Arizona lawmakers are pushing forward with two bills aimed at reducing local control over design standards, homeowners associations, and contractor licensing after previous attempts to pass starter-home legislation failed. These measures are part of an effort to address the state’s housing shortage and rising costs.
One bill seeks to limit municipalities’ authority over new-home aesthetics and eliminate shared-amenity requirements that often lead to the creation of homeowners associations (HOAs). Another bill aims to restrict local control over contractor licensing requirements.
The League of Arizona Cities and Towns is actively lobbying against both bills, highlighting the potential impact on local governance. Similar laws have been enacted in other states, focusing on design standards and HOAs as cost drivers.
Arizona has been grappling with a housing shortage, leading to skyrocketing home prices and rents. Lawmakers have introduced several affordability bills in recent years, but faced challenges due to opposition from local governments.
Design standards and HOAs
Sponsored by a bipartisan group of lawmakers, Senate Bill 1431 aims to reduce costs and expedite construction by limiting local design standards and ending mandatory HOAs for developers. Supporters argue that these requirements inflate home prices and deter potential buyers.
Republican Sen. Shawnna Bolick, a sponsor of the bill, emphasized the need to focus on health and safety rather than imposing costly architectural mandates. Eliminating mandatory HOAs could make homeownership more accessible, especially for first-time buyers.
Senate debate signals friction ahead in the House
During the Senate debate, lawmakers expressed varying views on the bill, with some highlighting the potential impact on neighborhood quality and local control. While supporters see it as a common-sense measure to spur construction, opponents argue that it could lead to homogeneity in new developments.
Contractor licensing pre-emption
Senate Bill 1670, introduced by Sen. Bolick, aims to streamline the construction workforce by prohibiting additional municipal licenses for contractors already licensed at the state level. This measure could reduce delays and labor costs associated with redundant licensing requirements.
What’s next
Both bills are subject to potential changes as they progress through the House. Governor Katie Hobbs could veto the measures if they pass, as seen with a previous starter-homes bill. If implemented, these measures could lower soft costs for builders and expedite the development process.
Builders may benefit from more flexibility in design choices and the ability to bypass mandatory HOAs. Additionally, streamlining contractor licensing requirements could enhance efficiency and expand options for buyers. Overall, these measures aim to address Arizona’s housing challenges and stimulate growth in the real estate market.