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Gov. Hobbs vetoes bill aiming to fix Arizona's housing crisis, calls it a 'step too far'

Republicans and Democrats showed support for the bill, claiming it "created a pathway to the American dream of homeownership."

PHOENIX — Gov. Katie Hobbs has vetoed a piece of legislation that lawmakers claimed could have potentially helped to solve Arizona's housing crisis by removing the red tape surrounding residential development.

House Bill 2570, also known as the Arizona Starter Homes Act, would have restricted how local cities regulate home designs and single-family home lot sizes. 

Supporters of the bill claimed it could have increased Arizona's housing supply and reduce unnecessary costs imposed by local municipalities. 

But the governor said Monday that HB 2570 was "not the right step for our state."

“I was elected on a promise to bring thoughtful leadership to the Governor’s Office and always do the right thing for the people of this state, even when it’s hard,” Hobbs said in a statement. “Unfortunately, this expansive bill is a step too far and I know we can strike a better balance. This is unprecedented legislation that would put Arizonans at the center of a housing reform experiment with unclear outcomes."

Several cities throughout Arizona were listed as being against the legislation and the governor received a letter from the U.S. Department of Defense expressing opposition due to the bill "eroding" existing protections in municipal general plans.

The Professional Fire Fighters of Arizona also submitted a letter in opposition to the bill, claiming it could undermine comprehensive safety plans already developed for local communities.

Hobbs indicated she's hopeful other pieces of legislation could better address Arizona's housing problems.

"I am supportive of ongoing efforts in the legislature to reach a more balanced solution on other reforms that are still moving through the process including proposals related to accessory dwelling units (ADUs, also known as casitas), missing middle housing options, commercial repurpose and reuse, and streamlining local approval processes," the governor said in a statement.

State Rep. Analise Ortiz, D-District 24, supported HB 2570 and said she was disappointed by the governor's veto since it seems Arizona continues "to kick the can down the road" when it comes to the issue of housing.

"Status quo is clearly not working and believing that things will change without policies like the Arizona Starter Homes Act is, at best, wishful thinking," the Democratic lawmaker said in a statement.

Several lawmakers from both parties voted against the legislation. The bill narrowly passed out of the Arizona Senate in a 16-13 vote.

Arizona Senate President Warren Petersen, a Republican, lambasted Hobbs for choosing to side with the "bureaucrats" by rejecting the legislation.

"Instead of listening to the citizens, she's listening to the people who created the problem," the senator said in a statement. "This legislation had strong bipartisan support, and this veto will certainly go down as one of her biggest failures."

More details about HB 2570 can be found below:

*Editor's Note: The above video is from an earlier broadcast*

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