Committee adopts amended Workforce Housing Accelerator bill to speed permits and reduce certain state taxes

Representative Selena Bliss, sponsor of HB 29‑26, told the committee the Workforce Housing Accelerator Act creates four tools to spur workforce housing: expedited permitting, a single point of contact at the municipal level, reductions to state sales tax on qualifying construction (state portion of prime contracting sales tax), and adjustments to bond issuance thresholds. “This bill will do 4 things,” Bliss said, framing the measure as support for housing missing from Arizona’s market.

Steve Keiser, representing Policy Forge on behalf of Habitat for Humanity, said the bill reduces regulatory costs and provides a targeted tax break that affects only the state portion of construction sales tax, not local portions. “Affordable projects make up a very small percentage of overall housing builds,” Keiser said; he urged the committee to support incentives that lower costs for such projects.

The committee adopted a Lopez amendment that sponsors said resulted from stakeholder meetings and led some organizations (League of Cities and several cities) to move to neutral on the amended bill. After brief questions about potential fiscal impact and a request that JLBC consider a fiscal note, the vice chair moved the bill as amended and the committee passed it 6–1.

Next steps: the bill goes forward from committee; sponsor and staff indicated additional fiscal analysis could follow.