AZ HB2827

Authorizes Arizona municipalities to establish municipal improvement areas (up to 30 years) to finance public infrastructure improvements through tax increment financing, where increased property tax revenue from the designated area is diverted to pay for improvements.

Requires joint review board approval consisting of elected officials from the municipality, county, school district, and community college district, plus a public representative, with two-thirds vote required for area establishment.

Limits eligible project costs to public infrastructure improvements (transit, water, sewer, roads, drainage, parking, recreation facilities), professional services, relocation costs, and related outside improvements directly necessary for the area's operation.

Establishes voter approval requirement through municipal election after joint review board approval, and requires at least one public hearing with notice published twice in newspapers, posted on municipality website, and mailed to state and county officials.

Requires annual independent audits of municipal tax increment funds and annual reports to the joint review board certifying the public purpose is being met; prohibits commingling tax increment revenues with other municipal funds.