Update: Governor Signs AZ Casitas Act

Through this legislative session, we have been taking our cues on housing legislation from our partners at Lutheran Social Services of the Southwest. Since LSS-SW works directly with folks experiencing housing insecurity, their advocacy team is best able to identify which pieces of legislation will make the biggest impact. One bill LSS-SW identified was HB2720, called the “AZ Casita Act.” Last week, we told you about the bill in this blog post.

On May 15th, HB2720’s amendments were approved by the House and transmitted to the Governor’s desk! Today, Governor Hobbs signed the bill into law.

What Does HB2720 Do?

The Arizona Casitas Act requires all cities with more than 75,000 residents to allow the construction and leasing of Accessory Dwelling Units in areas that are within one mile of central business units. Accessory Dwelling Units, like mother-in-law cottages and casitas, are already allowed on the properties of single-family homes in cities like Tempe and Phoenix, and this extra housing helps to meet demand in densely populated areas.

Many cities restrict Accessory Dwelling Units through zoning laws and city ordinances, but now, property owners in commercial areas will be able to build them! This bill will help property owners to construct more housing, which will help alliviate the demand in our state. It will allow many more people to house their family members nearby!

What Are the Concerns Over This Bill?

Some lawmakers and city officials are concerned that this bill will cause a boom in short term rentals, like Air BnB hosting, instead of alleviating the housing crisis. To curtail this, the Senate added an amendment requiring property owners to be the ones living in the main house on a property, so that landlords, corporations, and realestate companies are not able to buy up multiple properties to construct and short-term lease dwellings.

Even though this amendment does not explicitly stop property owners from using buildings from short term leasing, that is true of almost all housing construction. Houses, apartments, and townhomes are all purchased by various people and entities for the express purpose of AirBnB hosting, yet the state does not restrict their construction. This bill will allow for the construction on more housing in our state, which is necessary to meeting the housing and homelessness crisis in Arizona.

Why Does LSS Support this Bill?

Lutheran Social Services of the Southwest has been tracking this bill since the beginning of the 2024 session.

Housing scarcity is the #1 driver of homelessness in America. In Arizona, we are facing a particularly bad housing shortage, as experts estimate that we are more than 270,000 affordable housing units short of the amount needed to meet demand as our populations grows.

This bill is one of a variety of small solutions that aim to help construct more affordable housing in our state.

What do you think of this bill? What questions do you have about it? Let us know in the comments below!