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- i - Senate Engrossed House Bill municipal zoning; middle housing State of Arizona House of Representatives Fifty-sixth Legislature Second Regular Session 2024 HOUSE BILL 2721 AN ACT AMENDING TITLE 9, CHAPTER 4, ARTICLE 6.1, ARIZONA REVISED STATUTES, BY ADDING SECTION 9-462.10; RELATING TO MUNICIPAL ZONING. (TEXT OF BILL BEGINS ON NEXT PAGE) H.B. 2721 - 1 - Be it enacted by the Legislature of the State of Arizona: 1 Section 1. Title 9, chapter 4, article 6.1, Arizona Revised 2 Statutes, is amended by adding section 9-462.10, to read: 3 9-462.10. Zoning; development; middle housing; applicability; 4 definitions 5 A. ON OR BEFORE JANUARY 1, 2026, A MUNICIPALITY WITH A POPULATION 6 OF SEVENTY-FIVE THOUSAND PERSONS OR MORE MUST AUTHORIZE BY ORDINANCE AND 7 INCORPORATE INTO ITS DEVELOPMENT REGULATIONS, ZONING REGULATIONS AND OTHER 8 OFFICIAL CONTROLS THE DEVELOPMENT OF DUPLEXES, TRIPLEXES, FOURPLEXES AND 9 TOWNHOMES AS A PERMITTED USE ON BOTH OF THE FOLLOWING: 10 1. ALL LOTS ZONED FOR SINGLE-FAMILY RESIDENTIAL USE WITHIN ONE MILE 11 OF THE MUNICIPALITY'S CENTRAL BUSINESS DISTRICT. 12 2. AT LEAST TWENTY PERCENT OF ANY NEW DEVELOPMENT OF MORE THAN TEN 13 CONTIGUOUS ACRES. 14 B. THE MUNICIPALITY MAY NOT DO ANY OF THE FOLLOWING: 15 1. DISCOURAGE THE DEVELOPMENT OF MIDDLE HOUSING THROUGH 16 REQUIREMENTS OR ACTIONS THAT INDIVIDUALLY OR CUMULATIVELY MAKE 17 IMPRACTICABLE THE PERMITTING, SITING, OR CONSTRUCTION OF MIDDLE HOUSING. 18 2. RESTRICT MIDDLE HOUSING TYPES TO LESS THAN TWO FLOORS. 19 3. RESTRICT MIDDLE HOUSING TYPES TO A FLOOR AREA RATIO OF LESS THAN 20 FIFTY PERCENT. 21 4. SET RESTRICTIONS, PERMITTING OR REVIEW PROCESSES FOR MIDDLE 22 HOUSING THAT ARE MORE RESTRICTIVE THAN THOSE FOR SINGLE-FAMILY DWELLINGS 23 WITHIN THE SAME ZONE. 24 5. REQUIRE OWNER OCCUPANCY OF ANY STRUCTURES ON THE LOT. 25 6. REQUIRE ANY STRUCTURES TO COMPLY WITH A COMMERCIAL BUILDING CODE 26 OR TO CONTAIN A FIRE SPRINKLER. 27 7. REQUIRE MORE THAN ONE OFF-STREET PARKING SPACE PER UNIT. 28 C. THIS SECTION DOES NOT PROHIBIT THE GOVERNING BODY OF A 29 MUNICIPALITY FROM ALLOWING EITHER OF THE FOLLOWING: 30 1. SINGLE-FAMILY DWELLINGS IN AREAS ZONED FOR SINGLE-FAMILY 31 DWELLINGS. 32 2. ADDITIONAL TYPES OF MIDDLE HOUSING NOT REQUIRED UNDER THIS 33 SECTION. 34 D. THIS SECTION DOES NOT APPLY TO ANY OF THE FOLLOWING: 35 1. AREAS THAT ARE NOT INCORPORATED. 36 2. AREAS THAT LACK SUFFICIENT URBAN SERVICES. 37 3. AREAS THAT ARE NOT SERVED BY WATER AND SEWER SERVICES. 38 4. AREAS THAT ARE NOT ZONED FOR RESIDENTIAL USE. 39 5. AREAS THAT ARE NOT INCORPORATED AND ARE ZONED UNDER AN INTERIM 40 ZONING DESIGNATION THAT MAINTAINS THE AREA'S POTENTIAL FOR PLANNED URBAN 41 DEVELOPMENT. 42 6. AREAS COVERED UNDER TITLE 48, CHAPTER 6, ARTICLE 4. 43 7. ANY LAND WITHIN THE TERRITORY IN THE VICINITY OF A PUBLIC 44 AIRPORT AS DEFINED IN SECTION 28-8486 OR TO THE EXTENT THIS SECTION WOULD 45 H.B. 2721 - 2 - INTERFERE WITH THE PUBLIC AIRPORT'S ABILITY TO COMPLY WITH THE LAWS, 1 REGULATIONS AND REQUIREMENTS OF THE UNITED STATES RELATED TO APPLYING FOR, 2 RECEIVING OR SPENDING FEDERAL MONIES. 3 8. ANY LAND WITHIN THE TERRITORY IN THE VICINITY OF A MILITARY 4 AIRPORT AS DEFINED IN SECTION 28-8461. 5 E. IF A MUNICIPALITY DOES NOT ADOPT THE REGULATIONS REQUIRED BY 6 THIS SECTION ON OR BEFORE JANUARY 1, 2026, MIDDLE HOUSING SHALL BE ALLOWED 7 ON ALL LOTS IN THE MUNICIPALITY ZONED FOR SINGLE-FAMILY RESIDENTIAL USE 8 WITHOUT ANY LIMITATIONS. 9 F. THIS SECTION DOES NOT CHANGE OR OTHERWISE IMPAIR THE TERMS OF 10 ANY DEVELOPMENT AGREEMENT THAT EXISTS ON THE EFFECTIVE DATE OF THIS 11 SECTION. 12 G. NOTWITHSTANDING SUBSECTION A OF THIS SECTION, A UTILITY PROVIDER 13 IMPACTED BY A DEVELOPMENT BEING DEVELOPED PURSUANT TO THIS SECTION SHALL 14 HAVE THE OPPORTUNITY TO REVIEW AND APPROVE THE SITE PLAN FOR THE 15 DEVELOPMENT. 16 H. FOR THE PURPOSE OF THIS SECTION: 17 1. "BUILDING CODE": 18 (a) MEANS A CONSTRUCTION CODE ADOPTED BY A MUNICIPALITY. 19 (b) INCLUDES A MODEL BUILDING CODE, COMMERCIAL CODE, PLUMBING AND 20 MECHANICAL CODE, ELECTRIC CODE, ENERGY CONSERVATION CODE, FIRE CODE, 21 PROPERTY MAINTENANCE CODE, NEIGHBORHOOD PRESERVATION CODE, ANTI-BLIGHT 22 CODE OR OTHER SIMILAR CODE. 23 2. "CENTRAL BUSINESS DISTRICT" MEANS AN AREA OR SERIES OF AREAS 24 DESIGNATED BY A MUNICIPALITY THAT ARE PRIMARILY NONINDUSTRIAL AND THAT 25 ATTRACT COMMUNITY ACTIVITY, INCLUDING THE ENTIRE GEOGRAPHIC AREA THAT THE 26 MUNICIPALITY HAS OFFICIALLY DESIGNATED AS ITS DOWNTOWN OR EQUIVALENT ON 27 THE EFFECTIVE DATE OF THE SECTION. 28 3. "DUPLEX" MEANS TWO DWELLING UNITS ON THE SAME PARCEL OR LOT IN 29 ATTACHED, DETACHED OR SEMI-DETACHED ARRANGEMENTS THAT ARE DESIGNED FOR 30 RESIDENTIAL OCCUPANCY BY NOT MORE THAN TWO HOUSEHOLDS LIVING INDEPENDENTLY 31 FROM EACH OTHER. 32 4. "FLOOR AREA RATIO" MEANS THE RATIO OF ALLOWED SQUARE FOOTAGE IN 33 A MIDDLE HOUSING PROJECT TO THE SQUARE FOOTAGE OF THE PARCEL ON WHICH IT 34 IS BUILT. 35 5. "FOURPLEX" MEANS FOUR DWELLING UNITS ON THE SAME PARCEL OR LOT 36 IN ATTACHED, DETACHED OR SEMI-DETACHED ARRANGEMENTS THAT ARE DESIGNED FOR 37 RESIDENTIAL OCCUPANCY BY NOT MORE THAN FOUR HOUSEHOLDS LIVING 38 INDEPENDENTLY FROM EACH OTHER. 39 6. "HOUSEHOLD" MEANS EITHER: 40 (a) A SINGLE PERSON LIVING OR RESIDING IN A DWELLING OR PLACE OF 41 RESIDENCE. 42 (b) TWO OR MORE PERSONS LIVING TOGETHER OR RESIDING IN THE SAME 43 DWELLING OR PLACE OF RESIDENCE. 44 H.B. 2721 - 3 - 7. "MIDDLE HOUSING": 1 (a) MEANS BUILDINGS THAT ARE COMPATIBLE IN SCALE, FORM AND 2 CHARACTER WITH SINGLE-FAMILY HOUSES AND THAT CONTAIN TWO OR MORE ATTACHED, 3 DETACHED, STACKED OR CLUSTERED HOMES. 4 (b) INCLUDES DUPLEXES, TRIPLEXES, FOURPLEXES AND TOWNHOUSES. 5 8. "PERMITTED USE" MEANS THE ABILITY FOR A DEVELOPMENT TO BE 6 APPROVED WITHOUT REQUIRING A PUBLIC HEARING, VARIANCE, CONDITIONAL USE 7 PERMIT, SPECIAL PERMIT OR SPECIAL EXCEPTION, OTHER THAN A DISCRETIONARY 8 ZONING ACTION TO DETERMINATION THAT A SITE PLAN CONFORMS WITH APPLICABLE 9 ZONING REGULATIONS. 10 9. "TOWNHOUSES" MEANS DWELLING UNITS THAT ARE CONSTRUCTED IN A ROW 11 OF TWO OR MORE ATTACHED UNITS IN WHICH EACH DWELLING UNIT SHARES AT LEAST 12 ONE COMMON WALL WITH AN ADJACENT UNIT AND THAT ARE ACCESSED BY SEPARATE 13 OUTDOOR ENTRANCES. 14 10. "TRIPLEX" MEANS THREE DWELLING UNITS ON THE SAME PARCEL OR LOT 15 IN ATTACHED, DETACHED OR SEMI-DETACHED ARRANGEMENTS THAT ARE DESIGNED FOR 16 RESIDENTIAL OCCUPANCY BY NOT MORE THAN THREE HOUSEHOLDS LIVING 17 INDEPENDENTLY FROM EACH OTHER. 18