Tuesday, October 22, 2024

How A New Arizona Law Could Change Non HOA Neighborhoods

HB 2720 and its impact on Oro Valley zoning regulations
House Bill 2720 was a key topic of discussion at the Oro Valley Town Council’s study session last Wednesday night. This new state law, effective since September, requires all Arizona municipalities, including Oro Valley, to address the use of Accessory Dwelling Units (ADUs) in their zoning codes. While Oro Valley has allowed guest houses, which are similar to ADUs, the town must now align its regulations with the state's standards, and the council discussed how to approach these necessary changes. The discussion revealed both practical considerations and concerns over potential impacts on local neighborhoods.

The requirements of HB 2720
HB 2720 mandates that all municipalities adjust their zoning codes to accommodate Accessory Dwelling Units (ADUs). These units are secondary housing structures on single-family home lots, and the new law provides specific guidance on their size, placement, and amenities. Notably, the state law permits ADUs to include kitchens and allows them to be built to the maximum height permitted by the property’s zoning district. Additionally, the law prevents municipalities from enforcing certain design standards, leaving the architectural style of ADUs up to individual property owners. The town must also update its code to reflect new regulations on short-term rentals of ADUs, ensuring property owners live on-site if they rent out the ADU for short-term stays.

Minimal impact of homes governed by homeowner associations
The impact of the changes in Accessory Dwelling Units (ADUs) under HB 2720 on Homeowner Associations (HOAs) is minimal because the new state law still allows HOAs to enforce their own rules regarding ADUs. This means that while municipalities like Oro Valley must align their zoning codes with the state’s requirements, individual HOAs can continue to regulate or restrict ADUs within their communities. 85% of Oro Valley homes are part of a homeowner association.

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Challenges Oro Valley faces in implementing HB 2720

One of the primary challenges facing Oro Valley’s town staff is balancing the state’s new requirements with the community’s desire to maintain its unique character. The town’s current regulations are more restrictive than the state’s standards, particularly regarding the height of structures and placement in relation to the main home.  Implementing these changes by the state’s January 1 deadline puts further pressure on the town to update its zoning code quickly, while also trying to inform and involve residents in the process.

Council concerns over aesthetic impact
One of the major concerns voiced by the Town Council on Wednesday was how the new ADU standards could affect neighborhood aesthetics in non-HOA areas. Vice Mayor Melanie Barrett expressed frustration over the lack of design oversight, noting that “a 30-foot ADU could be built in front of a single-story home, which would dramatically change the appearance of that neighborhood.” She also highlighted the risk of these structures being built with no requirements for matching architectural features such as rooflines or window styles, which Oro Valley’s code previously regulated.

Density and rental concerns

The possibility of increased density also came up during the discussion. Council Member Steve Solomon pointed out that while most homeowners may not take advantage of the ADU option, "the fear of someone building multiple rental units is overblown." He explained that the law still requires property owners to live on-site if the ADU is rented as a short-term rental, which limits the potential for commercial exploitation. However, concerns remained about whether this on-site residency requirement would be enforced or if it would result in unintended consequences, particularly in areas without HOA governance.

HOA and enforcement challenges
Council Member Tim Bohen raised concerns about the enforcement of the new rules in areas without HOAs. “While HOAs can regulate ADU design and placement, non-HOA neighborhoods will have no similar protections," Bohen said. This could lead to inconsistent development standards across the town, creating tension between HOA and non-HOA areas. Bohen suggested that the town consider additional outreach to non-HOA communities to make sure residents are aware of these changes and how they could affect their neighborhoods.

The risk of losing local control
Another concern was the gradual erosion of local control over zoning regulations. Council members expressed frustration that, despite Oro Valley's history of careful zoning, the state’s mandate significantly limits the town’s ability to shape development. Mayor Winfield commented, "We’ve always been committed to preserving the character of Oro Valley, but with this law, our hands are tied in some important ways. It’s a slippery slope when the state takes more control away from municipalities."

Timetable for implementing HB 2720
Town staff will need to act quickly to meet the January 1, 2025 deadline for implementing HB 2720. According to the timeline discussed during the study session, the town plans to finalize the necessary code amendments by December, allowing for time to inform residents and gather feedback. Public hearings are scheduled for November, and residents are encouraged to participate in these discussions to help shape the town’s approach to implementing this new state law. The town is particularly focused on notifying non-HOA neighborhoods to ensure residents are fully aware of how the ADU regulations may affect them.