The Planning and Zoning Commission voted to recommend that City Council adopt a zoning text amendment implementing Arizona House Bill 2721 citywide (PZ25‑00027), adopting staff’s recommended Version 1 and adding a disclosure about homeowners’ association covenants and restrictions (CC&Rs).

Tiffany Antal, Zoning Code Manager, summarized the changes required by HB 2721 and the amendments staff prepared. The ordinance creates explicit land‑use categories for one‑, two‑, three‑ and four‑unit residential development and aligns zoning terminology with building‑code and permit processes so that up to four units on a single lot are generally treated the same as single‑family development for administrative review and permitting. Staff explained two options for handling existing high‑occupancy housing (HOH) rules: Version 1 (staff recommendation) removes the HOH land‑use trigger for developments under five units; Version 2 retains an HOH trigger for units that contain very large dwelling units (for example, a 7‑bedroom threshold) and therefore preserves additional parking and conditional‑use review in that limited circumstance.

Staff recommended Version 1 to make the code change consistent with the intent of the HOH plan and to simplify administration. Tiffany told the commission that the middle‑housing changes require revisions throughout the zoning code, including allowed‑use tables, transect and building‑type tables, parking, landscaping and site‑planning standards. She noted remaining items to be addressed in follow‑up amendments, including group‑living definitions and accessory‑dwelling‑unit meter language.

Commissioners discussed policy tradeoffs: several members said they support Version 1 because it reduces permitting costs and administrative barriers to smaller multi‑unit homes, which can expand affordable options; others expressed caution about retaining guardrails for very large single units and about unintended consequences such as short‑term rental or “mini‑dorm” conversions. Commissioner Christine Sheehy moved to recommend approval of PZ25‑00027 adopting Version 1 and adding a CC&R disclosure; the motion was seconded and the commission voted to forward the recommendation to council.

Tyler Denham, executive director of Flagstaff for Affordable Housing, addressed the commission in support of a citywide approach, saying that a citywide ordinance will generate more housing and avoid concentrating changes in older neighborhoods. Tiffany said staff will return with implementation items, plan options and code‑analysis results necessary to help builders and reviewers as the ordinance moves forward to council.

The commission’s recommendation will be forwarded to City Council for final action. If council adopts the amendment, the changes are intended to take effect consistent with statutory timelines for HB 2721.