HB 2674
Initials PRB Page 1 Commerce
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
HB 2674: municipal zoning; by right housing
Sponsor: Representative Kaiser, LD 15
Committee on Commerce
Overview
Establishes laws governing residential zoning districts, housing design standards and building
codes. Appropriates $89,000,000 in FY 2023 to the Housing Trust Fund for low-incoming housing
needs.
History
Municipalities must adopt a citizen review process which outlines procedures for adopting
rezoning ordinances. The citizen review process must at a minimum include: 1) notification of a
rezoning application; 2) information on the substance of the proposed rezoning; and 3) providing
an opportunity to express any issues or concerns from citizen affected by the rezoning. Any zoning
ordinances that propose to change property from one zone to another, that imposes any
regulation not previously imposed or that removes any such regulation previously imposed must
be adopted following the procedure prescribed in the citizen review process (A.R.S. § 9-462.03).
Municipalities are required to post on their websites an overall time frame for issuing licenses.
The time frame must separately state the time frame for an administrative completeness review
and a substantive review. Statute outlines factors for consideration when establishing licensing
time frames (A.R.S. § 9-835).
Provisions
Residential Zoning Districts
1. Declares housing supply and affordability are matters of statewide concern. (Sec. 4)
2. Preempts any contrary, inconsistent or more restrictive laws or ordinances. (Sec. 4)
3. Prohibits a municipality from regulating, restricting or limiting residential zoning, construction
or development standards, except as authorized by statute. (Sec. 4)
4. Asserts regulation of housing within residential zoning districts is not subject to further
regulation by a city, town or political subdivision. (Sec. 4)
5. Mandates, by January 1, 2023, a municipality to allow:
a) The construction of 8 single-family dwelling units per acre or 12 two-family dwelling units
per acre on specified land;
b) The construction of multifamily dwelling units on specified land, with prescribed
development standards; and
c) The construction of single-family, two-family and multifamily units to certain densities and
development standards on specified land, unless the development is adjacent to any site
that is an existing industrial use. (Sec. 4)
6. Prohibits a municipality from requiring a general plan amendment, use permit or review to
construct the specified housing. (Sec. 4)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2674
Initials PRB Page 2 Commerce
7. Provides a process for proposing an amendment to a zoning ordinance that changes a land
use designation, the allowed density or the applicable development standards. (Sec. 4)
8. Allows an applicant to file a complaint with superior court for certain aggrievances. (Sec. 4)
9. Prohibits the court from deferring to any findings of fact or conclusions of law made by the
municipality and places the burden of proof on the municipality. (Sec. 4)
10. Exempts land within the immediate vicinity of a military airport or military facility from the
residential zoning district requirements. (Sec. 4)
11. Defines pertinent terms. (Sec. 4)
Residential Housing Design Standards
12. Prohibits a municipality from adopting any ordinance, code, regulation or other legal
requirement regulating residential housing design elements. (Sec. 5)
13. Asserts a municipality may not withhold a building permit or other approval necessary as a
condition of constructing residential housing for failure to comply with any ordinance, code,
regulation or other legal requirement regulating residential housing design elements. (Sec. 5)
14. Permits an applicant for a building permit approval to bring an action in superior court to
enforce residential housing design standard regulations. (Sec. 5)
15. Outlines criteria for a residential housing design standards exemption for any ordinance, code,
regulation or other legal requirement. (Sec. 5)
16. Asserts the residential housing design standards do not affect the validity or enforceability of
private contracts relating to dwelling design elements by parties other than the municipality.
(Sec. 5)
17. Defines pertinent terms. (Sec. 5)
Residential Building Codes
18. Permits a municipality to adopt a residential building code regulating the design and
construction of certain dwellings up to three stories in height. (Sec. 7)
19. Requires an adopted residential building code to comply with fire access and sprinklers
statutes. (Sec. 7)
20. Asserts all residential building code requirements must be adopted for the purpose of
providing a reasonable level of safety and health. (Sec. 7)
21. Stipulates an adoption of any residential or commercial building code, relating to energy
conservation, to be adopted for the purpose of regulating the design and construction of
building for the use and conservation of energy. (Sec. 7)
22. Directs a municipality, beginning January 1, 2023, to conduct an analysis determining the
upfront cost and the estimated electrical energy cost savings from proposed changes to an
adopted code. (Sec. 7)
23. Prescribes conditions for adopting a proposed change to an adopted building code or a list of
additional building design or mechanical equipment efficiency requirements. (Sec. 7)
24. Prohibits a municipality from adopting any other code, ordinance or other legal requirement
regarding the design of single-family or two-family dwellings related to conservation of energy
or health and safety that does not comply with residential building code requirements. (Sec.
7)
25. Defines pertinent terms. (Sec. 7) HB 2674
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Appropriation; Housing Trust Fund
26. Appropriates $89,000,000 from the state General Fund in FY 2023 to the Housing Trust Fund
for low-income housing needs. (Sec. 13).
27. Exempts the appropriation from lapsing. (Sec. 13)
Miscellaneous
28. Specifies a municipal ordinance may regulate the percentage of a lot that may be occupied
by a building or structure except for a single-family dwelling. (Sec. 1)
29. Caps the minimum side yard setbacks for single-family dwelling lots to five feet. (Sec. 1)
30. Asserts municipalities must provide an adequate supply of housing in compliance with
statutory prescribed requirements. (Sec. 1)
31. Excludes, from laws relating to public hearings on zoning ordinances, zoning ordinance
adopted pursuant to laws relating to residential zoning districts. (Sec. 3)
32. Repeals archaic laws relating to building code moratoriums. (Sec. 6)
33. Prohibits a municipality from basing a licensing decision on a licensing requirement or
condition that is not objective and specifically authorized by statute. (Sec. 9, 10)
34. Defines objective. (Sec. 8)
35. Includes, as a factor for establishing municipal licensing time frames, the impact on the supply
and cost of housing of unnecessary delays in the approval and permitting process. (Sec. 11)
36. Requires a municipality, within five days of a request by an applicant, to discuss with the
applicant the request for corrections and provide sufficient information and instruction to allow
the applicant to provide the requested corrections. (Sec. 11)
37. Specifies a municipality may not deny a license application that is necessary for land
development or building construction unless the application is considered withdrawn. (Sec.
11)
38. Provides for a refund of certain fees if the applicant is not issued a written or electronic notice
conditionally granting a license. (Sec. 11)
39. Deems a license or approval necessary for land development or building construction
approved if the municipality does not issue a written or electronic notice granting the license
or approval within the specified time frame. (Sec. 11)
40. Applies licensing time frame requirements to licenses necessary for the construction or
development of a residential lot. (Sec. 11)
41. Instructs a municipality to publish or display on its website all licensing applications. (Sec. 12)
42. Requires a municipality to post on its website the identified licensing time frame for each
licensing application as well as the typical time frame for issuing the written and supplemental
request for correction and the approval. (Sec. 12)
43. Contains a severability clause. (Sec. 14)
44. Makes technical and conforming changes. (Sec. 1, 2, 8, 11)