National Conference of State Legislatures Launches Executive Order Tracker
The nonpartisan organization NCSL has launched an executive order tracker to help monitor the evolving landscape with executive actions. The tool includes timelines, overviews and full text of executive orders, memoranda and policies issued by the administration.
Housing Development Remains Major Focus
Arizona lawmakers are advancing a variety of initiatives to address the state’s growing housing crisis, though not without controversy and challenges. There are two competing bills both dubbed "the Starter Homes Act" that aim to address the housing supply shortage. Governor Hobbs is promoting her own version, aimed at increasing access to affordable, entry-level homes for Arizona residents and limiting purchases by outside investors.
At the same time, a proposed bill would allow churches to bypass local zoning rules - HB 2191 (religious institutions; development; allowed use) - to build affordable housing on their property—an effort praised by housing advocates, but municipalities have voiced concerns, and local neighborhood groups oppose due to the change in public input on land use decisions.
Meanwhile, Representative Leo Biasiuicci's adaptive reuse bill - HB 2110 - awaits a full vote of the Senate. The bill refines provisions from the 2024 law that opened the door for expedited processes to convert underutilized commercial properties into housing and mixed-use development.
In Phoenix, the City Council rezoned former police department land downtown to allow for high-rise residential development, dramatically increasing height and density limits. The city hopes this move will help alleviate the housing shortage and bring new vitality to a key downtown corridor.
However, housing development faces headwinds elsewhere. The Arizona Department of Water Resources' new rule requiring developers to prove long-term water supplies has sparked legal challenges, with critics arguing it overreaches the agency’s authority and could slow much-needed housing growth, especially in water-scarce regions.
State Budget Uncertain
The Arizona House Appropriations Committee aims to finalize a state budget by the end of April, according to Chairman David Livingston (R-Peoria). This is due in large part to a $122 million shortfall in the funding for Division of Developmental Disabilities, which could hinder payments to service providers by May if the state doesn't act beforehand. A change in federal funding policies will likely have an impact on the state's budget process, as a loss of funding for Medicaid could lead to significant strains on the state's healthcare and social programs. Despite this, formal budget negotiations between the legislature and the governor's office have yet to commence in earnest
The Department of Child Safety (DCS) has requested a $6.5 million fund transfer by March 24 to sustain group home operations for children in state care. House Republicans have accused the administration of financial mismanagement, citing delayed communication about the funding need. House Speaker Steve Montenegro (R-Goodyear) has announced the Ad Hoc on Executive Budget Mismanagement committee to look into this and other budget concerns. The governor's office contends that such funding adjustments are routine and said the issue is being politicized.
The Governor's Office of Strategic Planning and Budgeting, the Joint Legislative Budget Committee and House and Senate Republican leaders have varying figures on what the state's fiscal position will look like by the end of this fiscal year, as well as the ending balance for the General Fund. Lawmakers face a deadline of June 30 to enact a state budget
Governor's Executive Nominations Start to Move
The Senate Director Nominations (DINO) Committee held its second hearing of the 2025 session to consider several of Governor Hobbs’ nominees, including:
Cynthia Zwick – Nominated to lead the Residential Utility Consumer Office (RUCO). Zwick, previously at anti-poverty nonprofit Wildfire, has faced criticism in the past from Republicans over RUCO’s stances in utility rate cases, but her nomination has not sparked public opposition.
Alec Thomson – Nominated to head the State Lottery Commission. A former Ducey administration official and past Lottery commissioner, Thomson’s past work in DEI marketing may draw scrutiny from DINO Chair Sen. Jake Hoffman, a vocal critic of diversity policies. However, no public opposition has been made yet.
Jackie Johnson – Nominated to lead the Department of Gaming. An attorney with experience in tribal and gaming law, Johnson was initially appointed in 2023 but served in a deputy role while awaiting confirmation. Her hearing is expected to touch on gambling addiction, a bipartisan concern, especially in light of questions raised during Thomson’s earlier hearing.
All three nominees—Zwick, Thomson, and Johnson—have so far avoided major Republican pushback, and Zwick and Thomson have already been recommended for confirmation by DINO, pending a full Senate vote.
NAIOP Political Action Committee Report
The 2024 NAIOP Arizona PAC Report is a powerful reminder of why investing in our industry’s political future matters more than ever. With over $52,000 raised and 33 pro-business candidates supported, the PAC delivered a 91% general election win rate and successfully advanced legislation critical to commercial real estate – from adaptive reuse to water management and tax policy.
These wins didn’t happen by chance—they happened because industry leaders stepped up.
Yet, challenges are mounting: water regulation, zoning battles, infrastructure needs, and threats to development tools like GPLET. Without a strong, well-funded PAC, our voice risks being drowned out by opposing interests.
This year, we aim higher—with a $100,000 goal—and we need your help to get there. Whether you're a developer, broker, investor, or service provider, your contribution directly fuels our advocacy, ensuring Arizona remains a top destination for business and development.
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Protect your business
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Promote pro-growth policies
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Empower industry champions
Join the ranks of PAC Visionaries, Champions, and Advocates. Invest today—because the future of CRE in Arizona depends on it.
In Other News
- Federal lease cancellations could have big impact on office market in Phoenix
- Bill to fast-track small nuclear reactors for data centers advances in Senate
- Mesa Democrats choose three candidates for former Sen. Eva Burch's replacement
- What does "affordable" actually mean? As Arizona legislature grapples with housing
- Family of late Rep. Raul Grijalva announces memorial services
- For John Baumer, commercial real estate and lobbying melds two passions
- Republicans show little appetite to repeal CHIPS act
- Canadian snowbirds must register with U.S. under new Trump rule
- Lawmakers push ballot measure to raise their $24,000 salaries
- Tucson residents vote down Prop 414 tax increase
- Tucson City Manager says they're moving to "plan b" after voters reject Prop 414
- Arizona voters fed up with soaring housing costs
NAIOP Arizona advocates for public policy at all levels of government to help grow the economy and drive demand for commercial real estate in greater Phoenix and throughout Arizona. Email policy@naiopaz.org for questions.