by Cameron Arcand

 

The Arizona Department of Real Estate is asking a housing developer to stop subdividing land in Rio Verde Foothills as they say there is no assured water supply yet for the area they are working in.

The Arizona Department of Real Estate sent a cease and desist to Morning Vista Homes for allegedly not getting the proper “subdivision public support” that prompts a “certificate of assured water supply” or another guarantee that there will be water for the homes, according to a news release from Gov. Katie Hobbs’ office.

“Today I am glad to report the Arizona Department of Real Estate has taken swift action to prevent what it believes is a blatant evasion of consumer protection and water security laws,” Gov. Katie Hobbs said in a statement.

“Rio Verde Foothills has suffered enough as a result of bad apple developers skirting the law and building without first securing a water supply. While we can take action in this case, our laws still fall short of offering true solutions that protect consumers. We must take legislative action to crack down on the loopholes being exploited by developers to profit at the expense of everyday Arizonans,” she continued.

According to the letter, the developer cannot be in the process of “selling, offering, advertising, facilitating, counseling, advising, directing, negotiating, assisting or attempting to sell parcels/lots” in specific subdivisions in the community near Scottsdale and Fountain Hills.

The news release added that until there is a “100-year water supply” obtained, the houses cannot be bought. Rio Verde Foothills was marred by water supply issues for months as it encountered obstacles with the city of Scottsdale, leading to a water access crisis until a standpipe agreement was reached in fall 2023, The Center Square reported.

The Center Square reached out to the development company for comment, but it did not respond in time for publication.

“ADRE is charged with protecting Arizona’s property owners and the public in real estate transactions. Arizona’s laws require certain disclosures to ensure prospective purchasers understand, among other limitations or available resources, whether there is water available and what water sources the potential buyer may expect.  Education of developers is key but when subdivision Public Report requirements are not followed, buyers are exposed to an unacceptable risk,” ADRE Commissioner Susan Nicolson said in a statement.

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Cameron Arcand is a staff reporter for The Center Square covering Arizona. A contributor since 2022, Arcand previously worked for Salem Media Group and The Western Journal.