HB 2487 Summary

• Requires municipalities and county boards of supervisors to approve commercial building permits for residential lease communities (6+ detached units leased under common plan) and multifamily properties in Prescott AMA only if developers secure adequate water supply through one of three methods: assured water supply commitment, type one irrigation grandfathered rights, or type one rights plus approved groundwater withdrawal permit for type two rights.

• Exempts developments that applied for or received zoning entitlements on or before December 31, 2024 from the new water supply requirements.

• Requires building permits to note on their face whether the applicant has complied with or is exempt from the water supply requirements.

• Directs the Department of Water Resources to establish a separate application process for groundwater users seeking commercial building permits for residential lease communities and multifamily properties in the Prescott AMA that accounts for transfer of type two irrigation grandfathered rights.

• Defines "residential lease community" as excluding agricultural housing for agricultural workers and "multifamily residential properties" consistent with existing statute definitions.