From an op-ed by Connie Wilhelm of the HBA of Central Arizona in the Arizona Capitol Times:
One of Arizona’s greatest economic assets is the availability of land. But access to that land is limited by our lack of infrastructure. Developers have long sought additional tools to provide infrastructure to make that land even more valuable.
One such tool is the Community Facilities District (“CFD”), which allows for a city or town to create a special taxing district to fund new infrastructure which benefits those homeowners paying the tax. As CFDs exist today, the city or town council typically serves as the CFD board to ensure that there are checks on the creation and tax rates of the district.
In the 2016 legislative session, House Bill 2568 was introduced which sought to expand the use of CFDs by ceding control of those districts over to private developers. HB2568 would have given private developers the authority to create CFDs, to issue bonds, to set tax rates, and to levy special assessments, among other governmental powers. Although more infrastructure would benefit the home building industry, we viewed this bill as a bridge too far.
Thankfully, Governor Ducey agreed and vetoed the bill.