By Howard Fischer & Bob Christie | Daily Independent
Gov. Katie Hobbs asked lawmakers (on January 8) to approve a new program she said will make home ownership more affordable for middle-income and rural homebuyers.
In her second State of the State address, Hobbs said she wants to expand down payment assistance and mortgage rate relief for families making 80% or less of an area median income. She said that figure for Phoenix would mean any family making $75,000 would qualify.
That proposal would require legislative approval.
More to the point, it also would require money. But gubernatorial staffers provided no details as to how much — and where they would find the cash in a year where revenues are running behind expenses to pay for any of that.
Press aide Christian Slater said there would be more specifics when Hobbs releases her budget plan.
Hobbs did get lawmakers to make a one-time $150 million deposit this past year into the Housing Trust Fund. She said that directly led to 15 new affordable developments, half in rural communities, creating more than a thousand units.
But there were no details about how she plans to provide down payment assistance to some families or provide them with any relief from what have been mortgage interest rates hovering close to 7%.
Closely linked to housing, Hobbs said, is water.
She specifically noted the historic 1980 Groundwater Management Act provided no guardrails for rural areas. The governor said she support proposals from her Water Policy Council that would allow the Department of Water Resources (DWR) to form some type of oversight districts that could each decide what rules on groundwater pumping are appropriate.
Then there’s the fact that DWR declared areas of Queen Creek and Buckeye off limits to new residential construction after it was determined they do not have the legally required 100-year supply of groundwater. That provoked outcries from developers.
Now, however, Hobbs said there is a way for DWR to “finalize a new pathway for water providers and communities who have historically relied on groundwater resources.” In essence, it would give developers an opportunity to achieve that 100-year supply — eventually — by finding new water sources.
Legislative approval, however, would be required for two of the governor’s proposals to amend the 1980 law.
One would address the fact the 100-year requirement applies only for owner-occupied homes. Hobbs said that should be extended to build-to-rent subdivisions being erected.
The other would close loopholes that allow for “wildcat” development, with subdivisions skating those water-requirement laws.
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Related:
Governor Katie Hobbs Announces $89 Million for New Affordable Housing and Homeless Response
Governor Hobbs Announces Actions to Modernize Arizona’s Groundwater Management
Governor Katie Hobbs Releases FY2025 Executive Budget Proposal
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