AZ HB2721

Requires municipalities and counties to adopt regulations that reduce minimum parking requirements for qualifying affordable housing developments.

Applies to housing developments located within 500 feet of a major public transit stop (public rail station or intersection of two or more bus routes with 15-minute or less service intervals).

Requires a regulatory agreement restricting at least 20 percent of units to lower income households (80 percent or less of area median income) and specifying unit size, location, affordability terms, and production schedules.

Mandates developers submit an impact study prepared and stamped by a registered professional engineer demonstrating the parking reduction would not negatively impact existing residential or commercial parking within one-half mile.

Defines covered housing developments as multifamily buildings with more than four units, mixed-use buildings where at least two-thirds is residential, and buildings with transitional or supportive housing, but excludes hotels, motels, bed and breakfasts, and short-term rentals.