extinguishment or effluent storage credits or, if from another location, that the director of the Department of water RESOURCES has approved a new groundwater withdrawal permit at the new location and that the new location complies with rules adopted pursuant to section 45-598, subsection a.

5. The applicant has acquired sufficient renewable or imported water supplies from within or outside of the Prescott active management area to meet the entirety of the annual water demand of the relevant dwelling units and the applicant has included in the person's application both of the following:

(a) a copy of the department's approval or confirmation of the relevant renewable or imported water supplies.

(b) proof that any withdrawals of groundwater that will be used to provide the relevant renewable or imported water supplies will be made from a location that complies with rules adopted pursuant to section 45-598, subsection A.

B. This section does not apply to an existing residential lease community, multifamily residential property, planned residential lease community or planned multifamily residential property that applied for or that received zoning entitlements on or before the effective date of this section.

C. The legislative body of the municipality shall note on the face of any approved building plan for a residential lease community or multifamily residential property that the applicant has complied with this section or is exempt from this section pursuant to subsection C of this section.

D. For the purposes of this section:

1. "Multifamily residential properties" has the same meaning prescribed in section 49-746.

2. "Residential lease community":

(a) Means six or more detached residential dwelling units on one or more lots, parcels or fractional interests, without regard to the zoning classification of the lots, parcels or fractional interests, that are intended to be offered for the purpose of lease, whether immediate or future, without regard to the lease term, under a common promotional plan as defined in section 32-2101.

(b) Does not include the construction, provision or leasing of residential structures that are located on agricultural property, that are exempt from title 11, chapter 6, article 5 as prescribed by section 11-865, subsection A, paragraph 1 and that are offered for the purpose of housing persons who are agricultural workers. END_STATUTE

Sec. 2. Title 11, chapter 2, article 9, Arizona Revised Statutes, is amended by adding section 11-324, to read:

START_STATUTE11-324. Residential lease communities; building permits; water supply; exception; definitions

A. The board of supervisors may not approve a building plan for one or more residential dwelling units that are located in a residential lease community or multifamily residential property within an unincorporated area of the prescott active management area unless one of the following applies:

1. The applicant has obtained a written commitment of water service for the relevant dwelling units from a city, town or private water company that is designated as having an assured water supply pursuant to section 45-576 and provided that commitment with the person's application for approval of the relevant building plan.

2. The applicant has acquired sufficient type one or type two non-irrigation grandfathered rights within the prescott active management area to meet the entirety of the annual water demand of the relevant dwelling units and the applicant has included with the person's application a copy of the relevant notice of change of use for the applicable non-irrigation grandfathered rights and proof that all withdrawals of groundwater that will be used to meet the annual water demand of the relevant dwelling units will be made from the same location as the original applicable non-irrigation grandfathered rights or, if from another location, that the director of the Department of water RESOURCES has approved a new groundwater withdrawal permit at the new location and that the new location complies with rules adopted pursuant to section 45-598, subsection a.

3. The applicant has retired sufficient irrigation grandfathered rights within the Prescott active management area to equal the entirety of the annual water demand of the relevant dwelling units and the applicant has included with the person's application a copy of the relevant notice of retirement for the applicable irrigation grandfathered rights and proof that all withdrawals of groundwater that will be used to meet the annual water demand of the relevant dwelling units will be made from the same location as the applicable irrigation grandfathered rights or, if from another location, that the applicant has received approval for a new groundwater withdrawal permit at the new location and that the new location complies with rules adopted pursuant to section 45-598, subsection A.

4. The applicant has acquired sufficient assured water supply extinguishment credits or effluent storage credits within the Prescott active management area, using the department of water resources' accounting procedures, to meet the entirety of the annual water demand of the relevant dwelling units and the applicant has included both of the following in the person's application:

(a) a copy of the relevant transfer of credits to the department of water resources.

(b) proof that all withdrawals of groundwater that will be used to meet the annual water demand of the relevant dwelling units will be made from the same location as the applicable extinguishment or effluent storage credits or, if from another location, that the director of the Department of water RESOURCES has approved a new groundwater withdrawal permit at the new location and that the new location complies with rules adopted pursuant to section 45-598, subsection a.

5. The applicant has acquired sufficient renewable or imported water supplies from within or outside of the Prescott active management area to meet the entirety of the annual water demand of the relevant dwelling units and the applicant has included in the person's application both of the following:

(a) a copy of the department's approval or confirmation of the relevant renewable or imported water supplies.

(b) proof that any withdrawals of groundwater that will be used to provide the relevant renewable or imported water supplies will be made from a location that complies with rules adopted pursuant to section 45-598, subsection A.

B. This section does not apply to an existing residential lease community, multifamily residential property, planned residential lease community or planned multifamily residential PROPERTY that applied for or that received zoning entitlements on or before the effective date of this section.

C. The board of supervisors shall note on the face of any approved building plan for a residential lease community or multifamily residential property that the applicant has complied with this section or is exempt from this section pursuant to subsection B of this section.

D. For the purposes of this section:

1. "Multifamily residential properties" has the same meaning prescribed in section 49-746.

2. "Residential lease community":

(a) Means six or more detached residential dwelling units on one or more lots, parcels or fractional interests, without regard to the zoning classification of the lots, parcels or fractional interests, that are intended to be offered for the purpose of lease, whether immediate or future, without regard to the lease term, under a common promotional plan as defined in section 32-2101.

(b) Does not include the construction, provision or leasing of residential structures that are located on agricultural property, that are exempt from chapter 6, article 5 of this title as prescribed by section 11-865, subsection A, paragraph 1 and that are offered for the purpose of housing persons who are agricultural workers. END_STATUTE

Sec. 3. Title 45, chapter 2, article 9, Arizona Revised Statutes, is amended by adding section 45-581, to read:

START_STATUTE45-581. Prescott AMA; commercial building permits; application process; definitions

A. The director shall separately account for the transfer of type two irrigation grandfathered rights in the prescott active management area that a developer wishes to use to secure a building plan pursuant to section 9-469 or 11-324. The department shall provide a separate application process consistent with sections 9-469 and 11-324 and rules adopted pursuant to section 45-598, subsection A for a groundwater user that wishes to secure a building plan for a residential lease community or for multifamily residential properties in the prescott active management area.

B. For the purposes of this section:

1. "Multifamily residential properties" has the same meaning prescribed in section 45-746.

2. "residential lease community" has the same meaning prescribed in sections 9-469 and 11-324. END_STATUTE

Sec. 4. Legislative finding

The legislature finds that residential lease communities as defined by this act are multifamily properties similar to apartments and other multifamily properties.

(ENACTED WITHOUT THE EMERGENCY)

Sec. 5. Emergency

This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.