Supported by NAHB, Southern Arizona HBA Wins Impact Fee Decision
The Arizona Supreme Court, on Jan. 17, handed down a victory to the Southern Arizona Home Builders Association (SAHBA) in its case against the Town of Marana over its onerous impact fees.
The SAHBA, on behalf of its members, filed a lawsuit claiming the town’s impact fees were illegal since they only applied to future home owners and not current residents.
The Town of Marana acquired title to a wastewater reclamation facility (WRF) from Pima County in 2013. Previously, Pima County used the WRF to serve the Town of Marana. Because of new Arizona water quality standards and certain limitations of a secondary system at the WRF, updates were required. To fund the improvements, the town levied an impact fee on home development, passing the costs to future home owners.
The Arizona Supreme Court ultimately found this cost shifting to be illegal. Arizona state law prohibits impact fees funding improvements to existing systems for existing users. The fees can only fund improvements necessary for new development. The town was trying to blur those lines and pass on the costs of the required WRF improvements to future home owners.
This case is a huge win for Arizona home builders. Impact fees are a necessary nuisance to development, and when they are imposed, it must be done in a fair manner. Irresponsible impact fees stymie development and raise costs for future home owners.
Latest from NAHBNow
Economics
Jan 23, 2026
Which Local Markets Are Seeing Declines in House Pricing?Nationally, house prices continued to rise at a modest pace in the third quarter of 2025. However, this national trend masks significant variation across local markets. See which markets have experienced housing price declines in recent quarters.
Advocacy
Jan 22, 2026
NAHB Urges Congress to Ease Regulatory Burdens to Help Housing AffordabilityThe best way to ease the nation’s housing affordability crisis is for policymakers to eliminate excessive regulations that are preventing builders from increasing the housing supply, NAHB told Congress today.
Latest Economic News
Economics
Jan 23, 2026
2025 Third Quarter State-Level GDP DataIn the third quarter of 2025, the Bureau of Economic Analysis (BEA) reported that real gross domestic product (GDP) expanded nationally, with growth recorded across all states and the District of Columbia.
Economics
Jan 22, 2026
House Prices Decline in Local Markets Despite National GrowthNationally, house prices continued to rise at a modest pace in the third quarter of 2025, as mentioned in our previous quarterly house prices post. However, this national trend masks significant variation across local markets. While many metro areas continued to see house price appreciation, others experienced notable declines following several years of rapid growth.
Economics
Jan 21, 2026
Private Residential Construction Spending Edges Higher in October on Home ImprovementsPrivate residential construction spending was up 1.3% in October, rebounding from a 1.4% decline in September 2025. This modest gain was primarily driven by increased spending on home improvements.