Summary:
Background:
In 2024, the 56th Arizona State Legislature passed a number of bills that were signed into adoption by the Governor pertaining to municipal zoning. These bills were intended to impact housing affordability by expanding opportunities for diverse housing types and streamlining regulatory processes. Four (4) of these bills require local municipalities to amend their Zoning Code. The four bills are:
- HB 2720: Accessory Dwelling Units (ADU's) -- ADOPTED ORD. 2024-20
- HB 2297: Adaptive Reuse for Multifamily Development -- ADOPTED ORD. 2024-21
- SB 1162: Rezoning "Shot Clock" - ADOPTED ORD. 2024-19
- HB 2721: Middle Housing
Of these bills, the first three listed have met the deadline of January 1, 2025. The fourth listed item ("Middle Housing"), has a deadline of January 1, 2026 for local code adoption.
HB 271 Middle Housing:
Arizona House Bill 2721 has emerged as a significant new land use law aimed at tackling the state's middle housing shortage. Middle Housing refers to a range of multi-unit or clustered housing types that are compatible in scale with single-family homes, fitting between traditional detached homes and larger apartment buildings. These options include duplexes, triplexes, fourplexes and townhomes.
HB 2721 mandates that cities in Arizona with populations over 75,000 permit the development of duplexes, triplexes, fourplexes and townhomes in single-family residential areas within a mile of the Central Business District (CBD). Additionally, 20% of new single-family housing developments of ten (10) contiguous acres or more may include these "middle housing" types. Municipalities must adopt new zoning code provisions to implement this law by January 1, 2026, or these housing types will be permitted without restriction.
The Code Amendment is currently in draft form and being refined for public input. Staff will introduce the bill and outline the process moving forward.
Attached is a Briefing Sheet prepared by the Planning Department summarizing the bill.