Arizona Dems propose changes to address affordable housing crisis

Jerod MacDonald-Evoy

(Arizona Mirror) Arizona Democratic lawmakers on Thursday announced several proposals they plan to sponsor in the upcoming legislative session aimed at alleviating the state’s growing affordable housing crisis.

The proposals stem from a working group of Democrats in the state Senate and House of Representatives, and were developed after a series of meetings with stakeholders and affordable housing advocates.

Rep. Analise Ortiz, D-Phoenix, said they intend to focus on five key areas this session: strengthening the rights of renters, financing affordable housing, addressing large corporations increasing rental prices, preventing evictions and creating new zoning rules to allow for more affordable housing to be built.

Arizona, and the nation, has been seeing a spike in the number of evictions the past few months. The Grand Canyon State has broken records related to the number of eviction filings the past few months. Homelessness in the state has also been on the rise.

One of the bills planned for this session by Rep. Marcelino Quiñonez, D-Phoenix, would create a first-time home buyer program.

“So that individuals whose parents were able to achieve the American dream might be able to, as well to become homeowners,” Quiñonez said. The idea is one the lawmaker pushed last year, but it ultimately never was considered by the full House. The bill has not yet been introduced, and it is unclear how the program would work.

Quiñonez also said that Democrats plan on expanding the low-income housing tax credit system that is set to expire in 2025, and hope to extend it for another three years. The tax credits are designed to incentivize developers to build low-income housing.

Other bills that failed last session are expected to be re-introduced as well, including one  that would repeal a statewide ban on cities and towns implementing rent caps. The bill was originally introduced by Ortiz last session but did not gain any traction, and she said she plans to reintroduce the measure this year.

Housing advocates have argued that rent control is key to grappling with the state’s growing rental prices, a key factor in the surge in homelessness in Arizona, which increased by 21% from 2020 to 2022. That spike led the federal government to give additional aid to Phoenix due to the increase.

Ortiz said that Democrats want to overturn that state ban on rent control and give power back to cities and towns to determine how best to serve their own communities. They are also eyeing other local fixes, such as a bill to allow for zoning of accessory dwelling units, or ADUs.

Sen. Anna Hernandez, D-Phoenix, said she intends to file legislation next week that would authorize ADUs across the state. The cities of Phoenix and Tucson have already legalized ADUs, and some have argued that the small units, sometimes called casitas, could help the country’s affordable housing woes.

Democrats are also looking into removing outdated and illegal restrictions from housing paperwork.

Rep. Quantá Crews, D-Phoenix, said she is intending to push legislation that would aid in removing what are known as “covenant restrictions.” It refers to a contractual agreement that prohibits the purchase, leasing or occupancy of a building to specific people. In the past, covenant restrictions were used against minority groups, and they were popular well into the 1950s.

“It is 2023, we need to have a way to remove this language,” Crews said.

Democratic lawmakers are hoping for bipartisan support on some of the legislation, as happened for a handful of the proposals in 2022. Democratic lawmakers touted last year’s bipartisan budget, which included investments into affordable housing, including a historic investment in the state’s Housing Trust Fund. Much of that money has still yet to be dispersed.

Rep. Judy Schwiebert, D-Phoenix, said that they also hope to find bipartisan support on the issues of short-term rental properties, which have proliferated in the state. Schwiebert said she is aiming to run a bill that would repeal a state override on local control of those types of properties.