March 4, 2025
The Arizona Housing Coalition is advocating for a mix of time-tested and innovative supply-side solutions this legislative session. In addition to supporting the renewal of ADOH and LIHTC, we are championing creative, bipartisan-backed initiatives like Yes in God's Backyard (YIGBY).
We know the need for additional housing supply across Arizona is urgent. In 2022, the Arizona Department of Housing estimated the affordable housing shortage at 270,000 units. The ARCHES 2024 State of Housing Report placed the shortfall at over 183,000 units for short- or low-income renters earning 50% Area Median Income (AMI) or less. While estimates vary, sources agree that a significant shortage poses real challenges for Arizonans across the state.
We know the need for additional housing supply across Arizona is urgent. In 2022, the Arizona Department of Housing estimated the affordable housing shortage at 270,000 units. The ARCHES 2024 State of Housing Report placed the shortfall at over 183,000 units for short- or low-income renters earning 50% Area Median Income (AMI) or less. While estimates vary, sources agree that a significant shortage poses real challenges for Arizonans across the state.
According to ARCHES 2024 State of Housing Report, Arizona is over 183,000 units short for low-income renters.
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Who Are Arizona's "Extremely Low Income" Renters?
When we talk about very low-income renters in Arizona, who are we talking about? In Arizona, averaged from 2019 to 2023, the median household income (in 2023 dollars) statewide was $76,436, making 50% AMI earnings bringing in around $38,000/year or $18/hour. That's your child's daycare worker, who earns an average of $16/hour in Mesa. That's seniors on a fixed income with less than $3,200 in monthly income from retirement investments and social security. That's the EMT responding to your 911 call in Yuma who earns $18/hour on the job (wage estimates from Zip Recruiter). Seniors, working families, and individuals with disabilities represent 82% of Arizona's low-income renter households. Given the shortage of housing for low-income seniors, individuals with disabilities, and other working but not earning enough to afford rising rents, a broad base of community partners and innovative solutions are imperative for developing additional affordable housing units that meet unmet needs across the state. |
What types of jobs pay extremely low income? Critical positions for our communities like childcare providers, customer service representatives, farmers, delivery drivers, home health aides, food service workers, retail workers, janitorial staff, and teaching assistants.
The Challenges in Addressing the Need for More Housing
Access to land poses a significant barrier in affordable housing development. (Access to capital is another major barrier. Read more about the Coalition's 2025 legislative priorities aimed at increasing access to capital, including renewal of the Arizona Department of Housing and renewal and expansion of the State's Low Income Housing Tax Credit.) In the Greater Phoenix area, for example, multifamily housing development has plummeted in recent decades, with the rezoning process cited as a development-killing ordeal. The challenges in developing multifamily housing (apartments) begin with access to land on which to build the units Arizonans need.
Access to land poses a significant barrier in affordable housing development. (Access to capital is another major barrier. Read more about the Coalition's 2025 legislative priorities aimed at increasing access to capital, including renewal of the Arizona Department of Housing and renewal and expansion of the State's Low Income Housing Tax Credit.) In the Greater Phoenix area, for example, multifamily housing development has plummeted in recent decades, with the rezoning process cited as a development-killing ordeal. The challenges in developing multifamily housing (apartments) begin with access to land on which to build the units Arizonans need.
Access to land is the greatest challenge to building more affordable housing.
What's Being Done?
In the last legislative session, there was bipartisan interest in passing statewide land use regulations designed to open more lands across Arizona to multifamily development. In 2024, we celebrated affordable housing supply wins with the passage of the Adaptive Reuse bill, opening certain commercial properties for multifamily development. In addition, the Middle Housing bill was enacted, allowing for certain properties currently zoned for single family development to bypass zoning restrictions preventing smaller scale (duplex, triplex, etc.) multifamily development. Lastly, the state legalized accessory dwelling units (ADUs or casitas) in areas zoned single family residential in larger sized municipalities. (For more information on 2024-enacted housing related laws, review Governor Hobbs' announcement listening with descriptions of each.)
In the last legislative session, there was bipartisan interest in passing statewide land use regulations designed to open more lands across Arizona to multifamily development. In 2024, we celebrated affordable housing supply wins with the passage of the Adaptive Reuse bill, opening certain commercial properties for multifamily development. In addition, the Middle Housing bill was enacted, allowing for certain properties currently zoned for single family development to bypass zoning restrictions preventing smaller scale (duplex, triplex, etc.) multifamily development. Lastly, the state legalized accessory dwelling units (ADUs or casitas) in areas zoned single family residential in larger sized municipalities. (For more information on 2024-enacted housing related laws, review Governor Hobbs' announcement listening with descriptions of each.)
Bipartisan interest in tackling the crisis has resulted in several bills that seek to increase supply of affordable housing.
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Yes, In God's Backyard
Continued innovation at the state level is needed to bolster housing supply across Arizona. A broad base of interest and support for the YIGBY initiative developed last year, and we are thrilled to share that the measure has once again been put forward for consideration. Representative David Livingston (R, AZ Leg District 28) and Representative Sarah Liguori (D, AZ Leg District 5) introduced House Bill 2191 in January. Congregations, faith communities, and faith leaders across the state are eager to support the initiative. YIGBY is designed to exempt churches and faith-based institutions from burdensome rezoning challenges as they utilize church-owned lands for affordable housing development. The model has seen success in communities across the country (in Virginia, and in Texas serving seniors) converting unutilized or underutilized church-owned land into much-needed housing and social services, all while carrying out faith-based institutions' missions to serve one another. In Arizona, the 2025 YIGBY Bill enables affordable housing development that fits within existing neighborhoods and addresses concerns about the bill raised by critics last session. The measure has the potential to allow churches and faith-based institutions to advance their missions in new, responsive ways. |
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As the need for affordable housing has grown, so has the interest from faith-based organizations about utilizing their properties to help address the problem. The potential for additional development is hard to quantify, but with more than 6,000 churches registered across the state, some with large holdings in the thousands of acres, it stands to reason that opening these lands to mission-focused housing projects could make a significant impact. In addition, progress toward increasing supply could occur under YIGBY on a much shorter timeline than other initiatives given widespread interest among churches and faith-based institutions.
St. Michael's Crossings, Catholic Charities Affordable Housing for Veterans in Phoenix
On a recent tour with Arizona lawmakers of shelter and housing programs in Phoenix, we visited an incredible community where affordable housing and supportive services are offered to low-income seniors. The community, called Acacia Heights, sits on land formerly used at Catholic Charities offices. While the stable housing combined with supportive community services for seniors in our community is incredible, it was a long time coming. We learned that the rezoning and permitting process for the community took a full twelve years to complete. Such arduous, lengthy processes are a sure way to stifle creative, well-intentioned, and much needed projects like the ones YIGBY makes possible. The current system makes projects like Acacia Heights or St. Michael's Crossing in Phoenix subject to a deal-killing, multi-hearing process that stands in the way of mission-driven projects that meet an urgent community need. YIGBY removes some of the barriers to development and makes the dream of stability at home possible for more families, seniors, veterans, and working Arizonans in need.
Common Concerns Surrounding YIGBY
Read more about concerns sometimes raised against YIGBY initiatives.
- Will there be a loss of local control? The YIGBY initiative strikes a balance between opening of lands for development and limiting the applicability to faith-based groups.
- What about an extension of property rights to an exclusive group? Does this pass Constitutional muster? The limited exception to current zoning regulations contained in HB2191 is legally defensible for several well-established reasons.
- Do the costs of compliance mean fewer units? While compliance costs may limit number of units, few or no affordable units would be built without those requirements. The market just hasn't shown itself to produce these types of projects without them.
- Building supply up of luxury units will free up existing units for lower income households. People tend to move down or out, but not up. Market conditions make the addition of luxury units unlikely to positively impact lower income households.
- Will there be more crime, noise, litter, and decay as a result of YIGBY? YIGBY is designed to help faith-based groups utilize vacant or underutilized property for community good. A thriving supportive living community is much less likely to attract crime and decay than a vacant lot.
- What about neighborhood character? YIGBY builds in protections for neighborhood character to address these concerns.
Read more about concerns sometimes raised against YIGBY initiatives.
Join Us in Speaking Up for Home!
We urge community members to support the Yes, In God's Backyard effort. In collaboration with community partners, the Coalition is seeking to enact this enabling statute to encourage additional development by trusted local community anchors across the state. Faith-based institutions that are interested in Speaking Up For Home should contact us to learn more about joining our efforts.
