The Arizona House gave preliminary approval to a bill that would allow homes to be built on church property.
The bill has been amended to exclude multi-family complexes.
It will now only allow single-family homes up to two stories regardless of local zoning ordinances.
The bill was changed to address some zoning concerns from lawmakers who said developments should reflect surrounding neighborhoods.
But the changes have led other lawmakers to worry the measure will be ineffective in addressing the Phoenix housing crisis.
“This bill, with this amendment, is now watered down to barely help a handful of people when the churches' intent was to help many in need," said Rep. Cesar Aguilar.
The measure now awaits a full House vote.
