SB 1161
Initials PRB Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
First Regular Session
Senate: JUD DPA 6-0-1-0 | 3
RD
Read 30-0-0-0
House: COM DPA/SE 7-3-0-0
SB 1161: probation; work time credits; reporting
NOW: affordable housing; development standards; report
Sponsor: Senator Kaiser, LD 2
House Engrossed
Overview
Requires municipalities to allow by right the construction of low-income multifamily residential
rental property and establishes municipal reporting requirements relating to housing needs.
History
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 (Title 9, Ch.4, Art. 6.1, A.R.S.). 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 on 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 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 and in the
manner set for public hearings (A.R.S. § 9-462.03).
A low-income multifamily residential rental property is a multifamily residential property to which:
1) The owner received an allocation of federal income tax credits through the low-income
housing tax credit program;
2) The property remains both income and rent restricted consistent with the low-income
housing tax credit program and the provisions of the declaration of affirmative land use
restrictive covenants agreement recorded on the property. The requirement of this
subdivision is met if an affirmative land use restrictive covenants agreement is not yet
recorded on the property but the property is otherwise subject to both income and rent
restrictions under the low-income housing tax credit program; and
3) A federal, state or tribal court has not entered a judgment or order based on a finding that
an act or omission of an owner or operator of the property constitutes a breach or violation
of either:
a) The declaration of affirmative land use restrictive covenants agreement recorded on
the property.
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1161
Initials PRB Page 2 House Engrossed
b) Restrictions under the low-income housing tax credit program imposed on the property
but not contained within an affirmative land use restrictive covenants agreement.
c) The restrictions apply to all units on the property except employee units.
Provisions
Housing Needs Assessment
1. Requires, beginning January 1, 2024, and every five years thereafter, a municipality to publish
a housing needs assessment, which at a minimum includes:
a) the total population growth and total job growth projected for the subsequent five-year
period; and
b) 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 and workforce;
ii. the population growth and jobs growth projections; and
iii. the housing needs across all various income levels. (Sec. 2)
2. Instructs a municipality, beginning January 1, 2025, and every year thereafter, to submit an
annual report to the Department of Housing that accounts for:
a) the total number of proposed residential housing units and the total number of net new
residential housing units submitted to the municipality; and
b) 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. (Sec. 2)
3. Outlines additional factors that the submitted report must include. (Sec. 2)
4. Specifies the requirement to publish a housing needs assessment does not require the
municipality to meet or otherwise fulfill the projections stated in the assessment. (Sec. 2)
5. Excludes, from the assessment and reporting requirement, a municipality that is located on
tribal land or that has a population of less than 30,000. (Sec. 2)
Miscellaneous
6. Requires, by January 1, 2024, certain municipalities to allow by right the construction of low-
income multifamily residential rental property, in any existing commercial, mixed-use or
multifamily residentially zoned district within one-half mile of a light rail or streetcar stop, with
specified development standards. (Sec. 1)
7. Prohibits a municipality from requiring a general plan amendment, use permit or review by a
board or commission for construction of low-income multifamily residential rental property.
(Sec. 1)
8. Excludes, from the requirement to allow the construction of low-income multifamily residential
rental property, any:
a) land in the immediate vicinity of a municipal airport;
b) territory in the vicinity of a military airport or ancillary military facility; or
c) area where an existing mobile home park may be displaced. (Sec. 1)
9. Asserts every political subdivision of Arizona must give preference to state residents for any
available low-income housing assistance payments or tenant-based assistance pursuant to
the federal Housing Act of 1937. (Sec. 3)