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House Engrossed
religious institutions; development; allowed use |
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State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
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HOUSE BILL 2191 |
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AN ACT
amending title 9, chapter 4, article 6.1, Arizona Revised Statutes, by adding section 9-462.14; amending title 11, chapter 6, article 2, Arizona Revised Statutes, by adding section 11-820.05; relating to zoning.
(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 6.1, Arizona Revised Statutes, is amended by adding section 9-462.14, to read:
9-462.14. Religious institutions; allowed use developments; requirements; regulation; applicability; definitions
A. Notwithstanding any local zoning ordinance, for a religious institution located in an area that is zoned as of january 1, 2025 for single-family residential use, any single-family residential housing development on any eligible site is considered an allowed use development if the development meets all of the following requirements:
1. Is not WITHIN seventy-five feet of a neighboring site.
2. Has at least one parking space per unit or meets the municipal zoning requirements for parking, whichever is less.
3. Meets all local regulations for water and sewer access.
4. Is on an eligible site that, as of january 1, 2o25, has been owned exclusively by a religious institution for at least fifteen consecutive years, that has been used continuously and primarily for religious worship, that is classified as tax-exempt as prescribed in section 42-11109 and that will continue to be owned and maintained by the religious institution.
5. Is on an eligible site that is not located within one-half mile of heavy industrial use, an airport or a military base.
B. The height requirements for an allowed use development on an eligible site must be not more than thirty feet and two full floors.
c. Minimum setback requirements for an allowed use development on an eligible site must meet all of the following:
1. be at least twenty feet for the front setback of the eligible site.
2. Be at least fifteen feet for the side setback of the eligible site.
3. Be at least twenty feet for the rear setback of the ELIGIBLE site.
D. The greatest maximum lot coverage for an allowed use development on an eligible site must be not more than Coverage of eighty percent of the eligible site.
e. The maximum density bonus for an allowed use development on an eligible site may not be more than twenty percent of the maximum density allowed by the applicable zoning regulations or seventeen dwelling units per acre, whichever is less.
F. A municipality may not impose any additional restrictions on an allowed use development on an eligible site other than the restrictions provided in this section.
g. A municipality may require additional permits for an allowed use development on an eligible site if the same permits are required by the municipality for a comparable development project. Permits required by a municipality for an allowed use development on an eligible site shall be approved by the municipality administratively and the municipality may not require a public hearing.
h. A municipality may require on-site and off-site improvements, impact fees, plans and compliance for an allowed use development on an eligible site that are the same as on-site and off-site improvements, impact fees, plans and compliance that are required by the municipality for a comparable development project.
I. A religious institution that allows an allowed use development on an eligible site that is owned by the religious institution shall notify the county assessor in the county where the property is located in writing pursuant to section 42-11152 that the property is no longer used for the purposes that qualify for exemption from taxation.
J. An allowed use development on an eligible site that is developed pursuant to this section shall be subject to a validly executed land trust agreement. The land trust agreement shall specify both of the following:
1. the governance and mission-aligned housing oversight and the role of the religious institution.
2. that The religious institution may delegate decision-making authority to a selected management entity. The selected management entity shall be one of the following:
(a) A newly formed, separate nonprofit and religious institution-affiliated community land trust.
(b) A partnership with an existing community land trust.
(c) Any other qualified residential housing property manager.
K. An allowed use development on an eligible site that is developed pursuant to this section shall be subject to a validly executed ground lease agreement. The ground lease agreement shall provide all of the following:
1. Protection of the religious institution and the single-family residential homeowners.
2. long-term affordability and community public benefits.
3. A monthly lease fee for single-family residential homeowners that promotes long-term affordability. The monthly lease fees may be used by management of the allowed use development for compliance and management of the project.
4. A requirement that a single-family residential home thAT IS developed pursuant to this section include households that earn noT more than one hundred twenty percent of the area median income.
5. A resale sharing equity clause that allows the homeowner of a single-family residential home THAT IS developed on an eligible site to retain a percentage of the single-family residential home's appreciation equity and allows the religious institution or housing entity to keep a percentage of the single-family residential home's appreciation equity for reinvestment in housing programs or other religious institution priorities. The religious institution shall determine the equity sharing percentages when executing the ground lease agreement.
6. a limited appreciation clause that restricts the resale value of a single-family residential home THAT IS developed on an eligible site for the first five to ten years after development. The limited appreciation restriction may be determined by the religious institution and may be calculated using one of the following methods:
(a) An indexed rate that ties the resale price of a single-family home that is developed on an eligible site to an annual consumer price index.
(b) A fixed annual appreciation rate.
L. A religious institution that allows an allowed use development on an eligible site that is owned by the religious institution shall notify in writing all of the residential neighborhoods located within one-half mile of the religious institution about the proposed allowed use development. The religious institution shall conduct a community meeting to receive feedback from residential neighborhoods located within one-half mile of the proposed allowed use development.
M. This section does not apply to any of the following:
1. Land located in the territory in the vicinity of a federal aviation administration commercially licensed airport, a military airport or a general aviation or a public airport as defined in section 28-8486.
2. Land that is zoned for industrial use.
3. Land in an area designated as a district of historical significance as prescribed in section 9-462.01, subsection A, paragraph 10.
4. Land in an area designated as historic by a local government.
5. Land in an area listed as historic on the national register of historic places.
N. For the purposes of this section:
1. "eligible site" means not less than three acres of land on one or more contiguous parcels that are owned by a religious institution.
2. "Ground lease" means a shared equity agreement entered into between the owner of a piece of land and the owner of a piece of real property located on the land that allows for an equal division between the owner of the land and the owner of a piece of real property located on the land of the appreciated equity in the land on the sale of the land.
3. "Neighboring site" means a parcel that directly abuts an eligible site along an existing road.
4. "Religious institution" means an institution that is owned, controlled, operated and maintained by a church, religious denomination or religious organization that is lawfully operating as a nonprofit religious corporation.
5. "Single-family residential" means a detached single-family home that is intended for use as permanent housing.
Sec. 2. Title 11, chapter 6, article 2, Arizona Revised Statutes, is amended by adding section 11-820.05, to read:
11-820.05. Religious institutions; allowed use developments; requirements; regulation; applicability; definitions
A. Notwithstanding any county zoning ordinance, for a religious institution located in an area that is zoned as of january 1, 2025 for single-family residential use, any single-family residential housing development on any eligible site is considered an allowed use development if the development meets all of the following requirements:
1. Is not WITHIN seventy-five feet of a neighboring site.
2. Has at least one parking space per unit or meets the county zoning requirements for parking, whichever is less.
3. Meets all county regulations for water and sewer access.
4. is on an eligible site that, as of january 1, 2025, has been owned exclusively by a religious institution for at least fifteen consecutive years, that has been used continuously and primarily for religious worship, that is classified as tax-exempt as prescribed in section 42-11109 and that will continue to be owned and maintained by the religious institution.
5. is on an eligible site that is not located within one-half mile of heavy industrial use, an airport or a military base.
B. The height requirements for an allowed use development on an eligible site must be not more than thirty feet and two full floors.
c. Minimum setback requirements for an allowed use development on an eligible site must meet all of the following:
1. be at least twenty feet for the front setback of the eligible site.
2. Be at least fifteen feet for the side setback of the eligible site.
3. Be at least twenty feet for the rear setback of the ELIGIBLE site.
D. The greatest maximum lot coverage for an allowed use development on an eligible site must be not more than Coverage of eighty percent of the eligible site.
e. The maximum density bonus for an allowed use development on an eligible site may not be more than twenty percent of the maximum density allowed by the applicable zoning regulations or seventeen dwelling units per acre, whichever is less.
F. A county may not impose any additional restrictions on an allowed use development on an eligible site other than the restrictions provided in this section.
G. A county may require additional permits for an allowed use development on an eligible site if the same permits are required by the county for a comparable development project. Permits required by a county for an allowed use development on an eligible site shall be approved by the county administratively and the county may not require a public hearing.
H. A county may require on-site and off-site improvements, impact fees, plans and compliance for an allowed use development on an eligible site that are the same as on-site and off-site improvements, impact fees, plans and compliance that are required by the county for a comparable development project.
I. A religious institution that allows an allowed use development on an eligible site that is owned by the religious institution shall notify the county assessor in the county where the property is located in writing pursuant to section 42-11152 that the property is no longer used for the purposes that qualify for exemption from taxation.
J. An allowed use development on an eligible site that is developed pursuant to this section shall be subject to a validly executed land trust agreement. The land trust agreement shall specify both of the following:
1. the governance and mission-aligned housing oversight and the role of the religious institution.
2. that The religious institution may delegate decision-making authority to a selected management entity. The selected management entity shall be one of the following:
(a) A newly formed, separate nonprofit and religious institution-affiliated community land trust.
(b) A partnership with an existing community land trust.
(c) Any other qualified residential housing property manager.
K. An allowed use development on an eligible site that is developed pursuant to this section shall be subject to a validly executed ground lease agreement. The ground lease agreement shall provide all of the following:
1. Protection of the religious institution and the residential homeowners.
2. long-term affordability and community public benefits.
3. A monthly lease fee for residential homeowners that promotes long-term affordability. The monthly lease fees may be used by management of the allowed use development for compliance and stewardship of the project.
4. A requirement that a single-family residential home that is developed pursuant to this section include households that earn not more than one hundred twenty percent of the area median income.
5. A resale sharing equity clause that allows the homeowner of a single-family residential home that is developed on an eligible site to retain a percentage of the single-family residential home's appreciation equity and allows the religious institution or housing entity to keep a percentage of the single-family residential home's appreciation equity for reinvestment in housing programs or other religious institution priorities. The religious institution shall determine the equity sharing percentages when executing the ground lease agreement.
6. a limited appreciation clause that restricts the resale value of a single-family residential home that is developed on an eligible site for the first five to ten years after development. The limited appreciation restriction may be determined by the religious institution and may be calculated using one of the following methods:
(a) An indexed rate that ties the resale price of a single-family home that is developed on an eligible site to an annual consumer price index.
(b) A fixed annual appreciation rate.
L. A religious institution that allows an allowed use development on an eligible site that is owned by the religious institution shall notify in writing all of the residential neighborhoods located within one-half mile of the religious institution about the proposed allowed use development. The religious institution shall conduct a community meeting to receive feedback from residential neighborhoods located within one-half mile of the proposed allowed use development.
M. This section does not apply to any of the following:
1. Land located in the territory in the vicinity of a federal aviation administration commercially licensed airport, a military airport or a general aviation or a public airport as defined in section 28-8486.
2. Land that is zoned for industrial use.
3. Land in an area designated as a district of historical significance as prescribed in section 9-462.01, subsection A, paragraph 10.
4. Land in an area designated as historic by a local government.
5. Land in an area listed as historic on the national register of historic places.
N. For the purposes of this section:
1. "eligible site" means not less than three acres of land on one or more contiguous parcels that are owned by a religious institution.
2. "Ground lease" means a shared equity agreement entered into between the owner of a piece of land and the owner of a piece of real property located on the land that allows for an equal division between the owner of the land and the owner of a piece of real property located on the land of the appreciated equity in the land on the sale of the land.
3. "Neighboring site" means a parcel that directly abuts an eligible site along an existing road.
4. "Religious institution" means an institution that is owned, controlled, operated and maintained by a church, religious denomination or religious organization that is lawfully operating as a nonprofit religious corporation.
5. "Single-family residential" means a detached single-family home that is intended for use as permanent housing.