Starter Homes Act Faces Roadblock as Cities Push Back

Housing remains a focal point for both parties in the Arizona Legislature, yet significant progress appears stalled. Key legislative efforts surrounding affordable housing, particularly the “Arizona Starter Homes Act,” are in jeopardy as discussions halt amidst budgetary priorities.

Sen. Shawnna Bolick, the bill’s sponsor, expressed concern that conversations about the measure ceased after a meeting with Governor Katie Hobbs’ staff. The bill had been favorably passed by the House Commerce Committee but lacks a scheduled floor vote as legislators turn their attention to budgetary concerns.

While two versions of the bill were initially on the table, House Bill 2371 has also stalled. Bolick lamented the lack of consideration for both paths, stating they could provide essential options should a veto occur. She noted, “If the governor doesn’t like the idea, she can reach out and suggest alternative language. However, significant disagreements remain.”

Governor Hobbs acknowledged ongoing stakeholder discussions but offered no specifics about the bill’s delays. Last year, she vetoed a similar proposal, following the League of Arizona Cities and Towns’ recommendations.

The league introduced an alternative measure, Senate Bill 1698, but it did not receive a hearing in the Senate Regulatory Affairs and Government Efficiency Committee, chaired by Bolick. Tensions have simmered between the league and lawmakers over housing strategies designed to curb rising home prices.

Bolick expressed skepticism about the league’s support for SB 1229, while highlighting a proposed striker amendment that aligns more with the league’s vision. This amendment includes a 15-year residency requirement for starter homeowners, aiming to mitigate corporate investments in affordable housing.

Chandler Mayor Kevin Hartke emphasized the need for local input in housing planning. “Growing communities necessitate expanded infrastructure,” he stated, reinforcing the importance of resident participation in development decisions.

SB 1229 seeks to streamline regulations by prohibiting cities from mandating specific home features, thus targeting budget-friendly options for first-time buyers. A recent survey revealed that 73% of respondents trust local authorities over the state Legislature to address housing needs.

Feedback indicated a strong desire for local influence in community planning, with 85% advocating for resident involvement. “Arizonans don’t want to be sidelined in the development process,” remarked Tom Belshe, the league’s Executive Director.

National real estate trends show a significant downturn, with home sales at their lowest since 2009. Concurrently, opposition to the Starter Homes Act has arisen from local Republican precincts, choosing to censure Bolick and Rep. Justin Wilmeth over their support.

Bolick expressed confusion over the GOP’s stance on property rights, stating it contradicts foundational Republican principles. Meanwhile, conservative groups like Americans for Prosperity have rallied support for SB 1229, urging legislative action that benefits future homeowners.

A lighthearted but pointed gesture from Americans for Prosperity involved sending House Speaker Steve Montenegro a custom Lego set styled as a “Cozy House,” underscoring the affordability crisis. The set’s price tag of $450,000 reflects the current median home price in Arizona.

Supporters of the Starter Homes Act, including lobbyist Jake Hinman, remain hopeful for legislative passage. “This moment is discouraging for the middle class,” he remarked, underscoring the stark contrast in homeownership opportunities across generations.