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Tempe Looks to Find Multifamily Zoning Space Amid New State Law

By July 31, 2025No Comments

By Madeline Bates | Daily Independent (abridged)

Tempe will hold a meeting in August for public input to find a solution to accommodate A new state law that requires Arizona cities larger than 75,000 people to rezone areas and allow developers to build multifamily structures in areas zoned for single family homes.

House Bill 2721 is part of a larger effort to increase housing options in Arizona, especially larger cities where housing, especially affordable housing is sparse.

Tempe’s proposed plan is called the “Middle Housing Overlay District” and affects much of the land south of University Drive and between Interstate 10 and Loop 101. This avoids any space within direct line of Sky Harbor Airport. Tempe joins other cities like Phoenix and Mesa trying to comply with the law in a way that will best benefit the community before the required deadline of January 2026.

Many comments show concern regarding Tempe’s lack of affordable housing and how it contributes to the homeless population. Others are concerned about property values and the traffic associated with new, larger buildings in open spaces. All of the new structures will be held to a development standard with a height of no more than 30 feet.

Jacob Payne, principal planner for the city, said that Tempe and state officials are “looking for clarifications for more practical solutions.”

Payne and others were contacted by the state Legislature through League of Arizona Cities and Towns, a group of Arizona elected officials that represent their cities, to discuss the needs and concerns of each city before passing the law.

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