by Jonathan Eberle | Mar 17, 2025 | News
By Jonathan Eberle |
Arizona’s ongoing housing crisis is taking center stage as state lawmakers, led by House Majority Leader Michael Carbone, voice strong opposition to Governor Katie Hobbs’ water policies, accusing them of exacerbating the state’s housing shortage. In a statement released last week, Carbone applauded House Speaker Steve Montenegro for authorizing a lawsuit against the Arizona Department of Water Resources (ADWR) over its adoption of a controversial 33.3% groundwater tax. Carbone claims that this policy is driving up the cost of housing and ultimately harming Arizonans who are already grappling with soaring housing prices.
At the center of the dispute is a policy known as the housing moratorium, which has been criticized for preventing the development of large swathes of land that could otherwise be used to build affordable homes. According to Carbone and other critics, the moratorium was adopted illegally, and it has led to a situation where hundreds of thousands of acres of land remain undeveloped. This, in turn, limits the amount of available space for new homes, driving demand to already crowded urban areas and increasing housing costs.
Carbone explained that “water policy is land use policy, and land use policy is housing policy,” suggesting that the restrictions on land development, while related to water conservation, are having broader economic consequences.
As a result of the moratorium, many Arizonans are facing higher costs when it comes to purchasing new homes. The housing moratorium is expected to increase home prices by $19,600 to $23,700 per house. Additionally, the proposed 33.3% groundwater tax has been predicted to add an extra $5,100 to $7,900 to the cost of new homes. These measures have raised concerns about the affordability of housing, especially in a state already struggling with rapid population growth and a housing shortage.
The Arizona House of Representatives, alongside the Home Builders Association of Central Arizona (HBACA) and members of the Arizona Senate, have joined forces in a legal battle against the ADWR’s actions. The lawsuit seeks to halt the 33.3% groundwater tax, which lawmakers argue is not only illegal but also harmful to Arizona’s housing market. Carbone criticized the governor’s policies, stating that they are not about ensuring water security but rather a means of “government control.”
“The Governor wants to dictate where and how Arizona families live, limiting all future growth to cities and driving up home prices,” Carbone said. “Affordable housing is central to the American Dream, and we are committed to fighting these illegal policies that will only make the housing crisis worse.”
The legal battle focuses on the ADWR’s authority to implement such a tax and whether it complies with state law. Proponents of the lawsuit argue that homebuilders have long demonstrated a commitment to responsible water management, having replenished 100% of the groundwater they use annually since 1995. Therefore, they contend, penalizing the homebuilding industry with additional taxes is unfair and counterproductive.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | May 31, 2024 | Economy, News
By Daniel Stefanski |
Two Arizona Republican bills to tackle the state’s deepening housing crisis were recently signed into law.
Last week, Governor Katie Hobbs signed HB 2720 and HB 2721. HB 2720 “establishes requirements relating to accessory dwelling units” – according to the overview from the Arizona House of Representatives. HB 2721 “adopts requirements for middle housing development” – also according to the overview from the state House.
In a statement that followed the governor’s signature of his bills, State Representative Michael Carbone, a Republican, wrote, “It’s the goal of Republicans in the Legislature to make life more affordable for everyday Arizonans by addressing the urgent need for more diverse housing options. I’m pleased to have the Governor sign my two bills into law, which will help mitigate the effects of rising housing costs and ensure that our teachers, nurses, firefighters, police officers, and families can live in the communities they serve and love.”
Carbone added, “Importantly, the legislation reinforces a homeowner’s right to use their property as they see fit which, for some, may include adding accommodations for multigenerational housing or to generate additional income. The enactment of this legislation is a significant step toward solving the state’s housing crisis, and I am proud of the bipartisan effort that made it possible.”
Hobbs also released a statement to mark her signature on these two proposals, saying, “I’m glad the legislature heard my calls to come to the table to pass common sense, bipartisan legislation that will expand housing options and help mitigate the effects of rising costs to make life more affordable for everyday Arizonans. And today, I’m proud to sign bills into law that will expand access to ADUs and missing middle housing.”
The governor continued, “I was born and raised in an Arizona where a middle-class family could buy their own home. In the past year alone we have made dramatic strides towards making that the reality again for the next generation. …Moving forward, I hope we can work together to address short term rentals that displace long-term community residents, and crack down on speculation by out-of-state real estate investors that drives up the cost of housing for Arizonans.”
Both bills will go into effect 90 days after the conclusion of the 2024 Arizona Legislative Session.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | May 20, 2024 | News
By Daniel Stefanski |
Arizona Republican legislators are working hard to come up with bipartisan solutions that would help to mitigate the state’s growing housing crisis.
This week, the Arizona House of Representatives passed two bills to augment the state’s housing supply. The first bill was HB 2720, which would “establish requirements relating to accessory dwelling units,” according to the overview from the state House. The second was HB 2721, which would “adopt requirements for middle housing development.” Both bills now head to Governor Hobbs’ desk.
According to the press release issued by the Arizona House Republican Caucus, these bills “will increase the supply of housing types that are currently illegal to build in most cities and towns across the state. HB 2720 will legalize backyard Accessory Dwelling Units, or Casitas, and HB 2721 will legalize duplexes, triplexes and fourplexes—or Middle Housing— in certain areas of cities and towns. Both bills will only apply to cities and towns with a population of more than 75,000 people.”
Both proposals were sponsored by State Representative Michael Carbone, who issued a statement to champion these bipartisan efforts during another contentious legislative session in the state’s divided government. Carbone said, “Arizonans across the state are being decimated by high housing costs and unrelenting inflation. Right now, our teachers, nurses, firefighters, and police officers can’t afford to live in the communities that they serve. Our children and grandchildren can’t afford to live in the communities that they grew up in. Most Arizonans have been priced out of the housing economy – it’s wrong and un-American.”
Carbone added praise for a Democrat colleague, who helped get these pieces of legislation to the finish line in the Arizona Legislature, writing, “I cannot go a single day without hearing from my constituents about the high housing costs in our state that is decimating my community and locking families in poverty. We worked tirelessly with housing and community stakeholders in order to craft this historic and bipartisan solution that we are proud to send to the Governor. This was truly a bipartisan effort, and I am grateful for Senator Hernandez’s leadership on this issue.”
Senator Anna Hernandez, a Democrat, noted the legislative success of one of these bills, saying, “Someone told me months ago, that we could never pass our statewide ADU (casitas) legislation. HB2720 just passed final read in the house with 35 bipartisan votes. This bill, that will legalize casitas, is now heading to the Governor’s desk. Huge thanks to everyone that worked with me and helped get this across the finish line.”
As the two bills head to the Governor’s Office for her decision, both Republicans and Democrats who supported these proposals are hoping for a better result than the fate that met another housing bill earlier in the session. Back in March, Governor Katie Hobbs vetoed HB2570, which would have “create[ed] municipal prohibitions relating to home designs and single-family home lot sizes” – according to the overview provided by the state House. Hobbs explained that she had vetoed the proposal because “this is unprecedented legislation that would put Arizonans at the center of a housing reform experiment with unclear outcomes.”
The Senate Republican Caucus’ press release after the veto of HB 2570 highlighted that Hobbs became the “first Governor in the nation to block a bill removing zoning restrictions to bring housing prices down for hardworking citizens.” Representative Analise Ortiz, a Democrat, said, “I hope Governor Hobbs will support future plans to expand the state’s inventory of modest, starter homes and homes on small lots – homes that our parents & grandparents purchased years ago that allowed them to build wealth, lay roots in communities, and break cycles of poverty.” And Senator Anna Hernandez added, “I hope the Governor takes this moment to reaffirm her commitment to solving the housing crisis rather than stand as another obstacle in the way of solutions.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
