Arizona Legislature Passes SB 1118 to Exempt Historic Neighborhoods From Middle Housing Requirements

Arizona House Approves Historic Neighborhood Protection Bill in 11-7 Vote, Setting Up Senate Review and Potential Governor's Desk

PHOENIX — The Arizona House of Representatives has approved a measure to exempt historic neighborhoods from state middle housing requirements, sending the bill to the Senate and potentially to Governor Katie Hobbs for her consideration.

Senate Bill 1118, introduced by Republican state Representative Matt Gress of Phoenix, would return to Arizona cities their ability to exempt designated historic neighborhoods from provisions of a 2024 middle housing law that requires municipalities to allow construction of duplexes, triplexes, fourplexes, and townhomes within a mile of central business districts.

The bill passed the House Appropriations Committee on Tuesday with a 11-7 bipartisan vote, clearing a path to a full House vote and eventual consideration by the Senate.

Protecting Neighborhood Character

Residents of historic districts in Phoenix, Tucson and other affected cities have opposed the 2024 middle housing law, worried that developers would purchase older homes, demolish them, and replace them with multi-family buildings, fundamentally changing the character of their neighborhoods.

Tucson and Phoenix have approximately 70 neighborhoods with historic designation. Opal Wagner, a member of Save Historic Arizona, explained the concern during the committee hearing:

Under the 2024 law, which went into full effect this January, cities are not allowed to deny demolition permits sought by developers — even if they target a historic home. Even though there are historic preservation guidelines in many of our cities, we are told that is just that. We are told these are city of Phoenix Historic Preservation guidelines, which translates to recommendations.

SB 1118 would offer cities the opportunity to adopt standards that are stronger than guidelines, creating legally enforceable protections for historic neighborhoods.

Legislative Maneuver

Rep. Gress used a legislative maneuver to advance the stalled measure after his original bill never received a Senate committee vote. He attached the bill to a Senate-passed bill during the final regular House Appropriations Committee meeting of the session, allowing it to proceed to a new House vote.

The changes to placate Tucson officials and win their backing may be key to the bill's success in the Senate.

Division Among Housing Advocates

The bill has drawn support from some quarters while facing opposition from others. Rep. Stephanie Stahl Hamilton, a Tucson Democrat, supported the measure during the Appropriations Committee hearing, marking a shift from her opposition to Gress's original measure.

However, advocates from other housing groups opposed the carveout, as did Phoenix City Councilwoman Anna Hernandez, who was in the state Senate when the 2024 middle housing law passed.

Jake Hinman, a lobbyist representing the Arizona Neighborhood Project, noted that the changes represented a modification of a deal struck by the League of Arizona Cities and Towns.

The changes were walking back part of a deal struck by the League of Arizona Cities and Towns that pulled back their opposition to the 2024 middle housing law.

Nick Ponder, a League lobbyist, pushed back on this assertion, stating that the League had successfully pushed for historic neighborhoods to be exempted in other housing bills.

We asked for the same language, and we were rejected outright. The idea that somehow we would not pursue those remedies in the future was never discussed, was never a prerequisite for us to work on the bill.

What the Bill Leaves Intact

The proposal leaves the bulk of the 2024 middle housing law in place. The law requires cities to allow middle housing within one mile of a central business district and on at least 20 percent of new developments over 10 acres.

The measure specifically targets the demolition of historic homes, allowing cities to adopt stronger protections for these neighborhoods while maintaining the core requirements of the 2024 law.

Next Steps

The bill now needs to clear the full House, pass through the Senate, and potentially reach Governor Hobbs' desk. The governor will need to decide whether to sign or veto the measure.

The ongoing debate reflects deeper tensions between preserving neighborhood character and increasing housing supply — a conflict that has divided the Arizona Legislature and housing advocates alike.