AZ SB1787

Municipalities and counties must provide written notice to residential development applicants before imposing exactions (fees, dedications, or conditions required for permit approval), excluding standard development fees, service fees, and regular permit application fees.

Applicants may request an "individualized determination" showing the methodology, supporting data, and calculation of how the exaction relates to the project's adverse impacts, with the municipality or county paying for this analysis.

Local governments must complete the individualized determination within 60 days of the request; failure to do so results in automatic waiver of the exaction.

Applicants may appeal exactions directly to the Arizona Attorney General, with the burden of proof on the local government to demonstrate the exaction is "roughly proportional" to the project's adverse impact; successful appeals result in waiver of the exaction or reimbursement of costs paid under protest.

Applicants may also challenge exactions in court with de novo review, and prevailing applicants are entitled to compensatory damages and attorney fees.