STATE CAPITOL, PHOENIX – The Arizona House of Representatives on Wednesday passed House Bill 2946, bipartisan legislation sponsored by State Representative Khyl Powell to reduce local government cost burdens that drive up housing prices and put homeownership further out of reach for working Arizonans.

HB 2946 delivers on the House Republican Majority’s affordability agenda by targeting one of the biggest hidden costs in new housing: government-imposed development fees that are ultimately passed on to homebuyers.

“Arizona families are being priced out of homeownership, and government-added costs are part of the problem,” said Representative Khyl Powell. “HB 2946 is a bipartisan, commonsense reform that helps make housing more affordable by bringing clarity and consistency to fee collection, reducing uncertainty, and stopping unnecessary local cost pressure from being passed onto working families trying to buy a home.”

HB 2946 also strengthens predictability for developers across all project types. Under current law, grandfathering protections were tied to when the first building permit was pulled, but in many circumstances, it might take years for actual construction to start. That’s why this bill has a targeted approach to fix that discrepancy. HB 2946 ties grandfathering to 24 months after the new or increased development fee ordinance was passed, making for a much smoother buildout for developers.

The bill also addresses excessive local fee treatment of accessory dwelling units (ADU). Water and wastewater fees are tied directly to actual infrastructure impact, specifically the difference in meter size needed to accommodate the detached ADU. All other development fees are capped at the lesser of twenty percent of a comparable single-family fee or the ADU’s proportionate share, ensuring homeowners are only paying what is truly needed.

“HB 2946 will not solve every housing affordability challenge facing Arizona, but it addresses a problem the Legislature can directly control: local government costs that make housing more expensive before a family ever gets the keys,” said Representative Powell.

Khyl Powell is a Republican member of the Arizona House of Representatives serving Legislative District 14 in Gilbert. He serves as Vice Chairman of the House Judiciary Committee.