Arizona Bill Could Exempt Historic Neighborhoods From Middle Housing Law

by ethan.brook News Editor

PHOENIX – Arizona lawmakers are considering a measure that could reshape development in the state’s historic neighborhoods, potentially shielding them from a recent push for increased housing density. House Bill 2375, passed by a committee on Wednesday, would allow cities to exempt designated historic districts from a novel state law mandating “middle housing” – duplexes, triplexes, and townhomes – in areas previously zoned for single-family homes. The debate centers on balancing the need for more affordable housing with the preservation of neighborhood character and historical architecture. This legislation has sparked a contentious discussion about local control, housing affordability, and the future of Arizona’s communities.

The core of the issue lies in a state law enacted earlier this year aimed at addressing Arizona’s housing shortage. That law requires larger cities to allow middle housing in single-family zones, a move proponents say would increase housing supply and lower costs. Although, some residents and preservationists argue that allowing denser development in historic neighborhoods could erode their unique character and architectural integrity. The proposed exemption, as outlined in House Bill 2375, would give cities the discretion to decide whether to apply the middle housing mandate to their historic districts. The bill doesn’t prohibit middle housing altogether; it simply allows local governments to opt out for specific areas.

A Divided Legislature

The committee vote on House Bill 2375 was not without internal conflict. Republican Rep. Rachel Keshel expressed reservations, stating she was uncomfortable with the idea of groups advocating for middle housing statewide seeking exemptions for themselves. “I’m not sure that a protection for you realize certain groups of people who are pushing the middle housing on everyone else, but trying to exempt themselves from it. That is what doesn’t sit well with me,” Keshel said, as reported by KJZZ. Democratic Rep. Stephanie Stahl Hamilton acknowledged the strong feelings on both sides, stating the measure had placed her and others in the “crosshairs” of various advocacy groups. Despite the divisions, she voted in favor of the bill.

Democratic Rep. Aaron Márquez, a co-sponsor of the legislation, framed the bill as a matter of respecting state history and empowering local decision-making. “We’re giving cities the local control to decide. Do they wish to go citywide? Or do they want to use that exemption to protect and preserve the historic neighborhoods?” Márquez said. The bill’s supporters argue that historic districts often represent unique cultural and architectural assets that deserve special consideration. Opponents, however, contend that the exemption could exacerbate housing shortages and limit opportunities for affordable housing in areas with access to amenities and public transportation.

Concerns Over Affordability and Neighborhood Character

Critics of the bill argue that exempting historic neighborhoods from middle housing requirements could effectively turn them into “museums,” inaccessible to many residents due to high property values. One opponent testified on Wednesday that the measure would protect walkable, transit-rich neighborhoods from becoming more affordable. This concern is echoed by those who believe that increasing housing density is crucial to addressing Arizona’s housing crisis.

Supporters, however, counter that allowing denser development in historic areas could lead to the construction of “luxury townhomes” that are out of reach for many families. Arizona State Rep. Matt Gress, according to FOX 10 Phoenix, pointed out that land in neighborhoods like Willo in Phoenix already commands high prices – around $1 million per parcel – making it unlikely that developers would build affordable housing even with increased density. “You’re going to buy a parcel in Willo and it’s a million dollars,” Gress said. “And then the developer is not going to create affordable housing out of that million-dollar acquisition.”

What Happens Next?

House Bill 2375 has passed through the House Government Committee with a 4-3 vote and now heads to the full House for consideration. If approved by the House, the bill will then move to the Senate for a vote. If enacted, the law would roll back the January housing mandate specifically for neighborhoods with historic designations. The organization Save Historic AZ has expressed its support for the bill, thanking Reps. Gress and Márquez, and the committee members who voted in favor of the measure.

The debate over House Bill 2375 highlights the complex challenges facing Arizona as it seeks to address its housing shortage while preserving its unique cultural and historical heritage. The outcome of this legislation could have significant implications for the future of development in the state’s historic neighborhoods and the availability of affordable housing for its residents. The next step is a vote by the full Arizona House of Representatives, which is expected in the coming weeks.

This story will be updated as more information becomes available.

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