Metro Phoenix renters struggling to afford high rents and the growing number of people without homes didn’t get the help they need from Arizona’s Legislature this year.Bills, backed by Steve Kaiser, R-Phoenix, that could have spurred more housing development and expedited the building process died last week. That happened despite many of the state’s residents and lawmakers readily acknowledging the housing shortage and the biggest affordability gap in history.Seniors, veterans and single parents are among those hardest hit by Arizona’s housing crisis.One bill would have paved the way for higher-density housing near light rail with 20% of those new homes set aside for lower-income residents.A second bill would have made it easier to build small homes, known as Accessory Dwelling Units or ADUs, next to single-family homes. To provide more affordable housing for seniors, the legislation would also have made obtaining permits easier for developing houses that could be shared. Some cities restrict where shared rentals can be built.The legislation was paired down substantially from the original bill after much political wrangling, and many thought it would make it to the governor.Still, too many didn’t think legislation was the answer.But at least the bills would have started some much-needed changes in the zoning and building process and countered some of the growing not-in-my-backyard-ism movement known as NIMBYism.Steve Betts, managing director of development for Holualoa Cos. and an Arizona growth expert, didn’t support the legislation but said something has to change in the zoning and housing development process.Three evictions, three stories.Why the Phoenix area eviction crisis is only getting worse“If we are going to stay ahead of this great wave of jobs and population growth that we have created, then we need more housing,” he said. “Kaiser has done a great service by elevating this issue.”Kaiser announced his resignation from the Senate shortly after his legislation failed. Kaiser told The Arizona Republic his decision wasn’t related to the housing bills’ failure, but so he could put his “family first again.”Housing shortage undebatableEstimates of the number of new homes needed across the state vary, ranging from 60,000 to 270,000. Those numbers come from the Arizona Housing Department, housing analysts and a firm hired by the Legislature’s Housing Supply Study Committee.But few can dispute there’s a big need for more Arizona rentals.Almost 520,000 metro Phoenix residents are paying more for housing than they can afford, according to the Maricopa Association of Governments.The number of people experiencing homelessness in Maricopa County is up 72% from 2017, according to the point-in-time counts.“This housing shortage is the biggest economic threat I have seen in the 53 years I have been an Arizona economist,” said Elliott Pollack. “Current policies are keeping supply artificially low, and if we stay on the road we are on, the economy will die.” The shortage spurred the creation of the Housing Supply Study Committee, co-chaired by Kaiser, which met for several months last year to look at solutions.His original legislation called for a lot more changes to help with the shortage, including:Reducing design review requirements from municipalities.Developing homes on smaller lots and building more townhomes and fourplexes, all of which are tougher to get zoning for now.Allowing manufactured homes in neighborhoods if their values are in line with other houses in the area.Providing “at-risk” permits that would allow builders to develop infrastructure for apartments and homes while awaiting final zoning approval, so the process isn’t as slow and costly.’Something’s gotta give’ to get more housingThose changes and more are what housing experts want to see happen in Arizona.“Cities have a significant amount of underutilized land currently zoned single-family,” said Patricia Watts, partner with the attainable housing developer Greenlight Communities, which has developed several affordable rental communities across metro Phoenix during the past few years.She recommends these moves:Allowing more density, including two homes per acre on lots zoned for one house, and four homes per acre on lots zoned for two.Allowing the development of duplexes, triplexes and fourplexes on single-family zoned land.Allowing the development of ADUs.Reducing parking requirements to allow for more rental homes.Requiring developers asking for rezoning to pay “local contribution fees” that fund neighborhood improvements such as sidewalks, bus shelters, public parks and money for local schools.And providing “meaningful incentives” to developers of affordable and attainable housing by reducing permit costs as well expediting city reviews and inspections.“Something’s gotta give,” said Michael Lieb, a veteran real estate broker and developer who co-founded Home Arizona to fight the not-in-my-backyard movement. “The only way our Valley is going to grow enough for all these people moving here is density and higher heights of homes. Some people think density is evil, but it’s our solution to housing problems.”Reach the reporter at catherine.reagor@arizonarepublic.com or 602-444-8040.
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