Lawmakers are focusing on the wrong housing problem
We thank Gov. Katie Hobbs for her veto of House Bill 2570, an action that preserves the valuable resident input in planning and development decisions.
The veto helps avoid irreversible and long-term impacts on years of thoughtful urban planning that created the desirable and safe communities our residents enjoy calling home.
While titled the Arizona Starter Home Act, HB 2570 amounted to a giveaway to developers with no guarantee it would help Arizonans achieve homeownership.
It was fast-tracked through the legislative process without meaningful discussions and resident input that is standard for decisions made at the level of government that is closest and most accessible to residents: cities and towns.
We appreciate Governor Hobbs’ recognition of that fact and look forward to seeing collaborative and meaningful housing proposals reach her desk for signature.
There is no denying that Arizona has a housing shortage.
Mayors and council members from across our state agree that more should be done to ensure new and longtime residents, first-time homebuyers and middle-class Arizonans can easily find an affordable home. This issue demands collaborative action at the state and local levels.
The League of Arizona Cities and Towns is working with state leaders to balance regulatory certainty for developers with resident participation in decision-making processes.
We are supporting measures at the state Capitol this session that streamline rezoning applications for housing projects within a 180-day “shot clock.”
The league is also supporting a measure to encourage adaptive reuse or redevelopment of underutilized commercial buildings into housing, aiming to maximize urban density while ensuring proximity to essential services.
We are also collaborating on measures to streamline middle housing options, such as townhomes, plex developments and accessory dwelling units.
The league aims to refine these legislative proposals to mitigate unintended consequences and facilitate the successful development of diverse housing options for residents.
Looking at data from September 2023, the Maricopa Association of Governments found that there were 275,000 units in the pipeline in the Valley alone. Of those, 106,000 units are in active development, but are unbuilt.
That indicates we have a construction problem, not an approval problem.
This is why we believe concepts like state-mandated “by-right zoning” are unnecessary.
These policies would exclude community input from the planning process and increase the potential for unintended consequences that happen when there is no consideration of the impacts of a proposed development on local infrastructure and water resources.
Arizona’s cities and towns are crucial to providing services and planning for their communities’ future needs. Thoughtful management at the local level has achieved a better quality of life for our residents.
The housing market is complex and there are many economic factors at play that cities and towns have little or no impact on. Labor shortages and supplychain issues present far-greater challenges to developers than local regulation.
Prior legislative actions to deregulate the short-term rental industry have had profound impacts on housing supply, where previously available starter homes are now purchased by investors for use as boutique hotels.
Investor dominance in our state’s housing market has significantly contributed to pricing middle-class Arizonans out of homeownership.
We believe the state Legislature should take steps to curtail this investor dominance because it will continue to erode our housing stock that would otherwise be available to our residents.
City and town leaders are open to working on concrete solutions that make sense; that is why we have focused on process improvements that push more efficient government operations.
However, we will not support efforts at the Legislature to obliterate zoning and completely remove the public from the planning and zoning process.
We can’t do this alone.
If you support reasonable and effective changes to state law to foster the construction of more housing in Arizona, while also preserving local planning and community input, we encourage you to contact your legislators and the governor.
Douglas Nicholls is mayor of Yuma and president of the League of Arizona Cities and Towns. Mila Besich is mayor of Superior and the league’s treasurer. Al Gameros is mayor of Globe and Cal Sheehy is mayor of Lake Havasu City. Reach them at douglas.nicholls@YumaAz.gov, mila@superioraz.gov, al.gameros@globeaz.gov and sheehyc@lhcaz.gov.