Housing (Zoning)

SB 1779 repeals Arizona’s mandatory inclusionary zoning requirement, which previously required municipalities to mandate affordable housing units in new residential developments. This repeal directly affects Arizona cities and developers by removing a legal obligation to include affordable housing in new construction projects. The bill amends zoning statutes to eliminate the specific provision (Section 9-461.16) that enforced this requirement, giving local governments discretion over whether to adopt such policies. The change shifts housing policy authority from state mandate to local decision-making without altering general zoning powers.

SB 1619 would require Arizona municipalities to establish a maximum density for residential zoning, limiting the number of housing units per acre in residential areas. This bill directly affects local governments, which must revise zoning codes to include this cap, and residential developers and property owners building or purchasing homes in these zones. The key mechanism is a mandatory density cap, preventing more than a specified number of units from being constructed on a given parcel. The bill does not specify an exact density level but mandates that municipalities set one in their zoning regulations.

SB 1529 requires new residential building permit applicants in Arizona's active water management areas to obtain either a "certificate of assured water supply" from the state water department or a written commitment from a designated water provider (city, town, or private company), plus pay specific water fees. It applies to all new residential dwelling units (including mobile homes used as primary residences) but exempts projects with zoning approvals or applications submitted by September 30, 2026. The bill ties permit approval directly to verified water availability, ensuring developers demonstrate access to a reliable water source before construction begins. This affects developers, homebuilders, and homeowners seeking permits for new residential properties in designated water management zones.

HB 2077 requires developers to prove water supply availability before obtaining building permits for multifamily housing in the Prescott Active Management Area. Specifically, it mandates that applicants provide either a written water service commitment from a designated water provider or a Department of Water Resources certificate with their permit application. This applies to new projects and excludes developments that already secured zoning approval before the bill took effect. The law directly affects multifamily residential developers in Prescott AMA, ensuring water supply planning aligns with local infrastructure capacity.