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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
municipal development; permits; review
Purpose
Authorizes third party reviews of single-family residential building permit applications in a municipality with a population of 30,000 persons or more. Modifies municipal licensing time frame requirements.
Background
Municipalities must post time frames during which the municipality will either grant or deny each license required by an ordinance or code, with specified exceptions. The overall timeframe must separately state the administrative completeness review timeframe and the substantive review timeframe. During the substantive review timeframe, a municipality may make: 1) one comprehensive request for corrections; and 2) supplemental requests for corrections limited to previously identified issues, if the applicant fails to resolve an issue identified in the comprehensive request for corrections. The substantive review timeframe and overall timeframe are suspended from the date a request for corrections is issued until the date the municipality receives the corrections. A municipality may consider an application withdrawn if, by 30 days or more after the date of notice, the applicant does not supply the documentation or information requested or an explanation of why the information cannot be provided within the established time period. If a municipality does not issue the applicant a written or electronic notice granting or denying a license within the overall time frame or within mutually agreed on time frame extension, the municipality must refund to the applicant all fees charged for reviewing and acting on the application for the license and excuse payment of any fees that have not yet been paid.
The statutory requirements do not apply to a license that is: 1)
necessary for residential lot construction or development, including swimming
pools, hardscape and property walls, a subdivision or a master planned
community; 2) issued within seven working days after initial application
receipt; and 3) a permit that expires within 21 working days after issuance (A.R.S.
§ 9-835).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Third Party Reviews
1. Allows, if a municipality with a population of 30,000 persons or more does not approve, conditionally approve or respond with required additions or revisions to an application for a single-family residential building permit within 15 working days after the date the application is submitted, any required review of the application to be performed by a qualified third party selected by the municipality.
2. Requires a municipality to maintain a list of at least three third party reviewers who are eligible to be hired by the municipality to perform a building permit application review.
3. Requires a third party who reviews a single-family residential building permit application to:
a) review the application and take all other related actions in accordance with all requirements adopted by the municipality where the application was submitted; and
b) notify the municipality and the applicant of the results of the review.
4. Prohibits a municipality from requesting or requiring an applicant to waive a deadline or other required procedure.
5. Allows an applicant to appeal a decision by the municipality to approve, conditionally approve or deny a single-family residential building permit application.
6. Requires a municipality that issues a permit, approval or certificate of occupancy after a third party plan review to have qualified immunity in accordance with statute.
7. States that the applicant is responsible for any fees and costs associated with a third party review.
8. Requires the applicant to pay the fees and costs to the municipality.
9. States that the third party review requirements do not:
a) apply to applications required to comply with a hillside development ordinance or for floodplain reviews required by federal floodplain regulations; and
b) modify the authority of a building official to withhold a certificate of occupancy in accordance with the municipality's adopted codes and ordinances.
Municipal Licensing Time Frames
10. Requires a municipality, in establishing licensing time frames, to consider the third party single-family residential building permit application review time frames.
11. Requires, within 10 working days after a request by the applicant, a municipality to meet or discuss with the applicant the request for corrections and provide sufficient information and instruction to allow the applicant to provide the requested corrections.
12. Prohibits, except for an application submitted in accordance with the municipal planning or zoning statutes, a municipality from denying a residential license application that is necessary for land development or building construction unless the municipality:
a) considers the application withdrawn; or
b) has notified the applicant and property owner within 15 days after the submission of the application that the application may be subject to denial because of excessive substantive deficiencies.
a) the municipality makes more than one comprehensive written or electronic request for corrections and one supplemental written or electronic request for corrections limited to previously identified issues or in response to modifications made by the applicant; or
b) does not issue an applicant the written or electronic notice conditionally granting, rather than only granting or denying, a license within the overall times frames or a mutually agreed on time frame extension.
14. Prohibits a municipality from modifying, rescinding or requesting any subsequent modifications or revisions to an approved plan or permit for land development or building construction during construction if the construction is done in accordance with the approved plan or permit unless the modification or revision is:
a) required to address a field condition that was unknown when the plan or permit was reviewed;
b) made at the request of the applicant, the applicant's designee or a subsequent owner or owner's designee if the property that is the subject of the approved plan or permit changes ownership; or
c) made by the municipality to correct noncompliance with a code requirement unless the code requirement was identified before the plan was approved and the municipality made a decision or interpretation on which the approval was based.
15. Eliminates the exemption of licensing time frame requirements for the construction or development of a residential lot, including swimming pools, hardscape and property walls, subdivisions or master planned communities.
Miscellaneous
16. Authorizes a municipality to hold the issuance of a certificate of occupancy as a security to assure the installation of required streets, sewer, electric and water utilities, drainage, flood control and improvements meeting established standards of design and construction.
17. Defines application as a plan, permit or other document that is related to building construction and that is necessary for the construction of a single-family residential dwelling unit, excluding a certificate of occupancy and a subdivision pre-plat.
18. Defines applicant as a person that is seeking approval or has received approval from a municipality for construction or land development activities.
19. Makes technical and conforming changes.
20. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Eliminates the authorization for third party inspections of single-family residential dwellings.
3. Makes technical and conforming changes.
Amendments Adopted by Committee of the Whole
· Makes a technical change.
Amendments Adopted by Additional Committee of the Whole
1. Narrows the applicability of the third party single-family building permit application review requirements to a municipality with a population of 30,000 persons or more.
2. Allows the municipality, rather than the applicant, to select a qualified third party for a building permit application review.
4. Removes the authorization for the municipality to prescribe a reasonable format for a third party to notify the municipality and applicant of the results of a review.
5. Removes the authorization for an applicant to appeal:
a) a decision made by a qualified third party to review a single-family residential building permit application; or
b) the results of an inspection conducted by the municipality.
6. Removes the requirement for an appeal to be filed in a manner required by the municipality within 15 working days after the date of the decision or result being appealed.
7. Removes the requirement that the building permit review application subject to an appeal be deemed approved or an inspection waived if a decision in not rendered within 60 working days after the appeal is filed.
8. Requires the applicant to be responsible to pay any fees and costs associated with a third party review to the municipality, rather than to the third party vendor.
9. Removes the specification that the municipality is not responsible for assessing or collecting any fees or costs associated with a third party building permit review.
10. Exempts a subdivision pre-plat from the definition of application.
11. Specifies that a municipality may not deny a residential license application that is necessary for land development unless the municipality considers the application withdrawn or the municipality had notified the applicant and property owner within 15 days after the submission of the application that the application may be subject to denial because of excessive substantive deficiencies.
12. Specifies that municipality may not modify, rescind or request any subsequent modifications or revisions to an approved plan or permit for land development or building construction during construction unless the modification or revision is made by the municipality to correct noncompliance with a code requirement unless:
a) the code requirement was identified before the plan was approved; and
b) the municipality made the decision or interpretation on which the approval was based.
13. Makes conforming changes.
Senate Action
RAGE 2/5/25 DPA 4-3-0
Prepared by Senate Research
March 13, 2025
JT/ci