Clock will be ticking on development

By Jason W. Brooks
Mail | X: @JasonWBrooks2

At least four new laws passed by the Arizona legislature and signed into law by Gov. Katie Hobbs this year will impact development and housing around the Valley.

One of those laws sets up a zoning “shot clock” for developers to keep projects from languishing in a municipal approvals pipeline.

These sets of changes provide more direction for either Arizona residents or city staff, especially in development services roles. But, by and large, many cities fought four of these measures.

Chandler’s planning administrator, Kevin Mayo, went over new legislation and other aspects affecting the city’s housing supply during a lengthy Sept. 9 City Council work session.

The principals behind the new shot-clock law, known as Senate Bill 1162, are relatively simple: Keep zoning and rezoning on schedule and stick to a timeline; don’t leave developers in limbo or simply waiting on city staff to move faster.

The law goes into effect Jan. 1, 2025.

SB 1162 establishes a development application “shot clock” for administrative completeness and processing timelines.

Timelines must include:

• A determination of administrative completeness within 30 days.

• Resubmittal for administrative completeness within 15 days.

• Approval or denial within 180 days.

• Allowing a 30-day extension for extenuating circumstances or applicant request.

The law calls for a municipality housing needs assessment every five years. Municipalities must submit an annual report to Arizona Department of Housing.

“This was meant to help developers, but it will actually hurt them,” said Mayo whose department will bring a new ordinance to the Chandler Planning & Zoning Commission in October. “We’ll have this timeline that if they drag their feet, we’ll have to deny applications, and they’ll have to start all over. This bill wasn’t directed at Chandler. We aren’t the process problem. I believe there are others around the Valley that are.”

Mayo said several years ago, the Arizona Legislature put a time limit on permit processes.

“That legislation didn’t include anything that wasn’t a permit,” he said. “After that, I was wondering how many years it would be until we saw the same for zoning, and here it is.”

The bill had bipartisan support in the Legislature last spring. The closest Senate vote to advance it was 24-4; the House approved it by a 53-0 vote.

The new law could end up with many projects starting over if they don’t meet deadlines, Mayo said.

“We’ll have to deny applications if they drag their feet and aren’t done within 180 days, and they’ll have to start over,” Mayo said. “This is unfortunate, as we’re used to having a very fluid relationship with developers.”

Mayo said while the digital aspects and “at your fingertips” of the requirements will be nice, developers won’t be able to have ongoing dialogue with the city about a partially completed zoning application. And they won’t have the ability to add new elements later, Mayo said, such as an authorization letter.

“Today, we tell them, get the application in, let’s start working with you,” Mayo said. “After Jan. 1, we’ll have to tell them, get it in, complete, or we’ll have to reject it as incomplete.”

Chandler Mayor Kevin Hartke, who chairs both the Maricopa Association of Governments and League of Arizona Cities and Towns, said the new law takes away local control — something municipal leaders regularly seek.

“This is part of my legislative frustration where legislators pass something to resolve an issue in one city,” Hartke said. “There’s collateral damage, either to other cities or to other unintended recipients.”

Here are three other bills likely to have at least some impact on housing and development when going into effect Jan. 1 of either 2025 or 2026:

House Bill 2297 will require cities and towns to identify 10% or exclude 10% of its commercial buildings and parcels for redevelopment as housing. These zones will follow established criteria for a site plan review process and infrastructure analysis.

A set-aside of 10% of total units for low- or moderate-income housing must stay in place for a minimum of 20 years.

“We have to inventory all our city’s commercial buildings, including major office buildings, and then do one of two things: Either designate 10% for redevelopment or say ‘This is the 10% to be excluded (and left alone),” Mayo said. “We’ve looked at buildings that are, for example, really close to the airport and not appropriate (for housing) as at least part of the exclusion list. Then, after we exclude, let’s say there’s 1,000 buildings left. Once we then designate 10% of that remaining 1,000, we’re done.”

Mayo pointed out developers or landowners aren’t required to put housing on such properties, but their options will be more open.

There’s a provision that allows municipalities to revisit its exclusion zones after the program’s first 10.

HB 2297 goes into effect Jan. 1, 2025. Like with SB 1162, municipal councils and boards must pass ordinances to incorporate the changes in the two months ahead.

Accessory dwelling units

House Bill 2720, the so-called “Casitas bill,” technically went into effect Sept. 1, though municipalities with populations of 75,000 or higher have until Jan. 1 of next year to adopt new regulations.

The new law not only allows accessory dwelling units by right — one attached and one detached unit and one additional if lot is greater than 1 acre.

It also takes cities’ authority away to require extra parking for the new units, require the homes to have fire sprinklers or even require the new units share any aesthetic characteristics as the main house.

There are short-term-rentals allowed in ADUs in the new state law, with some restrictions, while Chandler’s recently enacted code allows none.

Homeowner’s associations and their bylaws, which govern more than half of residential neighborhoods in Valley cities, preempt new state laws, so some cities won’t have many build-ons affected by this law.

Middle housing

House Bill 2721, which doesn’t go into effect until Jan. 1, 2026, requires municipalities to permit townhouses, duplexes, triplexes or fourplexes on any single-family lot within one mile of a central business district.

Two of the biggest changes here will be the elimination of municipalities’ ability to cap such buildings at two stories and the ability to require fire sprinklers in such buildings.

“We also can’t require only one parking place (built) per unit — even if it’s four bedrooms,” Mayo said.

There are also no public hearings required for permitting and approvals and cities can’t require owner occupancy, among other provisions.

Chandler council members and Peters both pointed out neighbors are likely to continue to have tense conversations about parking, as Chandler’s downtown is not where a great deal of public transportation serves homeowners.

Mayo said developers who build such types of units might want to include, say, two-car garages, as a more marketable amenity.

Cities, towns and counties must take related ordinances through planning and zoning commissions and approved as law by the end of 2025.

Independent Newsmedia’s J. Graber contributed to this story.

We invite our readers to submit their civil comments on this topic.  Email AZOpinions@iniusa.org. Email Jason W. Brooks at jbrooks@iniusa.org.

Jason W. Brooks
News Editor | Chandler Independent

Jason W. Brooks joined Independent Newsmedia, Inc., USA, in July 2021 as an associate editor. After a year covering Buckeye, he has covered Chandler since the fall of 2022, in addition to assisting the Daily Independent throughout his time at INI.

Education: University of New Mexico, bachelor of arts in journalism and mass communication, print emphasis, English minor.

Random Fact: He and his siblings witnessed a Space Shuttle launch and landing in the same year in person, on opposite coasts.

Hobbies: Karaoke, bicycling and American Sign Language.

Community: He supports animal shelters.