Bill signings a big win for housing affordability

PHOENIX (May 22, 2024) — Gov. Katie Hobbs signed a pair of bills on Tuesday, May 21, to help ease the state’s housing affordability issues.

She signed HB 2720, a measure that will significantly expand access to backyard casitas, or accessory dwelling units, across Arizona, thereby increasing the availability of more affordable housing options.

This legislation will allow these ADUs to be built on existing home lots in cities with more than 75,000 residents.

The passage of this housing bill comes in the wake of her veto of HB 2570, known as the Arizona Starter Homes Act. The bill, which aimed to give buyers more options with lot sizes, was vetoed due to concerns about its potential impact on the overall cost of a home.

Also on Tuesday, Hobbs signed the bipartisan HB 2721  Middle Housing legislation, which encourages the construction of various homes—including duplexes, triplexes, and townhome products—as an alternative to single-family homes as more affordable options.

The League of Arizona Cities and Towns applauded the affordable housing legislation.

“The League recognizes the urgent need for increased housing supply that’s safe, sustainable, and affordable for all Arizonans,” said Douglas Nicholls, mayor of Yuma and president of the League, in a statement.

According to the League, 37 Arizona cities already allow ADUs, and 13 more are working toward passing an ADU ordinance. Since 2020, the League noted that Arizona cities and towns have issued permits for more than 255,000 new housing units, with another 106,000 units awaiting construction in Maricopa County alone.

Additionally, Governor Hobbs released the following statement on HB2720 and HB2721:

“I’m glad the legislature heard my calls to come to the table to pass common sense, bipartisan legislation that will expand housing options and help mitigate the effects of rising costs to make life more affordable for everyday Arizonans. And today, I’m proud to sign bills into law that will expand access to ADUs and missing middle housing.

“I was born and raised in Arizona, where a middle-class family could buy their own home. In the past year alone, we have made dramatic strides towards making that the reality again for the next generation. I’ve committed over $200 million to build more affordable housing and connect people to services, maximized the use of federal tax credits to make housing more affordable, and most recently created the Arizona is Home program to make homeownership a reality for Arizonans through mortgage assistance for first-time homebuyers. Those initiatives, paired with these bills and others I signed last month to streamline rezoning and commercial-to-residential conversion, are critical to fixing our housing shortage.

“Moving forward, I hope we can work together to address short term rentals that displace long-term community residents, and crack down on speculation by out-of-state real estate investors that drives up the cost of housing for Arizonans.”