Arizona is taking a significant step toward addressing its workforce housing shortage with the introduction of the Workforce Housing Accelerator Act, HB2926. State Representative Selina Bliss, a Republican representing Legislative District 1, emphasized that the legislation is designed to make homeownership more attainable and construction of workforce housing more feasible across the state.
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"As a member of the Arizona State Legislature, I am proud to introduce the Workforce Housing Accelerator Act, HB2926, a bill aimed at addressing the critical shortage of workforce housing in our state," Bliss said. The bill seeks to offer a multi-pronged approach that incentivizes builders, streamlines approvals, and ensures accountability for workforce housing projects.
One of the central elements of HB2926 is the exemption of the state’s portion of the prime contracting sales tax for qualified workforce construction. Bliss explained, “This tax relief will help lower the overall cost of construction, making it more feasible for builders to create housing units for Arizona families.” By reducing these costs, the bill aims to accelerate the production of workforce housing, particularly for first-time homebuyers and seniors seeking to downsize.
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HB2926 also allows certified builders to start vertical construction and pre-sales while infrastructure work is still underway on other lots. “This will reduce the carrying cost timeline and therefore be another lever to reduce the cost of production,” Bliss noted. The provision is expected to shorten construction timelines and get affordable housing units onto the market faster.
To tackle bureaucratic delays, HB2926 requires cities to establish a fast-track permitting lane specifically for workforce housing projects. Developers will have a designated point of contact at the city, which should significantly simplify the approval process. Bliss highlighted, “By streamlining the permitting process, we can reduce delays and bureaucratic red tape that often hinder the development of affordable housing projects.”
In addition to speeding up construction, the legislation emphasizes accountability to ensure that benefits are directed toward genuine workforce housing developers and that rural contractors receive proper support.
Bliss concluded that HB2926 is a critical tool for addressing Arizona’s growing housing challenges. “By providing tax relief, streamlining approval processes, and increasing accountability, we can make significant strides in increasing the availability of workforce housing for our residents,” she said. She urged her colleagues in the Legislature to support the bill to help make homeownership and affordability a reality for more Arizonans.
Originally reported by Selina Bliss, Guest Commentary in AZ Capitol Times.
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