Summary Sheet- RFCA SUMMARY

CITY OF TEMPE
Meeting Date: 1/8/2026  
REQUEST FOR COUNCIL ACTION
Agenda Item: 8C1
ACTION:  PUBLIC HEARING ITEM Hold the second and final public hearing to adopt an ordinance 
amending Tempe City Code, Chapter 16A – License and Business Regulations, Article X – Short-Term 
Rentals and Vacation Rentals, by amending Section 16A-213 – License required; penalties, to conform 
to changes adopted by the Arizona State Legislature. The applicant is the City of Tempe. The first public 
hearing was held on December 11, 2025. (Ordinance No. O2026.01)
FISCAL IMPACT: There is no fiscal impact on City funds.
RECOMMENDATION: Adopt Ordinance No. O2026.01.
BACKGROUND INFORMATION: On May 23, 2025, the Governor approved House Bill 2928, 
enacted by the Arizona House of Representative during the Fifty-seventh Legislature, First Regular 
Session. House Bill 2928 amends Arizona Revised Statutes (A.R.S.) § 9-500.39, relating to the 
regulation and applicability of accessory dwelling units (ADUs). 
The legislation requires all municipalities with populations over 75,000 to adopt ADU regulations in areas 
where single-family dwellings are permitted. These statutory mandates, as amended by Laws 2025, 
take effect after December 31, 2025.
Amendments to Chapter 16A, Article X of the Tempe City Code are necessary to align with recently 
updated State law, A.R.S. § 9-500.39. The proposed changes incorporate revised owner-residency 
provisions for short-term and vacation rentals.
ATTACHMENTS:    
1. ORDINANCE AMENDING CHAPTER 16A-213 TO AMEND RESIDENCY REQUIREMENTS FOR 
STRS.DOCX
STAFF CONTACT(S):  Josh Bies, Tax and License Manager, (480) 350-8685
Department Director:  Laura Calder, Financial Services Director  
Legal review by:  Dave Park, Assistant City Attorney
Prepared by:  Juliane Moore, Senior Tax and License Specialist