State Affordability Infrastructure District Program to help advance public infrastructure and accelerate housing development
Phoenix, AZ – This week, Governor Katie Hobbs and the Arizona Finance Authority (AFA) launched the State Affordability Infrastructure Districts (SAID) program to accelerate housing development opportunities and lower housing costs throughout the state. Through the program, property owners can submit a petition to the Arizona Finance Authority to form a SAID, allowing the use of tax-exempt bonds to fund core public infrastructure. This funding mechanism is expected to attract new development opportunities as well as re-engage dormant housing development projects by lowering initial site development barriers and fostering housing attainability and community growth.
In June 2026, Governor Hobbs signed HB 2999, bipartisan legislation that created the SAID program and enables tax-exempt bonds to fund infrastructure projects like roads, water, and sewer lines over time rather than requiring significant upfront capital.
"We are cutting red tape and lowering the cost of housing for Arizonans," said Governor Katie Hobbs. "The formation of State Affordability Infrastructure Districts will facilitate the development of new communities, lowering housing costs by removing the upfront infrastructure costs that can pose a barrier to new housing. Giving builders and property owners the ability to use this funding mechanism to pay for public infrastructure in their communities helps make homes in those communities more affordable, particularly for first-time buyers."
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"High front-end infrastructure costs are among the most significant barriers to building master-planned developments and affordable workforce housing, another pillar of the Governor's priorities designed to strengthen Arizona's workforce," said Arizona Finance Authority Executive Director Gregg Ghelfi. "SAIDs address this by enabling low-cost, tax-exempt municipal bond financing. Rather than paying for infrastructure costs up front, the formation of a SAID can reduce initial capital requirements, spread infrastructure costs over up to 30 years at municipal tax-exempt interest rates, improve project cash flow and overall project feasibility, and accelerate public infrastructure delivery and physical home construction."
AFA has published guidelines for how SAIDs may be formed and implemented, which include robust transparency measures for homebuyers and local governments. Developers interested in submitting a petition to form a district are encouraged to review information about the program, including the policies and procedures that define the program and its regulations and restrictions. Frequently asked questions about SAIDs can be found here.
"Arizona's extraordinary growth creates tremendous opportunity, but developers know that building thriving communities begins long before the first home goes up," said Howard Hughes Chief Operating Officer for Arizona Kate Kaminski. "It begins with investing in the roads, water systems, and critical infrastructure that everything else depends on. The SAID framework gives us a more predictable and efficient way to make those investments, helping pave the way for more housing, more jobs, and greater economic prosperity for future generations."
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"This will accelerate the construction of infrastructure and reduce upfront capital costs which will lower housing costs across the state," said Valley Partnership President and CEO Clark Princell. "SAIDs will allow developers to finance public infrastructure with new tools while not creating any new obligations for existing taxpayers. Allowing developers to construct and deliver roads, utilities, and amenities in advance of development rather than after dramatically accelerates project timelines and reduces capital costs, which will ultimately reduce construction and home prices."
"The SAID framework is an investment in Arizona's long-term growth and affordability," said Tyler Cobb, a Partner at Taft who assists in forming SAIDs. "By reducing the cost of financing critical infrastructure, it can accelerate housing production, unlock economic-development projects and help ensure that Arizona remains a place where families and businesses can afford to grow." |
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