At its Nov. 17 regular meeting, the Scottsdale City Council amended the city’s Zoning Ordinance in response to recently adopted state law related to Middle Housing. The new law (HB2721) permits the construction of duplexes, triplexes and fourplexes (collectively referred to as “Middle Housing”) on single-family residential lots, subject to location exclusions, use restrictions and service requirements.

Currently, Scottsdale does not allow multiple-unit residential development on single-family lots (except for Accessory Dwelling Units). Multiple-unit developments can only occur as attached duplexes in the two-family residential district and multiple-unit developments (three or more units) in medium density residential and planned zoning districts.

However, the new law requires the city to allow the development of multiple-unit residential development in the form of Middle Housing on single-family lots within one mile of the Old Town Area and as 20% of new residential developments that are more than ten contiguous net acres in size and located within eligible single-family zoning districts. The new law dictates that Middle Housing developments cannot be located in areas that are not incorporated, zoned for residential use, or lack sufficient urban services, including water, sewer, solid waste and other city services.

The new state law also sets specific restrictions on what cities can prohibit. Cities cannot restrict middle housing types to less than two floors, require them to comply with the commercial building code, require a fire sprinkler system, or require more than one off-street parking space per unit. The city cannot require public input or hearings regarding a proposed Middle Housing development if the proposed development is located within a qualifying location. State law does not prohibit HOAs from being more restrictive in what they allow in their communities.

Failure to amend Scottsdale’s Zoning Ordinance in accordance with the state law before Jan. 1, 2026, would have allowed Middle Housing on all residential lots or parcels without limits.

For more information, visit ScottsdaleAZ.gov and search “Middle Housing.”