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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: RED DPA 6-1-0-0 |
HB 2926: housing; contractors; bonds; taxes
Sponsor: Representative Bliss, LD 1
House Engrossed
Overview
Allows municipalities to administer a workforce housing project expedited plan and permitting process and exempts such projects from the State's portion of the prime contracting sales tax.
History
Established in 2001 and housed in the Arizona Office of Economic Opportunity, the Arizona Finance Authority (AFA) serves as the State's bonding authority and supports affordable housing programs. AFA is governed by a 7-member board of directors, appointed by the Governor to 7-year terms. AFA's main responsibilities include: 1) administering funds or property from federal agencies or others; 2) entering into agreements, contracting with, or acting as a guarantor with any federal, state, or local government agency in connection with its responsibilities related to housing; and 3) inspecting housing facility financed through its resources (Arizona State Library).
Furthermore, the AFA must authorize any corporation that seeks to act as an authority in the issuance of bonds and is responsible for overseeing the greater Arizona development authority. Bonds are issued mainly by the Arizona Industrial Development Authority (IDA), with uses for bonds ranging from residential rental to manufacturing and infrastructure projects (Title 41, Chapter 53; Title 35, Chapter 5, Art. 1 & 2 A.R.S).
Provisions
Workforce Housing Authorization
1. Allows municipalities to establish and maintain a workforce housing project expedited plan review and permitting process. (Sec. 1)
2. Requires the following information and objectives to be included in a workforce housing project expedited plan review and permitting process:
a. a dedicated point of contact for affordable housing applicants;
b. initial plan review within twenty business days after the submission of the plan application; and
c. inspections being given priority scheduling or being scheduled within 72 hours. (Sec. 1)
3. Defines workforce housing and workforce housing project. (Sec. 1)
IDA Bond Issuance
4. Lowers the minimum population threshold, from 7% to 3% of the total state population, that a governing body of a county or municipality must have in order to issue bonds to finance a qualified project. (Sec. 2)
5. Expands one of the types of qualified projects that can receive a bond issuance from an IDA, to include all residential rental projects instead of solely multifamily residential rental projects. (Sec. 2)
Tax Exemption
6. Exempts the gross proceeds of sales or gross income attributable to the development of workforce housing projects from the State's portion of the prime contracting sales tax regardless of whether services are provided sequential to or concurrent with prime contracting activities that are subject to tax. (Sec. 3)
Miscellaneous
7. Establishes the effective date of this act to be 12 months after the general effective date. (Sec. 7)
8. Cites the act as the Workforce Housing Incentive Act. (Sec. 8)
9. Makes technical and conforming changes. (Sec. 1, 2, 3)
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13. Initials PB HB 2926
14. 2/26/2026 Page 0 House Engrossed
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