On November 5, Arizona voters approved Proposition 312, a statewide ballot measure that will allow property owners to apply for property tax refunds if their local governments do not enforce “public nuisance laws,” including anti-camping laws, on or near their properties. Proposition 312 requires cities and counties to take a punitive response to homelessness and remove encampments without providing funding or resources to provide shelter or services to people experiencing homelessness. If Arizona jurisdictions do not strictly enforce anti-camping laws, they risk losing tax dollars that could have otherwise been used for shelter, housing, and supportive services. The measure has significant implications for housing justice. By focusing on punitive approaches and depriving local governments of resources, Proposition 312 will exacerbate challenges faced by people experiencing homelessness and make it harder for communities in Arizona to stably house people.
Proposition 312 allows property owners to claim property tax refunds if their municipality or county has a “policy, pattern, or practice” of not enforcing “public nuisance laws” such as anti-camping, loitering, or panhandling laws. To claim a property tax refund, the property owner must have documented expenses incurred as a result of the local government’s inaction — which could include costs associated with private security, surveillance systems, or cleaning. Local governments will have 30 days to accept or reject refund requests when filed. If the local government initially rejects a refund request, the property owner can sue, and the property owner will receive a refund if the local government does not respond within 30 days. Property owners can apply for a refund annually until their local government begins enforcing public nuisance laws.
The Arizona State Legislature developed the proposal for Proposition 312 and voted in winter of 2024 to place it on the November ballot. The proposition required a simple majority of voters’ approval to be enacted. The measure passed with 58.6% of voters’ support.
NLIHC’s State and Tribal partner, The Arizona Housing Coalition (AHC) led a strong campaign to oppose Proposition 312, highlighting its ineffectiveness and potential harm. AHC pointed out that the measure does nothing to address the root causes of homelessness, such as a lack of affordable homes and supportive services. Instead, Proposition 312 creates a financial and administrative burden for cities and counties while potentially criminalizing vulnerable populations without offering sustainable solutions.
To educate communities, AHC held virtual member briefings to discuss the measure, presenting arguments for and against it – while clearly articulating AHC’s stance. AHC also participated in community gatherings across the state to build awareness and rally opposition. Public awareness campaigns included publishing op-eds in key media outlets, conducting extensive outreach via email and social media, and creating a dedicated webpage. To amplify their message, AHC funded three billboards with the slogan “Fight homelessness, not our cities” in the weeks leading up to the election. Additionally, they engaged with local news outlets to further inform the public about the potential consequences of the measure.
In its campaign, AHC warned of several additional Proposition 312 problems, including: its failure to address the root causes of homelessness; its inefficient use of public resources through increased administrative costs and reduced tax revenue; and the likelihood of encouraging encampment clearings without adequate shelter or resource referrals, which could worsen homelessness. Proposition 312 does not address the core issues driving homelessness, like Arizona’s severe shortage of affordable homes. For every 100 extremely low-income renter households in Arizona, there are only 24 affordable and available rental homes.
"While the passage of Proposition 312 presents challenges, it also reaffirms the urgency of working together to address homelessness in Arizona. Moving forward, I am confident that we can forge non-partisan solutions that prioritize securing additional resources for cities and towns to effectively tackle this issue,” stated Nicoel Newhouse, Arizona Housing Coalition executive director. “By ensuring appropriate accountability, we can make sure these dollars are invested wisely to make real progress in reducing homelessness, while caring for the health and well-being of every member of our communities."
More information on Proposition 312 and AHC’s ongoing work can be found here.