House Engrossed

 

adaptive reuse; commercial buildings; zoning

(now:  zoning; adaptive reuse; commercial buildings)

 

 

 

 

State of Arizona

House of Representatives

Fifty-sixth Legislature

Second Regular Session

2024

 

 

 

HOUSE BILL 2297

 

 

 

 

An Act

 

amending title 9, chapter 4, article 6.1, Arizona Revised Statutes, by adding section 9-462.10; relating to planning and zoning.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 9, chapter 4, article 6.1, Arizona Revised Statutes, is amended by adding section 9-462.10, to read:

START_STATUTE9-462.10. Commercial buildings; adaptive reuse; prohibition on rezoning or municipal review; applicability; definitions

A. on or before january 1, 2025, the governing body of a municipality with a population of one hundred thousand or more persons shall allow multifamily residential development or adaptive reuse development of any commercial, office or MIXED USE buildings without requiring a conditional use permit, planning unit development, rezoning application or other discretionary municipal review.

b. A development that is developed pursuant to this section is subject to site plan review and approval. The site plan review and approval shall include approval of the site plan by any utility provider impacted by the proposed development.

C. to be eligible for redevelopment as a multifamily residential development or adaptive reuse, a building must have access to public sewer and water service for the entire proposed development and shall comply with all applicable building and fire codes.

D. The residential density shall be the maximum residential density allowed under the zoning ordinance.

e. The multifamily residential development or adaptive reuse development may not be subject to the enforcement of any regulation that exceeds existing zoning ordinance setback requirements for multifamily residential development or adaptive reuse. For adaptive reuse, the existing setbacks may remain. If the existing zoning ordinance setback requirement is less than what is allowed for multifamily residential development or adaptive reuse, the property shall be considered nonconforming UNLESS existing easements, including public utility easements, are within existing setback areas.

F. The multifamily residential development may allow for the demolition of all or a portion of the EXISTING building or buildings.

G. for adaptive reuse, If the height of the existing commercial office or mixed use building exceeds the maximum height in the zoning ordinance, the height may remain and the maximum density may be exceeded and shall be considered nonconforming. Any rooftop construction shall be included within the height exemption.

H. The multifamily residential development or adaptive reuse development of any commercial office or mixed use building shall provide a minimum set aside of at least ten percent designated for either moderate-income housing or low-income housing or any combination of both moderate-income housing and low-income housing.

I. The multifamily residential development or adaptive reuse development may not be subject to enforcement of any regulation that exceeds existing parking space requirements beyond what is required in the existing zoning ordinance for multifamily residential development or adaptive reuse development.

J. This section does not apply to any land in an area that is designated as a district of historical significance pursuant to section 9-462.01, subsection A, paragraph 10, in an area that is designated as historic on the national register of historic places, in the immediate vicinity of a municipal, federal aviation administration commercially licensed, general aviation or military airport or ancillary military facility as defined in section 28-8461 or in a municipality that is located on tribal land.

K. A MUNICIPALITY MAY DESIGNATE COMMERCIAL HUBS AND OTHER ESSENTIAL COMMERCIAL USE AREAS WHERE COMMERCIAL, OFFICE AND MIXED USE BUILDINGS ARE EXCLUDED FROM MULTIFAMILY RESIDENTIAL development OR ADAPTIVE REUSE REDEVELOPMENT. THe designations may NOT EXCEED TEN PERCENT OF THE EXISTING COMMERCIAL, OFFICE OR MIXED USE BUILDINGS WITHIN EACH MUNICIPALITY.

L. MULTIFAMILY RESIDENTIAL DEVELOPMENTs OR ADAPTIVE REUSE DEVELOPMENTs SHALL BE ALLOWED ON AT LEAST TEN PERCENT OF THE EXISTING COMMERCIAL, OFFICE OR MIXED USE BUILDINGS WITHIN EACH MUNICIPALITY THAT meet all of the FOLLOWING requirements:

1. THE COMMERCIAL, OFFICE OR MIXED USE BUILDINGS ARE ECONOMICALLY OR FUNCTIONALLY OBSOLETE or in a state of disrepair or have AT LEAST A FIFTY PERCENT VACANCY OF THE TOTAL LEASABLE SQUARE FOOTAGE, OR THE HIGHEST AND BEST USE of the buildings IS IN CONVERSION TO a MULTIFAMILY RESIDENTIAL development OR ADAPTIVE REUSE AT THE TIME OF SITE PLAN APPLICATION.

2. THE COMMERCIAL, OFFICE OR MIXED USE BUILDINGS ARE ON A PARCEL OR PARCELS THAT ARE AT LEAST ONE ACRE BUT NOt MORE THAN THIRTY ACRES.

3. The pROPERTY VALUE A YEAR AFTER a CERTIFICATE OF OCCUPANCY will be issued IS ESTIMATED TO BE AT LEAST FIFTEEN PERCENT HIGHER THAN THE PROPERTY VALUE AT the TIME OF SITE PLAN APPLICATION.

m. For the purposes of this section:

1. "Adaptive reuse" means converting an existing structure from the use for which it was constructed to a new use by maintaining some or all of the elements of the structure.

2. "Building code" has the same meaning prescribed in section 9-1301.

3. "Low-income housing" means housing:

(a) For a person or persons whose household income does not exceed eighty percent of the area median income.

(b) For which the occupant pays not more than thirty percent of the occupant's gross income for the occupant's rent or mortgage, as determined by the Arizona department of housing and adjusted for household size based on the United States department of housing and urban development.

4. "Maximum residential density" means a residential density development that is equal to the maximum residential density allowed under the local general plan or municipal zoning ordinances.

5. "Moderate-income housing" means housing:

(a) For a person or persons whose household income does not exceed one hundred twenty percent of the area median income.

(b) For which the occupant pays not more than thirty percent of the occupant's gross income for the occupant's rent or mortgage, as determined by the Arizona department of housing and adjusted for household size based on the United States department of housing and urban development.

6. "multifamily residential development" means a building or buildings that are designed and used for residential purposes and that contain more than one apartment or dwelling unit for sale or for rent.

7. "Nonconforming" means structures that have received building and zoning permits under the regulations in place at the time of construction.

8. "rooftop CONSTRUCTION":

(a) means rooftop structures that principally house air conditioning equipment, solar panels and other energy production facilities.

(b) includes open space features, swimming pools, space for use by residents and landscaping.

(c) Does not include decorative features, spires, bell towers, domes, cupolas, pediments, obelisks or monuments.END_STATUTE