On March 18, Governor Hobbs vetoed HB2570, otherwise known as the Arizona Starter Homes Act, putting an end for the third year in a row to a proposed massive overhaul of how the State regulates land use. Though the bill had bipartisan support in the legislature, it received significant opposition from local governments across Arizona who argued that the legislation interfered with local control and would have significant unintended consequences. This year’s legislation, once again with the ostensible goal of increasing housing affordability, attempted to eliminate regulatory barriers to new housing construction and other requirements that increase costs for potential homebuyers. Specifically, the bill would have, among other things, prohibited municipalities from requiring the following for new residential development:
- HOAs or COAs
- Shared amenities that require common area maintenance, unless necessary for stormwater management
- Lot sizes greater than 1,500 square feet
- Minimum building setbacks for a single-family greater than 5 feet (side) or 10 feet (front and rear)
- Design, architectural or aesthetic elements for a single-family home
One key criticism of the bill is that it neglects the impacts of this significant deregulation of density on infrastructure and public services, placing too great an emphasis on housing development at the expense of long-term, sustainable growth. We can all agree that there are significant hurdles to new residential development and that certainly includes elements of bureaucratic overreach that the Arizona Starter Homes Act was trying to address. However, the key is finding the right balance. While this bill may have once again been a step too far, the conversation appears headed in the right direction and a grand compromise may be around the corner.
