Committee clears measure to require limited multifamily or adaptive reuse on commercial parcels in large cities

The committee gave House Bill 2110 a do-pass recommendation after testimony from the sponsor and multiple stakeholders. The bill requires qualifying municipalities to adopt objective standards to allow multifamily residential development and adaptive reuse projects on at least 10% of existing commercial office or mixed-use parcels, with implementation required within 90 days of the law's effective date if enacted.

Sponsor Leo Biasucci (appearing on behalf of the bill) and testimony from the Arizona Multi-Housing Association (Courtney Levinas) described the bill as a tool to convert underused commercial properties in larger cities to address workforce housing needs. Levinas said the bill affects ten cities with populations over 150,000 and estimated the potential for roughly 150,000 housing units statewide based on a cited study.

City of Scottsdale planning representative Barry Irons testified in opposition unless two issues were addressed by amendment: (1) preserving airport-influence-area protections (Scottsdale said adaptive reuse should be excluded in airport influence areas established under state law) and (2) protecting lands in the wildland-urban interface (WUI) that Scottsdale has identified as high fire risk. Irons said he had ongoing conversations with the sponsor and expected a potential floor amendment could resolve those issues.

Sponsor Biasucci said he was open to further discussions and characterized the bill as consensus-based last year and signed into law previously with cleanup needed. Several senators spoke in favor on policy grounds, citing underused commercial buildings and workforce-housing shortages. The committee recorded seven ayes, zero nays on a roll call and reported HB 2110 do pass.