The Arizona House passed HB 2946 on Mar. 12, a bipartisan bill aimed at reducing government-imposed development fees that contribute to the rising cost of new homes in the state.
The legislation is intended to make housing more affordable for Arizona families by addressing costs added by local governments. Representative Khyl Powell said, “Arizona families are being priced out of homeownership, and government-added costs are part of the problem.” Powell added, “HB 2946 is a bipartisan, commonsense reform that helps make housing more affordable by bringing clarity and consistency to fee collection, reducing uncertainty, and stopping unnecessary local cost pressure from being passed onto working families trying to buy a home.”
HB 2946 introduces changes designed to increase predictability for developers. Previously, protections for existing projects were linked to when the first building permit was issued—a process that could take years before construction began. The new bill instead ties these protections to a period of 24 months after any new or increased development fee ordinance is enacted. This adjustment aims to create a smoother process for developers as they plan and build projects.
The bill also addresses how accessory dwelling units (ADUs) are treated under local fee structures. Water and wastewater fees will now be based on actual infrastructure impact, specifically the difference in meter size needed for detached ADUs. Other development fees will be capped at either twenty percent of a comparable single-family home fee or the ADU’s proportionate share—whichever is less—so homeowners pay only what is necessary.
Powell said, “HB 2946 will not solve every housing affordability challenge facing Arizona, but it addresses a problem the Legislature can directly control: local government costs that make housing more expensive before a family ever gets the keys.”
Carbone, a Republican who was elected in 2023 to represent Arizona’s 25th House District in place of Michelle Udall, has been involved in legislative efforts related to this issue according to Ballotpedia.
Observers say these reforms could help ease some financial barriers faced by prospective homeowners while providing clearer guidelines for developers.
