tax deed; sale; affordable housing

HB2714 - 572R - I Ver

REFERENCE TITLE:
tax deed; sale; affordable housing

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2714

Introduced by

Representatives
Villegas: Abeytia, Aguilar, Austin, Cavero, Connolly, Contreras P, Crews, De
Los Santos, Garcia, Gutierrez, Liguori, Luna-N�jera, M�rquez, Mathis,
Peshlakai, Sandoval, Simacek, Stahl Hamilton, Travers

AN
ACT

amending section 42-18303, Arizona
Revised Statutes; relating to tax deeds.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 42-18303, Arizona Revised Statutes,
is amended to read:

START_STATUTE
42-18303.

Auction and sale of land held by state under tax deed;
disposition of proceeds

A. After advertisement, pursuant to section 42-18302,
the board of supervisors may sell the real property in the county held by the
state by tax deed to the highest bidder for cash except as provided in
subsections E, F and G of this section. The property may also be
posted on the treasurer's website.� The sale may include a live auction or an
online bidding process in which the board receives bids electronically over the
internet in a real-time, competitive bidding event.

B. On selling the property, the board of supervisors
shall execute and deliver to the purchaser, at the purchaser's cost, a deed
conveying the title of the state in and to the parcel purchased. The
deed shall be acknowledged by the chairman and clerk of the board.

C. The purchase money shall be paid to the county
treasurer. After deducting and distributing interest, penalties,
fees and costs charged against the parcel, the treasurer shall apportion monies
to the funds of the various taxing authorities in proportion to their current
share of the taxes charged against real property. Any balance
remaining with the treasurer after payment of the taxes, interest, penalties,
fees and costs shall be paid to the owner of the property who was dispossessed
by the sale.

D. If the property is not sold before the time for
the next succeeding notice of sale, the board of supervisors may omit it from
the notice.

E. The board of supervisors may accept an offer
from, and sell real property held by this state by tax deed to, the county or a
city, town or special taxing district in the county for a public purpose
related to
affordable housing for low-income persons and
families as determined by the United States department of housing and
urban development,
transportation or flood control.� The board of
supervisors shall convey the deed and apportion the monies received in the
transaction in the manner prescribed by this section.
If a county, city, town or special taxing district acquires real
property pursuant to this subsection for purposes related to affordable housing
for low-income persons and families as determined by the United States
department of housing and urban development and determines that use is in the
county's, city's, town's or special taxing district's best interest, the
county, city, town or special taxing district may sell, lease, exchange,
quitclaim, convey or otherwise dispose of the real property or interest in the
real property for less than fair market value and without holding a public
auction to provide the affordable housing if a regulatory agreement is recorded
in the office of the county recorder in which the affordable housing is located
that contains covenants and conditions that require the dwelling units provided
for low-income persons and families under this subsection to remain
continually affordable to low-income persons and families for the longest
feasible time, but not less than thirty years.

F. The board of supervisors may sell real property
in the county held by the state by tax deed to the owner of contiguous real
property that is used for commercial, agricultural or residential purposes, and
the board may accept an offer by the contiguous owner to purchase the property,
if all of the following conditions apply:

1. Both the property offered for sale and the
contiguous property were at one time under common ownership. If
there is more than one contiguous property owner offering to purchase the
property, the board shall accept the offer from the contiguous property owner
that demonstrates that the owner's contiguous property was most recently under
common ownership with the property offered for sale.

2. The property offered for sale cannot be
separately used for commercial, agricultural or residential purposes, as
applicable, pursuant to applicable building codes and ordinances of the
jurisdiction in which the property is located due to its size or configuration.

3. The contiguous property owner agrees to submit a
request to the county assessor to jointly assess the contiguous properties
pursuant to section 42-15058.

G. The board of supervisors may sell real property
in the county held by the state by tax deed to a homeowners' association if the
real property is part of a common area maintained by the homeowners'
association as determined by the county assessor.

H. If an offer under subsection E, F or G of this
section is pending at the time of the auction under this section, the board of
supervisors shall remove the property from the auction.

I. The board of supervisors may establish procedures
for accepting monetary offers and sell real property in the county held by the
state by tax deed over the counter if the real property is not eligible for
sale under subsection E, F or G of this section and was offered for sale and
not sold at the auction held pursuant to subsection a of this section.

J. The board of supervisors may establish procedures
for accepting monetary offers under subsection f of this section.
END_STATUTE