Arizona has introduced a groundbreaking legislation poised to revolutionize the licensing process for single-family homes by reducing unwarranted delays.
With the enactment of Senate Bill 1566, local governments are now required to establish specific timelines for issuing building permits or licenses for residential construction. Any deliberate obstruction in the approval process will incur a $5,000 fine, a penalty enforced by the Attorney General’s Office.
Senate President Warren Petersen (R-Gilbert), who sponsored the bill, emphasized during a March House committee meeting that the standard for proving “malice” is notably high, requiring proof of intentional interference. “Malice is a very high standard. It has to be intentional,” Petersen stated.
Petersen noted that while such intentional delays are not widespread, there have been instances where projects are held up without valid reasons, as he explained, “This doesn’t happen a lot, but we do hear about anecdotes where people are intentionally delaying projects, there’s no reason — there’s nothing that’s being waited on.”
The Pacific Legal Foundation’s senior state policy manager, Kileen Lindgren, addressed the committee, highlighting that clearer enforcement of permit timelines could help maintain lower costs. She remarked, “Building and developing costs a lot of money, but time is also money and adds a lot of costs and a lot of uncertainty and disincentivizes people from wanting to invest in their homes.”
Despite its objectives, the bill faced opposition from several local governments and most Democratic lawmakers, who voted against it. Former County Assessor’s Office employee, Rep. Quantá Crews (D-Phoenix), shared her perspective, stating that in her experience, permitting delays are generally justified. “I have had projects that for properties have taken me months, and not because I was stalling anything,” Crews explained. “I just wanted to make sure that it was done correctly.”
Governor Katie Hobbs has approved the legislation, and it is expected to become effective in September, aligning with the General Effective Date.
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