Hobbs signs bipartisan housing bills

Gov. Katie Hobbs signed two housing bills Tuesday that supporters say will increase affordable housing options for Arizona residents.

The governor signed HB 2720 and HB2721. The former will require cities with a population of at least 75,000 to allow the development of accessory dwelling units or casitas on single-family parcels. The latter requires cities of the same size to allow the development of “middle housing” options including duplexes, triplexes, fourplexes and townhomes.

“I’m glad the legislature heard my calls to come to the table to pass common sense, bipartisan legislation that will expand housing options and help mitigate the effects of rising costs to make life more affordable for everyday Arizonans,” Hobbs said in a written statement after signing the two measures.

The accessory dwelling unit bill did have opposition from some housing organizations and the League of Arizona Cities and Towns. The groups have taken issue that the bill allows property owners to use a casita as a short-term rental unit.

“We’ve been trying to focus on casitas, not Airbnb’s,” said the League’s Deputy Director Ren Guillen. “It’s disappointing to see that provision get signed into law.”

Cities have expressed support for the general idea of casitas but have attempted to negotiate with legislators on greater regulations for short-term rentals this session.

Sen. Anna Hernandez, D-Phoenix, said during a Tuesday press conference expressing support of the bill that it is the only measure the legislature has passed that makes some attempt at regulating short-term rentals.

The bill requires property owners to reside at the primary residence on a lot that a casita is located at before they can rent out the unit as a short-term rental.

Hernandez was one of the main negotiators of the bill and has said she doesn’t want to stop families from having a source of income through a short-term rental if they decide to build one on their properties.

“We know that this bill is not the silver bullet,” Hernandez said Tuesday.

Every bill from both Republican and Democratic legislators, including that proposed short-term rental regulations, didn’t receive committee hearings in either the House or Senate. Two short term rental bill sponsors included Rep. Selina Bliss, R-Prescott; and Sen. John Kavanagh, R-Fountain Hills.

Hobbs acknowledged the lack of legislation regulating short-term rentals and said she hopes the Legislature can advance bills in future sessions.

“Moving forward, I hope we can work together to address short term rentals that displace long-term community residents, and crack down on speculation by out-of-state real estate investors that drives up the cost of housing for Arizonans,” Hobbs said.

Short-term rental regulation advocates, including Protect Our Communities, have blamed Speaker of the House Ben Toma, R-Peoria; and Senate President Warren Petersen; R-Gilbert, for blocking bills that would regulate short-term rentals.

Hernandez said regulatory bills are only likely to move through the Legislature with new leaders in the chambers.

“I’ve been doing this for a long time and you stay at it,” Guillen said. “There’s another election in November and I think that we have a good group of lawmakers if the bills were to move and show up on the big board of truth, I think we’d have 31-16-1.”

HB 2721 was more widely supported among lawmakers and housing stakeholders.

“The League recognizes the urgent need for increased housing supply that’s safe, sustainable, and affordable for all Arizonans,” said League President and Yuma Mayor Douglas Nicholls. “We applaud Governor Hobbs for signing HB2721 and are proud to have taken a leadership role in joining our legislative partners in supporting this bill and others that will have a positive impact on Arizona’s housing landscape.”

Both bills signed Tuesday were sponsored by Rep. Michael Carbone, R-Buckeye. He thanked Hernandez in a May 15 House GOP news release for her work on housing throughout the session in getting the bills advanced.

“Most Arizonans have been priced out of the housing economy it’s wrong and un-American,” Carbone said.

HB 2720 passed the Senate 17-11 and the House 35-22. HB2721 passed with supermajority votes in both chambers 21-7 in the Senate and 42-15 in the House.

Tuesday’s action from Hobbs was likely the last housing bills that will be considered for the legislative session.

Hobbs has signed two other housing measures this session. One bill, HB2297, will allow some commercial zoned properties in cities to be reused for residential housing. The other measure, SB1162, will require rezoning requests to be completed in 180 days.

The governor also vetoed the bipartisan bill HB2570, known as the “Arizona Starter Homes Act.” She wrote in her veto letter that the bill didn’t have guarantees that home developers would build affordable housing and she noted “unintended consequences” of increased density near military installations and public safety concerns.

“We’ve had a good session when you look at what’s been passed and signed by the governor,” Guillen said.

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