State Affordability Infrastructure Districts
Arizona – We Now Have the Tools To Finance Public Infrastructure
It took 20 years and three attempts. But we helped change Arizona’s public infrastructure financing laws. Developers and homebuilders can now finance public infrastructure at the speed of business rather than bureaucracy.
The recent passage of HB 2999 allows investors, developers, and homebuilders to establish a State Affordability Infrastructure District (SAID). A SAID finances eligible public improvements. Other key components of the legislation include:
- SAIDs are established by the Arizona Finance Authority, not the county or municipal jurisdiction where the project is located
- Three-member landowner district governance board
- Ability to issue Limited Tax General Obligation Bonds, Special Assessment Bonds, and/or Revenue Bonds
- Bond terms extending up to 30 years
- Tax-exempt bond financing, which generally results in lower interest rates than private or bank lending alternatives
- No developer recourse requirements or personal guarantees
- Approximate timing to establish a SAID: 3–4 months
Why This Law Took Two Decades to Pass
Arizona has lacked a landowner-controlled, land-secured financing tool. Developers in Texas, Colorado, and other states have had comparable tools for years. Previous efforts to close this gap stalled twice before HB 2999 became law.
As a result, Arizona developers had fewer options to finance roads, water, sewer, drainage, and other public improvements. They often had to tie up more equity or wait on jurisdictional approval processes outside their control.
HB 2999 closes that gap. A State Affordability Infrastructure District gives Arizona developers and homebuilders a district-based financing structure. The Arizona Finance Authority establishes it, and the landowners govern it. That means the process no longer routes through a city, town, or county approval step.
What a SAID Changes for Your Project
Established Through the Arizona Finance Authority, Not the Local Jurisdiction
The Arizona Finance Authority establishes the district. Because of that, developers avoid a layer of county or municipal approval. That layer has historically added time and uncertainty to district formation in other states.
Three-Member Landowner Governance Board
The landowners themselves govern the district. As a result, decision-making authority stays with the private-sector parties funding and building the project.
Bond Structure Flexibility
A SAID can issue Limited Tax General Obligation Bonds, Special Assessment Bonds, or Revenue Bonds. Terms can extend up to 30 years. This flexibility gives developers room to match the financing structure and repayment source to the project’s specific tax structure and improvement plan. In other words, the project doesn’t have to fit a single statutory mold.
Tax-Exempt Financing, No Personal Recourse
SAID bonds are tax-exempt. Because of that, they generally carry lower interest rates than private or bank financing. In addition, the structure requires no developer recourse or personal guarantees. So the district’s debt doesn’t sit on the developer’s balance sheet the way a construction loan or private financing might.
3–4 Month Formation Timeline
A SAID can be established in a fraction of the time required under other district structures. For a project on a tight development schedule, that difference matters.
What This Means for Arizona Developers and Homebuilders
A State Affordability Infrastructure District gives Arizona projects a faster, lower-cost path to financing eligible public improvements. It does this without requiring developers to give up control of the district or take on personal recourse. For developers evaluating land in Arizona, that can mean:
- A shorter runway between land acquisition and infrastructure financing
- Lower financing costs through tax-exempt bonds
- No personal guarantees tied to district debt
- Fewer jurisdictional approval dependencies outside the developer’s control
- An earlier opportunity to begin the reimbursement process for eligible costs
Frequently Asked Questions
What is a State Affordability Infrastructure District (SAID)?
A SAID is a special-purpose taxing district created under Arizona’s HB 2999. It allows private-sector developers and homebuilders to finance eligible public infrastructure improvements. The Arizona Finance Authority establishes it, not a county or municipal jurisdiction.
How long does it take to form a SAID in Arizona?
Formation generally takes approximately 3 to 4 months, based on current statutory requirements.
Who governs a SAID?
A three-member landowner governance board governs the district. This gives the developer direct control over district decisions.
What types of bonds can a SAID issue?
A SAID can issue Limited Tax General Obligation Bonds, Special Assessment Bonds, and/or Revenue Bonds. Terms can extend up to 30 years.
Does a SAID require developer recourse or personal guarantees?
No. SAID financing does not require developer recourse or personal guarantees.
To set up your meeting to discuss how SAID will benefit your project, contact:
