Commercial property seen as possible solution to shortage of land for housing
'Rezoning commercial property for multifamily housing is a practical and immediate solution to increase housing supply and address affordability issues,' Democratic Assembly Majority Leader Sandra Jauregui said on Wednesday as she presented Assembly Bill 241 in the Senate Committee on Commerce and Labor. AB241 previously passed the Assembly on a 28-14 vote on April 17.
The bill seeks to encourage infill development and overcome the shrinking availability of land for new construction. It would promote mixed-use development that could lead to more apartments available — seen as workforce housing, the type of units that are affordable for workers.
Often, the places that could be repurposed are already convenient to transportation and shopping.
Jauregui wants the change to open up the possibility of a larger housing supply. Everyone deserves housing, she said.
'We're missing certain elements to hit that target,' Republican State Sen. Skip Daly said.
Developers are focused on building to the 'highest best use' in any project they do, he said, and hoping that it is developed as affordable housing will require more control.
Jauregui said it's a balancing act. 'I do want every commercially zoned property to be able to be used for mixed use and multifamily,' she said.
'They're also going to build what's going to sell or what's going to be rented, right? They're not going to put in luxury condos at the Kmart at Spring Mountain and Rainbow.'
The bill would require counties and cities to accommodate mixed-use development on commercially zoned property. Local governments would maintain control over decisions about the projects that move forward.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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