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ARIZONA STATE SENATE

Fifty-Fifth Legislature, Second Regular Session

 

FACT SHEET FOR S.B. 1446

 

municipalities; housing developments; repeal

Purpose

Repeals the authorization for a city or town governing body to establish housing development areas and assist in providing for the acquisition, construction and rehabilitation of housing and other facilities related to the housing development area.

Background

A city or town governing body may adopt a resolution finding that a shortage of housing exists in a certain area of the municipality and declaring the area a housing development area and that assisting in the development of housing in the area is in the interest of the public health, safety, morals and welfare of the residents of the municipality. After adopting the resolution, the city or town may assist in providing for the acquisition, construction and rehabilitation of housing and other facilities primarily for the use of those residing in the housing development areas
(A.R.S. § 9-441.01). The city or town may: 1) enter into contracts or leases with developers for housing development projects; 2) finance, refinance or otherwise contract with private developers to construct, purchase, acquire, own, modify, maintain, develop and manage housing development projects; 3) issue bonds to finance any housing development project; 4) levy taxes and incur indebtedness as necessary to raise monies for use in connection with a housing development area; 5) pay the costs of any housing development project from the proceeds of bonds or other obligations of the municipality or any other municipal monies; and 6) do all things necessary and convenient to carry out statutory powers related to housing development areas (A.R.S. §§ 9-441.02, 9-441.03 and
9-441.07).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Repeals the authorization for a city or town governing body to establish a housing development area and assist in providing for the acquisition, construction and rehabilitation of housing and other facilities primarily for the use of those residing in the area.

2.   Repeals city and town powers and duties and requirements for housing development areas relating to:

a)   entering into contracts or leases with developers;

b)   encouraging and promoting improvement and revitalization;

c)   making long-range proposals for the area;

d)   the issuance of and security for bonds; and

e)   the use of municipal revenue powers.

3.   Makes conforming changes.

4.   Becomes effective on the general effective date.

Prepared by Senate Research

February 10, 2022

MH/slp