SB 1543
Initials LM Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
Senate: FIN DP 7-0-0-0 | 3rd Read 28-0-2-0
House: IT DPA/SE 8-0-0-2
SB1543: homestead exemption; equity increase
NOW: ancillary use; international headquarters campus
Sponsor: Senator Carroll, LD 28
House Engrossed
Overview
Prescribes specified requirements for municipal ancillary use and multifamily residential
housing. Directs a municipality of 200,000 or more but less than 500,000 persons to allow
hotel use and multifamily residential housing as an allowed ancillary use in a zoning district
that permits light industrial use without requiring any type of application needing a public
hearing if the ancillary use is located within an international headquarters campus.
History
The planning agency may, or if directed by the legislative body must, prepare specific plans
based on the general plan and drafts of such regulations, programs and legislation as may in
the judgment of the agency be required for the systematic execution of the general plan.
Specific plans may, in addition to recommended zoning ordinances and subdivision
regulations, include regulations determining the location of buildings and other
improvements with respect to existing rights-of-way, floodplains and public facilities and
regulations of the use of land, buildings and structures, the height and bulk of buildings and
structures and the open spaces around buildings and structures, among others (A.R.S § 9-
461.08).
The objective standards required by a municipality for a multifamily residential development
are required to include 1) a municipal site plan review and approval process, including review
by any utility provider impacted by the proposed development, 2) adequate public sewer and
water service for the entire proposed development, 3) compliance with all applicable building
and fire codes, 4) that the existing buildings are economically or functionally obsolete, 5) that
existing buildings are located on a parcel or parcels that are at least one acre in size but not
more than 20 acres in size and 6) a set-aside of 10% of the total dwelling units for either
moderate or low-income housing or any combination of the two or at least 20 years after the
initial occupation of the proposed development. The developer may set aside more than 10%
at the developer's sole discretion (A.R.S. § 9-462.10).
Provisions
1. Requires a municipality with a population of 200,000 or more persons but less than
500,000 persons to allow hotel use and multifamily residential housing as an allowed
ancillary use on land that is vacant as of the date of the application for the allowed
ancillary use in a zoning district that allows light industrial use without requiring any
type of application requiring a public hearing if the ancillary use:
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1543
Initials LM Page 2 House Engrossed
a) Is located within an international headquarters campus (campus) solely owned by
either a single entity or related entities at the time that development of the campus
commences and, on completion, the international headquarters will employ more than
1,000 full-time employees at an average annual compensation over 125% of the
median wage of the county where the campus is located; and
b) If the campus containing the ancillary use is bound by a recorded instrument
enforceable by the municipality, and:
i. Restricts occupancy in at least 30% of the multifamily residential housing units
on campus to international headquarters employees, police officers, firefighters,
teachers, veterans or health care workers and who work within five miles of the
campus or who are families of employees of the international headquarters as
outlined; and
ii. Prohibits an agreement for occupancy of any multifamily residential housing unit
within the campus for a period of less than 90 consecutive days and limits
occupancy to the same occupants for the entirety of the 90 days unless a tenant is
an employee or contractor of an entity located within the campus, as specified.
(Sec. 1)
2. Subjects an ancillary use to compliance with all applicable municipal building codes and
fire codes and the objective development standards. (Sec. 1)
3. Restricts the governing body of the municipality from unreasonably withholding a
building permit or delay a building inspection or a certificate of occupancy for an ancillary
use that complies with one of the prescribed requirements. (Sec. 1)
4. Directs a municipality to allow complementary retail and restaurant use within the
campus for campuses that include hotel use or multifamily residential housing units as
an ancillary use. (Sec. 1)
5. Applies objective standards to an ancillary use building developed as prescribed. (Sec. 1)
6. Mandates that a building permit for a developed ancillary use building may not be
obtained until the municipality issues a building permit for construction of the
international headquarters building. (Sec. 1)
7. Asserts that a certificate of occupancy may not be granted for a developed ancillary use
building before the municipality grants a certificate of occupancy for the international
headquarters building. (Sec. 1)
8. Mandates that a certificate of occupancy must be granted for a developed ancillary use
building before the municipality grants a certificate of occupancy for the international
headquarters building if the Arizona State Land Department has received a sufficient
prescribed financial assurance, if the municipality does not grant a permanent certificate
for the building within five years after granting the certificate for ancillary use building.
(Sec. 1)
9. Requires a municipality to consent to amendments to existing development agreements
to which the municipality is a signatory that are reasonably necessary to allow for the
development of hotel use or multifamily residential use as an ancillary use. (Sec. 1)
10. Requires the developer of the ancillary use development to designate at least 5% of the
total for-rent multifamily residential dwellings as affordable units, for 10 years after the
ancillary use development. SB 1543
Initials LM Page 3 House Engrossed
11. Restricts the affordable units, at the developer's discretion, as low-income or middle-
income housing or a mixture of both and allows the units to be contained within one
building or within multiple buildings.
12. Exempts land in the vicinity of a military airport or ancillary military facility, from
regulation on municipal allowed ancillary use. (Sec. 1)
13. Contains a severability clause. (Sec. 2)
14. Contains legislative findings. (Sec. 3)
15. Defines pertinent terms. (Sec. 1)