Owners of all the land in an area can now ask the Arizona Finance Authority to form a "state affordability infrastructure district" that can issue bonds and levy property taxes and assessments in that area to pay for roads, water lines, parks and other public infrastructure, with formation orders allowed through June 30, 2036.
Official title: infrastructure finance districts
- September 12, 2026
- Last day a district formation order may be issued: Formation of new state affordability infrastructure districts
What changes
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NowA district may be formed by petition of everyone who owns all the land in the proposed area. The petition goes to the Arizona Finance Authority, and the estimated infrastructure cost must be over $5,000,000. The authority must approve if the legal requirements are met. It may deny only on listed grounds, such as an incomplete petition, weak finances, or a material conflict with a recorded city or county agreement. The city or county gets notice and has 30 days to point out a reason for denial.
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NowA district may levy property taxes to repay voter-approved general obligation bonds of up to $5 per $100 of assessed value, or up to $7.50 if needed to cover debt payments. It may also levy an operations tax of up to $0.30 per $100, plus assessments on land that benefits. These charges must appear as a separate line on property tax bills that names the district and says it is "state-certified."
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NowOnly property owners and their designees vote on district taxes, assessments, board members and dissolution. Business entities get 1 vote per one-seventh of an acre, and results are decided by majority of acreage. Residents who are qualified electors may vote on general obligation bonds. The 3-member unpaid board must own land in the district or be named by an owner.
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NowA seller of a home in one of these districts must give each buyer a written "district disclosure notice" before the buyer signs a binding purchase contract. The notice covers the district's tax or assessment rate, a sample tax estimate and the district's website. The district must post a standard version of the notice online.
BeforeCity and county development fee credits covered public sites and infrastructure provided by the developer.
NowCities and counties must also credit public sites and infrastructure provided by a community facilities district or a state affordability infrastructure district toward development fees. Counties must also offer reimbursement on request. Cities may not charge the part of a fee based on infrastructure or costs paid by the new districts.
Who it affects
- Landowners and developers who form these districts
- Property owners and residents within these districts
- Buyers and sellers of homes in these districts
- Cities, towns and counties where districts form
- Arizona Finance Authority
- County treasurers
What you need to do
Nothing for most people. If you sell a home in one of these districts, you must give the buyer a district disclosure notice before the buyer signs a binding contract.
What the law doesn't answer
- How many districts are expected to form or where
- Any penalty for a seller who does not provide the district disclosure notice
- Whether buyers can cancel a purchase if they do not receive the notice
- How much these districts will add to a typical property owner's tax bill
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.