Support Starter Home Legislation for Working Families and First-Time Buyers – No Room for Investors!

The dream of homeownership has become a harsh reality for many Americans, including residents of Arizona. Working parents diligently save to qualify for mortgages, only to discover their efforts yield insufficient results. First-time buyers consider various assistance programs but often find themselves ineligible. Meanwhile, middle-class families face stiff competition from out-of-state investors with substantial financial resources.

Arizona’s need for safe and affordable housing has reached critical levels. Elected officials across the state are actively working to combat this crisis by utilizing innovative tools and strategies. Since 2020, over 316,000 housing permits have been issued in Arizona, with approximately 249,000 new units completed. However, this progress is only a fraction of what is needed.

In response, bipartisan legislation is emerging from the state Legislature, spearheaded by the League of Arizona Cities and Towns. Senate Bill 1698 and House Bill 2834 aim to prioritize homeownership for Arizonans instead of allowing Wall Street investors a foothold. These bills are designed to enhance the supply of affordable housing and provide better opportunities for residents aspiring to buy their homes.

Dubbed the “Affordable Starter Homes” initiative, these measures, introduced by Senator Vince Leach, R-Saddlebrooke, and Representative Janeen Connolly, D-Tempe, aim to achieve several key objectives:

• Ensure that starter homes are sold exclusively to Arizona residents.
• Support middle-income earners and first-time buyers whose earnings do not exceed 120% of the Area Median Income (AMI).
• Preserve local control over infrastructure and design while mandating the inclusion of starter homes, balancing local decision-making with the needs of developers.
• Establish balanced lot-size guidelines, permitting up to nine units per acre on 4,000-square-foot lots.

In contrast, competing legislation lacks guarantees for affordability and does not prioritize local residents for new home opportunities. This alternative measure risks overcrowding due to its support for smaller lot sizes, allowing for dense construction in single-family neighborhoods while eliminating crucial design standards.

Arizonans are calling for smart growth strategies that ensure responsible development rather than unmonitored expansion. Multiple factors contribute to the housing affordability crisis, including mortgage rates and labor shortages. Yet, action can still be taken. During the 2024 legislative session, three bills received bipartisan support aimed at addressing these issues; one encourages diverse housing options, another allows the conversion of commercial properties for residential use, and a third mandates timely completion of rezoning requests.

Progress must continue toward fostering an environment where the American dream remains attainable for every Arizonan. Collaboration among lawmakers, developers, and community stakeholders is essential to realize this vision.

Kevin Hartke is the mayor of Chandler and serves as president of the League of Arizona Cities and Towns.