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| 53 | 64 | | An Act |
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| 57 | 68 | | amending title 9, chapter 4, article 6.4, Arizona Revised Statutes, by adding section 9-469; amending title 11, chapter 2, article 9, Arizona Revised Statutes, by adding section 11-324; amending title 45, chapter 2, article 9, Arizona Revised Statutes, by adding section 45-581; relating to building permits. |
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| 61 | 72 | | (TEXT OF BILL BEGINS ON NEXT PAGE) |
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| 65 | 76 | | Be it enacted by the Legislature of the State of Arizona: Section 1. Title 9, chapter 4, article 6.4, Arizona Revised Statutes, is amended by adding section 9-469, to read: START_STATUTE9-469. Residential lease communities; building permits; water supply; exception; definitions A. The legislative body of a municipality may approve a commercial building plan for one or more detached residential dwelling units that are located in a residential lease community or for multifamily residential properties within the prescott active management area only if one of the following applies: 1. The development is located within the water service area of a city, town or private water company that is designated as having an assured water supply and the developers have obtained a written commitment of water service from a designated provider and provided that commitment with the developer's application for a commercial building permit. 2. The development is located outside of 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 of change of use with the developer's application for a commercial building permit. 3. The development is located 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. For the municipality to approve the commercial building permit, the developer shall include a copy of the relevant notice change of use for the type one irrigation grandfathered rights with the developer's application for a commercial building permit. For any type two irrigation rights in the expected water portfolio, the developer shall attach proof that the withdrawal will be in the same location as the original grandfathered right or, if in another location, the developer shall attach proof that the developer has received approval of a new groundwater withdrawal permit which complies with rules adopted pursuant to section 45-598, subsection A. B. This section 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 that received zoning entitlements on or before December 31, 2024. C. The legislative body of the municipality shall 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 this section or is exempt from this section pursuant to subsection C of this section. D. For the purposes of this section: 1. "Multifamily residential properties" has the same meaning prescribed in section 49-746. 2. "Residential lease community": (a) Means six or more detached residential dwelling units on one or more lots, parcels or fractional interests, without regard to the zoning classification of the lots, parcels or fractional interests, that are intended to be offered for the purpose of lease, whether immediate or future, without regard to the lease term, under a common promotional plan as defined in section 32-2101. (b) Does not include the construction, provision or leasing of residential structures that are located on agricultural property, that are exempt from title 11, chapter 6, article 5 as prescribed by section 11-865, subsection A, paragraph 1 and that are offered for the purpose of housing persons who are agricultural workers. END_STATUTE Sec. 2. Title 11, chapter 2, article 9, Arizona Revised Statutes, is amended by adding section 11-324, to read: START_STATUTE11-324. Residential lease communities; building permits; water supply; exception; definitions A. The board of supervisors may approve a commercial building plan for one or more detached residential dwelling units that are located in a residential lease community or for multifamily residential properties within the prescott active management area only if one of the following applies: 1. The development is located within the water service area of a city, town or private water company that is designated as having an assured water supply and the developers have obtained a written commitment of water service and provided that commitment with the developer's application for a commercial building permit. 2. The development is located outside of 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 change of use with the developer's application for a commercial building permit. 3. The development is located 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. For the board of supervisors to approve the commercial building permit, the developer shall include a copy of the relevant notice change of use for the type one irrigation grandfathered rights with the developer's application for a commercial building permit. For any type two irrigation rights in the expected water portfolio, the developer shall attach proof that the withdrawal will be in the same location as the original grandfathered right or, if in another location, the developer shall attach proof the developer has received approval of a new groundwater withdrawal permit which complies with rules adopted pursuant to section 45-598, subsection A. B. This section 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 that received zoning entitlements on or before December 31, 2024. C. The board of supervisors shall 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 this section or is exempt from this section pursuant to subsection B of this section. D. For the purposes of this section: 1. "Multifamily residential properties" has the same meaning prescribed in section 49-746. 2. "Residential lease community": (a) Means six or more detached residential dwelling units on one or more lots, parcels or fractional interests, without regard to the zoning classification of the lots, parcels or fractional interests, that are intended to be offered for the purpose of lease, whether immediate or future, without regard to the lease term, under a common promotional plan as defined in section 32-2101. (b) Does not include the construction, provision or leasing of residential structures that are located on agricultural property, that are exempt from chapter 6, article 5 of this title as prescribed by section 11-865, subsection A, paragraph 1 and that are offered for the purpose of housing persons who are agricultural workers. END_STATUTE Sec. 3. Title 45, chapter 2, article 9, Arizona Revised Statutes, is amended by adding section 45-581, to read: START_STATUTE45-581. Prescott AMA; commercial building permits; application process; definitions A. The director shall separately account for the transfer of type two irrigation grandfathered rights in the prescott active management area that a developer wishes to use to secure a commercial building permit pursuant to section 9-469 or 11-324. The department shall provide a separate application process consistent with sections 9-469 and 11-324 and rules adopted pursuant to section 45-598, subsection A 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 active management area. B. For the purposes of this section: 1. "Multifamily residential properties" has the same meaning prescribed in section 45-746. 2. "residential lease community" has the same meaning prescribed in sections 9-469 and 11-324. END_STATUTE Sec. 4. Legislative finding The legislature finds that residential lease communities as defined by this act are a commercial development similar to apartments and other multifamily properties. |
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| 66 | 77 | | |
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| 67 | 78 | | Be it enacted by the Legislature of the State of Arizona: |
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| 68 | 79 | | |
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| 69 | 80 | | Section 1. Title 9, chapter 4, article 6.4, Arizona Revised Statutes, is amended by adding section 9-469, to read: |
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| 70 | 81 | | |
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| 71 | 82 | | START_STATUTE9-469. Residential lease communities; building permits; water supply; exception; definitions |
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| 72 | 83 | | |
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| 73 | 84 | | A. The legislative body of a municipality may approve a commercial building plan for one or more detached residential dwelling units that are located in a residential lease community or for multifamily residential properties within the prescott active management area only if one of the following applies: |
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| 74 | 85 | | |
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| 75 | 86 | | 1. The development is located within the water service area of a city, town or private water company that is designated as having an assured water supply and the developers have obtained a written commitment of water service from a designated provider and provided that commitment with the developer's application for a commercial building permit. |
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| 76 | 87 | | |
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| 77 | 88 | | 2. The development is located outside of 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 of change of use with the developer's application for a commercial building permit. |
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| 78 | 89 | | |
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| 79 | 90 | | 3. The development is located 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. For the municipality to approve the commercial building permit, the developer shall include a copy of the relevant notice change of use for the type one irrigation grandfathered rights with the developer's application for a commercial building permit. For any type two irrigation rights in the expected water portfolio, the developer shall attach proof that the withdrawal will be in the same location as the original grandfathered right or, if in another location, the developer shall attach proof that the developer has received approval of a new groundwater withdrawal permit which complies with rules adopted pursuant to section 45-598, subsection A. |
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| 80 | 91 | | |
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| 81 | 92 | | B. This section 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 that received zoning entitlements on or before December 31, 2024. |
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| 82 | 93 | | |
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| 83 | 94 | | C. The legislative body of the municipality shall 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 this section or is exempt from this section pursuant to subsection C of this section. |
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| 84 | 95 | | |
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| 85 | 96 | | D. For the purposes of this section: |
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| 86 | 97 | | |
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| 87 | 98 | | 1. "Multifamily residential properties" has the same meaning prescribed in section 49-746. |
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| 88 | 99 | | |
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| 89 | 100 | | 2. "Residential lease community": |
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| 90 | 101 | | |
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| 91 | 102 | | (a) Means six or more detached residential dwelling units on one or more lots, parcels or fractional interests, without regard to the zoning classification of the lots, parcels or fractional interests, that are intended to be offered for the purpose of lease, whether immediate or future, without regard to the lease term, under a common promotional plan as defined in section 32-2101. |
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| 92 | 103 | | |
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| 93 | 104 | | (b) Does not include the construction, provision or leasing of residential structures that are located on agricultural property, that are exempt from title 11, chapter 6, article 5 as prescribed by section 11-865, subsection A, paragraph 1 and that are offered for the purpose of housing persons who are agricultural workers. END_STATUTE |
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| 94 | 105 | | |
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| 95 | 106 | | Sec. 2. Title 11, chapter 2, article 9, Arizona Revised Statutes, is amended by adding section 11-324, to read: |
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| 96 | 107 | | |
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| 97 | 108 | | START_STATUTE11-324. Residential lease communities; building permits; water supply; exception; definitions |
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| 98 | 109 | | |
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| 99 | 110 | | A. The board of supervisors may approve a commercial building plan for one or more detached residential dwelling units that are located in a residential lease community or for multifamily residential properties within the prescott active management area only if one of the following applies: |
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| 100 | 111 | | |
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| 101 | 112 | | 1. The development is located within the water service area of a city, town or private water company that is designated as having an assured water supply and the developers have obtained a written commitment of water service and provided that commitment with the developer's application for a commercial building permit. |
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| 102 | 113 | | |
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| 103 | 114 | | 2. The development is located outside of 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 change of use with the developer's application for a commercial building permit. |
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| 104 | 115 | | |
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| 105 | 116 | | 3. The development is located 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. For the board of supervisors to approve the commercial building permit, the developer shall include a copy of the relevant notice change of use for the type one irrigation grandfathered rights with the developer's application for a commercial building permit. For any type two irrigation rights in the expected water portfolio, the developer shall attach proof that the withdrawal will be in the same location as the original grandfathered right or, if in another location, the developer shall attach proof the developer has received approval of a new groundwater withdrawal permit which complies with rules adopted pursuant to section 45-598, subsection A. |
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| 106 | 117 | | |
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| 107 | 118 | | B. This section 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 that received zoning entitlements on or before December 31, 2024. |
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| 108 | 119 | | |
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| 109 | 120 | | C. The board of supervisors shall 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 this section or is exempt from this section pursuant to subsection B of this section. |
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| 110 | 121 | | |
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| 111 | 122 | | D. For the purposes of this section: |
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| 112 | 123 | | |
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| 113 | 124 | | 1. "Multifamily residential properties" has the same meaning prescribed in section 49-746. |
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| 114 | 125 | | |
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| 115 | 126 | | 2. "Residential lease community": |
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| 116 | 127 | | |
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| 117 | 128 | | (a) Means six or more detached residential dwelling units on one or more lots, parcels or fractional interests, without regard to the zoning classification of the lots, parcels or fractional interests, that are intended to be offered for the purpose of lease, whether immediate or future, without regard to the lease term, under a common promotional plan as defined in section 32-2101. |
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| 118 | 129 | | |
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| 119 | 130 | | (b) Does not include the construction, provision or leasing of residential structures that are located on agricultural property, that are exempt from chapter 6, article 5 of this title as prescribed by section 11-865, subsection A, paragraph 1 and that are offered for the purpose of housing persons who are agricultural workers. END_STATUTE |
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| 120 | 131 | | |
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| 121 | 132 | | Sec. 3. Title 45, chapter 2, article 9, Arizona Revised Statutes, is amended by adding section 45-581, to read: |
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| 122 | 133 | | |
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| 123 | 134 | | START_STATUTE45-581. Prescott AMA; commercial building permits; application process; definitions |
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| 124 | 135 | | |
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| 125 | 136 | | A. The director shall separately account for the transfer of type two irrigation grandfathered rights in the prescott active management area that a developer wishes to use to secure a commercial building permit pursuant to section 9-469 or 11-324. The department shall provide a separate application process consistent with sections 9-469 and 11-324 and rules adopted pursuant to section 45-598, subsection A 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 active management area. |
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| 126 | 137 | | |
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| 127 | 138 | | B. For the purposes of this section: |
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| 128 | 139 | | |
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| 129 | 140 | | 1. "Multifamily residential properties" has the same meaning prescribed in section 45-746. |
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| 130 | 141 | | |
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| 131 | 142 | | 2. "residential lease community" has the same meaning prescribed in sections 9-469 and 11-324. END_STATUTE |
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| 132 | 143 | | |
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| 133 | 144 | | Sec. 4. Legislative finding |
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| 134 | 145 | | |
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| 135 | 146 | | The legislature finds that residential lease communities as defined by this act are a commercial development similar to apartments and other multifamily properties. |
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