AZ HB2946

Allows residential developers (including multifamily) to elect whether to pay development fees when the construction permit is issued or defer payment until the certificate of occupancy is issued, with appropriate security such as a surety bond, letter of credit, or cash bond

Prohibits municipalities from requiring a development agreement as a condition for allowing deferred payment of development fees

Establishes a 24-month protection period where new or increased development fees cannot be assessed against developments after the effective date of the fee ordinance, provided no changes increase service units

Prohibits municipalities from distinguishing between residential developments based on dwelling unit size or number of bedrooms when assessing development fees

Allows municipalities to assess water and wastewater development fees on accessory dwelling units only when a larger utility meter would have been required if the accessory unit had been constructed with the primary dwelling