Arizona law puts agencies on notice for deliberate permit delays

Phoenix, Arizona; June 2, 2026: Arizona Gov. Katie Hobbs signed SB 1566 into law Friday. This reform, brought by Sen. Warren Petersen, prohibits cities, towns, and counties from maliciously delaying responses to licensing and building permit applications for single-family residential construction. Local governments that violate the law face a $5,000 civil penalty per violation, enforceable by the state attorney general.

“Arizona law already requires local governments to establish and follow their own permitting time frames. This bill makes that requirement meaningful,” said Kileen Lindgren, senior state policy manager with Pacific Legal Foundation. “When an agency deliberately stalls a homebuilding application — imposing unauthorized requirements or running out the clock — it now faces real consequences.”

Permit delays drive up housing costs across the country. Under existing Arizona law, local governments are already required to establish and follow their own licensing time frames. SB 1566 goes further, defining as “malicious” any delay that exceeds twice a government’s adopted time frame for single-family residential construction, imposes requirements not authorized by law, or results from other pending applications. Good-faith errors and resource constraints remain exempt.

The law also entitles applicants to expedited judicial review in superior court, with an initial case management conference required within 10 days of service of the complaint.

Pacific Legal Foundation supported the legislation as part of its ongoing effort to hold government accountable when permitting power is used to obstruct, rather than serve, Americans.