Assigned to FICO FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
FACT SHEET FOR S.B. 1506
municipalities; housing; commercial redevelopment; zoning
Purpose
Requires certain municipalities to allow, as a permitted use, residential or mixed use on at
least 75 percent of its land zoned for commercial, office, retail or parking use. Outlines
development standards for the residential or mixed use projects.
Background
Statute authorizes municipalities 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).
The governing body of a municipality must adopt by ordinance a citizen review process
that applies to all rezoning and specific plan applications that require a public hearing. The citizen
review process must include at least: 1) notifying adjacent landowners and other potentially
affected citizens of the application; 2) informing adjacent landowners and other potentially
affected citizens on the substance of the proposed rezoning; and 3) providing adjacent landowners
and other potentially affected citizen an opportunity to express any issues or concerns regarding
the rezoning. Any zoning ordinances that propose to change property from one zone to another,
that imposes any regulation not previously imposed or that removes any such regulation previously
imposed must be adopted following procedures in accordance with the citizen review process and
in the manner set for public hearings (A.R.S. § 9-462.03).
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 150,000 persons that is designated, in
whole or in part, as an urban area by the U.S. Census Bureau to adopt regulations that allow,
as a permitted use, residential or mixed use on at least 75 percent of land located in the
municipality that is zoned for commercial, office, retail or parking use. FACT SHEET
S.B. 1506
Page 2
2. Allows a municipality to impose the following restrictions on a new structure being developed
into a residential or mixed use project:
a) a maximum height equal to or greater than two stories;
b) a maximum length of 90 feet;
c) a maximum width of 40 feet or more;
d) a minimum building separation of up to 10 feet; and
e) for any portion of a structure that adjoins a single-family lot, setbacks of up to 5 feet for
the first floor and up to 10 feet for any floor above the first.
3. Allows a municipality to impose the following restrictions on a structure being converted to
residential or mixed use through an adaptive reuse project:
a) a maximum height, length or width beyond that of the original building or the maximum
for a new building, whichever is greater; and
b) for any newly added portion of a building that adjoins a single-family lot, setbacks up to 5
feet for the first floor and up to 10 feet for any floor above the first.
4. Allows a municipality, for a commercial redevelopment area, to impose a maximum lot size
as long as any building may be accommodated in any location where it would otherwise be
allowed.
5. Allows a municipality, for a commercial redevelopment area and for a site greater than one-
half acre, to require up to one parking space per dwelling, provided the following are allowed:
a) the property owner can determine the location and form of off-street parking spaces;
b) required parking can be located on a different lot or parcel than the building it serves; and
c) all on-street parking spaces within the commercial redevelopment area can be counted
toward required parking.
6. Allows a municipality, for a commercial redevelopment area, to impose requirements related
to the location of and access to:
a) public rights-of-ways;
b) public sidewalks; and
c) public parks.
7. Prohibits a municipality, for a commercial redevelopment area, from adopting or enforcing
any code, ordinance, regulation, standard, stipulation or other requirements that directly or
indirectly require:
a) zoning restrictions related to density beyond those allowed by statute;
b) screening, walls or fences; or
c) a shared feature or amenity that would require a homeowners' association, a condominium
association or any other association to maintain the shared feature or amenity, unless
necessary for stormwater management.
8. Stipulates that the development regulations do not supersede applicable building codes, fire
codes or public health and safety regulations.
9. Requires, if a municipality fails to adopt the development regulations by January 1, 2025,
residential housing to be allowed on all land zoned for office, retail, parking or other
commercial use without limitations beginning January 2, 2025. 10. FACT SHEET
S.B. 1506
Page 3
10. Defines adaptive reuse as a development that retains at least two exterior walls of an existing
building.
11. Defines commercial redevelopment area as both of the following:
a) all parcels or lots that are redeveloped as residential or mixed use and that are touching
each other or separated only by a right-of-way; and
b) any portion of a right-of-way that adjoins a redeveloped parcel or lot except if only one
side of a street is adjoining, the commercial redevelopment area extends only to the
midpoint of the street's width.
12. Defines permitted use as the ability for a development to be approved without requiring a
public hearing, variance, conditional use permit, special permit or a special exception, other
than a discretionary zoning action to determination that a site plan conforms with applicable
zoning regulations.
13. Defines zoning restriction related to density as any zoning requirement that restricts the
number, size or location of buildings, lots or dwelling units, including:
a) setbacks;
b) floor area ratio;
c) lot coverage;
d) yard size;
e) dimensions; and
f) dwelling unit density.
14. Excludes from the definition of zoning restriction related to density a standard utility easement.
15. Becomes effective on the general effective date.
Prepared by Senate Research
February 8, 2024
JT/cs