Arizonans Granted Right to Seek Compensation for Damage Caused by Homelessness

By Staff Reporter |

In a significant development regarding homelessness, Arizonans have approved Proposition 312, aiming to motivate local governments to take action. The proposition mandates that local governments compensate property and business owners for damages attributed to homeless activities. Governor Katie Hobbs officially certified the measure on Monday, confirming its passage.

Under Proposition 312, local governments must provide refunds on property taxes up to the costs incurred from their failure to enforce laws against illegal camping, loitering, and other public nuisances. If damages surpass the property tax amount, owners can seek refunds against future tax payments until the excess is covered.

As stated in the ballot summary, “Property owners would be eligible annually for refunds until the taxing entity begins enforcing the relevant public nuisance laws.” This proposition is anticipated to inspire similar initiatives in cities across the nation.

The Goldwater Institute, which developed this proposition, emphasized its role as a critical tool in addressing the homelessness crisis, particularly in Phoenix. Victor Riches, the institute’s senior communications manager, urged local officials to take immediate action, stating, “Proposition 312 should be a wake-up call for elected officials forcing law-abiding businesses and residents to pay the price for a crisis they didn’t create.”

Riches highlighted the challenges faced in downtown Phoenix, calling attention to areas affected by government inaction. “Property values plummeted in the Zone. Small businesses suffered,” he said, underscoring the financial strain on local business owners.

Proposition 312 garnered nearly 59 percent of the vote, translating to around 1.8 million ballots in favor. The legislative framework for the proposition, HCR 2023, received bipartisan support earlier this year. However, several organizations opposed the measure, arguing that it unfairly penalizes cities and could impede funding for effective homelessness initiatives.

Organizations such as Civic Engagement Beyond Voting and the ACLU of Arizona contended that holding cities financially accountable for the actions of the homeless is misguided. Nonetheless, a report from the Common Sense Institute Arizona suggested that the proposition could lead to improved property values.