Katie Hobbs Becomes First Governor in the Nation to Block Bill Removing Zoning Restrictions to Bring Housing Prices Down for Hardworking Citizens

FOR IMMEDIATE RELEASE                                                                                  

Monday, March 18, 2024   

Katie Hobbs Becomes First Governor in the Nation to Block Bill

Removing Zoning Restrictions to Bring Housing Prices Down

for Hardworking Citizens

PHOENIX, ARIZONA— As housing costs continue to skyrocket in Arizona, forcing communities to pass ordinances allowing their citizens to sleep in their cars, and at a time when it takes four years to develop land and get a new home approved for construction in virtually every Arizona city, Governor Katie Hobbs today worsened the housing shortage crisis in Arizona by vetoing the Arizona Starter Homes Act.

Since January of 2020, the median Arizona home sale price has increased by more than 50% and currently sits at a whopping $430,000. The driving force behind these soaring prices is a supply shortage of roughly 270,000 housing units in Arizona. To bring prices down, supply must increase. Unfortunately, as developers build new starter homes to meet this demand, they're faced with radical requirements from cities and towns that are dramatically increasing costs, which are ultimately passed onto buyers. Cities have essentially made it illegal to build a starter home.

This legislation, sponsored by Senate Majority Leader Sonny Borrelli and House Majority Leader Leo Biasiucci, prohibited cities and towns from mandating homebuyers pay for costly amenities they don't want or mandating the formation of homeowners associations. It also gave homebuyers more choices with the aesthetic features of a home, such as paint color, lighting, and roof design. The status quo currently limits options, which can tack on tens of thousands of dollars to the sale price of a home. Additionally, the bill gave buyers more options with lot sizes, allowing homes to be built on smaller pieces of land, which are less expensive.

In response to the Governor's veto statement, Senate President Warren Petersen issued the following statement:

"Our kids can't afford a home. Today, the Governor sided with bureaucrats, instead of our kids. Thanks to her, affordable starter homes remain illegal in Arizona. But it's not just our kids. Every day, we hear from active-duty military, veterans, young families, young professionals, firefighters, teachers, police officers, service workers, and seniors on fixed incomes that they are either facing the grim reality of becoming homeless or are being prevented from participating in the American dream of homeownership because of outrageous prices, partly due to reckless big government regulations imposed by cities and towns," said President Petersen. "The Governor has a track record of pushing red herrings to justify her vetoes against commonsense legislation, and her statement today is no different. No, this bill does not harm military operations, nor create safety issues for cities. Instead of listening to the citizens, she's listening to the people who created the problem. This legislation had strong bipartisan support, and this veto will certainly go down as one of her biggest failures."

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For more information, contact:

Kim Quintero

Director of Communications | Arizona State Senate Republican Caucus

kquintero@azleg.gov