Staff briefs commission on new state housing laws and Ag‑to‑Urban program; timeline, required preapproved plans explained

Town planning staff briefed the commission in the work session on several state bills passed this legislative session and on the Ag‑to‑Urban program that could unlock irrigated agricultural land for residential use by providing groundwater savings credits.

Ryan (planning staff) said the town tracked more than 150 bills this session and took positions on 32; he highlighted bills that passed and their likely effects on local permitting and zoning. Key items staff described:

• SB 15‑29 (Municipal preapproved housing design plans): Staff said the town must establish preapproved housing design plans. By July 1, 2026, the town must provide at least three standard preapproved single‑family plans and three ADU plans; by Jan. 1, 2027 the town must provide preapproved plans for duplexes and triplexes. Staff explained the requirement is not per‑zoning district but rather a set of standard plans that can be placed on appropriately zoned lots (R1‑5 through R1‑54) where the plans physically fit.

• HB 2721 (multifamily by right in single‑family zones near CBD): A prior session bill that is effective soon requires the town to authorize duplexes, triplexes, fourplexes and townhomes on single‑family lots within one mile of the Central Business District and on at least 20% of new developments larger than 10 contiguous acres. The law limits parking requirements to no more than one space per unit; staff said implementation is required by Jan. 1, 2026.

• HB 2928 (ADUs): This statute clarifies prior ADU rules, removed certain design requirements for ADUs and adjusted population thresholds. It also pushed the town’s deadline to reexamine related ADU provisions to 2030, giving the town time to consider whether to keep or modify previous ADU text amendments.

• SB 1611 (Ag‑to‑Urban program): Ryan described this as among the session’s most consequential measures for Queen Creek. The statute establishes a voluntary program under which owners of irrigation rights can relinquish those rights in exchange for groundwater savings credits. For Queen Creek applicants the town expects a conversion rate of 1.5 credits per acre relinquished; the program is initially available for five years and can be extended if the town becomes a designated water provider. The program will be implemented by Arizona Department of Water Resources (ADWR); staff estimated a 24‑ to 36‑month implementation window before credits are available for development (likely early 2028).

Staff identified next steps: drafting any necessary local text amendments to implement state requirements (including procurement/selection of standard plan documents for SB 15‑29), presenting those amendments to this commission and then to town council, and monitoring ADWR’s implementation schedule for the Ag‑to‑Urban program. Commissioners asked clarifying questions about how preapproved plans apply across zones and whether program applicants must demonstrate lower water use; staff answered that plans are standard templates that must physically fit a lot and that Ag‑to‑Urban credits are based on historic irrigation use and ADWR’s program rules rather than per‑project water‑use proofs.

Staff recommended a phased local work program to meet statutory deadlines and to align town permitting practices with the new state rules.