(KJZZ file photo )

According to a new report by Bankrate.com Phoenix ranks second best in the nation for homeowner affordability.

PHOENIX  — An Arizona appellate court has rejected Tempe's challenge to the state's authority to investigate the city for alleged discriminatory housing practices.

A three-judge Court of Appeals panel on Thursday concluded that cities and towns are subject to the Arizona Fair Housing Act and the panel upheld a trial judge's ruling in favor of the Attorney General's Office.

The case stemmed from a man's filing of a 2012 complaint in which he alleged that his application for a housing voucher was denied based upon an alleged disability.

Tempe resisted the investigation and argued that the housing law didn't authorize the Attorney General's Office.