HB2815 - 562R

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. Religious institutions; use-by-right development; definitions

A. A municipality may not require a conditional use permit, planned unit development permit, rezoning application or other discretionary local government review for a development that qualifies as a use-by-right development.

B. A use-by-right development that is located in an area zoned for residential use is allowed the following density provisions:

1. A density of twenty units per acre.

2. A height of one story above the maximum height allowed by the current zoning regulations.

C. A use-by-right development located in an area that is not zoned for residential use is allowed the following density provisions:

1. A density of thirty units per acre.

2. A height of one story above the maximum height allowed by the current zoning regulations.

D. In a single-family residential zone, ancillary uses for a use-by-right development are limited to child care centers and facilities operated by community-based organizations for recreational, social or educational services for the residents of the development and members of the community in which the development is located.

E. Except in areas zoned for single-family use, the development may include commercial uses that are allowed without a use or development permit.

F. If the municipality allows for greater residential density or building heights than what is allowed by subsection b of this section, the greater density or building height allowances shall apply. A use-by-right development may not use an incentive, waiver or concession to increase the height of the development to greater than the height authorized under this section.

G. A use-by-right development may dedicate housing as follows:

1. Up to fifty percent of the total units may be used for moderate-income households as defined by the arizona department of housing.

2. UP to ten percent of the units may be used for staff of the religious institution that owns the land.

3. All remaining units, except for property managers units, shall be dedicated to low-income households as defined by Arizona Department of Housing.

H. Unless there is a local ordinance, a federal, state or local grant requirement or a project financing requirement that requires a conflicting restrictive covenant, the religious institution shall record a deed restriction that requires the property to allocate for a period of fifty-five years at least forty percent of the units in the use-by-right development to low-income households as defined by the arizona department of housing.

I. The use-by-right development shall provide off-street parking of up to one space per unit. If a municipal ordinance provides for a lower number of off-street parking spaces, the municipal ordinance applies. A municipality may not impose a parking requirement if the parcel is located within one-half mile walking distance of public transit, a high-quality transit corridor or a major transit stop.

J. A municipality may not adopt or impose either of the following restrictions on a use-by-right development:

1. Any setback, open space or lot coverage requirements beyond the underlying zoning requirements of the property.

2. any increased fees or impact fees that apply to a project solely or partially on the basis that the project is eligible to receive use-by-right approval.

K. A municipality may issue a subsequent permit if it is required for an approved development that includes building plan and health and safety standards.

l. a religious institution may only allow a use-by-right development on land owned by the religious institution as of 2023.

M. A religious institution that allows a use-by-right development on land owned by the religious institution shall notify the county assessor in the county where the property is located in writing pursuant to section 42-11152 that the property is no longer used for the purposes that qualify for exemption from taxation.

N. For the purposes of this section:

1. "Religious institution" means an institution that is owned, controlled, operated and maintained by a bona fide church, religious denomination or religious organization composed of multidenominational members of the same well-recognized religion lawfully operating as a nonprofit religious corporation.

2. "Use-by-right" means a development project that meets both of the following:

(a) The development is located on land owned on or before January 1, 2025 by a religious institution, including ownership through an affiliated or associated nonprofit public benefit corporation.

(b) The development project complies with all objective development standards of the municipality that do not conflict with this section. END_STATUTE

Sec. 2. Title 11, chapter 6, article 2, Arizona Revised Statutes, is amended by adding section 11-820.04, to read:

START_STATUTE11-820.04. Religious institutions; use-by-right development; definitions

A. A county may not require a conditional use permit, planned unit development permit, rezoning application or other discretionary local government review for a development that qualifies as a use-by-right development.

B. A use-by-right development that is located in an area zoned for residential use is allowed the following density provisions:

1. A density of twenty units per acre.

2. A height of one story above the maximum height allowed by the current zoning regulations.

C. A use-by-right development located in an area that is not zoned for residential use is allowed the following density provisions:

1. A density of thirty units per acre.

2. A height of one story above the maximum height allowed by the current zoning regulations.

E. Except in areas zoned for single-family use, the development may include commercial uses that are allowed without a use or development permit.

F. If the county allows for greater residential density or building heights than what is allowed by subsection b of this section, the greater density or building height allowances shall apply. A use-by-right development may not use an incentive, waiver or concession to increase the height of the development to greater than the height authorized under this section.

G. A use-by-right development may dedicate housing as follows:

1. Up to fifty percent of the total units may be used for moderate-income households as defined by the arizona department of housing.

2. UP to ten percent of the units may be used for staff of the religious institution that owns the land.

3. All remaining units, except for property managers units, shall be dedicated to low-income households as defined by Arizona Department of Housing.

I. The use-by-right development shall provide off-street parking of up to one space per unit. If a county ordinance provides for a lower number of off-street parking spaces, the county ordinance applies. A county may not impose a parking requirement if the parcel is located within one-half mile walking distance of public transit, a high-quality transit corridor or a major transit stop.

J. A county may not adopt or impose either of the following restrictions on a use-by-right development:

1. Any setback, open space or lot coverage requirements beyond the underlying zoning requirements of the property.

2. any increased fees or impact fees that apply to a project solely or partially on the basis that the project is eligible to receive use-by-right approval.

K. A county may issue a subsequent permit if it is required for an approved development that includes building plan and health and safety standards.

l. a religious institution may only allow a use-by-right development on land owned by the religious institution as of 2023.

N. For the purposes of this section:

1. "Religious institution" means an institution that is owned, controlled and operated and maintained by a bona fide church, religious denomination or religious organization composed of multidenominational members of the same well-recognized religion lawfully operating as a nonprofit religious corporation.

2. "Use-by-right" means a development project that meets both of the following:

(a) The development is located on land owned on or before January 1, 2025 by a religious institution, including ownership through an affiliated or associated nonprofit public benefit corporation.

(b) The development project complies with all objective development standards of the county that do not conflict with this section. END_STATUTE