The Arizona House of Representatives passed House Bill 2946 on Wednesday, a bipartisan measure sponsored by State Representative Khyl Powell aimed at reducing local government fees that contribute to rising housing costs for Arizona families, according to a statement released by the Arizona House GOP.
The legislation seeks to address affordability concerns by targeting development fees imposed by local governments, which are often passed on to homebuyers. The bill is part of the House Republican Majority’s agenda focused on making housing more accessible.
“Arizona families are being priced out of homeownership, and government-added costs are part of the problem. HB 2946 is a bipartisan, commonsense reform that helps make housing more affordable by bringing clarity and consistency to fee collection, reducing uncertainty, and stopping unnecessary local cost pressure from being passed onto working families trying to buy a home,” Representative Khyl Powell said. “HB 2946 will not solve every housing affordability challenge facing Arizona, but it addresses a problem the Legislature can directly control: local government costs that make housing more expensive before a family ever gets the keys,” according to Powell.
The bill also introduces changes intended to increase predictability for developers. Under current law, grandfathering protections were linked to when the first building permit was issued; however, construction may not begin for years after this point. HB 2946 instead ties grandfathering protections to 24 months after the passage of new or increased development fee ordinances.
Additionally, HB 2946 addresses how accessory dwelling units (ADUs) are treated regarding local fees. Water and wastewater charges will be based on actual infrastructure impact determined by meter size differences needed for detached ADUs. Other development fees will be capped at either twenty percent of comparable single-family home fees or at the ADU’s proportionate share.
Powell is a Republican member of the Arizona House of Representatives serving Legislative District 14 in Gilbert and serves as Vice Chairman of the House Judiciary Committee. More information is available here. Powell was elected in 2025 to represent District 14, replacing previous state representative Travis Grantham.
