Arizona Homebuilders Challenge State Agency’s Construction Moratorium
The landscape of home construction in Arizona faces a significant challenge as an influential homebuilders group, with support from the Goldwater Institute, contests a state agency’s decision to halt new projects in certain areas due to dwindling groundwater resources.
Recent findings from the Arizona Department of Water Resources (ADWR) indicate that groundwater levels in the Valley are insufficient for granting assured water supply certificates. These certificates are crucial for homebuilders operating outside the jurisdiction of designated water providers.
Key areas affected by this decision include Queen Creek, Goodyear, and Buckeye.
Goldwater Institute attorney Jon Riches, representing the Home Builders Association of Central Arizona, argued during a Monday court hearing that the ADWR exceeded its authority. He claimed that only the state legislature possesses the power to enact such rules. “It’s stopped new home construction in some of the fastest growing and most affordable areas of Maricopa County, and if an administrative agency is going to do that they’ve got to be able to point to state law that allows them to do that,” Riches stated.
The case has garnered support from Arizona Senate President Warren Petersen (R-Gilbert) and House Speaker Steve Montenegro (R-Goodyear), who have submitted a brief in favor of the homebuilders’ stance.
On the opposing side, ADWR’s legal team maintains that the agency is fulfilling its legal obligation by assessing groundwater levels and implementing moratoriums in regions where water resources are insufficient. Attorney Emily Petrick emphasized that the lawsuit essentially challenges the statute itself, citing the state law outlining ADWR’s responsibilities.
ADWR has requested the court dismiss the lawsuit, with Petrick arguing that the plaintiff’s interpretation would force the agency to disregard water overallocation, potentially endangering the water security of existing developments guaranteed a 100-year water supply.
Presiding Judge Scott Blaney is currently evaluating the case. He noted that dismissals are infrequently granted, suggesting a thorough consideration of the matter.
A core point of contention is ADWR’s “Depth-To-Water Rule,” which requires groundwater levels not to fall more than 1,000 feet below ground in the Phoenix metro area for it to be considered “available.” This rule is the basis for denying certificates of assured water supply to builders.
The Home Builders Association contends that the rule lacks location specificity, arguing that a decline in water levels in one Valley area should not impact the issuance of certificates in other areas.
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