With every legislative session, we keep track of bills that are relevant for our clients. Even when a bill doesn’t get a hearing or get out of committee, it’s important for our industry to be aware of such proposals. What may fail in committee this year, may be the first steps in encroaching on owners and managers rights tomorrow.

Below is a sampling of the bills that have been proposed. We don’t want to overwhelm people with bills, especially ones that do not have a chance of crossing the finish line and becoming law. As we get further into session, and we get more information on those bills that are more likely to become law.

What is evident from the bills below, as well as talk at all levels of government, is that housing affordability is a premier issue in our state. Never before has this topic been such a prevalent issue. When we say “housing affordability,” this includes not only the lack of supply and increased rent in the landlord-tenant world, but also the lack of supply in the sales world. Both of these issues are being looked at by various governmental entities. The obvious answer to such issues is to allow more development and building. We have been under-building for years and with the influx of people to Arizona during the pandemic, crossed with the effects of the eviction moratoriums, rents have increased significantly in the past year.

HB2401 – this is a proposal that would strike down Arizona’s preemption on rent control. Currently, no city or town is allowed to establish rent control. This bill, if passed, would get rid of the state statute and allow municipalities to create rent control. It is not expected to pass, but this is part of an alarming trend in the state. In other states, there are numerous reports of building permits slowing down, wherever rent control is established. Such legislation and reaction by the investment community would be horrible for development, and the housing we need in Arizona.

HB2457 – Creates a committee to study eviction prevention and housing affordability. The committee is tasked with create a report on these issues by December 1, 2022.

SB1110 – If a landlord intends to increase rent over 10% at the end of a lease, they must give 60-days’ notice. This doesn’t change the time period to terminate a lease, just increase the amount

RELATED MATTERS – City of Phoenix has increased its Landlord Incentive Program, meaning that landlords can receive up to $2,000 signing bonus for participating in the housing choice voucher program.

 

by Mark B. Zonman, Zona Law Group