It’s no secret that Arizona has an affordable housing crisis. It’s not unique to Arizona – but some of the most acute effects are being experienced here. While the crisis is still acute – at least housing and homelessness are widely recognized as being a community and public health crisis and policy makers are beginning to respond.
While the large-scale efforts to compel recalcitrant cities to humanize their overly restrictive zoning restrictions contributing to the lack of housing supply, there were some good policy movements last legislative session. Let’s start with the state legislature.
State Legislature
There were 4 modest housing reform bills that were passed last session that over time will make some difference, three of which go into effect on January 1 (one goes into effect January 1, 2026).
- HB2720: Cities with more than 75K residents will need to modify their zoning regulations to allow ‘accessory dwelling units’ aka casitas, on lots zoned for single-family use by Jan. 1, 2025.
- HB2297: Cities with 150K people will need to allow apartments on up to 10% of commercial, office or mixed-use buildings by Jan. 1, 2025. The law also includes language to speed up the zoning process. Sadly, Scottsdale set up their rules and practically won’t allow any (only 1%) – perhaps sparking a fistfight with the legislature this session.
- SB1162: Under this new law, cities will need to install zoning code changes that speed up the approval process for construction. The localities also have to publish a housing needs assessment every five years and outline the total need for added housing through population and job growth data and how much of a locality’s land is zoned for housing, starting Jan. 1, 2025.
- HB2721: Under this law that will take effect 1/1/26, cities with 75K people will need to allow for the development of duplexes, triplexes and other multi-family home options on lots zoned for single-family use.
State Agencies
There are also some things happening at the state agency level that are encouraging. For example, the Arizona Department of Housing is using the Arizona Housing Trust Fund to address housing instability and develop housing solutions across the state. Key initiatives include:
- Affordable Housing Development: Over $62 million has been allocated to create new affordable housing units, addressing the critical housing needs of low-income families and individuals
- Transitional and Permanent Housing: Investments include $9 million for transitional housing and homeless shelters, $7.5 million for permanent supportive housing, and $4.7 million for youth homeless shelter facilities
- Rental Assistance and Eviction Prevention: A significant portion of funding, $17.7 million, supports rental assistance programs and eviction prevention to stabilize families at risk of homelessness
- Support Services: Funding also supports operational services for homeless shelters, case management, utility assistance, and employment and education programs. For example, $6.3 million was given for these supportive services, enhancing long-term housing stability
AHCCCS is also stepping up to the plate by implementing a new waiver that follows a ‘Permanent Supportive Housing Model an evidence-based and cost-effective strategy for addressing & improving health outcomes for persons with a serious mental illness.
This intervention will also be key for reducing homelessness – as nearly of those experiencing homelessness in Arizona have an SMI designation, highlighting the disproportionate burden on this population.
AHCCCS is also funding a new facility on the grounds of the AZ State Hospital that will provide ‘bridge housing” for persons with behavioral health needs.
The facility will have a separate (physically attached) outpatient behavioral health service setting. When completed, it’ll have capacity for approximately 70 people (w/privacy).
Related:
AHCCCS Tackling Housing Instability with Their New ‘H2O’ Program – AZ Public Health Association
AHCCCS Tackling Housing Instability with Their New ‘H2O’ Program – AZ Public Health Association
