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Bill

SB 1672

mandatory inclusionary zoning; prohibition

57th Legislature - First Regular Session Introduced by Sally Gonzales and 1 co-sponsor

Arizona bill prohibits cities from requiring developers to include affordable housing units in new residential projects or pay replacement fees.

Senate Second Reading
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WeVote Research Nonpartisan
Bill Summary · SB 1672

Legislative bill overview

SB 1672 prohibits municipalities in Arizona from implementing mandatory inclusionary zoning policies, which require developers to include affordable units in new residential projects or pay fees in lieu. The bill prevents local governments from mandating that private developers set aside a percentage of units at below-market rates as a condition of project approval.

Why is this important

Inclusionary zoning is a key tool cities use to address housing affordability crises by requiring new development to contribute to affordable housing stock. This prohibition would eliminate that mechanism statewide, shifting responsibility away from developers and potentially affecting housing availability for lower-income residents in growing Arizona communities.

Potential points of contention

  • Housing affordability vs. development costs: Opponents argue mandatory inclusionary zoning increases construction costs and housing prices; supporters contend it's essential for preventing economic segregation and maintaining diverse communities
  • Local control authority: The bill restricts local government zoning power, raising questions about whether state preemption is appropriate or if cities should set their own housing policies based on local conditions
  • Developer incentives and market effects: Debate over whether prohibiting inclusionary zoning actually reduces housing costs or simply increases developer profits while exacerbating affordability gaps

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

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