Assigned to FICO AS PASSED BY COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
AMENDED
FACT SHEET FOR H.B. 2720
accessory dwelling units; requirements
Purpose
Requires certain municipalities to adopt regulations that allow accessory dwelling units
(ADUs) on any lot or parcel where a single-family dwelling is allowed. Outlines development
standards for the ADUs.
Background
Current statute requires each municipality's planning agency and governing body to prepare
and adopt, in coordination with the Arizona State Land Department, a comprehensive, long-range
general plan for the development of the municipality. The general plan must include a statement
of community goals and development policies, including maps and plan proposals (A.R.S.
§ 9-461.05). After a municipality has adopted a general plan, or plan amendment, the planning
agency must investigate and make recommendations to the governing body for putting into effect
the general plan in order that it will serve as a pattern and guide for the orderly growth and
development of the municipality. The measures recommended may include plans, regulations,
financial reports and capital budgets (A.R.S. § 9-461.07). The planning agency may, and if so
directed by the governing body must, prepare specific plans based on the general plan and drafts
of such regulations, programs and legislation as may be required for the systematic execution of
the general plan, including zoning ordinances and subdivision regulations (A.R.S. § 9-461.08).
Municipalities are authorized to adopt zoning ordinances and codes to conserve and promote
the public health, safety, convenience and general welfare. A municipality may: 1) regulate the
use of buildings, structures and land between agriculture residence, industry and business;
2) regulate the location, height, bulk, number of stories and size of buildings and structures, the
size and use of lots, yards, courts and other open spaces, the percentage of a lot that may be
occupied by a building or structure, access to incident solar energy and the intensity of land use;
3) establish requirements for off-street parking and loading; 4) establish and maintain building
setback lines; and 5) establish floodplain and age-specific community zoning districts and districts
of historical significance (A.R.S. § 9-462.01).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires a municipality with a population of more than 75,000 persons to adopt regulations
that allow on any lot or parcel where a single-family dwelling is allowed all of the following:
a) at least one attached, detached or internal ADU as a permitted use;
b) a minimum of one additional ADU as a permitted use for each ADU on the lot or parcel
that is a restricted-affordable dwelling unit; and FACT SHEET – Amended
H.B. 2720
Page 2
c) an ADU that is 75 percent of the gross floor area of the single-family dwelling on the
same lot or parcel or 1,000 square feet, whichever is less.
2. Prohibits a municipality from:
a) prohibiting the use or advertisement of either the single-family dwelling or any ADU
located on the same lot or parcel as separately leased long-term rental housing;
b) requiring a familial, marital, employment or other preexisting relationship between the
owner or occupant of a single-family dwelling and the occupant of an ADU located on
the same lot or parcel;
c) prohibiting or requiring kitchen facilities in an ADU;
d) requiring that a lot or parcel have additional parking to accommodate an ADU or requiring
payment of fees instead of additional parking;
e) requiring that an ADU match the exterior design, roof pitch or finishing materials of the
single-family dwelling that is located on the same lot as the ADU;
f) setting restrictions for ADUs that are more restrictive than those for single-family
dwellings within the same zoning area with regard to height, setbacks, lot size or coverage
or building frontage;
g) setting rear or side setbacks for ADUs that are more than five feet from the property line;
h) requiring improvements to public streets as a condition of allowing an ADU, except as
necessary to reconstruct or repair a public street that is disturbed as a result of the
construction of the ADU; or
i) requiring a restrictive covenant concerning an ADU on a lot or parcel zoned for residential
use by a single-family dwelling.
3. Specifies that the ADU requirements do not prohibit restrictive covenants concerning ADUs
entered into between private parties.
4. Prohibits a municipality from conditioning a permit, license or use of an ADU on adopting
or implementing a restrictive covenant between private parties.
5. Specifies that the ADU requirements do not supersede applicable building codes, fire codes
or public health and safety regulations.
6. Prohibits a municipality from requiring an ADU to comply with a commercial building code
or contain a fire sprinkler.
7. Requires, if a municipality fails to adopt the ADU requirements by January 1, 2025, ADUs
to be allowed on all lots or parcels zoned for residential use in the municipality without limits.
8. Defines ADU as a self-contained living unit that is on the same lot or parcel as a single-family
dwelling of greater square footage than the ADU, that includes its own sleeping and sanitation
facilities and that may include its own kitchen facilities.
9. Defines gross floor area as the interior habitable area of a single-family dwelling or an ADU.
10. Defines long-term rental as rental use in which the tenant holds a lease of 90 days or longer
or on a month-by-month basis. FACT SHEET – Amended
H.B. 2720
Page 3
11. Defines municipality as a city or town that exercises zoning powers in accordance with
statute.
12. Defines kitchen facilities as a sink, refrigerator and a significant cooking appliance, including
a range, stove, oven or microwave oven.
13. Defines permitted use as the ability for a development to be approved without requiring a
public hearing, variance, conditional use permit, special permit or special exception, other
than a discretionary zoning action to determination that a site plan conforms with applicable
zoning regulations.
14. Defines restricted-affordable dwelling unit as a dwelling unit that, either through a deed
restriction or a development agreement with the municipality, must be rented to households
earning up to 80 percent of area median income.
15. Becomes effective on the general effective date.
Amendments Adopted by Committee
• Modifies the definition of restricted-affordable dwelling unit to mean a dwelling unit that
must be rented, rather than rented or sold, to households earning up to 80 percent of area
median income.
House Action Senate Action
GOV 2/14/24 DP 6-3-0-0 FICO 3/18/24 DPA 6-1-0
3
rd
Read 3/4/24 46-14-0-0
Prepared by Senate Research
March 25, 2024
JT/cs