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ITEM 9.b. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 3/17/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Development Services Prepared by: John Wesley, Development Services Director Staff Contact Information: Phone: 480-816-5138 Email: jwesley@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) CONSIDERATION AND POSSIBLE ACTION: Regarding Ordinance 26-09 amending Town Code Chapter 8, Business Regulations, by adding a new Article 8-8, Community Residences. Staff Summary (background) The Town Council directed staff to review the current ordinance provisions for community residences and add provisions to require insurance and allow for inspections of these homes. After reviewing the state statutes and the current ordinance provisions, it was determined the best way to accomplish this was to move the registration portions of the existing ordinance to the Business Regulations chapter of the Town Code. This ordinance establishes a new Article 8-8, Community Residences, in Chapter 8, Business Regulations. The registration or licensing of a business, along with requirements for insurance, is not typically a function of the zoning ordnance. Most of the new Article 8-8 is copied from Sec. 5.13, Community Residences, in the Zoning Ordinance. Items which are added to the revised ordinance to address the Council's direction include: A new 8-8-1 Purpose This article is adopted to protect the peace, health, safety, and welfare of the Town’s residents by enacting reasonable regulations that ensure community residences are operated and maintained in a manner that complies with state licensing requirements, provides for the needs of residents, and maintains the peace and safety of the surrounding neighborhood. It shall be unlawful to provide, offer or operate a community residence within the corporate limits of the Town without first registering the home as provided in this article and without complying with any and all applicable laws, regulations and this code. The application requirements in Sec. 8-8-3 A 8. The applicant shall attest that they will cooperate with any code violation investigation. 13. A certificate of commercial liability insurance for oration of the home at the given location. Insurance policy shall be a minimum of $2 million per occurrence and $4 million in aggregate with a waiver of subrogation for the town. The registration requirements in Sec. 8-8-3 C 3. The home or operator is in good standing with the Town, has cooperated with code violation investigations, and has timely resolved any deficiencies. A new 8-8-4 Code Violations Investigations To ensure the safety and welfare of community residents and to ensure the peace and tranquility of neighbors, the Town will implement a system that allows residents and neighbors to report suspected Town code violations at community residences. Complaints that contain verifiable evidence of a Town code violation will be investigated by Town officials, and those without verifiable evidence and unable to be substantiated will be administratively dismissed. Code violation investigations may require an interior inspection of the community residence. The violation and penalties provision in Sec. 8-8-5 B 3. A code violation fails to meet life safety standards to such a degree that it poses an immediate threat to the health and safety of community residents. Following adoption of this new article by the Town Council, staff will process an amendment to Zoning Ordinance Sec. 5.13 to remove the items that have been moved to this portion of the Town Code. Related Ordinance, Policy or Guiding Principle Zoning Ordinance Sec. 5.13, Community Residences Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends adoption of Ordinance 26-09. Suggested Motion MOVE TO approve Ordinance 26-09. FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. Ordinance 26-09, Article 8-8