Arizona has opened a new way to pay for the infrastructure that has to be in place before homes can go up. Governor Katie Hobbs and the Arizona Finance Authority (AFA) launched the State Affordability Infrastructure Districts (SAID) program, announced September 17 (via Arizona Governor's Office).
The program was created by HB 2999, bipartisan legislation the governor signed in June 2026. It lets property owners petition the AFA to form a district, which can then use tax-exempt bonds to fund core public infrastructure such as roads, water and sewer lines. Rather than requiring a large amount of capital up front, those costs can be paid over time.
AFA Executive Director Gregg Ghelfi said a SAID can spread infrastructure costs over as long as 30 years at municipal tax-exempt interest rates. He said that can reduce initial capital needs, improve project cash flow and feasibility, and speed up delivery of both public infrastructure and home construction. The state expects the tool to attract new development and restart dormant housing projects by lowering early site development barriers.
"We are cutting red tape and lowering the cost of housing for Arizonans," Hobbs said.
AFA has published guidelines on how districts may be formed and implemented, including transparency measures for homebuyers and local governments, along with program policies, procedures and an FAQ. Developers thinking about a petition are encouraged to review those materials first.
Industry voices in the release include Valley Partnership President and CEO Clark Princell, who said the districts let developers finance public infrastructure "while not creating any new obligations for existing taxpayers." Kate Kaminski, chief operating officer for Arizona at Howard Hughes, and Tyler Cobb, a partner at Taft who helps form SAIDs, also backed the program.
Why it matters for Contractors
Upfront infrastructure money is often what keeps a subdivision from breaking ground. If SAIDs bring stalled projects back and help new master-planned communities start sooner, that means more site and utility work first and more homes to build after that. Builders and trade partners working in SAID communities should read the AFA guidelines, including the transparency rules for homebuyers.