short term rentals – Powers For the People

The Arizona Legislature has been ignoring our state’s affordable housing crisis for years. When I got to the Legislature in 2017, I was told that “we just need more supply” because demand was so high.

The sole solution present in 2017 was tax credits for developers. To which I asked, “Is making the rich richer the only way to help the poor?”

In 2022, I am answering my own question. No, tax credits and business incentives are not the preferred path to affordable housing. I proposed eight housing bills this year. My bills fall into two primary categories: 1) ending preemption of local ordinances that will allow the cities to innovate and 2) keeping people housed.

Not surprisingly, bills passed over the last 10 years — since the Tea Party takeover — have made Arizona’s housing crisis significantly. When you’re in a hole, stop digging! There are many bad bills that should be repealed. That’s where we should start, rather than focusing on new laws.

Preemption Laws to Repeal

HB 2193 state law; local violations; repeal (Rep. PPH) repeals the worst preemption bill in the US: SB1487 from 2015.

HB2446 local planning; residential housing; repeal (Rep. PPH, sponsor) repeals the preemption of inclusionary zoning. Inclusionary zoning allows municipalities to designate a certain percentage of a new housing project be affordable or low income.

HB2401 rent regulation; state preemption (Rep. Solario, sponsor) repeals the preemption of rent control.

HCR2006 short-term rentals; vacation rentals (Rep. Butler, sponsor) repeals the original deregulation of short-term rentals in Arizona. Arizona municipalities that are tourist designations (like Tucson) are being overrun by corporate-owned short-term rentals. Taking affordable rentals off the market squeezes residents who are renters.

Keeping People Housed

HB2794 landlord; tenant; fee disclosure; waiver (Rep. PPH, sponsor) is my Truth in Renting bill. It brings transparency to leases, protect tenants from unnecessary fees and traps in leases and helps prevent some evictions. It sailed through the House Commerce Committee in 2021 and through the House but was stopped by politics in the Senate. It was never heard in 2022. Helping people stay in their homes and apartments is more cost effective and humane that throwing people on the street, breaking up families and trying to put some of those people and families back together again later.

HB2792 landlords; tenant’s marijuana use (Rep. PPH, sponsor) says that any substance that is legal to use in the state of Arizona is legal to use in apartments in Arizona. Corporate leases exclude cannabis use in the apartments even in states like Arizona where cannabis is legal. This is an entrapment policy with no exclusions. Even medical marijuana patients with cancer can be evicted in Arizona for any cannabis use. That’s not fair.

HB2793 rent increase; limitations; substantial remodel (Rep. PPH, sponsor) says that year to year rent increases cannot exceed 10%. Arizona is a deregulation state. There are no restrictions regarding raising rent. Corporations are churning the apartment rental market in Phoenix by buying and selling giant apartment complexes and raising the rent every time. There are far too many stories of renters being forced to move because of 50-100% rent increases. Corporations make big bucks in fees when they force people to move.

HB2522 property taxes; elderly assistance fund (Rep. PPH, sponsor) helps low-income seniors pay their property taxes and stay in their homes, particularly if the area has been gentrified. (A Republican also sponsored a similar bill this year.)

HB2195 housing trust fund; unclaimed property (Rep. PPH, sponsor) would fully fund the Housing Trust Fund in Arizona. This fund historically was funded at $40 million per year until the dark days of Governor Jan Brewer and Senate President Russell “SB1070” Pearce when those funds were routinely swept to pay for tax cuts and other Tea Party priorities.

The Arizona Legislature created the current housing problems with 10+ years of bad Legislation. Let’s repeal these bad preemption laws, challenge cities and towns to innovate and keep people housed.

Check out my video for the details behind my housing bills and others that I support. This video was originally recorded on February 28, 2022. All of my video updates are available on YouTube and Facebook.

We heard two bills in Commerce about renting your stuff: SB1379 (renting all of part of your house) and SB1720 (renting your car).

SB1379 is an attempt to regulate the short-term rental industry. AirBnB started as a way for people to make extra cash by renting a room or a guest house on your property, but it has become big business. Tourist towns, in particular, have been overrun with party houses, short-term rentals that accommodate 20+ people for large, noisy get-togethers. The original version of 1379 included occupancy levels. Those were taken out to get it out of the Senate. Occupancy levels seem to be one of the biggest complaints from the neighbors. As it is, 1379 adds some regulation to a completely unregulated industry in the state. In my opinion, it does not go far enough in its current form.

SB1720 is a consensus bill on peer-to-peer car sharing. This is not you renting your car to your buddy for some cash. This is you listing your car on a electronic platform for rent by people you don’t know. This bill has been proposed in the past, and I had concerns about insurance, particularly if the car is totaled and there is a loan on it. There is a lot in 1720 about insurance, but my concerns about people losing their cars in accidents or losing their cars and still owing money on them have not been assuaged. In my opinion, 1720 has huge red flags for anyone who is considering listing their car and renting it.

Continue reading Rent Your Stuff for $$$: What Could Go Wrong? (video)