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Council asks staff and attorney to research inspections, insurance for community residences
Summary
Council directed staff to research whether the town can require liability insurance and unannounced inspections for family community residences and transitional homes, and asked for a draft ordinance if legally permissible.
The Fountain Hills Town Council on Oct. 7 held a discussion — but took no vote — on proposed zoning ordinance changes related to community residences, including family community residences and transitional homes.
Councilmember Earl had requested the item earlier in the year and asked staff to explore whether the town could add requirements such as liability insurance and unannounced inspections for certain residential facilities. "If possible within the ordinance we have now, if it's possible to require insurance... and unannounced inspections for land use," Earl said.
Town Attorney Jen Wright told the council the recently passed state legislation (S.B. 1308) includes provisions that regulate sober living homes and authorizes the Arizona Department of Health Services to conduct annual and other visits. She said the insurance question appears legally permissible at the municipal level: "I can see no reason why...we couldn't...have liability insurance as far as I can tell." However, she said unannounced inspections are a grayer area and could raise preemption concerns under state law. "The second issue would require...a legal analysis," Wright said, and she offered to return with a memo setting out the legal risks.
Planning and code staff said the town currently conducts initial and annual inspections tied to registration; the town’s enforcement process can act on zoning-related complaints such as excessive parking or trash. Staff reported there are 11 family community residences and two transitional homes currently registered in town.
Councilmembers expressed general support for drafting ordinance language if legal issues can be cleared. Several members said a local ordinance could focus on occupancy limits, for-cause inspections tied to complaints (e.g., traffic or parking issues), and insurance where permissible. The vice mayor summarized the discussion as direction for research: staff and the town attorney should analyze what is permitted under state law and, if feasible, prepare an ordinance that could go through the planning commission and back to council.
