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Affordable Housing Bill Moves Forward Despite Short-Term Rental Provision

By May 9, 2024No Comments

By Jakob Thorington | Arizona Capitol Times

The Arizona state Senate passed a bipartisan housing bill (on May 8) that some critics say will lead to the expansion of short-term rental use in the state.

Senators passed HB2720 (by a vote of) 17-11, which would require cities with a population of more than 75,000 to allow accessory dwelling units, or casitas, to be built on any lot where a single-family dwelling is allowed.

Bill supporters say the bill will help Arizona residents find affordable housing. Last year, the City of Phoenix approved an ordinance allowing people to build accessory dwelling units on their property.

“ADUs have wide support across political spectrums,” said Sen. Anna Hernandez, D-Phoenix. “They have support across all kinds of communities. I think that not moving forward and supporting a bill like this with these amendments, then we’re in a position that would actually be detrimental to the current housing crisis that is going on.”

Hernandez has been one of the key legislators who has worked on ADU legislation and is sponsoring mirror legislation to the bill that passed the Senate. The house bill is sponsored by Rep. Michael Carbone, R-Buckeye

If the bill is signed by Gov. Katie Hobbs, people with accessory dwelling units on their property will be allowed to use them as short-term rentals, but a provision in the bill requires the property owner to reside at the lot’s primary residence.

Rep. Ken Bennett, R-Prescott, said he preferred a provision that would require 30-day leases for accessory dwelling units to curb short-term rentals.

“If we are really trying to make these ADUs address our housing crisis, then I believe in good faith then we would accept the recommendation that these ADUs be used for at least 30-day rentals,” Bennett said.

In a Tuesday news release, the League of Arizona Cities and Towns also gave support for the bill but city officials also don’t want the units to be used for vacation rentals and said the bill would no longer be about affordable housing if the provision remains.

According to the League, 37 cities within the state already allow accessory dwelling units to be built and 13 more are considering ordinances.

Scottsdale Mayor David Ortega also issued a statement Tuesday opposing the bill, referencing current problems city leaders say they have with the more than 4,000 short-term rental units in the city.

“(The bill is) a brazen attempt by the short-term rental industry to take over Scottsdale,” Ortega said in the statement. Adding an STR at every one of these properties yields 8,000 problems,” Ortega said.

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Related:
Phoenix Approves Backyard Guest Houses, Bans Them as Short-Term Rentals – KJZZ
Survey: Only 8% of New ADUs in California Are Short-Term Rentals – UC Berkeley Terner Center