Assigned to COM AS PASSED BY COW
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
FACT SHEET FOR H.B. 2536
AMENDED
administrative review; approvals; developments.
(NOW: housing; zoning; regulation; preemption)
Purpose
Establishes municipal housing needs assessments and limitations of residential housing
design standards. Outlines procedures for a municipality to issue at-risk permits prior to final plat
approval. Modifies current municipal zoning requirements.
Background
Statute authorizes municipalities to adopt zoning ordinances and codes to conserve and
promote the public health, safety, convenience and general welfare and outlines zoning guidelines
and requirements (A.R.S. Title 9, Ch.4, Art. 6.1). The governing body of a municipality must adopt
by ordinance a citizen review process that applies to all rezoning and specific plan applications
that require a public hearing. The citizen review process must include at least: 1) notifying adjacent
landowners and other potentially affected citizens of the application; 2) informing adjacent
landowners and other potentially affected citizens of the substance of the proposed rezoning; and
3) providing adjacent landowners and other potentially affected citizen an opportunity to express
any issues or concerns regarding the rezoning. Any zoning ordinances that propose changes to
property from one zone to another, that impose any regulation not previously imposed or that
remove any such regulation previously imposed must be adopted following the procedure
prescribed in the citizen review process and in the manner set for public hearings (A.R.S.
§ 9-462.03).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
Residential Housing Design Standards
1. Prohibits a municipality from adopting or enforcing any ordinance, code, standard, regulation,
guideline, agreement, stipulation or other legal requirement related to or regulating residential
housing design elements.
2. Prohibits a municipality from withholding a building permit or other approval that is necessary
as a condition of construction for failure to comply with any ordinance, code, standard,
regulation, agreement, guideline, stipulation or other legal requirement related to or regulating
residential housing design elements. FACT SHEET – Amended
H.B. 2536
Page 2
3. Allows a municipality to:
a) limit the number of times an elevation can be built next to or across from the same
elevation;
b) regulate the height of the dwelling in accordance with statute; and
c) regulate the location and size of open space to the extent required by the municipality solely
for stormwater retention as of the effective date and for water conservation.
4. Allows any applicant for an approval that is necessary to obtain a building permit to construct
a single-family, two-family or multifamily building or any housing organization to bring action
in the superior court to enforce the requirements on residential housing design standards.
5. Specifies that the requirements on residential housing design standards do not apply to any
ordinance, code, standard, regulation, guideline, agreement, stipulation or other legal
requirement that is:
a) a requirement of an adopted minimum standard building code, including any local
amendments that are less restrictive than the unamended minimum standard building code;
b) applicable solely to structures located in an area designated as a local district of historical
significance by a municipality in accordance with statute or as historic on the National
Register of Historic Places;
c) applicable solely to structures individually designated as local, state or national historic
landmarks;
d) applied to manufactured homes in a manner consistent with state and federal law;
e) required as a condition of participating in the National Flood Insurance Program;
f) a stipulation on a recorded subdivision plat adopted by the municipality before the effective
date; and
g) required to meet the sound attenuation in accordance with statute.
6. Specifies that the requirement on residential housing design standards does not affect the
validity or enforceability of private covenants or other contractual elements among property
owners relating to dwelling design elements by parties other than the municipality.
7. Specifies that the requirement on residential housing design standards does not apply to:
a) a municipality with a population of fewer than 30,000 persons; or
b) a municipality that is located on tribal land.
8. Defines design element as:
a) the number and variation of floor plans and exterior elevations, including the selection of
the floor plan to be built on each lot;
b) the size and number of stories of the dwelling;
c) the exterior building color and materials;
d) the type of style of exterior cladding materials;
e) the style, materials, shape, pitch and articulation of the roof structure;
f) the style, materials, size, shape and inclusion of porches and patios;
g) the exterior nonstructural architectural ornamentation;
h) the location, architectural styling, materials and size of garages, garage doors and
driveways;
i) the placement and orientation of garage doors relative to the front façade of the living
space; FACT SHEET – Amended
H.B. 2536
Page 3
j) the interior layout and size or rooms, including the interior of the garage, hallways and
floor plan;
k) the location, size and design of open space and amenities, including amenities in common
areas maintained by the property owner, an association or the members of an association;
l) sidewalk placement and design, including requiring detached sidewalks, except as required
by statute and applicable federal law;
m) the design, decoration and landscaping of the rear yard, side yard and any area that is not
visible or accessible to the public; and
n) any other architectural or aesthetic element that does not directly affect an objective and
identified health or safety condition.
Municipal Zoning Regulations
9. Requires a municipality with a population of more than 30,000 persons, outside of the
age-specific community zoning districts, to allow a single-room occupancy to be occupied by
persons 55 years of age and older in other zoning districts as determined by the municipality.
10. Specifies that the ability of the municipality's legislative body to divide a municipality into
zones is for the purpose of ensuring an adequate supply of land zoned for housing for the
municipality's current and future residents.
11. Requires zoning regulations, within zones that allow single-family residential uses in
municipalities with a population of more than 30,000 persons, to allow one accessory dwelling
unit per lot.
12. Allows the accessory dwelling unit to be occupied by a person other than the owner.
13. Allows a municipality to allow more than one accessory dwelling unit per lot and require a
lease for an accessory dwelling unit to have a duration of at least three months.
14. Stipulates that the accessory dwelling unit requirement does not apply to areas designated as a
district of historical significance by a municipality in accordance with statute or as historic on
the National Register of Historic Places.
15. Eliminates the requirement for preliminary and final plats to be approved by a legislative body.
16. Defines accessory dwelling unit as a residential living unit that provides complete independent
living facilities, which may include a kitchen with a range, with one or more persons on the
same parcel as a single-family dwelling and that is smaller in total square footage than the
primary dwelling unit.
17. Stipulates that the definition of accessory dwelling unit includes:
a) a detached unit in the rear or side yard of the lot on which the primary dwelling unit is
located; and
b) a unit that is attached to a single-family unit on the same parcel.
18. Defines single-room occupancy as dwelling units in which residents rent a private bedroom
with shared kitchen and bathroom facilities. FACT SHEET – Amended
H.B. 2536
Page 4
19. Excludes, from the definition of single-room occupancy, sober living homes or assisted living
facilities regulated by the Department of Health Services.
At-Risk Permits
20. Requires a municipality, at the applicant's request and after preliminary plat submittal and
approval from the Arizona Department of Environmental Quality, to issue an at-risk permit for
grading and earthmoving that relates to the property that is subject of the preliminary plat.
21. Specifies that the municipality issuing an at-risk permit does not constitute final preliminary
plat approval or final approval of any grading and drainage plans.
22. Specifies that any work, services or materials accomplished or acquired by the applicant or the
applicant's agents is done at the financial risk of the applicant with no financial liability to the
municipality for issuing the at-risk permit.
23. Allows the municipality to require that all grading and earthmoving be done in compliance
with all municipal codes, ordinances and standards and other legal requirements.
24. Stipulates that the requirement to issue an at-risk permit prior to final plat approval does not
apply to:
a) a municipality with a population of fewer than 30,000 persons;
b) a municipality that is located on tribal land; or
c) land in an area that is designated as a district of historic significance by a municipality in
accordance with statute or as historic on the National Register of Historic Places.
Municipal Housing Assessments
25. Requires each municipality, beginning January 1, 2024, and every five years thereafter, to
publish a housing needs assessment that includes:
a) the total population growth projected for the subsequent five-year period;
b) the total job growth projected for the subsequent five-year period; and
c) the total need for additional residential housing units for rent and for sale in the
municipality to meet:
i. any deficiencies in housing the existing population;
ii. any deficiencies in housing the existing workforce;
iii. the population growth projections;
iv. the jobs growth projections; and
v. the housing needs across all various income levels.
26. Stipulates that a municipality is not required to meet or otherwise fulfill the projections in the
housing needs assessment.
27. Requires each municipality, beginning January 1, 2025, and every year thereafter, to submit
an annual report that provides:
a) the total number of proposed residential housing units submitted to the municipality;
b) the total number of net new residential housing units submitted to the municipality; and
c) the total number of new residential housing units that are entitled, have been platted, have
been issued a building permit and have received a certificate of occupancy by the
municipality. FACT SHEET – Amended
H.B. 2536
Page 5
28. Requires the annual report to also include:
a) the number of housing development applications received in the prior year;
b) the number of lots and multifamily units included in all development applications in the
prior year;
c) the number of lots and multifamily units approved and disapproved or otherwise not
approved in the prior year;
d) the total number of vacant area zoned for single-family, commercial and multifamily
residential uses as a percentage of the municipality's total area at the time of the housing
needs assessment;
e) the status and progress in meeting the municipality's housing needs; and
f) a plan that specifies how the municipality intends to satisfy the identified need for
additional residential housing units within the municipality.
29. Requires the annual report to be submitted to the Arizona Department of Housing (ADOH).
30. Stipulates that the municipal single-family housing needs assessment and annual report
requirements do not apply to a municipality that is located on tribal land or with a population
of fewer than 30,000 persons.
Miscellaneous
31. Defines terms.
32. Makes technical and conforming changes.
33. Becomes effective on the general effective date.
Amendments Adopted by Committee
• Adopted the strike-everything amendment.
Amendments Adopted by Committee of the Whole
1. Applies the prescribed zoning regulations to municipalities with a population of more than
30,000 persons, rather than more than 25,000 persons.
2. Restores the zoning authority of a municipality to establish requirements for off-street parking
and loading.
3. Specifies that the definition of accessory dwelling unit includes a detached unit in the rear or
side yard of the lot on which the primary dwelling unit is located.
4. Eliminates the requirement for preliminary and final plats to be approved by a legislative body.
5. Requires a municipality, at the applicant's request and after preliminary plat submittal and
approval from the Arizona Department of Environmental Quality, to issue an at-risk permit for
grading and earthmoving that relates to the property that is subject of the preliminary plat.
6. Specifies that the municipality issuing an at-risk permit does not constitute final preliminary
plat approval or final approval of any grading and drainage plans. FACT SHEET – Amended
H.B. 2536
Page 6
7. Specifies that any work, services or materials accomplished or acquired by the applicant or the
applicant's agents is done at the financial risk of the applicant with no financial liability to the
municipality for issuing the at-risk permit.
8. Allows the municipality to require that all grading and earthmoving be done in compliance
with all municipal codes, ordinances and standards and other legal requirements.
9. Stipulates that the requirement to issue an at-risk permit prior to final plat approval does not
apply to:
a) a municipality with a population of fewer than 30,000 persons;
b) a municipality that is located on tribal land; or
c) land in an area that is designated as a district of historic significance by a municipality in
accordance with statute or as historic on the National Register of Historic Places.
10. Requires each municipality, beginning January 1, 2024, and every five years thereafter, to
publish a housing needs assessment that includes:
a) the total population growth projected for the subsequent five-year period;
b) the total job growth projected for the subsequent five-year period; and
c) the total need for additional residential housing units for rent and for sale in the
municipality to meet:
i. any deficiencies in housing the existing population;
ii. any deficiencies in housing the existing workforce;
iii. the population growth projections;
iv. the jobs growth projections; and
v. the housing needs across all various income levels.
11. Stipulates that a municipality is not required to meet or otherwise fulfill the projections in the
housing needs assessment.
12. Requires each municipality, beginning January 1, 2025, and every year thereafter, to submit
an annual report that provides:
a) the total number of proposed residential housing units submitted to the municipality;
b) the total number of net new residential housing units submitted to the municipality; and
c) the total number of new residential housing units that are entitled, have been platted, have
been issued a building permit and have received a certificate of occupancy by the
municipality.
13. Requires the annual report to also include:
a) the number of housing development applications received in the prior year;
b) the number of lots and multifamily units included in all development applications in the
prior year;
c) the number of lots and multifamily units approved and disapproved or otherwise not
approved in the prior year;
d) the total number of vacant area zoned for single-family, commercial and multifamily
residential uses as a percentage of the municipality's total area at the time of the housing
needs assessment;
e) the status and progress in meeting the municipality's housing needs; and
f) a plan that specifies how the municipality intends to satisfy the identified need for
additional residential housing units within the municipality. FACT SHEET – Amended
H.B. 2536
Page 7
14. Requires the annual report to be submitted to ADOH.
15. Stipulates that the municipal single-family housing needs assessment and annual report
requirements do not apply to a municipality that is located on tribal land or with a population
of fewer than 30,000 persons.
16. Removes the state preemption and zoning amendment requirements prescribed for residential
zoning districts.
17. Eliminates the modifications to the municipal licensing time frame requirements.
18. Makes technical and conforming changes.
Senate Action
COM 3/22/23 DPA/SE 5-2-0
Prepared by Senate Research
June 12, 2023
JT/sr