Peoria staff outlines required code changes to comply with Arizona's House Bill 27 21 on middle housing

Peoria staff told the City Council on Sept. 16 that House Bill 27 21 requires the city to allow “middle housing” types such as duplexes, triplexes and fourplexes as a permitted use in specified circumstances, and that the state leaves local governments little discretion in how they implement the change. “This bill... is largely what I'll call preemptive, meaning the state has mandated a number of things that we have to implement in our zoning code,” Planning Director Chris Hawkes said during the study session.

Why it matters: The statute forces cities above 75,000 population to permit middle housing without requiring rezones or public hearings in certain locations, and sets a Jan. 1, 2026, implementation deadline. Peoria staff said the rules will affect lots zoned single-family within a one-mile radius of the city’s designated Central Business District (P83) and will require allowing middle housing on at least 20% of the land area of any new single-family development larger than 10 contiguous acres.

Key details: Hawkes described two scenarios where middle housing must be permitted: (1) on single-family lots within a one-mile radius of the Central Business District and (2) as at least 20% of the land area in any new single-family development over 10 contiguous acres. He warned that the bill restricts local rules in several ways: it prevents cities from requiring owner-occupancy, limits parking requirements to no more than one space per unit, and bars requiring compliance with the commercial building code or additional fire sprinkler mandates for these housing types.

The law also includes exemptions. Hawkes noted the bill excludes areas lacking sewer or electrical service, properties not within municipal boundaries, planned area developments or planned community developments (PAD/PCD), existing development agreements and land defined in state statute as “within the vicinity” of a military airport — a designation that, as described in the presentation, covers much of southern Peoria in relation to Luke Air Force Base.

Schedule and next steps: Hawkes said staff will post the briefing materials and draft code on the city website and hold multiple study sessions with the Planning & Zoning Commission starting the week after the meeting. He gave a rough timetable: a second study session with the commission on the upcoming Thursday, a first reading of draft language on Oct. 2, a recommendation request on Oct. 16 and council consideration in November. He told council the city expects to have an ordinance prepared by year-end to meet the statutory deadline.

Council questions and clarifications: Council members pressed staff on how the 20% rule is measured. “So it would be 2 acres out of the 10 would need to be available for this this type,” Council Member Finn said, and Hawkes confirmed that many jurisdictions are interpreting the 20% threshold as a percentage of land area rather than unit counts. Council Member Bullock asked whether the requirement could apply to individual homeowners seeking to replace a single-family dwelling with a duplex; Hawkes said that would be allowed only if the property is inside the one-mile CBD radius.

What the city cannot do yet: Staff emphasized the statutory penalties if Peoria does not adopt compliant language by Jan. 1, 2026 — without a local ordinance the law would require allowing middle housing as a matter of right on all single-family lots in the covered areas, subject only to the statute’s exemptions.

What remains unresolved: Staff said the precise boundary and implementing text will be vetted with the Planning & Zoning Commission and that utility providers will be given review authority for proposed middle-housing site plans. The council did not take formal action on the draft at the Sept. 16 meeting.

Looking ahead: Staff invited public comment online and at scheduled study sessions, and said city planners will coordinate with legal counsel and the mayor’s office to finalize ordinance language for council action in the coming months.