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
Advocacy | Multifamily
Nov 06, 2026
Treasury Announces New Opportunity Zone Designations
The U.S. Department of the Treasury and the Internal Revenue Service have announced new Opportunity Zone designations for more than 6,500 communities nationwide, effective Jan. 1, 2027.
Membership Recruitment and Retention
Nov 05, 2026
The Value of Being One of NAHB's Top Recruiters
Member-to-member recruitment is essential for growing NAHB’s membership. Here are the perks members are being rewarded with for their efforts.
Latest Economic News
Economics
Nov 06, 2026
Hiring Rebounds in October, but Residential Construction Employment Declines
The U.S. labor market rebounded in October, with nonfarm payroll employment increasing by 165,000 jobs and the unemployment rate declining to 4.1%. However, the improvement in overall employment contrasts with continued weakness in residential construction, where employment fell by 16,400 jobs, the largest monthly decline since March 2021.
Economics
Nov 05, 2026
Multifamily Developer Confidence Weakens in Third Quarter
New multifamily housing confidence weakened year-over-year in the third quarter, according to the Multifamily Market Survey (MMS) by the National Association of Home Builders (NAHB). The MMS produces two separate indices. The Multifamily Production Index (MPI) had a reading of 41, down five points year-over-year, while the Multifamily Occupancy Index (MOI) had a reading of 69, also down five points year-over-year.
Economics
Nov 04, 2026
Mortgage Applications Decline as Higher Rates Boost ARM Share
Mortgage application activity declined in October as the 30-year fixed mortgage rate rose sharply again. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, fell 14.1% month-over-month in October on a seasonally adjusted basis. Compared to a year ago, total mortgage applications were 39.8% lower.