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
Multifamily
Jul 28, 2026
High-Density Building Completions Hold Highest Multifamily Market Share in 2025For the ninth consecutive year, most new multifamily units were in buildings with 50 or more units (labeled as high-density buildings) at 57%, the highest share since 2021.
Resiliency
Jul 27, 2026
Building A Resilient Home from the Ground Up With Climate Responsive DesignAs climate pressures intensify, builders are being asked to deliver homes that perform under more challenging conditions. The most effective place to start is at the site and planning level, where architects, engineers and builders work together.
Latest Economic News
Economics
Jul 28, 2026
How a Home Purchase Boosts Consumer SpendingThe housing market has changed greatly since the COVID-19 pandemic, along with consumer spending behaviors. During this period, housing demand surged, home prices appreciated rapidly, inflation increased, supply-chain disruptions happened, and mortgage rates moved from historic lows to elevated levels.
Economics
Jul 28, 2026
Median Lot Value Stabilizes as Regional Trends DivergeFollowing a multi-year run of record highs, the national median lot value for single-family detached spec homes largely stabilized in 2025. According to NAHB’s analysis of the Census Bureau’s Survey of Construction (SOC), the U.S. median lot value for homes started in 2025 was $59,000, compared with $60,000 a year earlier.
Economics
Jul 27, 2026
Share of Apartments Built in Buildings with 50+ Units Moves Higher in 2025Following the highest number of multifamily completions in nearly 40 years in 2024, completions declined in 2025 to 484,000, according to NAHB analysis of the Census Bureau’s Survey of Construction. For the ninth consecutive year, a majority of new multifamily units were in buildings with 50 or more units (labeled as high-density buildings) at 57%, the highest share since 2021.