AZ SB1506

Municipalities with populations exceeding 150,000 persons designated as urban areas must adopt regulations allowing residential or mixed-use development as a permitted use on at least 75 percent of land zoned for commercial, office, retail, or parking purposes.

New residential or mixed-use structures may be restricted to maximum heights of at least two stories, maximum length of 90 feet, maximum width of 40 feet or more, minimum building separation of up to 10 feet, and setbacks of 5-10 feet when adjoining single-family lots.

Adaptive reuse projects (retaining at least two exterior walls) may have height, length, or width restrictions up to the original building dimensions or new building maximums, whichever is greater.

Commercial redevelopment areas may be subject to maximum lot sizes, up to one parking space per dwelling unit (with flexible location requirements), and regulations regarding public rights-of-way, sidewalks, and parks.

Municipalities cannot enforce screening, walls, fences, or mandatory shared amenities requiring homeowners associations unless necessary for stormwater management; municipalities failing to adopt required regulations by January 1, 2025, shall allow residential housing on all commercial-zoned land without limitations.