Political leaders in both parties at the legislature have identified affordable housing as one of their top issues, but one bipartisan bill aimed at lowering housing prices with smaller homes is close to approaching Gov. Katie Hobbs’ desk. After many stakeholder meetings and negotiations throughout the legislative session, the House Government Committee passed the “Arizona Starter Homes Act,” 5-4, as several members on the committee expressed their problems with the bill. SB1229 now needs to get through the House, and likely the Senate again for a final vote on amendments before Hobbs gets her say. With the goal of building smaller and cheaper homes, the measure would prohibit cities with a population of at least 70,000 from requiring specific home design and development standards. The Government Committee’s discussion of the measure opened with Rep. Janeen Connolly, D-Tempe, introducing a striker amendment that would replace its language with that of a similar measure backed by the League of Arizona Cities and Towns that municipal leaders say would ensure Arizona residents, not corporations, purchase the new homes. Critics of SB1229 say the measure doesn’t guarantee the homes built under the terms of the bill will be affordable or be sold to Arizona residents. “Our goal is to put Arizona residents at the front of the line when it comes to buying and owning starter homes, not Wall Street investors who sell to the highest bidder,” said Chandler Mayor Kevin Hartke, president of the league. “This bill would help increase the affordable housing pipeline and make homeownership attainable for hard-working families and residents.” SB1229’s sponsor, Sen. Shawna Bolick, R-Phoenix, called the league’s amendment “hostile” in a post on X prior to the House Government Committee hearing on March 25. The amendment is similar to a competing starter homes proposal backed by the league, SB1698, which never received a committee hearing this session. Connolly withdrew her amendment shortly after introducing it. The league’s Legislative Director Tom Savage told the Arizona Capitol Times that the amendment isn’t an attempt from the league to "take over" the bill, but is a method to at least get their proposal heard by the Legislature. The league has feuded with supporters of the Starter Homes Act for years. Nick Ponder, a lobbyist with HighGround Public Affairs Consultants who lobbies for the league, said the league has been working on “starter home” legislation since back when former Sen. Steve Kaiser championed the issue. Kaiser’s major housing bill in the 2023 legislative session died in the Senate. Gov Katie Hobbs vetoed a similar starter homes proposal in 2024 and Ponder said the league wrote its bill this year based on Hobbs’ veto of the 2024 measure. He said the League considers SB1229 to be a “pure developer” bill that interferes with municipal infrastructure and general plans that are required to be approved by voters. Queen Creek Mayor Julia Wheatley, said, “This legislation disproportionately impacts the town and our ability to determine the look and feel while balancing our agricultural and equestrian roots with residential development.” Starter Act supporters argue the free market will ensure more affordable homes are built with the bill because there are developers who want to provide a product for first-time homebuyers. “Preemption is a weapon that the Legislature uses when they feel like that there’s no other other choice, and I believe we’ve reached a boiling point across the board,” said Rep. Justine Wilmeth, R-Phoenix. “It’s a supply and demand economy … A big reason why prices are so high is that there’s no supply anymore” The league’s proposal would allow cities to require slightly larger homes than what SB1229 offers, with a residency requirement of 15 years from the owners of new starter homes and an area median income requirement to try and target working-class Arizona residents and families. “I do hope that as the senator’s bill moves forward, we see a number of additional amendments that reflect these considerations,” Connolly said. Bolick said she still expects one additional floor amendment to SB1229 before it receives a full vote from the House floor and is sent to the governor’s desk. Jake Hinman, a lobbyist supporting SB1229 on behalf of the Arizona Neighborhood Project, said he believes the bill as currently written would allow people to buy homes at a price around $250,000 to $260,000, but concessions made with the bill have already increased the expected prices of the new homes. Still, SB1229 may be the only opportunity this legislative session for lawmakers to get a significant housing bill aimed at lowering the cost of single-family homes this session.