HB 4130 creates a framework for Arizona municipalities to establish "housing and economic growth zones" for up to 20 years. These zones, designated in areas with deteriorating infrastructure, affordable housing shortages, or economic stagnation, allow local governments to use increased property tax revenue ("increment revenue") generated within the zone to fund specific public improvements like affordable housing, water/sewer infrastructure, broadband, and business-supporting facilities. The bill requires municipalities to adopt detailed project plans, hold public hearings, and form a governing board with local officials and residents to oversee zone implementation. It prohibits using these funds for general government expenses or projects primarily benefiting single private entities (e.g., luxury sports facilities). The policy directly affects municipalities that create these zones and residents/businesses within them, aiming to spur targeted development without new taxes.
HB 2987 creates a new state income tax credit for owners rehabilitating certified historic structures in Arizona. It establishes a $30 million annual tax credit limit (increasing to $60 million after 2035) for projects meeting federal rehabilitation standards, requiring a cost-benefit analysis proving positive economic impact. The state historic preservation officer certifies projects based on a point system evaluating job growth, economic impact, and community support, with 60% of funds reserved for projects in cities/towns under 150,000 residents. Property owners must grant a restrictive covenant to preserve the structure for 24 months after certification, and larger projects require certified public accountant verification.
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.
HB 2375 requires Arizona cities with over 75,000 residents to allow duplexes, triplexes, fourplexes, and townhomes by January 1, 2026, on single-family lots within one mile of downtown and on at least 20% of new developments over ten acres. It prohibits cities from imposing extra parking requirements, height limits, or special permits that would make these housing types harder to build. The law does not apply to historic districts, airport areas, or rural zones without residential services. Cities failing to comply by 2026 must allow middle housing on all single-family lots without restrictions.
HB 2383 amends Arizona law to clarify how school districts can lease property, including for housing development under specific existing rules. It requires school districts to set annual fee schedules for leases, prohibits discrimination based on beliefs, and mandates proof of liability insurance for lessees. The bill specifies that housing development leases must comply with Section 15-342, paragraph 6 (not creating new housing authority), while preserving existing teacher housing and permanent teacherage fund provisions. Monies from leases must go to a "civic center school fund" for approved community uses, not general district funds. This affects all Arizona school districts managing property leases.
SB 1555 creates a "Housing Affordability Fund" in each Arizona county, funded by property tax increments from newly built homes. The fund provides down payment assistance for public employees (state/city workers, charter school staff, healthcare/education employers) and supports developers building affordable housing types like workforce or smaller units. It requires counties to deposit the tax difference between a home's initial valuation and new valuation (after sale) into this separate fund, calculated based on days remaining in the tax year. The fund cannot replace existing housing programs or cover general government costs.
HB 2714 amends Arizona's tax deed sale process to prioritize affordable housing development. It allows counties to sell property held by the state due to unpaid taxes directly to cities, counties, or housing authorities for low-income housing without requiring a public auction, provided a recorded agreement ensures affordability for at least 30 years. The bill also includes streamlined sales to contiguous property owners (for commercial, agricultural, or residential use) and homeowners' associations for common areas. These changes aim to facilitate affordable housing projects by removing auction barriers for eligible properties while maintaining standard procedures for other sales.
Arizona's HB 2804 creates a new tax credit to support rural affordable housing development. It allows taxpayers (primarily developers or investors in qualifying projects) to claim a credit against their state insurance premium tax for projects in counties with under 800,000 residents that also qualify for federal low-income housing tax credits. The credit amount matches the state's allocation for each project, capped at $2 million annually through 2036, and requires an eligibility statement from the Arizona Department of Housing. Taxpayers can offset the credit against premium tax liability, carry forward unused portions for up to five years, and the program includes annual reporting requirements for the department.
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.
HB 2644 creates a new tax credit for Arizona taxpayers investing in affordable housing projects that qualify for federal low-income housing tax credits. It allows investors to claim credits against their insurance premium tax liability (not income tax), with a $10 million annual cap for projects meeting federal standards, administered by the Arizona Department of Housing. The credit is allocated based on project eligibility statements, can be shared among investors regardless of ownership stake, and expires after 2031. Taxpayers must submit documentation with their tax returns, and unused credits may be carried forward for up to five years. The bill requires annual reporting on housing impacts but does not change income tax rates or directly affect renters.
