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ARIZONA STATE SENATE

Fifty-Seventh Legislature, First Regular Session

 

FACT SHEET FOR H.B. 2928

 

accessory dwelling units; requirements

Purpose

Requires counties to adopt regulations that allow accessory dwelling units (ADUs) on any lot or parcel where a single-family dwelling is allowed. Outlines development standards for the ADUs.

Background

In 2024, the Legislature required municipalities with a population of more than 75,000 persons to adopt regulation that allow on any lot or parcel where a single-family dwelling is allowed all of the following: 1) at least one attached and one detached ADU as a permitted use;
2) a minimum of one additional detached ADU as a permitted use on a lot or parcel that is one acre in size if at least one ADU on the lot or parcel is a restricted-affordable dwelling unit; and 3) an ADU that is 75 percent of the gross floor area of the single-family dwelling on the same lot or parcel or 1,000 square feet, whichever is less.

A municipality may not: 1) prohibit the use or advertisement of either the single-family dwelling or any ADU located on the same lot or parcel as separately leased long-term rental housing; 2) require familial, marital, employment or other preexisting relationship between the owner or occupant of a single-family dwelling and the occupant of an ADU located on the same lot or parcel; 3) require that a lot or parcel have additional parking to accommodate an ADU or require payment of fees instead of additional parking; 4) require that an ADU match the exterior design, roof pitch or finishing materials of the single-family dwelling that is located on the same lot as the ADU; 5) set restrictions for ADUs that are more restrictive than those for single-family dwellings within the same zoning area with regard to height, setbacks, lot size, coverage or building frontage; 6) set rear or side setbacks for ADUs that are more than five feet from the property line; 7) require improvements to public streets as a condition of allowing an ADU, except as necessary to reconstruct or repair a public street that is disturbed as a result of the construction of the ADU; or 8) require a restrictive covenant concerning an ADU on a lot or parcel zoned for residential use by a single-family dwelling.

A city or town may regulate vacation or short-term rentals (STRs) to require the owner of a STR to reside on the property if the property contains an ADU that was constructed on or after September 14, 2024 and that is being used as an STR. Unless the time period to bring an action for a diminution in value claim has expired, the owner occupation requirement does not apply to a property owner who has the right to build an ADU on the property owner's property before September 14, 2024 whether or not the ADU has been built (Laws 2024, Ch. 196; A.R.S.
ยงยง 9-462.18 and 9-500.39).

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

Provisions

County ADU Requirements

1.   Requires a county to adopt regulations that allow on any lot or parcel where a single-family dwelling is allowed all of the following:

a)   at least one attached and one detached ADU as a permitted use;

b)   a minimum of one additional detached ADU as a permitted use on a lot or parcel that is one acre or more in size and the county may requires at least one ADU on the lot or parcel be a restricted-affordable dwelling unit; and

c)   an ADU that is 75 percent of the gross floor area of the single-family dwelling on the same lot or parcel or 1,000 square feet, whichever is less.

2.   States that a county is not prohibited from allowing an ADU that is larger than the size of an ADU that is allowed under the county ADU requirements.

3.   Prohibits a county from:

a)   prohibiting the use or advertisement of either the single-family dwelling or any ADU located on the same lot or parcel as separately leased long-term rental housing;

b)   requiring a familial, marital, employment or other preexisting relationship between the owner or occupant of a single-family dwelling and the occupant of an ADU located on the same lot or parcel;

c)   requiring that a lot or parcel have additional parking to accommodate an ADU or require payment of fees instead of additional parking;

d)   requiring that an ADU match the exterior design, roof pitch or finishing materials of the single-family dwelling that is located on the same lot as the ADU;

e)   set restrictions for ADUs that are more restrictive than those for single-family dwellings within the same zoning area with regard to height, setbacks, lot size, coverage or building frontage;

f) set rear or side setbacks for ADUs that are more than five feet from the property line;

g)   require improvements to public streets as a condition of allowing an ADU, except as necessary to reconstruct or repair a public street that is disturbed as a result of the construction of the ADU; or

h)   require a restrictive covenant concerning an ADU on a lot or parcel zoned for residential use by a single-family dwelling.

4.   Specifies that the county ADU requirements do not prohibit restrictive covenants or shared well agreements as provided by state law concerning ADUs entered into between private parties.

5.   Prohibits a county from conditioning a permit or license or the use of an ADU on adopting or implementing a restrictive covenant between private parties.

6.   Specifies that the county ADU requirements do not supersede applicable building codes, fire regulations, sensitive environmental area regulations, wildfire prevention regulations, emergency vehicle access regulations or public health and safety regulations.

7.   Prohibits a county from requiring an ADU from complying with a commercial building code or containing a fire sprinkler.

8.   Prohibits an ADU from being built on top of a current or planned public utility easement unless the property owner receives written consent from any utility that is currently using the public utility easement or that may use the public utility easement in the future.

9.   Requires, if a county fails to adopt ADU development regulations by January 1, 2026, ADUs to be allowed on all lots or parcels zoned for residential use in the county without limits.

10.  States that the county ADU requirements do not apply to lots and parcels that are located on:

a)   tribal land,

b)   land in the territory in the vicinity of a military airport or ancillary military facility;

c)   land in the territory in the vicinity of a Federal Aviation Administration commercially licensed airport or a general aviation airport; or

d)   land in the territory in the vicinity of a public airport that has a noise level of greater than 65 decibels.

11.  Allows a county, if a new ADU will not be connected to a sewer system or the sewer system lacks capacity to serve the new ADU, to require that any septic system that will be used to serve the ADU be adequately sized before the construction of the ADU.

12.  Allows a county to regulate STRs within the unincorporated areas to require the owner of a STR to reside on the property if:

a)   the property contains an ADU; and

b)   a certificate of occupancy, certificate of completion or similar final approval for the ADU was issued by the county on or after September 14, 2024.

13.  States that the owner occupation requirement does not apply to an STR owner if the property contains an ADU and the certificate of completion, certificate of occupancy or similar final approval was issued by September 13, 2024.

Municipality ADU Requirements

14.  Clarifies that the municipality ADU requirements do not apply to lots or parcels that are located on land in the territory in the vicinity of a public airport that has a noise level of greater than 65 decibels.

15.  Specifies that a city or town may regulate STRs to require the owner of a STR to reside on the property if:

a)   the property contains an ADU; and

b)   a certificate of occupancy, certificate of completion or similar final approval for the ADU was issued by the municipality on or after September 14, 2024. 

16.  States that the owner occupation requirement does not apply to an STR owner if the property contains an ADU and the certificate of completion, certificate of occupancy or similar final approval was issued by September 13, 2024.


Miscellaneous

17.  Defines ADU as s self-contained living unit that is on the same lot or parcel as a single-family dwelling of greater square footage that the ADU, that includes its own sleeping and sanitation facilities and may include its own kitchen.

18.  Defines gross floor area as the interior habitable area of a single-family dwelling or an ADU.

19.  Defines permitted use as the ability for a development to be approved without requiring a public hearing, variance, conditional use permit, special permit or special exemption, other than a discretionary zoning action to determine that a site plan conforms with applicable zoning regulations.

20.  Defines restricted-affordable dwelling unit as a dwelling unit that, either through a deed restriction or a development agreement with the county, is rented to households earning up to 80 percent of the area median income.

21.  Makes technical and conforming changes.

22.  Becomes effective on the general effective date.

House Action

GOV               2/20/25            DP       5-2-0

3rd Read          3/10/25                        50-6-4

Prepared by Senate Research

March 24, 2025

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