New housing laws impact Chandler in different ways

By Jason W. Brooks
Mail | X: @JasonWBrooks2

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

Four new sets of changes provide more direction for either Chandler residents or staff, especially in Development Services. But, by and large, according to the city’s strategic initiatives director, Ryan Peters, the city fought many of these bills in the legislature — especially ones that affect public safety and local control.

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

In some cases, council will have actions on its agendas in the months ahead that will incorporate new laws into city code.

“With most of these, the League of Cities and Towns has helped out with templates on what these laws will look like in local code, and we’re well underway on our drafts and what they’re going to look like,” Mayo said.

HB 2297 commercial buildings; adaptive reuse

Mayo said provisions allow municipalities to identify 10% or exclude 10% of its commercial buildings and parcels for redevelopment as housing. These zones will follow established objective 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.

“It’s very, very loose direction, but lists very specific actions we have to take,” Mayo said. “So we have to inventory all our 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 staff have looked at the major commercial development corridors around the city and will make a complex recommendation to council.

“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,” Mayo said. “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 and/or parcel owners aren’t required to put housing on such properties but their options will be more wide-open.

There’s a provision that allows municipalities to revisit its exclusion zones after the first 10 years of the program.
HB 2297 goes into effect Jan. 1, 2025. Mayo anticipates a related resolution going before council on Nov. 7.

HB 2720: accessory dwelling units

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 ADU 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.

“This allows for even more than what Chandler permits in code we recently enacted,” Mayo said. “For example, we have a 15-foot height requirement on ADUs. This state law says if you have a two-story house because your zoning permits it, you can have a two-story ADU.”

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

Mayo said plans are to take an ordinance to the Chandler Planning & Zoning Commission in October and to council on Nov. 7.

Mayo said there have been “several” applications to build ADUs since city code permitted them beginning in March, though not what he’d call “a wave.”

Homeowner’s associations and their bylaws, which govern more than 75% of Chandler residential neighborhoods, preempt new state laws, so much of the city won’t be affected.

HB 2721 municipal zoning; middle housing

This new law, 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. Mayo said that applies to the area around Downtown Chandler.

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.

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.

Mayo said he thinks an ordinance will go to Planning & Zoning in mid-2025 and to council in late 2025.

SB 1162 zoning shot clock; housing assessment

The provisions of this law are more simple. It establishes a zoning application “shot clock” for administrative completeness and processing timelines.

Timelines must include:

• A determination of administrative completeness within 30 days.

• Resubmittal for administrative completeness 15 days.

• Approval or denial within 180 days.

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

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

Mayo said much like the HB 2720 changes, there are plans to take an ordinance to the Chandler Planning & Zoning Commission in October and to council on Nov. 7.

“This was meant to help developers, but it will actually hurt them,” Mayo said. “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.”

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.