HB 2721
Initials SJ/AC Page 1 Senate Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
House: GOV DP 5-4-0-0 | 3
rd
Read 36-18-6-0
Senate: FICO DPA 6-1-0-0 | 3
rd
Read 21-7-2-0
HB 2721: municipal zoning; middle housing
Sponsor: Representative Carbone, LD 25
Senate Engrossed
Overview
Adopts requirements for middle housing development.
History
Current statute enumerates the general powers of cities and towns. Municipalities have the
authority to buy, sell and lease property, provide for the construction or rehabilitation of
housing development projects or areas and issue building permits (A.R.S. Title 9, Chapter 4).
Provisions
1. Stipulates that by January 1, 2026, a city or town with 75,000 or more people must
authorize by ordinance and incorporate the development of duplexes, triplexes,
fourplexes, fiveplexes and townhomes as a permitted use on all lots zoned for single-
family residential use into its development regulations, zoning regulations and other
official controls. (Sec. 1)
2. Prohibits a city or town from:
a) discouraging the development of middle housing through unreasonable costs, fees, or
delays or other requirements and actions which individually or cumulatively make
impracticable the permitting, siting or construction of middle housing;
b) restricting middle housing types to less than two floors or a floor area ratio of less
than one;
c) setting restrictions or processes for middle housing that are more restrictive than
single-family dwellings in the same zone;
d) requiring owner occupancy of structures on the lot; or
e) requiring structures to comply with commercial building codes or contain fire
sprinklers. (Sec. 1)
3. Requires a city or town to allow a property owner to determine the location, number and
form of off-street vehicle parking spaces. (Sec. 1)
4. Specifies that this Act does not prohibit a municipality governing body from allowing:
a) single-family dwellings in areas zoned for single-family dwellings; or
b) additional types of middle housing not required by this Act. (Sec. 1)
5. Exempts middle housing requirements from applying to:
a) unincorporated areas;
b) areas lacking sufficient urban services;
c) areas not serviced by municipal water and sewer services;
d) areas not zoned for residential use; and HB 2721
Initials SJ/AC Page 2 Senate Engrossed
e) unincorporated areas zoned under an interim zoning designation that maintains the
area's potential for planned urban development. (Sec. 1)
6. Declares that middle housing is allowed on all lots zoned for single-family residential use
in a municipality without limitations if the city or town does not adopt required middle
housing regulations by January 1, 2026. (Sec. 1)
7. Defines:
a) duplex;
b) fiveplex;
c) floor area ratio;
d) fourplex;
e) household;
f) middle housing;
g) permitted use;
h) townhouses; and
i) triplex. (Sec. 1)
Senate Amendments
1. Clarifies that a municipality with a population exceeding 75,000 people must authorize,
by ordinance and development regulations, middle housing as a permitted use on:
a) all lots zoned for single-family residential use within one mile of the central
business district of the municipality; and
b) at least 20% of any new development more than 10 contiguous acres.
2. Removes the prohibition on a municipality from discouraging the development of middle
housing through unreasonable costs, delays or fees.
3. Prohibits a municipality from restricting middle housing types to a floor area ratio less
than 50%, rather than a floor area ratio less than one.
4. Prohibits a municipality from requiring more than one off-street parking space per unit.
5. Removes the requirement for a municipality to allow a property owner to determine the
location, number and form of off-street vehicle parking spaces.
6. Clarifies that middle housing requirements do not apply to areas that are not served by
water and sewer services, rather than by municipal water and sewer services.
7. Asserts that middle housing requirements do not apply to:
a) areas covered under statute relating to alternative form of government for
domestic water and wastewater improvement districts;
b) any land within the territory in the vicinity of a public airport or to the extent that
middle housing requirements would interfere with a public airport's ability to
comply with laws, regulations and requirements of the United States related to
applying for, receiving or spending federal monies; or
c) any land within the territory in the vicinity of a military airport.
8. Establishes that middle housing requirements do not change or otherwise impair the
terms of any development agreement that exists on the general effective date.
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2721
Initials SJ/AC Page 3 Senate Engrossed
9. Stipulates that a utility provider impacted by a development being developed in
accordance with middle housing requirements must have the opportunity to review and
approve the site plan for the development.
10. Defines building code and central business district.
11. Redefines the following terms:
a) duplex;
b) fourplex; and
c) triplex.
12. Removes the definition of fiveplexes.
13. Makes technical and conforming changes.