HB 2487
Initials EB Page 1 Natural Resources, Energy & Water
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
HB 2487: residential lease community; Prescott AMA
Sponsor: Representative Bliss, LD 1
Committee on Natural Resources, Energy & Water
Overview
Allows the legislative body of a municipality and a county board of supervisors (BOS) to
approve a commercial building plan for detached residential dwelling units or for multifamily
residential properties within the Prescott active management area (AMA) provided that the
development: 1) is located within a water service area with an assured water supply
designation; or 2) acquires adequate irrigation grandfathered rights.
History
Grandfathered rights are withdrawal rights based on historic pumping which includes the
five-year period preceding the call for the election or the five-year period preceding the
designation of the AMA (A.R.S. § 45-476)(ADWR).
The Director of the Arizona Department of Water Resources (ADWR) is required to adopt
rules regarding the location of new and replacement wells in new locations in AMAs to
prevent unreasonably increasing damage to surrounding land or other water users from the
concentration of wells. A person with groundwater withdrawal rights in an AMA may
construct a new or replacement well in a new location if the person applies for and receives
a permit from the ADWR Director (A.R.S. § 45-598).
Multifamily residential properties means any real property that has one or more structures
and that contains five or more dwelling units for rent or lease that are subject to the Arizona
Residential Landlord and Tenant Act (A.R.S. § 49-746).
Provisions
1. Allows the legislative body of a municipality and a county BOS to approve a commercial
building plan for one or more detached residential dwelling units located in a residential
lease community or for multifamily residential properties within the Prescott AMA if the
development is located:
a) within the water service area of a municipality or private water company designated
as having an assured water supply and the developers have obtained a written
commitment of water service from a designated provider;
b) outside the service area of a designated provider, the development has acquired
sufficient type one irrigation grandfathered rights to meet the entirety of the annual
water demand of the development and the developer has included a copy of the
relevant notice with their commercial building permit application; or
c) outside of the service area of a designated provider and the development has acquired
sufficient irrigation grandfathered rights to meet the entirety of the annual water
demand of the development. (Sec. 1 and 2)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2487
Initials EB Page 2 Natural Resources, Energy & Water
2. Specifies that the developer must include a copy of the relevant notice change of use for
the type one irrigation grandfathered rights with their commercial building permit
application. (Sec. 1 and 2)
3. States that, for any type two irrigation rights in the expected water portfolio, the
developer must attach proof that the withdrawal will be in the same location as the
original grandfathered right or, if in another location, attach proof of a new groundwater
withdrawal permit that complies with rules regarding withdrawal from new and
replacement wells in an AMA. (Sec. 1 and 2)
4. Specifies that this legislation does not apply to an existing residential lease community,
multifamily residential property, planned residential lease community or planned
multifamily residential property that applied for or received zoning entitlements on or
before December 31, 2024. (Sec. 1 and 2)
5. Requires the legislative body of the municipality and county BOS to note on the face of
any approved commercial building permit for a residential lease community or
multifamily residential property that the applicant has complied with or is exempt from
these requirements. (Sec. 1 and 2)
6. Instructs the Director of ADWR to separately account for the transfer of type two
irrigation grandfathered rights in the Prescott AMA that a developer wishes to use to
secure a commercial building permit. (Sec. 3)
7. Requires ADWR to provide a separate application process for a groundwater user that
wishes to secure a commercial building permit for a residential lease community or for
multifamily residential properties in the Prescott AMA. (Sec. 3)
8. States that the Legislature finds that residential lease communities as defined by this
legislation are a commercial development similar to apartments and other multifamily
properties. (Sec. 4)
9. Defines multifamily residential properties and residential lease community. (Sec. 1-3)