PHOENIX 鈥� Facing pressure from even some members of her own party, Democratic Gov. Katie Hobbs is now offering up her own plan to override some city regulations to allow for more 鈥渟tarter homes.鈥欌€�
Her plan is in some ways more restrictive than what the Senate just approved a week ago, applying to more cities.
But it also comes with a provision that鈥檚 not in the Senate version: A requirement that a certain percentage of these new 鈥� and, presumably, more affordable 鈥� homes be reserved for Arizonans who intend to live there versus investors looking for a bargain.
Hobbs鈥� move comes a year after she, at the behest of the League of Arizona Cities and Towns, vetoed a similar measure proponents said would make housing more affordable. She called that one 鈥渦nprecedented legislation that would put Arizonans at the center of a housing reform experiment with unclear outcomes.鈥欌€�
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That didn鈥檛 stop proponents, including seven of the Senate鈥檚 13 Democrats, from advancing the idea last week that various rules and regulations have priced many Arizonans out of the ability to buy a home and need to go.
Sen. Shawnna Bolick, R-Phoenix, the author of SB 1229, has agreed to some changes from the original vetoed bill to address concerns of cities. For example, it would preserve the rights of cities to charge 鈥渋mpact fees鈥欌€� on new developments to ensure they are paying their fair share of public services needed to serve the community.
That still hasn鈥檛 satisfied the League of Arizona Cities and Towns, however.
It wants only limited restrictions on the rights of city councils to decide what developments and the homes in them should look like. It is backing a competing 鈥� and less-restrictive 鈥� version being advanced by Sen. Vince Leach.
So far, however, the Tucson Republican has been unable to even get his alternative scheduled for a hearing.
Democratic Gov. Katie Hobbs is offering up her own plan to override some city regulations to allow for more "starter homes.''
That leaves Bolick鈥檚 proposal 鈥� and, now, what the governor will consider.
Hobbs apparently likes some of what she sees in the Senate-passed bill.
For example, she is willing to bar cities from requiring lot sizes that are greater than 3,000 square feet, the idea being that the more homes per acre will cut down on overall costs.
Cities, in the Leach bill, wanted to be able to mandate 4,000-square-foot lots.
But Hobbs is willing to be flexible, applying that restriction on only some of new homes being built.
So, for example, in a development of at least 10 acres, her plan would say that just half the homes would have to be on the smaller lots, with at least another quarter where cities can mandate lots of at least 5,000 square feet.
The purpose, according to her press aide Christian Slater, is to ensure that new developments have a mix of housing options.
Hobbs also says cities should not be required to set new homes back more than 10 feet from the street.
Cities wanted 20 feet. But the only place Hobbs says that is appropriate would be in front of a garage to ensure there is enough room for a vehicle of pretty much any size to park in the driveway.
The governor is unwilling to tell cities they cannot require garages in new homes.
What Hobbs does want to do is bar cities from telling developers how homes and lots should look 鈥� to a point.
So, for example, she says cities should not be able to mandate rear yard patios and landscaping. Also beyond city reach would be 鈥渘onstructural ornamentation,鈥欌€� designs that have nothing to do with the structure of the home.
Those restrictions would carry forward to the development itself.
Gone would be any mandate for certain facilities, such as community centers, sports courts, clubhouses and community pools. Ditto monument signs at the entry to a subdivision.
Nor could developers require walls, screens and fences except along land bordering nonresidential areas.
One thing that may create debate is Hobbs鈥� proposal that, if approved, its restrictions would apply to all communities of at least 30,000 residents, meaning the rules would impact 30 of the state鈥檚 92 cities. The Senate bill, by contrast, covers only the 15 cities with a population of 70,000 or more.
鈥淲e know that there are housing affordability issues not just in the largest cities in our state,鈥欌€� Slater said.
鈥淭he governor feels we鈥檝e developed a thoughtful housing policy that will cut red tape and lower the cost of housing and build more starter homes,鈥欌€� he said. 鈥淚f it鈥檚 a good policy for cities greater than 70,000 people, then it should be a good policy for cities with that 30,000 threshold as well.鈥欌€�
The biggest fight could come over the issue of how to ensure these new affordable homes wind up in the hands of those who need them.
The cities want to limit the initial sale of these starter homes to those whose income does not exceed 120% of the area鈥檚 median household income. That would translate to about $121,000.
That has proven unacceptable to affordable housing proponents including Republican Rep. Leo Biasiucci.
鈥淒oing that will just block out the people that need houses the most like teachers, nurses, police officers, et cetera,鈥欌€� he said.
The other alternative in the Leach bill would allow cities to require that starter homes be sold only to those who agree to live there for 15 years.
Hobbs is unwilling to go that far.
Instead, her proposal would allow cities to demand that at least half of the homes on the smallest lots 鈥� those of 3,000 square feet 鈥� be sold to someone who intends to live there. And any sale within the first five years of construction would have to be to an owner-occupant.
鈥淭he governor wants to ensure that if we are building new starter homes that they are bought by Arizonans and not by corporations, investors, housing speculators,鈥欌€� said Slater. 鈥淲e want to ensure that these starter homes go to everyday families who are looking for a place to live.鈥欌€�
Biasiucci, for his part, said he has a particular concern about the five-year occupancy requirement. He said people might need to move for their jobs or face a layoff and need to sell their home.
Bolick said the bottom line to coming up with a deal is a recognition that something needs to be done to get families into their own homes.
鈥淢y parents were in their mid 20s when they bought their first home,鈥欌€� she told Capitol Media Services.
And now, 鈥淭he average age for someone to buy a house is 38,鈥欌€� Bolick said. 鈥淎nd its price is almost $500,000, which is insane.鈥欌€�
What remains unknown at this point is whether there is a compromise in the offing that will get the support of a majority of lawmakers and the governor鈥檚 signature.
PHOENIX 鈥� Facing pressure from even some members of her own party, Democratic Gov. Katie Hobbs is now offering up her own plan to override some city regulations to allow for more 鈥渟tarter homes.鈥欌€�
Her plan is in some ways more restrictive than what the Senate just approved a week ago, applying to more cities.
But it also comes with a provision that鈥檚 not in the Senate version: A requirement that a certain percentage of these new 鈥� and, presumably, more affordable 鈥� homes be reserved for Arizonans who intend to live there versus investors looking for a bargain.
Hobbs鈥� move comes a year after she, at the behest of the League of Arizona Cities and Towns, vetoed a similar measure proponents said would make housing more affordable. She called that one 鈥渦nprecedented legislation that would put Arizonans at the center of a housing reform experiment with unclear outcomes.鈥欌€�
That didn鈥檛 stop proponents, including seven of the Senate鈥檚 13 Democrats, from advancing the idea last week that various rules and regulations have priced many Arizonans out of the ability to buy a home and need to go.
Sen. Shawnna Bolick, R-Phoenix, the author of SB 1229, has agreed to some changes from the original vetoed bill to address concerns of cities. For example, it would preserve the rights of cities to charge 鈥渋mpact fees鈥欌€� on new developments to ensure they are paying their fair share of public services needed to serve the community.
That still hasn鈥檛 satisfied the League of Arizona Cities and Towns, however.
It wants only limited restrictions on the rights of city councils to decide what developments and the homes in them should look like. It is backing a competing 鈥� and less-restrictive 鈥� version being advanced by Sen. Vince Leach.
So far, however, the Tucson Republican has been unable to even get his alternative scheduled for a hearing.
That leaves Bolick鈥檚 proposal 鈥� and, now, what the governor will consider.
Hobbs apparently likes some of what she sees in the Senate-passed bill.
For example, she is willing to bar cities from requiring lot sizes that are greater than 3,000 square feet, the idea being that the more homes per acre will cut down on overall costs.
Cities, in the Leach bill, wanted to be able to mandate 4,000-square-foot lots.
But Hobbs is willing to be flexible, applying that restriction on only some of new homes being built.
So, for example, in a development of at least 10 acres, her plan would say that just half the homes would have to be on the smaller lots, with at least another quarter where cities can mandate lots of at least 5,000 square feet.
The purpose, according to her press aide Christian Slater, is to ensure that new developments have a mix of housing options.
Hobbs also says cities should not be required to set new homes back more than 10 feet from the street.
Cities wanted 20 feet. But the only place Hobbs says that is appropriate would be in front of a garage to ensure there is enough room for a vehicle of pretty much any size to park in the driveway.
The governor is unwilling to tell cities they cannot require garages in new homes.
What Hobbs does want to do is bar cities from telling developers how homes and lots should look 鈥� to a point.
So, for example, she says cities should not be able to mandate rear yard patios and landscaping. Also beyond city reach would be 鈥渘onstructural ornamentation,鈥欌€� designs that have nothing to do with the structure of the home.
Those restrictions would carry forward to the development itself.
Gone would be any mandate for certain facilities, such as community centers, sports courts, clubhouses and community pools. Ditto monument signs at the entry to a subdivision.
Nor could developers require walls, screens and fences except along land bordering nonresidential areas.
One thing that may create debate is Hobbs鈥� proposal that, if approved, its restrictions would apply to all communities of at least 30,000 residents, meaning the rules would impact 30 of the state鈥檚 92 cities. The Senate bill, by contrast, covers only the 15 cities with a population of 70,000 or more.
鈥淲e know that there are housing affordability issues not just in the largest cities in our state,鈥欌€� Slater said.
鈥淭he governor feels we鈥檝e developed a thoughtful housing policy that will cut red tape and lower the cost of housing and build more starter homes,鈥欌€� he said. 鈥淚f it鈥檚 a good policy for cities greater than 70,000 people, then it should be a good policy for cities with that 30,000 threshold as well.鈥欌€�
The biggest fight could come over the issue of how to ensure these new affordable homes wind up in the hands of those who need them.
The cities want to limit the initial sale of these starter homes to those whose income does not exceed 120% of the area median household income. That would translate to about $121,000.
That has proven unacceptable to affordable housing proponents like Rep. Leo Biasiucci.
鈥淒oing that will just block out the people that need houses the most like teachers, nurses, police officers, et cetera,鈥欌€� he said.
The other alternative in the Leach bill would allow cities to require that starter homes be sold only to those who agree to live there for 15 years.
Hobbs is unwilling to go that far.
Instead, her proposal would allow cities to demand that at least half of the homes on the smallest lots 鈥� those of 3,000 square feet 鈥� be sold to someone who actually intends to live there. And any sale within the first five years of construction would have to be to an owner-occupant.
鈥淭he governor wants to ensure that if we are building new starter homes that they are bought by Arizonans and not by corporations, investors, housing speculators,鈥欌€� said Slater. 鈥淲e want to ensure that these starter homes go to everyday families who are looking for a place to live.鈥欌€�
Biasiucci, for his part, said he has a particular concern with that five-year occupancy requirement. He said people might need to move for their jobs or face a layoff and need to sell their home.
Bolick said the bottom line to coming up with a deal is a recognition that something needs to be done to get families into their own homes.
鈥淢y parents were in their mid 20s when they bought their first home,鈥欌€� she told Capitol Media Services.
And now?
鈥淭he average age for someone to buy a house is 38,鈥欌€� Bolick said. 鈥淎nd it鈥檚 price is almost $500,000, which is insane.鈥欌€�
What remains unknown at this point is whether there is a compromise in the offing that will get the support of a majority of lawmakers and the governor鈥檚 signature.
Homebuilders pause as city seeks infill, Tucson new home prices top $500K
