‘Starter Homes Act’ Moves Closer to Governor’s Desk

In Arizona, affordable housing remains a pressing issue for lawmakers across party lines. Currently, a bipartisan initiative known as the “Arizona Starter Homes Act” is nearing its final stages, pending approval from Governor Katie Hobbs. After extensive discussions and stakeholder engagements, the House Government Committee passed the bill with a narrow 5-4 vote, highlighting ongoing concerns from committee members.

The proposal, designated as SB1229, must still complete the legislative process, requiring a vote from the House and potentially revisiting the Senate for amendments before reaching the governor’s office.

The primary goal of SB1229 is to facilitate the construction of smaller, cost-effective homes. If enacted, the legislation would prevent municipalities with populations exceeding 70,000 from imposing stringent design and development guidelines on housing projects.

Discussion in the Government Committee began with Representative Janeen Connolly, D-Tempe, proposing an amendment that would integrate language from a competing measure supported by the League of Arizona Cities and Towns. This amendment aimed to prioritize Arizona residents over corporate investors in the housing market.

However, critics caution that the bill might not ensure affordability or guarantee that the new homes will be accessible to local buyers. Chandler Mayor Kevin Hartke stressed the importance of prioritizing Arizona residents in home ownership, stating, “Our goal is to put Arizona residents at the front of the line when it comes to buying and owning starter homes, not Wall Street investors.”

Senator Shawna Bolick, R-Phoenix, the bill’s sponsor, labeled the proposed amendment as “hostile” and suggested it undermined the intent of SB1229. Connolly subsequently withdrew her amendment, with the League’s Legislative Director, Tom Savage, clarifying that their intent was to have their proposal considered rather than to commandeer the bill.

The League’s ongoing disputes with supporters of SB1229 date back years. Earlier attempts at starter home legislation have been stymied, including a significant housing bill in 2023 that failed to advance, and a veto by Governor Hobbs on a similar proposal in 2024. Lobbyist Nick Ponder characterized SB1229 as primarily favoring developers while encroaching on municipal planning processes.

Concerns about local governance have been echoed by officials like Queen Creek Mayor Julia Wheatley, who argued that the legislation could diminish local input in housing development, impacting community character and values. Advocates of the bill maintain that its implementation will naturally lead to more affordable homes, as developers seek to cater to first-time buyers.

Representative Justine Wilmeth, R-Phoenix, depicted the current housing dynamics as a crisis driven by supply and demand issues. “It’s a supply and demand economy … A big reason why prices are so high is that there’s no supply anymore,” she remarked.

The League’s alternative proposal emphasizes accommodating slightly larger homes and implementing residency requirements to target working-class families. As SB1229 progresses, Connolly expressed hope for further amendments to incorporate additional considerations.

Bolick anticipates an upcoming amendment before SB1229 is presented to the full House. Supporters of the bill, such as lobbyist Jake Hinman from the Arizona Neighborhood Project, projected that it would allow homes priced around $250,000 to $260,000. Yet, he noted that concessions in the proposal could lead to increased home prices.

Ultimately, SB1229 represents an essential legislative opportunity this session aimed at addressing the affordability crisis in Arizona’s housing market.