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Arizona House passes 'casita bill' to allow ADUs on single family properties

The bill that will land on Gov. Katie Hobbs' desk contains an amendment aimed at keeping investors from buying up casitas for short-term rentals
casitas
Posted at 8:19 PM, May 15, 2024

EDITOR'S NOTE: A previous version of this article included an individual wanting to build a detached casita in Phoenix, where the City Council approved an ordinance last year allowing them. The story was not originally written to reflect this and the interview has since been removed.

House Bill 2720, dubbed the "casita bill," is the latest legislative effort to address the state's housing crisis by requiring Arizona cities to allow accessory dwelling units, or ADUs. According to a 2022 legislative study, Arizona is short about 270,000 housing units, and the state's population has only grown since.

The bill has garnered bipartisan support in both the House and Senate and the House placed a final seal of approval on it Wednesday afternoon.

"Why not make it multi-generational?" asked state Rep. Michael Carbone, R-25th District, suggesting the casitas could be used for grandparents or children coming out of college. "That's what this bill does."

The bill would allow ADUs to be built on the properties of single-family homes within a mile of "central business districts" in Arizona cities with populations higher than 75,000.

Similar legislation has already been implemented in other states, but in Arizona, there have been groups vocally against the bill.

"ADUs can have a positive impact," Neal Haddad, president of the Neighborhood Coalition of Greater Phoenix, said. "The way this bill is written, it will not."

Haddad and other critics worry the bill will facilitate a boom in short-term rentals - also known as STRs, such as Airbnb - and make Arizona's housing shortage worse. HB 2720 is opposed by the League of Cities and Towns, and the mayor of Scottsdale has spoken out strongly against it, out of concern about the potential for misuse as short-term rentals.

"The solution is simple," Haddad said, suggesting that a 30-day minimum rental period be required for the units. 'Casita bill' critics believe that adjustment would keep STRs from taking over much-needed housing for Arizonans.

Lawmakers supporting the bill have expressed the same concerns about STRs, but went a different route to fix the issue. The Senate placed an amendment on the bill, requiring owners of a STR to live on the property.

"So, it really cuts down on those investor-owned short-term rentals, which really are creating problems," said state Rep. Analise Ortiz, D-24th District.

Ortiz explained that the policy had a special significance for the Latino and Hispanic population, which places particular value in care for one's family and community.

However, critics say the amendment is not enforceable.

"We see no penalty in the bill," Haddad said. "So, I don't understand what it's really going to do for anything."

The bill is past the point for changes now, though, as it heads to Hobbs for a veto or a signature.

Hobbs has indicated this legislative term that resolving the housing crisis is a priority for her administration.