Arizona, USA — Scammers have long made a living off of Arizona’s scarce water supply.

nationally known as a state A Hotbed of Organized Crime and Real Estate Fraud in the 1970s. Scammers advertised acres of Arizona land with abundant water only to discover that the land’s new owner had purchased a dry desert patch.

By popular practice, state legislators The Assured Water Supply (AWS) Program as Part of the Groundwater Control Act of 1980The program forced homebuilders to guarantee 100 years of water supply in the state’s most populated areas.

However, this requirement applies only to residential constructions that Arizona considers “subdivisions.” This focus gave him two major loopholes in the state’s water laws. Developers have recently tapped the state’s groundwater for free pumping.

Half a century later, the battle between groundwater conservation and vast development is still alive and well in Arizona. A bill passing the legislature seeks to stop that fight once and for all by changing a single definition.

How the definition of subdivision caused a loophole in the law of water

Arizona says,Subdivision“Land divided into six or more parcels for the purpose of sale as residential land”.

The 1980 legislators failed to include two modern realities when relating the 100-year water requirement to the parcel definition.

• construction rental community
• “Wildcat” Subdivision

What is a water loophole to build and rent?

The first loophole came to a head last May at Casa Grande.

A report from the Arizona Department of Water Resources (ADWR) found that all of Pinal County’s groundwater is needed. This means that groundwater cannot be used as proof of 100-year water supply in new home construction. New builds must find their own sources before the build is approved.

Unless the house is built for rent rather than for sale.

Certain exemptions from Arizona law allow rental homes to circumvent the 100-year water supply requirement because homes with leases of one year or less are not considered “subdivisions” or “subdivisions.”

At Casa Grande alone, about 700 build units for rent received final build approval around May.

read more: Casa Grande’s water supply problem takes a new turn

A similar report was published earlier this year in the West Valley region. This time, the future development of the ever-expanding Buckeye city is under threat. Experts believe we will see similar rental housing trends in West Valley cities in the coming months.

“This standard only applies to homes for sale,” Spencer Kumps, vice president of legislation for the Central Arizona Association of Home Builders, previously told 12News.

“[Other] Developments can still mine groundwater, and there is no guarantee that the wells they use will pump for 100 years, nor that the wells they use will affect neighboring wells. “

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What is the “wildcat” subdivision water loophole?

A second loophole has catapulted the Rio Verde foothills into the national spotlight.

Arizona law also permits the division of land into no more than five parcels, known locally as “wildcat parcels” rather than legal parcels. Developers can sell these parcels without having to provide the normally required assets such as 100 years of water, sewers, and paved roads.

This is an unincorporated community problem outside of Scottsdale that allowed homes to be sold to unknowing buyers even after Scottsdale announced it would shut off the water supply to the community in early 2023. .

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How will this new Arizona bill amendment close the groundwater loophole caused by fragmentation?

A bill recently passed by the Arizona House of Representatives, HB2445which seemingly fixes both loopholes.

The amendment now considers a subdivision to be any area containing one or more dwellings, rather than six. Fix the “wildcat” loopholeThe bill also removes the lease exemption. Fix build-to-rent loopholes.

Senator Gail GriffinThe chairman of the state’s Natural Resources, Energy and Water Commission and the bill’s main sponsor, said it introduced the bill after realizing the loophole last year.

“This is an issue that we have to deal with, especially with everything we do in the water,” said Griffin. At a recent commission hearing on the bill“If you try to do things right, there’s a loophole here and you’re trying to block it.”

The amendment was surprisingly endorsed by both the Central Arizona Home Builders Association and the Arizona City Water Users Association. This is a rare agreement between two entities that would normally be at odds with each other.

“Make a note of the date and time. [Spence Kamps] I fully agree with the bill,” Barry Aarons joked while representing the Water Users Association at a committee hearing.

The bill went to the Arizona Senate, where it went on March 2nd.

Read the entire HB 2445 amendment here.

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