Arizona Enacts New Special District Law for Land Development

Arizona enacted House Bill 2999 this week, establishing State Affordability Infrastructure Districts (SAID) designed to facilitate land development and infrastructure financing. This legislation aims to equip Arizona with a more competitive and efficient tool for infrastructure finance, addressing a significant gap compared to other states.

For years, Arizona has lagged behind states like Texas, Florida, Colorado, and Utah in infrastructure finance platforms. Data from 2019 through 2025 illustrates this disparity: Arizona community facilities districts (CFDs) generated approximately $347 million in transaction volume, while Colorado metro districts saw about $11.7 billion, Texas Municipal Utility Districts (MUDs) $8.9 billion, Florida Community Development Districts (CDDs) $8.4 billion, and Utah Public Infrastructure Districts (PIDs) $4.5 billion. This substantial financing gap has impacted the pace of infrastructure development, lot delivery, and the affordability of new homes.

The passage of HB 2999 represents the culmination of a nearly 20-year effort by Launch and private sector partners to improve Arizona's infrastructure financing legislation. This was the third significant legislative attempt, with previous efforts not reaching fruition. The initiative was spearheaded by representatives from the Central Arizona Home Builders Association and Valley Partnership, alongside numerous private sector participants who recognized the necessity for Arizona to advance its infrastructure financing capabilities.

Tyler Cobb of Taft Law played a key role in drafting the legislation, while Launch provided substantial input based on their extensive experience with Arizona's financing structures since 1991. Their practical field knowledge informed the precision, flexibility, and practicality required in the new law. This marks the fifth instance of Launch assisting in the creation, lobbying, or implementation of legislation related to development financing in the state.