HB 2926 — housing; contractors; bonds; taxes

Rural contractors;

licensing;

requirements;

examination waiver;

restriction;

license expiration;

rule;

definition A.

NOTWITHSTANDING ANY OTHER LAW, THE REGISTRAR MAY WAIVE THE EXAMINATION REQUIREMENTS OF SECTION 32-1122 AND ISSUE A LICENSE TO AN APPLICANT WHO MEETS ALL OF THE FOLLOWING REQUIREMENTS:

1.

HAS SUBMITTED TO THE REGISTRAR PROOF OF ONE OF THE FOLLOWING:

(a) EMPLOYMENT IN A RURAL AREA.

(b) A BUSINESS PRESENCE IN A RURAL AREA.

(c) A CONTRACTUAL AGREEMENT TO PERFORM WORK IN A RURAL AREA FOR WHICH A LICENSE IS REQUIRED.

2.

HOLDS A VALID AND UNRESTRICTED CONTRACTOR'S LICENSE IN ANY STATE OR TERRITORY OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA AND THE REGISTRAR DETERMINES THAT THE QUALIFICATIONS FOR THE LICENSE ISSUED IN ANOTHER STATE OR TERRITORY OF THE UNITED STATES OR DISTRICT OF COLUMBIA ARE SUBSTANTIALLY THE SAME AS THE REQUIREMENT FOR THE ISSUANCE OF A LICENSE IN THIS STATE AND HAS HELD THE LICENSE FOR AT LEAST FOUR CONSECUTIVE YEARS.

3.

HAS NOT BEEN DISCIPLINED BY THE AGENCY RESPONSIBLE FOR ISSUING THE CONTRACTOR'S CURRENT LICENSE THAT WAS ISSUED BY ANOTHER STATE OR TERRITORY OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA.

4.

DOES NOT HAVE ANY PENDING DISCIPLINARY ACTIONS AGAINST THE CONTRACTOR'S CURRENT LICENSE THAT WAS ISSUED BY ANOTHER STATE OR TERRITORY OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA.

5.

HAS SUBMITTED TO THE REGISTRAR A COMPLETE SET OF FINGERPRINTS OR WRITTEN AUTHORIZATION FOR THE AGENCY THAT ISSUED THE CONTRACTOR'S CURRENT LICENSE THAT WAS ISSUED BY ANOTHER STATE OR TERRITORY OF THE UNITED STATES OR DISTRICT OF COLUMBIA TO FORWARD A COPY OF THE APPLICANT'S FINGERPRINTS TO THE DEPARTMENT OF PUBLIC SAFETY.

THE REGISTRAR SHALL APPROVE OR DENY AN APPLICATION FOR A LICENSE SUBMITTED PURSUANT TO THIS SECTION WITHIN SIXTY DAYS AFTER THE RECEIPTPURPOSES OF ATHIS COMPLETEDSECTION: APPLICATION.

C.

A PERSON WHO IS ISSUED A LICENSE PURSUANT TO THIS SECTION MAY NOT PERFORM ANY WORK THAT IS NOT IN A RURAL AREA OF THIS STATE.

D.

A LICENSE ISSUED PURSUANT TO THIS SECTION EXPIRES ON DECEMBER 31, 2029.

E.

THE REGISTRAR SHALL ADOPT RULES NECESSARY TO IMPLEMENT THIS SECTION.

F.

FOR THE PURPOSES OF THIS SECTION, "RURAL AREA" MEANS EITHER:

ANY"WORKFORCE COUNTYHOUSING" WITHMEANS ANEW POPULATIONDWELLING OFUNITS LESSTHAT THANARE: [one] [eight] HUNDRED THOUSAND PERSONS.

(a) FOR SALE OR RENT AT A SALES OR RENTAL PRICE THAT IS AFFORDABLE TO HOUSEHOLDS EARNING NOT MORE THAN ONE HUNDRED FIFTY PERCENT OF THE AREA MEDIAN INCOME AS DETERMINED BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.

(b) SUBJECT TO A RECORDED AFFORDABILITY COVENANT OR OTHER BINDING RESTRICTION THAT ENSURES THAT THE SALES OR RENTAL PRICE OF THE DWELLING UNIT IS AFFORDABLE AS PRESCRIBED IN SUBDIVISION (a) OF THIS PARAGRAPH FOR AT LEAST TWENTY YEARS.

ANY"WORKFORCE MUNICIPALITYHOUSING THATPROJECT" ISMEANS LOCATED IN A COUNTYRESIDENTIAL PROJECT THAT HASDOES AALL POPULATION OF LESSTHE THANFOLLOWING: [one] [eight] HUNDRED THOUSAND PERSONS.>> -3- House Amendments to H.B.

(a) CONSTRUCTS NEW DWELLING UNITS FOR SALE OR RENT AT A SALES OR RENTAL PRICE THAT IS AFFORDABLE TO HOUSEHOLDS EARNING NOT MORE THAN ONE HUNDRED FIFTY PERCENT OF THE AREA MEDIAN INCOME AS DETERMINED BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.

(b) RECORDS AN AFFORDABILITY COVENANT OR OTHER BINDING RESTRICTION THAT ENSURES THAT THE SALES OR RENTAL PRICE OF THE DWELLING UNIT IS AFFORDABLE AS PRESCRIBED IN SUBDIVISION (a) OF THIS PARAGRAPH FOR AT LEAST TWENTY YEARS FOR WORKFORCE HOUSING RENTAL PROJECTS OR INITIAL SALE PRICE AFFORDABILITY FOR OWNERSHIP UNITS.

(c) OFFERS ONE HUNDRED PERCENT OF THE NEW DWELLING UNITS IN THE PROJECT FOR SALE OR RENT AT A SALES OR RENTAL PRICE THAT IS AFFORDABLE TO HOUSEHOLDS EARNING NOT MORE THAN ONE HUNDRED FIFTY PERCENT OF THE AREA MEDIAN INCOME AS DETERMINED BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.

- 1 - H.B.

If a general plan is approved, the corporation may issue the series of bonds covered by the general- plan2 with- a total principal amount, maximum term and maximum interest rate no NOT greater than that which is set forth in the general -4- House Amendments to H.B.

2926 general plan with a total principal amount, maximum term and maximum interest rate no NOT greater than that which is set forth in the general plan.

G.- 3 - H.B.

2926 G.

If the project is approved the corporation may -5-issue Housethe Amendmentsbonds todescribed H.B.in the approval request with the total principal amount, maximum term and maximum interest rate no NOT greater than as set forth in the request.

2926 issue the bonds described in the approval request with the total principal amount, maximum term and maximum interest rate no NOT greater than as set forth in the request.

<<Sec.Sec.

Section 41-3953, Arizona Revised Statutes, is amended to read:

41-3953.

Department powers and duties;

definition A.

The department is responsible for establishing policies, procedures and programs that the department is authorized to conduct to address the affordable housing issues confronting this state, including housing issues of low-income families, moderate-income families, housing affordability, special needs populations and decaying housing stock.

Among other things, the department shall provide to qualified housing participants and political subdivisions of this state financial, advisory, consultative, planning, training and educational assistance for the development of safe, decent and affordable housing, including housing for low and moderate income households.

The department is responsible for maintaining and enforcing standards of quality and safety for manufactured homes, mobile homes and factory-built buildings.

B.

Under the direction of the director, the department shall:

1.

Establish guidelines applicable to the programs and activities of the department for the construction and financing of affordable housing and housing for low and moderate income households in this state.

These guidelines shall meet or exceed all applicable state or local building and health and safety code requirements and, if applicable, the national manufactured home construction and safety standards act of 1974 and title VI of the housing and community development act of 1974 (P.L.

96-399 93-383, as amended by P.L.

95-128, 96-153 and 96-339 96-399).

Guidelines established pursuant to this paragraph do not apply to the department's activities prescribed in section 35-726, subsection E.

2.

Accept and allocate any monies as from time to time may be appropriated by the legislature for the purposes set forth in this article.

3.

Perform other duties necessary to administer this chapter.

4.

Perform the duties prescribed in sections 35-726 and 35-728.

5.

Stimulate and encourage all local, state, regional and federal governmental agencies and all private persons and enterprises that have similar and related objectives and purposes, cooperate with the agencies, persons and enterprises and correlate department plans, programs and operations with those of the agencies, persons and enterprises.

-6- House Amendments to H.B.

2926 6.

Conduct research on its own initiative or at the request of the governor, the legislature or state or local agencies pertaining to any department objectives.

7.

Provide information and advice on request of any local, state or federal agencies, private persons and business enterprises on matters within the scope of department activities.

8.

Consult with and make recommendations to the governor and the legislature on all matters concerning department objectives.

9.

Make annual reports to the governor and the legislature on its activities, including the geographic location of its activities, its finances and the scope of its operations.

The annual reports submitted pursuant to this paragraph shall also include all of the following outcome-based metrics for department-funded projects and initiatives:

(a) The number of affordable housing units developed in this state.

(b) The number of individuals housed in permanent supportive housing environments in the past year and related housing outcomes for those exiting permanent supportive housing for which the department has conveyed funding.

(c) Any improvements in housing accessibility for underserved and rural populations in this state.

10.

Maintain and enforce standards of quality and safety for manufactured homes, mobile homes and factory-built buildings and enforce rules adopted by the board pursuant to section 41-4010.

11.

As a condition of funding for emergency shelter and transitional housing programs that receive grants or other sources of funding from the department, adopt policies and procedures concerning responding to an alleged sale, manufacture or possession of dangerous drugs and narcotic drugs as defined in section 13-3401.

These policies shall include clear signage on the facilities denoting a drug-free zone.

12.

ESTABLISH A PROCESS TO CERTIFY WORKFORCE HOUSING BUILDERS AS DEFINED IN SECTION 9-461.21 AND MAINTAIN A PUBLIC REGISTRY OF CERTIFIED WORKFORCE HOUSING BUILDERS.

THE ARIZONA DEPARTMENT OF HOUSING AND THE DEPARTMENT OF REVENUE SHALL ADOPT RULES AND PRESCRIBE FORMS AND PROCEDURES AS NECESSARY FOR THE PURPOSES OF THIS SUBSECTION.

THE ARIZONA DEPARTMENT OF HOUSING AND THE DEPARTMENT OF REVENUE SHALL COLLABORATE IN ADOPTING RULES AS NECESSARY TO AVOID DUPLICATION AND INCONSISTENCIES WHILE ACCOMPLISHING THE PURPOSES OF THIS SUBSECTION.

THE ARIZONA DEPARTMENT OF HOUSING HAS EXCLUSIVE AUTHORITY OVER ISSUES RELATED TO CERTIFICATION OF WORKFORCE HOUSING BUILDERS AND DEVELOPMENT AND MAINTENANCE OF A PUBLIC REGISTRY OF CERTIFIED WORKFORCE HOUSING BUILDERS.

THE DEPARTMENT OF REVENUE HAS EXCLUSIVE AUTHORITY OVER THE ADMINISTRATION OF TAX RELIEF.

C.

Under the direction of the director, the department may:

1.

Assist in securing construction and mortgage financing from public and private sector sources.

2.

Assist mortgage financing programs established by industrial development authorities and political subdivisions of this state.

-7- House Amendments to H.B.

2926 3.

Assist in the acquisition and use of federal housing assistance programs pertinent to enhance the economic feasibility of a proposed residential development.

4.

Assist in the compliance of a proposed residential development with applicable federal, state and local codes and ordinances.

5.

Prepare and publish planning and development guidelines for the establishment and delivery of housing assistance programs.

6.

Contract with a federal agency to carry out financial work on the federal agency's behalf and accept payment for the work.

7.

Subcontract for the financial work prescribed in paragraph 6 of this subsection and make payments for that subcontracted work based on the expectation that the federal agency will pay for that work.

8.

Accept payment from a federal agency for work prescribed in paragraph 6 of this subsection and deposit those payments in the Arizona department of housing program fund established by section 41-3957.

9.

Contract for the services of outside advisers, consultants and aides reasonably necessary or desirable to enable the department to adequately perform its duties.

10.

Contract for and incur obligations reasonably necessary or desirable within the general scope of department activities and operations to enable the department to adequately perform its duties.

11.

Use any media of communication, publication and exhibition in the dissemination of information, advertising and publicity in any field of its purposes, objectives or duties.

12.

Adopt rules deemed necessary or desirable to govern its procedures and business.

13.

Contract with other agencies in furtherance of any department program.

14.

Use monies, facilities or services to provide contributions under federal or other programs that further the objectives and programs of the department.

15.

Accept gifts, grants, matching monies or direct payments from public or private agencies or private persons and enterprises for the conduct of programs that are consistent with the general purposes and objectives of this article and deposit these monies in the Arizona department of housing program fund established by section 41-3957.

16.

Establish and collect fees and receive reimbursement of costs in connection with any programs or duties performed by the department and deposit the fees and cost reimbursements in the Arizona department of housing program fund established by section 41-3957.

17.

Provide staff support to the board of manufactured housing.

18.

ENTER INTO AGREEMENTS WITH A MUNICIPALITY TO COORDINATE CERTIFICATION AND PERMIT TRACKING FOR WORKFORCE HOUSING PROJECTS PURSUANT TO SECTION 9-461.21.

D.

For the purposes of this section, the department is exempt from chapter 23 of this title.

-8- House Amendments to H.B.

2926 E.

The department is the designated state public housing agency as defined in the United States housing act of 1937 (42 United States Code sections 1401 through 1440) for the purpose of accepting federal housing assistance monies and may participate in the housing assistance payments program.

Federal monies may be secured for all areas of this state subject only to the limitations prescribed in subsection F of this section.

F.

For areas of this state where an existing public housing authority has not been established pursuant to section 36-1404, subsection A, the department acting as a public housing agency may undertake all activities under the section 8 tenant-based rental housing assistance payment program, except that the department shall not undertake a section 8 tenant-based rental housing assistance payment program within the boundaries of a city, town or county unless authorized by resolution of the governing body of the city, town or county.

If the department accepts monies for a section 8 tenant-based rental housing assistance payment program for areas of this state where an existing public housing authority has been established pursuant to section 36-1404, subsection A, the department shall only accept and secure federal monies to provide housing for the seriously mentally ill or other populations with disabilities.

The department may accept and secure federal monies for undertaking all contract administrator activities authorized under a section 8 project-based rental housing assistance payment program in all areas of this state and this participation does not require the authorization of any local governing body.

G.

The department shall not itself directly own, construct, operate or rehabilitate any housing units, except as may be necessary to protect the department's collateral or security interest arising out of any department programs.

H.

Notwithstanding any other provision of this section, the department may obligate monies as loans or grants applicable to programs and activities of the department for the purpose of providing TO PROVIDE housing opportunities for low or moderate income households or for housing affordability or to prevent or combat decaying housing stock.

Unless otherwise required by federal or state law, any loan repayments shall be deposited in the Arizona department of housing program fund established by section 41-3957.

I.

For any construction project financed by the department pursuant to subsection C of this section, except for contract administration activities in connection with the project-based section 8 program, the department shall notify a city, town, county or tribal government that a project is planned for its jurisdiction and, before proceeding, shall seek comment from the governing body of the city, town, county or tribal government or an official authorized by the governing body of the city, town, county or tribal government.

The department shall not interfere with or attempt to override the local jurisdiction's planning, zoning or land use regulations.

-9- House Amendments to H.B.

2926 J.

The department has the administrative responsibility through its hearing officer function concerning alleged violations of the Arizona mobile home parks residential landlord and tenant act under title 33, chapter 11.

K.

The Arizona department of housing shall act consistently with the minimum standards of the United States department of housing and urban development so as to be designated the state inspector for manufactured homes and related industries.

The Arizona department of housing shall implement all existing laws and regulations established by the federal government, its agencies and this state for that purpose.

L.

For the purposes of this section, "permanent supportive housing" means long-term housing assistance paired with supportive services that are aimed at individuals experiencing homelessness or individuals with special needs.>> Sec.

3.

4.- 4 - H.B.

The2926 gross4. proceeds of sales or gross income received from a contract entered into for the modification of any building, highway, road, railroad, excavation, manufactured building or other structure, project, development or improvement located in a military reuse zone for providing aviation or aerospace services or for a manufacturer, assembler or -10- House Amendments to H.B.

2926The gross proceeds of sales or gross income received from a contract entered into for the modification of any building, highway, road, railroad, excavation, manufactured building or other structure, project, development or improvement located in a military reuse zone for providing aviation or aerospace services or for a manufacturer, assembler or fabricator of aviation or aerospace products within an active military reuse zone after the zone is initially established or renewed under section 42-1301.

This paragraph does not include asbestos removal or the construction or use of ancillary structures such as maintenance sheds, offices or storage facilities- for5 unattached- equipment,H.B. pollution control equipment, facilities or other control items required or to be used by a person to prevent or control contamination before it reaches the environment.

2926 facilities for unattached equipment, pollution control equipment, facilities or other control items required or to be used by a person to prevent or control contamination before it reaches the environment.

The gross proceeds of sales or gross income that is derived from a contract for the installation, assembly, repair or maintenance of machinery, equipment or other tangible personal property that is either deducted from the tax base of the retail classification under section -11-42-5061, Housesubsection AmendmentsB or that is exempt from use tax under section 42-5159, subsection B and that has independent functional utility, pursuant to H.B.the following provisions:

2926 42-5061, subsection B or that is exempt from use tax under section 42-5159, subsection B and that has independent functional utility, pursuant to the following provisions:

(iv)- Stabilizing6 or- protectingH.B. the machinery, equipment or other tangible personal property during operation by bolting, burying or performing other similar nonpermanent connections to either real property or real property improvements.

2926 (iv) Stabilizing or protecting the machinery, equipment or other tangible personal property during operation by bolting, burying or performing other similar nonpermanent connections to either real property or real property improvements.

-12-(c) HouseSection Amendments42-5159, tosubsection H.B.A, paragraph 13, subdivision (a), (b), (c), (d), (e), (f), (j), (k), (m) or (n) or paragraph 55.

2926 (c) Section 42-5159, subsection A, paragraph 13, subdivision (a), (b), (c), (d), (e), (f), (j), (k), (m) or (n) or paragraph 55.

15.- 7 - H.B.

2926 15.

The gross proceeds of sales or gross income received from contracts entered into before July 1, 2006 for constructing a state university research infrastructure project if the project has been reviewed by the joint committee on capital review before the university -13-enters Houseinto Amendmentsthe toconstruction H.B.contract for the project.

2926 enters into the construction contract for the project.

The gross proceeds of sales or gross income derived from a contract entered into for the construction of a mixed waste processing facility that is located on a municipal solid waste landfill and that is constructed- for8 the- purposeH.B. of recycling solid waste or producing renewable energy from landfill waste.

2926 constructed for the purpose of recycling solid waste or producing renewable energy from landfill waste.

-14-(c) House"Recycling" Amendmentsmeans tocollecting, H.B.separating, cleansing, treating and reconstituting recyclable solid waste that would otherwise become solid waste, but does not include incineration or other similar processes.

2926 (c) "Recycling" means collecting, separating, cleansing, treating and reconstituting recyclable solid waste that would otherwise become solid waste, but does not include incineration or other similar processes.

3.- 9 - H.B.

2926 3.

If the purchaser cannot establish the accuracy and completeness of the information, the purchaser is liable in an amount equal to any tax, penalty and interest that the prime contractor would have been required to pay under article 1 of this chapter if the prime contractor had not -15-complied Housewith Amendmentsparagraph to1 H.B.of this subsection.

2926 complied with paragraph 1 of this subsection.

F.- 10 - H.B.

2926 F.

-16-I. House Amendments to H.B.

2926 I.

K.- 11 - H.B.

2926 K.

-17-2. House Amendments to H.B.

2926 2.

(a)- Administration12 or- supervisionH.B. of any modification performed on the project, including team management and coordination, scheduling, cost controls, submittal process management, field management, safety program, close-out process and warranty period services.

2926 (a) Administration or supervision of any modification performed on the project, including team management and coordination, scheduling, cost controls, submittal process management, field management, safety program, close-out process and warranty period services.

-18-(e) HouseInspection Amendments to H.B.determine the dates of substantial completion or final completion.

2926 (e) Inspection to determine the dates of substantial completion or final completion.

(h)- Preparation13 of- dailyH.B. logs of modification work, including documentation of personnel, weather conditions and on-site occurrences.

2926 (h) Preparation of daily logs of modification work, including documentation of personnel, weather conditions and on-site occurrences.

(i) Labor, materials, machinery and equipment, tools, water, heat, utilities, transportation and other facilities and services used in the -19-execution Houseand Amendmentscompletion toof H.B.modification work, regardless of whether they are temporary or permanent or whether they are incorporated in the modifications.

2926 execution and completion of modification work, regardless of whether they are temporary or permanent or whether they are incorporated in the modifications.

(viii)- Any14 contingency- feesH.B. for the prime contractor that may be used before final completion of the project.

2926 (viii) Any contingency fees for the prime contractor that may be used before final completion of the project.

If a change order does not directly relate to the -20-scope Houseof Amendmentswork of the original contract, the change order shall be treated as a new contract, with the tax treatment of any subsequent change order to H.B.follow the tax treatment of the contract to which the scope of work of the subsequent change order directly relates.

2926 scope of work of the original contract, the change order shall be treated as a new contract, with the tax treatment of any subsequent change order to follow the tax treatment of the contract to which the scope of work of the subsequent change order directly relates.

1.- 15 - H.B.

2926 1.

THE GROSS PROCEEDS OF SALES OR GROSS INCOME ATTRIBUTABLE TO THE DEVELOPMENT OF WORKFORCE HOUSING PROJECTS [ASAS DEFINED IN SECTION 9-461.21]9-461.21 IF THE WORKFORCE HOUSING [BUILDERPROJECT AS DEFINED IN SECTION 9-461.21] [PROJECT] IS NOT SUBJECT TO [THETHE STATE'S PORTION OF THE PRIME CONTRACTING SALES]SALES TAX UNDER THIS SECTION, REGARDLESS OF WHETHER THE SERVICES ARE PROVIDED SEQUENTIAL TO OR CONCURRENT WITH PRIME CONTRACTING ACTIVITIES THAT ARE SUBJECT TO TAX UNDER THIS SECTION.

Proceeds from the sale of the property that are received after transfer of title and that are unrelated to the -21-modifications Housemade Amendmentssubsequent to H.B.the transfer of title are not considered gross proceeds of sale or gross income from the modifications.

2926 modifications made subsequent to the transfer of title are not considered gross proceeds of sale or gross income from the modifications.

If the original owner is responsible to the new owner for modifications made to the property in the period subsequent to the transfer of title and derives any gross proceeds of sale or gross income from the project subsequent to the transfer of title other than a delayed disbursement- from16 escrow- unrelatedH.B. to the modifications, it is presumed that the amounts are received for the modifications made subsequent to the transfer of title unless the contrary is established by the owner through its books, records and papers kept in the regular course of business.

2926 disbursement from escrow unrelated to the modifications, it is presumed that the amounts are received for the modifications made subsequent to the transfer of title unless the contrary is established by the owner through its books, records and papers kept in the regular course of business.

-22-(e) HouseA Amendmentschange order that directly relates to H.B.the scope of work of the original contract shall be treated as part of the original contract, and the contract amount shall include any amount attributable to a change order that directly relates to the scope of work of the original contract.

2926 (e) A change order that directly relates to the scope of work of the original contract shall be treated as part of the original contract, and the contract amount shall include any amount attributable to a change order that directly relates to the scope of work of the original contract.

"Contractor" is synonymous with the term "builder" and means any person or organization that undertakes to or offers to undertake to, or purports to have the capacity to undertake to, or submits a bid to, or does personally or by or through others, modify any building, highway, road, railroad, excavation, manufactured building or other structure, project, development or improvement, or to do any part of such a project, including the erection of scaffolding or other structure or works in connection with such a project, and includes subcontractors and specialty contractors.- 17 - H.B.

2926 contractors.

-23-9. House Amendments to H.B.

2926 9.

11.- 18 - H.B.

2926 11.

<<Sec.Sec.

LegislativeEffective findingsdate A.Section 9-461.21, Arizona Revised Statutes, as added by this act, and sections 35-726 and 42-5075, Arizona Revised Statutes, as amended by this act, are effective twelve months from and after the general effective date.

The legislature finds that:

1.

Arizona faces an acute shortage of attainable and workforce housing across income levels.

2.

The cost and timing of housing production are significantly affected by state and local fees, taxation and approval delays.

3.

Providing targeted tax relief and streamlined processes for builders of affordable housing will directly increase the number of units produced and lower costs for Arizona families.

B.

The legislature intends to incentivize the production of affordable housing by:

1.

Exempting qualifying affordable housing builders from the states' prime contracting sales tax.

2.

Allowing qualified builders to begin vertical construction and home sales while horizontal infrastructure work continues under approved plans.

3.

Requiring cities and towns to implement expedited permitting for affordable housing projects and creating a pathway for more contractors in rural Arizona.>> -24- House Amendments to H.B.

2926 Sec.

4.

Effective date [Sections] [Section] 9-461.21 [and 32-1130], Arizona Revised Statutes, as added by this act, and sections 35-726[, 41-3953] and 42-5075, Arizona Revised Statutes, as amended by this act, are effective twelve months from and after the general effective date.

Enroll- and19 engross- to conform Amend title to conform CHRIS LOPEZ 2926LOPEZ.docx 02/11/2026 11:24 AM C:

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