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SB 1787

exactions; individualized determinations; appeal

57th Legislature - Second Regular Session Introduced by Warren Petersen

SB 1787 requires Arizona local governments to base developer exactions on individual project analysis rather than blanket policies and creates an appeal mechanism for challenged fees.

Vetoed by Governor
0
WeVote Research Nonpartisan
Bill Summary · SB 1787

Legislative bill overview

SB 1787 requires that exactions (fees or requirements imposed on developers by local governments) be based on individualized determinations rather than blanket policies, and establishes an appeal process for developers to challenge exaction decisions. The bill aims to prevent local governments from applying standardized exaction requirements without case-by-case analysis of actual impacts and needs.

Why is this important

Exactions can significantly increase development costs and housing prices, potentially affecting affordability and development feasibility. This bill directly impacts how cities and counties can fund infrastructure, schools, and public services through developer fees—a primary mechanism for cost-sharing on growth-related impacts. The outcome could reshape the balance between developer obligations and municipal funding capacity for public infrastructure.

Potential points of contention

  • Municipal funding concerns: Cities and counties may argue that individualized determinations are administratively burdensome and that standardized exactions are efficient tools to ensure equitable cost-sharing across similar projects
  • Developer relief vs. public costs: Developers support reduced exactions, but opponents worry this shifts infrastructure costs away from those generating demand onto existing taxpayers
  • Appeal process scope: Disagreement over whether appeals should be to an independent body or retained within local government, and what standard of review should apply

Compiled from official sources — confirm details with the bill’s official record.

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