New Law Targets One of the Biggest Drivers of Housing Costs

STATE CAPITOL, PHOENIX – A new Arizona law will help make new homes more affordable and speed up construction by giving communities a better way to pay for the roads, water, sewer and other infrastructure needed for housing.

House Bill 2999, sponsored by State Representative Jeff Weninger, creates State Affordability Infrastructure Districts. The new tool allows infrastructure costs tied to new housing projects to be paid over time instead of being loaded upfront into the price of a home.

Those upfront costs are a major reason new homes are getting harder to afford. Before a house can be built, roads must be extended, utilities must be installed, and water and sewer systems must be connected. HB 2999 helps address those costs without forcing cities, counties, or taxpayers outside the project to back the debt.

“Arizona needs more homes people can actually afford, and that means we have to be honest about what drives up the cost of building,” said Representative Weninger, Chairman of the House Commerce Committee. “Infrastructure is one of the biggest costs baked into the price of a new home. HB 2999 gives builders, landowners, and communities an innovative tool to pay for that infrastructure over time, get more homes built, and avoid putting taxpayers on the hook. This is a pro-growth, pro-taxpayer housing solution.”

The law keeps zoning and land-use decisions with local governments. It also makes clear that district bonds and obligations belong only to the district and cannot pledge the full faith and credit or taxing power of a city or county.

HB 2999 passed the Legislature with bipartisan support and has been signed into law.

Jeff Weninger is a Republican member of the Arizona House of Representatives serving Legislative District 13 in Chandler, Gilbert, and Sun Lakes, and is Chairman of the House Commerce Committee. Follow him on X at @JeffWeninger.