ARIZONA STATE SENATE
RESEARCH STAFF
TO: MEMBERS OF THE SENATE
APPROPRIATIONS COMMITTEE
DATE: February 18, 2022
SUBJECT: Strike everything amendment to S.B. 1634, relating to affordable housing;
municipalities
Purpose
Requires a municipality with a population of more than 100,000 persons, by July 1, 2023,
to develop at least 4 of 22 prescribed strategies to incentivize affordable housing. Allows a
municipality with a population of fewer than 100,000 persons to develop any of the prescribed
strategies to incentivize affordable housing. Outlines reporting requirements.
Background
The legislative body of any municipality, by ordinance and in order to conserve and
promote the public health, safety and general welfare, may enact certain zoning regulations,
including to regulate the: 1) use of buildings, structures and lands; and 2) location, height, bulk,
number of stories and size of buildings and structures. A municipality may divide a municipality
or portion of a municipality into zones of number, shape and area deemed best suited to carry out
municipal planning, zoning and open space conservation purposes. All zoning regulations must be
uniform for each class or kind of building or land used throughout each zone, unless otherwise
required to differ for certain authorized purposes (A.R.S. § 9-462.01). If a municipality has a
planning commission or hearing officer, the planning commission or hearing officer must hold a
public hearing on any zoning ordinance (A.R.S. § 9-462.04).
The Arizona Department of Housing (ADOH) is responsible for establishing authorized
policies, procedures and programs to address affordable housing issues, including housing issues
of low income families, moderate income families, housing affordability, special needs
populations and decaying housing stock (A.R.S. § 41-3953).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Requires a municipality with a population of more than 100,000 persons, by July 1, 2023, to
develop at least four of the following strategies to incentivize affordable housing:
a) providing a density or height bonus program for affordable housing;
b) allowing for density transfers to increase residential density;
c) eliminating or reducing parking requirements for residential developments where residents
are less likely to rely on their own vehicles, including in a residential development near
major transit investment corridors and senior living facilities;
d) reducing minimum site requirements for affordable housing;
e) providing an expedited application process for constructing new affordable housing;
f) amending regulations to allow accessory dwelling units on residential lots;
MICHAEL HANS
LEGISLATIVE RESEARCH ANALYST
GOVERNMENT COMMITTEE
Telephone: (602) 926-3171 STRIKER MEMO
S.B. 1634
Page 2
g) allowing higher density residential or affordable housing in or near commercial and mixed-
use zones, commercial centers, major investment corridors or employment centers;
h) allowing single-room occupancy of residential units;
i) allowing publicly owned land to be developed and used for affordable housing;
j) allowing publicly owned land to be developed and used to meet the critical housing needs
of the community, including homeless shelters, transitional housing, supportive housing
and veteran housing;
k) allowing for the use of mobile homes, modular homes or prefabricated homes in single-
family residential zoning districts;
l) allowing duplexes or triplexes in single-family residential zoning districts;
m) allowing planned unit developments with integrated affordable housing units;
n) facilitating the preservation or rehabilitation of existing affordable housing;
o) facilitating the rehabilitation of existing uninhabitable housing stock into affordable
housing;
p) implementing a voluntary deed restriction program to maintain and sustain affordable
housing;
q) using support programs to assist individuals experiencing homelessness;
r) applying for, or partnering with an entity to apply for, state or federal monies or provide
incentives that promote the construction of affordable housing;
s) participating in land donation, land acquisition or land trust programs;
t) establishing an affordable housing task force to explore and recommend affordable housing
solutions and grant or partnership opportunities;
u) implementing additional tools that provide novel, creative or innovative incentives for
developing affordable housing; and
v) waiving building permit fees associated with constructing, renovating or rehabilitating
affordable housing for 501(c)(3) nonprofit organizations with a primary purpose of
assisting with providing affordable housing.
2. Allows a municipality with a population of 100,000 persons or fewer to implement the
prescribed incentives to incentivize affordable housing.
3. Requires the governing body of a municipality with a population of more than 100,000 persons
to annually:
a) review the execution of affordable housing strategies by the municipality;
b) prepare a report on the findings of the review and submit the report to ADOH; and
c) post the report on the municipality's website.
4. Requires the annual report on the findings of a municipality's affordable housing review to
include:
a) an estimate or revised estimate of the need for affordable housing in the municipality for
the next five years;
b) a description of progress made within the municipality to provide affordable housing,
demonstrated by analyzing and publishing data on the number of housing units in the
municipality that are at or below 80 percent, 50 percent and 30 percent of the adjusted
median family income; and
c) a description of how the municipality has implemented the strategies related to affordable
housing. STRIKER MEMO
S.B. 1634
Page 3
5. Allows municipal zoning regulations to differ between zones for the purpose of providing
incentives to promote the construction of affordable housing pursuant to prescribed
requirements.
6. Defines accessible dwelling unit and affordable housing.
7. Makes technical changes.
8. Becomes effective on the general effective date.