Assigned to FICO FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
FACT SHEET FOR H.B. 2101
land division; applicant submissions; review
Purpose
Modifies requirements for applications related to construction and sale of homes and the
division of parcels of land.
Background
A subdivision or subdivided land is improved or unimproved land divided or proposed to
be divided for the purpose of sale or lease, whether immediate or future, into six or more lots,
parcels or fractional interests, including: 1) a stock cooperative; 2) lands divided or proposed to be
divided as part of a common promotion plan; and 3) residential condominiums. Leasehold
offerings of one year or more are exempt from the classification of subdivision or subdivided lands
(A.R.S. § 32-2101).
A county board of supervisors (county BOS) must approve any land divisions of five or
fewer lots, parcels or fractional interests, any of which is 10 acres or smaller in size, if the land
division meets outlined requirements. A person or group of persons may not act in concert to
attempt to avoid the requirements to divide a parcel of land or sell subdivision lots by using a series
of owners or conveyances or by any other method that ultimately results in the division of lands
into a subdivision or the sale of subdivided land (A.R.S. §§ 11-831 and 32-2181).
A creation of six or more lots, parcels or fractional interests in improved or unimproved
land, lots or parcels of any size is exempt from requirements regarding the application for and
division of subdivisions (lot creation exemption) in certain circumstances, including if the State
Real Estate Commissioner (Commissioner), by special order, exempts offerings or dispositions of
any lots, parcels or fractional interests from compliance on written petition and on a showing
satisfactory to the Commissioner that compliance is not essential to the public interest or for the
protection of buyers (A.R.S. § 32-2181).
Except in cities and towns that have no ordinance relating to the issuance of building
permits, a county BOS must require a building permit for any construction within its jurisdiction
of a building or an addition to a building exceeding a cost of $1,000 (A.R.S. § 11-231).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Requires an applicant for a building permit for new construction of a residential single-family
home to identify any ownership interests in the property that is the subject of the permit. FACT SHEET
H.B. 2101
Page 2
2. Adds, to the qualifications required for a county BOS to approve an application to split a parcel
of land, outlined questions regarding ownership and representation of property that is in the
same tax parcel map or subdivision as the lots, parcels or fractional interests that are the subject
of the application.
3. Requires an applicant for a land division to disclose any ownership interest in the properties
that are the subject of the land division application.
4. Prescribes an attestation that must be included in an application for a land division.
5. Adds, to the list of lot creation exemptions, lots, parcels or fractional interests owned by a
licensed financial institution in Arizona as a result of foreclosure and are being sold by the
financial institution by an Arizona real estate licensee, if limited to those that have been
included with a previous public report when the public report was approved within the last 10
years and no material changes have occurred within the public report.
6. Adds a specification to the special order exemption that lots, parcels or fractional interests
where compliance is not essential to the public interest or for the protection of buyers include,
but are not limited to, those that have been included with a previous public report approved
within the last 10 years where the applicant for an exemption attests that there are no material
changes altering the facts of the public report.
7. Makes technical and conforming changes.
8. Becomes effective on the general effective date.
House Action
LARA 1/29/24 DPA 9-0-0-0
3
rd
Read 2/15/24 58-0-1-0-1
Prepared by Senate Research
February 29, 2024
RA/SDR/cs