Housing

HB 2926 streamlines workforce housing development by allowing builders to start erecting homes (vertical construction) while utility improvements (horizontal construction) are ongoing, provided plans are approved, infrastructure is secured, and safety is certified. It requires cities to create expedited permitting processes for these projects, including faster reviews, reduced fees, and dedicated contacts. The bill also establishes a rural contractor license that waives exams for qualified out-of-state license holders (with four years of experience), restricts work to rural areas (counties under 100,000 residents), and expires in 2029. Additionally, it updates bond approval rules for single-family home financing, mandating governing body review of detailed plans before bond issuance.

This bill prohibits cities, counties, and state agencies from creating or enforcing any urban growth boundaries that restrict new development, housing options, or public services outside designated areas. It declares such boundaries void in local ordinances, rules, or state contracts, citing Arizona voters' 1998 and 2000 rejections of similar policies. The law aims to prevent policies that could reduce housing affordability by limiting land availability for development, referencing studies from other states. It requires a three-fourths legislative vote to take effect.