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Governor Hobbs Signs Adaptive Reuse Bill for Commercial Buildings

By April 17, 2024No Comments

By Jakob Thorington | Arizona Capitol Times (abridged)

After vetoing a housing bill earlier this session, Gov. Katie Hobbs signed a bipartisan housing bill April 10 that would allow cities to more quickly convert some commercial buildings into residential uses.

House Bill 2297, which will allow cities with populations of more than 100,000 to reuse up to 10% of commercial buildings without requiring discretionary municipal review, bypassing the need for conditional use permits or rezoning applications.

When the bill passed out of the House on April 4, Rep. Analise Ortiz, D-Phoenix, said, “Many of my constituents have asked me why we cannot make it easier to transition commercial buildings into housing so the fact that HB2297 takes the steps to take that innovative measure in order to creatively address our affordable housing crisis and our homelessness crisis is really something that is commendable.”

Last month, Hobbs vetoed HB2570, which bill supporters said would have made first homes more affordable by prohibiting lot size requirements in building development.

In a press conference on April 11, Hobbs said she hopes to see some of the provisions of the vetoed bill make it to her desk in a separate bill.

“My administration is actively negotiating with legislators on housing legislation that is moving through that is going to help us increase the supply of housing, which is absolutely something that needs to happen,” Hobbs said. “I’m optimistic we’ll get a bill or a package of bills to my desk that will do that.”

Hobbs also announced her “Arizona is Home” mortgage assistance program is available for qualifying first-time home buyers.

Working with housing assistance groups Trellis and Chicanos Por La Causa, program participants who are at 80% or below the area median income can receive up to $30,000 in down payment assistance while participants who are between 81% to 120% of the area median income can receive up to $20,000.

One other housing measure being negotiated by lawmakers is SB1415, which would require cities with populations over 75,000 to allow accessory dwelling units to be built on residential properties. The bill and its mirror version, HB2720, are being held up in the House and Senate as lawmakers continue drafting amendments to the measure.

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