PHOENIX — They're either more affordable homes, or they're junk houses.
That's the basic breakdown of a proposal awaiting a vote in the Arizona House after barely passing the Senate that would upend decades of municipal design standards builders are required to follow to develop new housing tracts across the state.
The proposal is the latest effort by builders and housing advocates on both sides of the political aisle to address high housing prices for single-family homes.
They do it by blocking cities and towns from requiring everything from garages, paved driveways, backyard patios or fencing between new homes or even main streets. Also barred are any city or town standards that require specific exterior designs, exterior lighting, roofing pitches or floorplans or exterior color requirements.
Also gone would be requirements for developers to put in neighborhood parks or anything like common areas or landscaping that would require a homeowner's association and the fees required to maintain it.
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Without those current rules, proponents argue, home buyers currently locked out of the market by average new home prices nearing $500,000 could see new and cheaper choices.
Opponents argue cities are best suited to making decisions on zoning, standards for new home development and neighborhood character, and that blocking their longstanding rules for new homes could see poor quality homebuilding that doesn't stand the test of time.
They also note there's nothing in the proposal requiring builders to pass on the savings to buyers, meaning big national builders could just pocket the savings they see from making cheaper-quality homes.
A bill to address housing affordability in Arizona would block cities and towns from requiring everything from garages, paved driveways, backyard patios or fencing for new homes.
Sen. Shawnna Bolick, R-Phoenix, is the main sponsor of , this year's iteration of a measure previously dubbed the "Arizona Starter Homes Act.'' The proposal failed in the past two legislative sessions, but so far this year has seen bipartisan support as it moved through the process.
Bolick argues her bill is needed because home prices are so high her own adult children can't afford to buy a new home, and they don't need all the amenities cities are requiring builders to include.
"I can tell you, having 20 year olds and meeting with their friends over the weekend, they are all struggling,'' Bolick said in explaining her March 2 vote for the measure. "Because when they go and look at different communities, there are a lot of things in those developments on even a smaller house that they don't want.''
The average age of a first-time home buyer has soared in the past 20 years, and a December survey by the put it at an all-time high of 40. The same report showed that first-time buyers dropped to a record low of 21%, a drop of 50% since 2007, driven down by low inventories of budget-priced starter homes.
The toughest part for the bill so far this session was getting out of the state Senate, where Bolick's bill was failing until she stood to ask for support.
Sen. Lauren Kuby, D-Tempe, argued against the measure, noting her previous work with an Arizona State University center focused on housing affordability.
Critics of an Arizona bill that cuts amenities for new homes in an effort to reduce profits note that nothing in the bill requires builders to pass construction savings on to consumers.
"And that work that I did with the university reinforced a core truth — that neighborhoods are not just collections of houses,'' Kuby said. "They must include the social determinants of health, be it parks, walkable streets, green space, gathering places and safe, connected communities, all with the goal of creating healthy communities
"So I believe this bill broadly preempts local building standards and imposes a one-size-fits-all state mandate,'' she said. "Cities and towns should retain the ability to require thoughtful design and shared amenities like small green space.''
Another Democrat, Sen. Analise Ortiz of Phoenix, strongly supported the bill, calling it "a common-sense measure'' and bemoaning the fact that, at the time, it was failing.
"You know, we consistently talk about the need to pass measures that will make home ownership more affordable and make Arizona more affordable,'' Ortiz said. "This bill will do that. ''
And she noted that the idea is bipartisan.
"If you look across the country, you have Democratic governors and Republican governors both agreeing that this is the type of policy that, in a common-sense way, will drive down the cost of home ownership,'' Ortiz said.
Bolick then urged senators to change their minds and back the measure — with the promise that the bill before them wasn't necessarily the final product.
"We are still working on potential amendments, so if you don't love the bill, that's wonderful,'' she said, promising changes in the House. "We had a bill that was totally different last year, and I did say that I would continue to work in the House on the bill.''
Those changes, however, never happened in the House.
Bolick never asked for any amendments during a hearing of the House Commerce Committee. And none came this past week, when the measure passed on a voice vote of the full House with no changes.
A formal vote is needed before the measure goes to Gov. Katie Hobbs for her to consider.
The measure still contains the bones of last year's proposal, preempting cities from requiring many amenities like fencing and garages. But gone are the most contentious issues, requirements that cities approve lot sizes as small as 3,000 square feet -- that's as little as 50 by 60 -- and setbacks of just 10 feet from the street.
Cities are united in opposition, with representatives of dozens of them, including °µÍø³Ô¹Ï, signing in opposition.
Nick Ponder, a lobbyist for several cities and for the League of Arizona Cities and Towns, told a Senate committee earlier this year that the measure presents a false choice, with many proponents presenting it as a proposal letting homebuyers decide about amenities, while those decisions are actually made by developers long before buyers enter the picture. He also noted that precluding city requirements for open space, stormwater retention and small community parks shifts those responsibilities to the broader community.
And those items and city design standards more broadly aren't what is driving up costs, he said.
"It is the land value that is driving up costs," Ponder told a Senate committee earlier this year. "Maricopa is more affordable -- but it is more affordable because it is a little farther away.''
"It always goes back to the key tenet of real estate: location, location, location," Ponder said.
At that same hearing, Sen. Brian Fernandez, D-Yuma, said he doubted home prices would fall if the bill passed.
"Making housing affordable should be our goal — I just don't know this does it because I think that the prices will just rise with the markets," he said. "This is all supply and demand. (As) these houses become available, Black Rock or some group will buy them up, and then they'll just keep them and sell them when they're able to make a bigger profit on them.
Also gone is a provision making it only apply to cities with a population over 70,000 — so if enacted and signed by Katie Hobbs, Bolick's proposal would apply statewide.

