Tucson is considering changes that could affect how property owners reuse buildings and lots: an office might qualify for a bakery, a backyard structure for living space, or an existing lot for small-scale housing. CODE Tucson '26 contains 78 proposed amendments intended to simplify reviews, reduce housing barriers and expand options for businesses.
Mayor and Council took up the proposal during a study session beginning at 1 p.m. Tuesday at Tucson City Hall, 255 W. Alameda St., according to Real Estate Daily News. Final approval was not expected at that meeting, the outlet reported. The discussion follows a public hearing the City of Tucson Planning and Development Services department had scheduled for 6 p.m. at the Mayor and Council Chambers, part of a push that also covered a separate initiative called Living Landscapes Phase 1.
City staff have requested a November 17 public hearing for further consideration, but as of October 19 that remained a proposed date rather than a confirmed adoption vote, per the same account. The Planning Commission had already weighed in, recommending conditional approval after two study sessions and a public hearing, with council members expected to review those conditions as the package moves forward.
What could change for existing properties
For owners seeking to reuse an existing building, one proposed change would replace a fixed 2005 eligibility cutoff with a rolling standard. Qualifying improvements would need to have been in place for at least 10 years before an application is filed. The draft would also expand restaurant access to adaptive-reuse options and remove an overlay-zone restriction on which properties qualify.
The city’s current proposal follows earlier work on reuse. Tucson launched its Adaptive Reuse Pilot Program in 2017 to encourage reinvestment in existing buildings, according to Tucson Spotlight. CODE Tucson '26 follows a code cleanup completed in 2023, according to Real Estate Daily News. City officials say they used surveys, community meetings, stakeholder briefings and written comments in developing the proposal.
What earlier reuse efforts can—and can’t—show
Tucson Spotlight reported that the city launched its Adaptive Reuse Pilot Program in 2017 to encourage creative community reinvestment using existing buildings. That account identifies the program’s launch and purpose, but does not document particular project outcomes or lessons; it should not be taken as evidence of results from the proposed CODE Tucson '26 amendments. A separate Phoenix staff policy, issued in March 2010 and revised in May 2010, allowed combined site-and-landscape plan review for some Adaptive Reuse Program projects. It applied to Tiers 1, 2 and 3 for structures permitted before 2000, according to the City of Phoenix Planning and Development Department. That narrow review policy is a process example, not evidence of Tucson outcomes or a measured comparison between the cities.
More Room for Food and Retail
For commercial property owners, the draft would expand the range of activities allowed in some spaces. It would permit accessory retail in office zones and add cultural and personal-service uses. Food service could take up to 25% of a retail use's gross floor area, potentially making room for cafes and small eateries in existing retail buildings.
The proposal would allow perishable-goods manufacturing, including bakeries and coffee roasting, in commercial zones subject to applicable standards. It would also limit certain food- and alcohol-related drive-throughs to two lanes and clarify pickup-window rules.
Parking and Housing Changes
The parking provisions would change how mixed-use projects calculate requirements and exclude outdoor seating from required-parking counts. That could allow patios without adding parking requirements. The draft would also make individual parking plans available to more projects, while requiring additional documentation for those plans.
For housing proposals, the general site-plan threshold would rise from three units to five. The draft would also set land-division standards for eligible one-to-four-unit development and clarify when existing accessory structures can be converted to living space. It addresses restrictions on adding accessory dwelling units to three- or four-unit sites and parcels created through a middle-housing subdivision.
The proposal would replace required neighborhood meetings for flexible lot developments with mailed application notices. Other applicable neighborhood meetings could take place up to 90 days before an application is submitted, rather than 60. Qualifying substation upgrades and water well projects could receive director-level review.
Smaller Tweaks Across the Board
Other proposed adjustments would allow taller accessory structures and perimeter walls, ease some cistern-placement restrictions and simplify sign review. The Rio Nuevo overlay would gain a minor-review option, while battery energy storage systems would receive defined use categories and operating standards.
The broader 2026 update the city has been preparing also covers sidewalks and design standards, alongside parking, adaptive reuse, housing, signs and review procedures. CODE Tucson '26 groups its proposals under eight overall themes.
Beyond Tucson, state law is already pushing cities toward similar reuse incentives. Arizona House Bill 2297 requires that 10% of existing functionally obsolete commercial office or mixed-use buildings be converted for residential use by January 2025, with a functionally obsolete building defined as one in a state of disrepair or with a 50% vacancy rate, according to Tucson Spotlight. The same law requires that 10% of housing created under the adaptive-reuse program be set aside for low- and moderate-income residents for 20 years. Tucson Spotlight also reported that next steps for the city's code changes include stakeholder outreach and additional public meetings before anything is finalized.
