A bill moving through the Arizona Legislature with broad bipartisan support could make it easier and less costly to build middle-class housing across the state – from rural communities to major metros.
Senate Bill 1401, known as the Workforce Housing Incentive Act, would allow cities and towns to speed up the plan review and permitting process for qualifying housing projects.
The legislation, which has support from Habitat for Humanity of Central Arizona and the Arizona Housing Coalition, was initially introduced by Rep. Selina Bliss, R-Prescott.
It addresses one of the most persistent barriers to housing development: The time it takes to build new homes.
Under the bill, cities and towns that opt into the program would be required to provide a dedicated point of contact for developers throughout construction in an effort to streamline and simplify the review and permitting process.
The legislation would also set deadlines for the completion of initial plan reviews (20 business days) and inspections (72 hours).
To qualify for quicker turnarounds, developers would be required to show their projects meet certain benchmarks.
All new dwelling units would have to be priced for households earning no more than 150% of the area median income. Units also would be subject to a covenant to maintain those price levels for at least 20 years, ensuring long-term community benefit over a short-term fix.
The bill also addresses bonding rules and tax burdens, reducing the state’s portion of the prime general contracting tax for qualifying projects to reduce the cost of construction materials.
After passing the House with a strong bipartisan majority, advocates are now urging residents to contact their state lawmakers and encourage a yes vote when SB 1401 comes before them.
