HB2445 Summary

• Requires municipalities and counties to approve building permits for residential lease communities (6+ detached units) within active management areas only if units have written water service commitments from designated water providers or qualify as member land, and applicants pay required activation and replenishment reserve fees.

• Amends definitions across multiple statutes (A.R.S. §§ 9-469, 11-321, 11-801, 32-2101, 45-576, 48-3772, 48-3774) to establish "residential lease community" standards and implement water supply requirements for new residential leasing developments.

• Exempts existing residential lease communities and those receiving zoning entitlements on or before September 30, 2023 from the new water service and fee requirements.

• Establishes a three-year temporary program requiring cities/towns in counties over 1.5 million population to provide standpipe water service to up to 750 residences in adjacent unincorporated communities at $20 per 1,000 gallons, with full cost reimbursement.

• Creates joint legislative study committee on land divisions of 5 or fewer lots to gather information and submit findings by December 31, 2023; committee expires January 31, 2024.