HB 2025
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
HB 2025: residential lease community; water; requirements
Sponsor: Representative Griffin, LD 19
Committee on Natural Resources, Energy & Water
Overview
Requires a person applying for a building permit for a detached residential dwelling unit
located in a residential lease community within an active management area (AMA) to obtain
a written commitment of water service or be located on land that qualifies as member land.
History
Someone who plans to sell or lease subdivided lands in an AMA must obtain a certificate of
assured water supply from the Arizona Department of Water Resources (ADWR) or obtain a
commitment for water service from a municipality or private water company with a
designation of assured water supply. Otherwise, a municipality or county cannot approve the
subdivision plat and the State Real Estate Commissioner will not issue a public report
authorizing the sale or lease of the subdivided lands. An assured water supply means:
1) sufficient groundwater, surface water or effluent of adequate quality that will be
legally, physically and continuously available to meet proposed water needs for at
least 100 years;
2) any projected groundwater use that is consistent with the AMA's management plan
and achieving its management goal; and
3) the applicant has demonstrated the financial capability to build the infrastructure
necessary to make water available for the proposed use (A.R.S. § 45-576).
For each AMA in which member lands or service areas are located, a multi-county water
conservation district must replenish groundwater in an amount equal to the groundwater
replenishment obligation for that AMA (A.R.S. § 48-3771).
Member land is any real property that satisfies specified criteria including being located in
an AMA in which a part of the Central Arizona Project aqueduct is located (A.R.S. § 48-3774).
Provisions
1. Prohibits the legislative body of a municipality and county BOS from approving a building
permit for one or more detached residential dwelling units that are located in a residential
lease community within an AMA unless:
a) the residential dwelling units obtain a written commitment of water service from a
municipality or private water company that has an assured water supply designation
or are located on land that qualifies as member land; and
b) the applicant pays all applicable fees and attaches proof of payment to the building
permit application. (Sec. 1 and 2)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2025
Initials EB Page 2 Natural Resources, Energy & Water
2. Requires the legislative body of a municipality and county BOS to note on the face of the
building permit application proof of payment of the applicable fees. (Sec. 1 and 2)
3. Specifies that these provisions do not apply to an existing or planned residential lease
community that applied for or received zoning entitlements by September 30, 2024. (Sec.
1 and 2)
4. Requires a person applying for a building permit for one of more detached residential
dwelling units located in a residential lease community within an AMA to:
a) apply for and obtain a written commitment of water service from a municipality or
private water company that has an assured water supply designation;
b) pay all applicable fees; and
c) attach proof of payment of applicable fees to the building permit application. (Sec. 4)
5. Exempts a person from applying for and obtaining a written commitment of water service
if the residential dwelling units are located on land that qualifies as member land, paid
all applicable fees and attached proof of payment of applicable fees to the building permit
application. (Sec. 4)
6. Requires a District to levy a onetime activation fee against each detached residential
dwelling unit to be constructed within a residential lease community that is enrolled in
member lands and member service areas on or after January 1, 2024. (Sec. 5)
7. Requires the levy to be paid in full at the time of enrollment as member land. (Sec. 5)
8. Adds that real property can qualify as member land if the owner declares that qualifying
as member land benefits the real property by increasing the potential of the property to
qualify for a building permit as a residential lease community. (Sec. 6)
9. Excludes from the definition of improved lot or parcel a condominium that is completely
constructed within four years of the subdivider entering into a contract for sale. (Sec 3)
10. Excludes from the definition of subdivision the construction or leasing of residential
structures that are located on agricultural property, exempt from building codes
requirements and are offered for the purpose of housing agricultural workers. (Sec. 3)
11. Defines residential lease community. (Sec. 1 and 2)
12. Makes technical and conforming changes. (Sec. 4-6)