SB 1543 — homestead exemption; equity increase

SenateHouse Engrossed Senate Bill homestead exemption;

equity increase State(now: of Arizona Senate Fifty-seventh Legislature First Regular Session SENATE BILL 1543 AN ACT AMENDING SECTION 33-1101, ARIZONA REVISED STATUTES, AS AMENDED BY PROPOSITION 209, ELECTION OF NOVEMBER 8, 2022;

REPEALINGancillary SECTIONuse; 33-1101, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 2021, CHAPTER 368, SECTION 3;

RELATINGinternational TOheadquarters HOMESTEADcampus) ANDState PERSONALof PROPERTYArizona EXEMPTIONS.Senate Fifty-seventh Legislature First Regular Session CHAPTER 74 SENATE BILL 1543 AN ACT AMENDING TITLE 9, CHAPTER 4, ARTICLE 6, ARIZONA REVISED STATUTES, BY ADDING SECTION 9-461.19;

RELATING TO MUNICIPAL PLANNING.

SectionTitle 33-1101,9, chapter 4, article 6, Arizona Revised Statutes, asis amended by propositionadding 209,section election9-461.19, of November 8, 2022, is amended to read:

33-1101.9-461.19.

HomesteadMunicipal exemptions;allowed ancillary use;

personsmultifamily entitledresidential tohousing; hold homesteads;

annualhotel adjustmentuse; A.

Anyregulations; person the age of WHO IS AT LEAST eighteen or over YEARS OF AGE, married or single, AND who resides within the THIS state may hold as a homestead exempt from attachment, execution and forced sale, not exceeding $400,000 in value, any one of the following:

applicability;

definitions A.

NOTWITHSTANDING ANY OTHER LAW, A MUNICIPALITY WITH A POPULATION OF TWO HUNDRED THOUSAND OR MORE PERSONS BUT NOT MORE THAN FIVE HUNDRED THOUSAND PERSONS SHALL ALLOW HOTEL USE AND MULTIFAMILY RESIDENTIAL HOUSING AS AN ALLOWED ANCILLARY USE ON LAND THAT IS VACANT AS OF THE DATE OF THE BUILDING PERMIT APPLICATION FOR THE ALLOWED ANCILLARY USE IN A ZONING DISTRICT THAT ALLOWS LIGHT INDUSTRIAL USE WITHOUT REQUIRING ANY TYPE OF APPLICATION THAT WILL REQUIRE A PUBLIC HEARING IF THE ANCILLARY USE MEETS BOTH OF THE FOLLOWING CRITERIA:

TheTHE person'sANCILLARY interestUSE inIS realLOCATED propertyWITHIN inAN oneINTERNATIONAL compactHEADQUARTERS bodyCAMPUS uponTHAT IS SOLELY OWNED BY EITHER A SINGLE ENTITY OR RELATED ENTITIES AT THE TIME THAT DEVELOPMENT OF THE INTERNATIONAL HEADQUARTERS CAMPUS COMMENCES AND, ON whichCOMPLETION, existsTHE aINTERNATIONAL dwellingHEADQUARTERS houseON inTHE whichINTERNATIONAL theHEADQUARTERS personCAMPUS resides.WILL EMPLOY MORE THAN ONE THOUSAND FULL-TIME EMPLOYEES AT AN AVERAGE ANNUAL COMPENSATION OF MORE THAN ONE HUNDRED TWENTY-FIVE PERCENT OF THE MEDIAN WAGE OF THE COUNTY WHERE THE INTERNATIONAL HEADQUARTERS CAMPUS IS LOCATED.

TheTHE person'sINTERNATIONAL interestHEADQUARTERS inCAMPUS oneTHAT condominiumCONTAINS orTHE cooperativeANCILLARY inUSE whichIS theBOUND personBY resides.A RECORDED INSTRUMENT THAT IS ENFORCEABLE BY THE MUNICIPALITY AND THAT DOES BOTH OF THE FOLLOWING:

3.(a) RESTRICTS OCCUPANCY IN AT LEAST THIRTY PERCENT OF THE MULTIFAMILY RESIDENTIAL HOUSING UNITS LOCATED ON THE INTERNATIONAL HEADQUARTERS CAMPUS, WHICH MAY INCLUDE UNITS DESIGNATED PURSUANT TO SUBSECTION I OF THIS SECTION AT THE DISCRETION OF THE DEVELOPER, TO INDIVIDUALS WHO ARE EMPLOYED AT THE INTERNATIONAL HEADQUARTERS, OR WHO ARE POLICE OFFICERS, FIREFIGHTERS, TEACHERS, VETERANS OR HEALTH CARE WORKERS AND WHO WORK WITHIN FIVE MILES OF THE INTERNATIONAL HEADQUARTERS CAMPUS OR WHO ARE THE FAMILIES OF INDIVIDUALS EMPLOYED AT THE INTERNATIONAL HEADQUARTERS.

ATHE mobileRECORDED homeINSTRUMENT inMUST whichALSO thePROVIDE personTHAT resides.THE MUNICIPALITY WHERE THE INTERNATIONAL HEADQUARTERS CAMPUS IS LOCATED, IN THE MUNICIPALITY'S SOLE AND ABSOLUTE DISCRETION, MAY WAIVE THE OCCUPANCY REQUIREMENT.

4.(b) PROHIBITS AN AGREEMENT FOR OCCUPANCY OF ANY MULTIFAMILY RESIDENTIAL HOUSING UNIT WITHIN THE INTERNATIONAL HEADQUARTERS CAMPUS FOR A PERIOD OF LESS THAN NINETY CONSECUTIVE DAYS AND LIMITS OCCUPANCY TO THE SAME OCCUPANTS FOR THE ENTIRETY OF THE NINETY CONSECUTIVE DAYS UNLESS A TENANT OF THE MULTIFAMILY RESIDENTIAL HOUSING UNIT IS AN EMPLOYEE OR CONTRACTOR OF AN ENTITY LOCATED WITHIN THE INTERNATIONAL HEADQUARTERS CAMPUS AND THAT EMPLOYEE OR CONTRACTOR PERFORMS JOB DUTIES AT THE INTERNATIONAL HEADQUARTERS.

ATHIS mobileSUBDIVISION homeDOES inNOT whichAPPLY theTO personMULTIFAMILY residesHOUSING plusDEVELOPMENTS theTHAT landARE uponPLATTED ONFOR whichINDIVIDUAL thatOWNERSHIP mobileOF homeUNITS. is located.

B.- 1 - S.B.

Only1543 oneB. homestead exemption may be held by a married couple or a single person under this section.

TheAN valueANCILLARY asUSE specifiedIS inSUBJECT thisTO sectionCOMPLIANCE refersWITH toGENERALLY theAPPLICABLE equityMUNICIPAL ofBUILDING aCODES singleAND personFIRE orCODES marriedAND couple.THE OBJECTIVE DEVELOPMENT STANDARDS PURSUANT TO SUBSECTION E OF THIS SECTION.

If a married couple lived together in a dwelling house, a condominium or cooperative, a mobile home or a mobile home plus land on which the mobile home is located and are then divorced, the total exemption THAT IS allowed for that residence to either or both persons shall not exceed $400,000 in value.

TheTHE homesteadGOVERNING exemption,BODY notOF exceedingTHE theMUNICIPALITY valueMAY providedNOT forUNREASONABLY inWITHHOLD subsection A OFBUILDING THISPERMIT SECTION,OR asUNREASONABLY adjustedDELAY byA subsectionBUILDING DINSPECTION ofOR thisA section,CERTIFICATE automaticallyOF attachesOCCUPANCY toFOR theAN person'sANCILLARY interestUSE inTHAT identifiableCOMPLIES cashWITH proceedsONE fromOF theTHE voluntaryFOLLOWING: or involuntary sale of the property.

The1. homestead exemption in identifiable cash proceeds continues for eighteen months after the date of the sale of the property or until the person establishes a new homestead with the proceeds, whichever period is shorter.

THEFOR HOMESTEADINTERNATIONAL EXEMPTIONHEADQUARTERS DOESCAMPUSES NOTTHAT ATTACHINCLUDE MULTIFAMILY RESIDENTIAL HOUSING UNITS AS AN ANCILLARY USE PURSUANT TO THIS SECTION, A MUNICIPALITY SHALL ALLOW A NUMBER OF MULTIFAMILY RESIDENTIAL UNITS WITHIN THE PERSON'SINTERNATIONAL INTERESTHEADQUARTERS INCAMPUS IDENTIFIABLETHAT CASHARE PROCEEDSEQUAL FROMTO REFINANCINGTWENTY-SEVEN UNITS PER GROSS ACRE BASED ON THE HOMESTEADTOTAL PROPERTY.GROSS ACREAGE OF THE INTERNATIONAL HEADQUARTERS CAMPUS.

Only2. one homestead exemption at a time may be held by a person under this section.

FOR CAMPUSES THAT INCLUDE HOTEL USE AS AN ANCILLARY USE PURSUANT TO THIS SECTION, A MUNICIPALITY SHALL ALLOW A NUMBER OF HOTEL ROOMS WITHIN THE INTERNATIONAL HEADQUARTERS CAMPUS EQUAL TO TEN HOTEL ROOMS PER GROSS ACRE BASED ON THE TOTAL GROSS ACREAGE OF THE INTERNATIONAL HEADQUARTERS CAMPUS.

AT LEAST TEN PERCENT OF THE HOTEL ROOMS WITHIN THE INTERNATIONAL HEADQUARTERS CAMPUS SHALL BE ALLOWED AS FOR-SALE RESIDENTIAL UNITS WITHIN THE HOTEL.

TheFOR homesteadCAMPUSES exemptionTHAT providedINCLUDE byHOTEL thisUSE sectionOR shallMULTIFAMILY beRESIDENTIAL adjustedHOUSING annuallyUNITS beginningAS onAN JanuaryANCILLARY 1,USE 2024PURSUANT andTO thereafterTHIS onSECTION, JanuaryA 1MUNICIPALITY ofSHALL eachALLOW successiveCOMPLEMENTARY yearRETAIL byAND theRESTAURANT increaseUSE inWITHIN theTHE costINTERNATIONAL ofHEADQUARTERS living.CAMPUS.

TheE. increase in the cost of living shall be measured by the percentage increase as of August of the immediately preceding year over the level as of August of the previous year of the consumer price index (all urban consumers, United States city average for all items) or its successor index as published by the United States department of labor, bureau of labor statistics, or its successor agency, with the amount of the exemption rounded up to the nearest $100.

-THE 1FOLLOWING -OBJECTIVE S.B.STANDARDS APPLY TO AN ANCILLARY USE BUILDING DEVELOPED PURSUANT TO THIS SECTION:

15431. E.

FORA PURPOSESMUNICIPALITY OFMAY DETERMININGLIMIT THE AMOUNTHEIGHT OF EQUITYTHE INANCILLARY AUSE HOMESTEADBUILDING PROPERTYTO THATTWO ISSTORIES SOLDIN ORAN FORINTERNATIONAL DETERMININGHEADQUARTERS WHETHERCAMPUS THESITE PROPERTYTHAT OWNER IS RECEIVINGLOCATED CASHDIRECTLY BACKADJACENT FROMTO REFINANCINGAND THEWITHIN HOMESTEADONE PROPERTY,HUNDRED THEFEET PARTIES MAY RELY ON THE VALUATION OF THEAN PROPERTYAREA IN THE FINAL CLOSING DOCUMENT DISCLOSURE THAT IS USEDZONED FOR THATSINGLE-FAMILY TRANSACTION.RESIDENTIAL USE.

2.

EXCEPT PURSUANT TO PARAGRAPH 1 OF THIS SUBSECTION, A MUNICIPALITY MAY NOT RESTRICT THE MAXIMUM HEIGHT OF THE ANCILLARY USE BUILDING TO LESS THAN SIX STORIES, NOT INCLUDING MECHANICAL SCREENING OR ROOFTOP APPURTENANCES.

3.

ANY UTILITY PROVIDER THAT MAY PROVIDE UTILITY SERVICE TO THE ANCILLARY USE DEVELOPMENT MAY REVIEW CONSTRUCTION DOCUMENTS TO REASONABLY ENSURE ADEQUATE WATER AND SEWER CAPACITY IMPACTED BY THE PROPOSED ANCILLARY USE DEVELOPMENT.

4.