Gov. Katie Hobbs working to seek compromise on Arizona Starter Homes Act

PHOENIX — Arizona Gov. Katie Hobbs said Tuesday she is actively working on negotiating a compromise on House Bill 2570, also known as the Arizona Starter Homes Act, which was originally created as an attempt to increase affordable housing options in the state.

Hobbs vetoed the bill last year, calling it “a step too far” in her veto letter. While seeking a “better balance,” the governor initially said the bill would create a “housing reform experiment with unclear outcomes.”

“My line in the sand here is that there’s some assurances that Arizonans will be able to benefit from these new lower-priced homes,” Hobbs told KTAR News 92.3 FM’s Outspoken with Bruce and Gaydos. “So we want to see some ownership minimums in there as well as just being able to ensure that there’s affordability and those were things that were missing in the previous iteration of the bill.”

The governor’s primary concern is that the homes would be built, and they would be bought up by investors instead of families.

Hobbs also addresses building moratoriums in Buckeye and Queen Creek

In the interview, Hobbs also touched on the Alternative Pathway to Designation — or “ADAWS” — rules, noting how Buckeye and Queen Creek can acquire alternate water sources and have adequate water supplies to build homes in those areas.

Hobbs announced in June 2023 she was placing a moratorium on building additional subdivisions in those areas because they relied exclusively on groundwater and lacked the 100-year assured water supply required under a 1980 law to allow new subdivisions.

“These are some of the fastest growing areas of the state,” Hobbs said. “The more we can build there, the more affordable housing is going to be and we need to make that happen. That’s why this rule making was really critical.”

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