Discussion and possible action to concur with the Planning and Zoning Commission’s recommendation and adopt ORD. 2025-29, amending Sections 21-200, 21-400 and 21-900 within the Peoria City Code (Zoning Ordinance).

In 2024, the Arizona State legislature passed several bills that were signed by the Governor pertaining to municipal zoning and housing, including House Bill 2721 ("Middle Housing"). More specifically, HB 2721 requires that by January 1, 2026, municipalities with a population of 75,000 or more must allow "Middle Housing" - duplexes, triplexes, fourplexes, and townhomes - as a permitted use as follows:

• All lots zoned single-family residential within 1-mile of the City’s Central Business District (CBD); and
• Within at least 20% of any new development of more than ten (10) contiguous acres.
• Further, a municipality cannot set restrictions or establish permitting / review processes for Middle Housing that are more restrictive than those for single-family dwellings within the same zoning district.

If approved, the recommended code modifications will bring the Zoning Ordinance into compliance with the regulatory requirements of HB 2721 and provide for viable implementation of the Middle Housing development type.

Proposed Regulations:

This is a city-initiated code amendment to Sections 21-200, 21-400, and 21-900 of the Zoning Ordinance, in response to the passage of House Bill 2721.

The legislation was largely preemptive and obligates municipalities to adopt specific provisions pertaining to development standards (e.g. parking, building height, setbacks etc.). As these specific development standards are mandated without allowance for deviation or exception, they were transmitted into the proposed Code Amendment without alteration.

Aside from the prescriptive provisions of the bill, there were four (4) areas where the bill lacked clarity in the language and as a result staff has sought to clarify those topic areas within the proposed code changes. During the October 2, 2025, Planning and Zoning Commission meeting, the Commission concurred with staff’s recommended provisions being drafted into the code language to remove ambiguity.

A summary of the amendment modifications include:

• Clarified that Single-Family Residential districts do not include special or custom districts such as General Agricultural (AG), Planned Area Developments (PADs), and Planned Community Districts (PCDs).
  
  
• Clarified that as it pertains to "20% of a new development of ten (10) contiguous acres or more" would apply to the area and not the proposed unit count.  It would also apply to new developments located within Single-Family Residential districts.
  
  
• Clarified that the city would continue to use its application of "maximum lot coverage" in determining how much of a lot could be covered. The bill identifies that a municipality cannot restrict Middle Housing to a Floor Area Ratio (FAR) of less than 50%. FAR is typically utilized as a measure of intensity within a non-residential application. The City would apply the same underlying maximum lot coverage provision that is used for single-family residential housing types to Middle Housing types. They would be treated the same in the Code.

• Clarified that that for the purposes of the Code, areas that lack "Urban Services" would be defined to mean areas that lack refuse service and electric utility service.  This term was not defined in the bill and already excluded areas not served by water and sewer services.

Community Involvement:

Public Meetings:

• Legislative Briefing to Planning and Zoning Commission on May 15, 2025.

• City Council Study Session on September 16, 2025.

• Planning and Zoning Commission Study Session #1 on September 18, 2025.

• Draft ordinance language posted to the City’s website on September 25, 2025.

• Planning and Zoning Commission Study Session #2 on October 2, 2025.
• Planning and Zoning Commission Recommendation on October 18, 2025.

Public Noticing:

The application was properly noticed pursuant to Section 21-315 of the Peoria Zoning Ordinance, which includes placing a legal ad in the Peoria Times at least 15 days prior to the Public Hearing.

Support / Opposition:

No opposition or support for this proposal was received. One general inquiry was received. 

• On May 21, 2024, Governor Hobbes signed House Bill 2721 approving new legislation pertaining to Middle Housing. The new bill required compliance from qualifying municipalities by January 1, 2026.
  
  
• The City conducted three (3) Study Sessions with the Planning & Zoning Commission on May 15, 2025, September 18, 2025, and October 2, 2025, respectively.  The purpose of these sessions was to acquaint the Commission with HB2721 requirements and discuss the proposed code provisions.
  
  
• On September 16, 2025, the Peoria City Council held a Study Session to discuss the proposed Code Amendment.

• On October 18, 2025, the Planning and Zoning Commission held a public hearing, and after deliberation, the Commission voted 5-0 recommending approval of the proposed changes to the Zoning Ordinance as outlined in the attached Ordinance. No members of the public spoke in support or opposition to the item.

A: Approve as recommended by the Planning & Zoning Commission; or

B: Approve with modifications; or

C: Deny; or

D: Continue action to a date certain or indefinitely; or E: Remand to the Planning & Zoning Commission for further consideration.