by Matthew Holloway | Jan 25, 2025 | News
By Matthew Holloway |
Governor Katie Hobbs is now facing a serious legal challenge from the Goldwater Institute, acting on behalf of the Home Builders Association of Central Arizona, to put a stop to what Goldwater described as “one of the most significant bureaucratic overreaches in Arizona’s history.”
On Wednesday, Goldwater announced the lawsuit against Arizona’s Democrat Governor stating that Hobbs is “taking illegal actions” that would worsen the state’s ongoing housing crisis by imposing a certification requirement in parts of Maricopa County that, in addition to showing a 100-year groundwater supply, must also meet the dubious standard of “unmet demand.”
Writing for Goldwater, Stacy Skankey explained, “Although the phrase ‘unmet demand’ does not exist in Arizona law, this new rule now requires homebuilders to show a 100-year groundwater supply across the entire water management area (a specially designated area with a reliance on groundwater) rather than at the site of the proposed development. In other words, if a groundwater shortage is projected anywhere within a management area, the Department of Water Resources now claims that there is insufficient groundwater elsewhere in the Valley.”
As reported by AZ Free News in December, Goldwater penned a letter to the Arizona Department of Water Resources (ADWR) urging the agency under Hobbs to reconsider its “AMA Wide Unmet Demand Rule,” noting that the new rule was in violation of the law having been imposed without legislative approval or via the required rulemaking process.
According to ADWR, “Unmet demand occurs when the model cannot simulate pumping of all demands included, thereby creating a pumping shortfall or deficit. This pumping shortfall or deficit occurs when there is insufficient saturated aquifer to satisfy the pumping demand (i.e., the depth-to-water level reaches bedrock) or when the depth to water exceeds 1,100 feet after 100 years of simulated pumping.”
Essentially, unmet demand occurs when the state’s modeling is insufficient to predict demand. In other words, the basis for shutting down Arizona housing development is that the Hobbs administration’s simulation doesn’t work.
As noted in an op-ed for the AZ Capitol Times by CEO of the Home Builders Association of Central Arizona Jackson Moll and Goldwater Institute Vice President for Litigation Jon Riches, the Phoenix Active Management Area (AMA) Groundwater Model being used by the Hobbs administration, coupled with the ‘unmet demand’ standard, moves the goalposts on developers who have mitigated impact on the state’s water needs for nearly 30 years by replenishing pumped groundwater back into the water table.
Riches said in a statement, “Decisions on vital statewide concerns like the availability of affordable housing and the responsible stewardship of our natural resources should be made through a transparent, democratic process—not imposed by executive fiat.”
Moll added, “Gov. Hobbs’ deeply inaccurate and flawed claim that Arizona is running out of groundwater is having devastating effects on housing affordability in the state, which already ranks among the worst in the country.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Daniel Stefanski | Jan 25, 2025 | News
By Daniel Stefanski |
Another Arizona lawmaker is pushing back against the governor’s budget for the upcoming fiscal year.
Earlier this week, Arizona State Representative Gail Griffin issued a scathing response to Governor Katie Hobbs’ recently released budget for Fiscal Year 2026. Griffin, the Chairman of the House Natural Resources, Energy & Water Committee, wrote, “As usual, the Governor talks a big game on water but does little to prioritize the solutions that matter.”
The all-important issue of “water” in Arizona has been a source of great contention over the past two years with the state’s current status of a divided government. In Hobbs’ State of the State address, she said, “As I said when I stood before you last year, we must act now to protect Arizona’s water. And when the Legislature did not, I did. I remain committed to true, bipartisan reform to protect our groundwater. But mark my words, if this Legislature fails to act. I will… Again. Further, any bills that attack our assured water supply program, undermine our water future, or are political cover for this Legislature’s lack of action on water security, will meet my veto pen.”
Hobbs proposed a $3 million investment to create a Colorado River Litigation Fund to “ensure that The Department of Water Resources (ADWR) has the resources to defend Arizona’s interests and water users who depend on the State’s precious Colorado River entitlement.” The governor also requested another six full-time employees for ADWR “to meet the demanding water policy challenges facing Arizona,” among other proposals from her team, including almost five million dollars for renovations to fish hatcheries across the state.
Representative Griffin also stated, “With Governor Hobbs’ latest proposal, it seems the Governor is more interested in building new homes for fish and birds than building new homes for hard-working Arizonans. Nothing in the Governor’s budget does anything to increase the critical supply of for-sale housing or support the American Dream of home ownership.”
Griffin added, “Arizona House Republicans are committed to advancing fiscally responsible solutions that address our critical housing and water supply issues, preserve the American Dream, and unleash economic prosperity in our state while protecting our individual rights and liberties. We will continue to put the interests of Arizona citizens first – and this will be reflected in our ongoing budget negotiations and proposals.”
The longtime Arizona Republican legislator’s comments about housing and water policies mirrored what two Senate lawmakers in her party had to say following the governor’s state of the state address earlier this month. In a video following the speech, Arizona Senate President Warren Petersen said, “We agree with the Governor that home ownership has become unaffordable for many Arizonans… but the Executive’s mandate halting home construction in two of the most booming areas of the valley was irresponsible, and first-time homebuyers are suffering the consequences of sky-high prices.”
Senate President Pro-Tempore T.J. Shope noted, “We must build. We have the water to support the growth. We use the same amount of water today that we did 70 years ago – and we have 6 million more people today! Arizona knows how to conserve water. Right now we have legislation to allow us to continue to grow and build homes while conserving water. Governor, sign our Ag-to-Urban bill. You vetoed it last year. Don’t make the same mistake twice.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Dec 9, 2024 | Economy, News
By Matthew Holloway |
A major infusion of public bond-funded dollars into Arizona’s first “nonprofit Green Bank,” the Sustainable Home Improvement Loans of Arizona (SHILA), was announced last week by the Maricopa County Industrial Development Authority (MCIDA). The MCIDA was appointed by and answerable to the Maricopa County Board of Supervisors. The $500,000 investment will reportedly be “focused on providing affordable financing solutions for low- and moderate-income homeowners.”
In a press release, Maricopa County Supervisor Clint Hickman said of the decision, “Maricopa County is committed to fostering economic growth and supporting sustainable communities for all residents. By investing in SHILA, we are helping low- and moderate-income homeowners access affordable financing options for energy-efficient improvements that will lower their utility bills, renovate their homes, and improve their overall quality of life.
This partnership not only strengthens our local economy but also contributes to a more resilient and sustainable future for Maricopa County. We are excited to support SHILA’s work and the positive impact it will have in our community.”
SHILA, equipped with the infusion of funds from the MCIDA, will reportedly assist 425 Maricopa County residents with $5 million worth of energy efficiency projects within the next three years. These projects include homeowners upgrading their insulation, roofing, door, window, electrical, and HVAC upgrades to increase energy efficiency with the average project costing $12,000.
Ty Lorts, CEO of SHILA explained, “We are honored to receive this foundational investment from the Maricopa County Industrial Development Authority. With their support, we can start making home improvement financing accessible for families who need it most. This funding will allow SHILA to begin transforming homes across Maricopa County, helping residents access a healthier living environment, lower utility bills, and have a greater quality of life.”
The MCIDA, founded in 1973 was created with the mandate to help “create and maintain jobs within Maricopa County and assists residents of the County to achieve a better standard of living and way of life.” But with a catch: it is to accomplish this with no government money involved. To that end, the Maricopa County Board of Supervisors’ appointed Board of Directors issues revenue bonds which are exempted from Arizona State taxes and, if compliant with IRS code, can also be exempt from federal taxes. Through these bonds, the MCIDA’s projects are funded.
Since its founding, the MCIDA has issued over $12 billion in bonds and invested millions into expanding access to affordable housing.
Speaking with KJZZ, Lorts explained that the nonprofit licensed just six weeks ago is working to help support affordable housing with a different strategy as opposed to predatory lenders or banks with high HELOC and credit card interest rates. “As money gets paid back in, we’re able to grow the business to a point where we don’t need any more outside money; where we are serving the outside community not just over the next five years but over the next five generations,” Lorts said.
“We’re trying to keep people in their homes, so they don’t have to seek alternative housing; so they don’t lose the house they’ve been in for the last 30, 40 years,” he added.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Daniel Stefanski | Oct 28, 2024 | Economy, News
By Daniel Stefanski |
Arizona home prices continue to be a major issue for people in the closing weeks of the 2024 General Election.
Last week, the Common Sense Institute Arizona unveiled its report for “Arizona Housing Affordability” for quarter 3 of 2024, sharing a “comprehensive analysis that details current challenges in Arizona’s housing market, including the ongoing housing shortage, escalating costs, and affordability issues that persist across the state.”
The report highlights that the state “is currently experiencing a housing shortfall of 65,721 units,” that “the average home price is nearly 23% higher than it would have been if prices had maintained the pre-pandemic trend,” and that “the number of building permits issued in Arizona has continued to drop, affecting the state’s ability to meet housing demand.”
“The high costs of housing in Arizona are creating significant barriers to homeownership, especially for lower-income families and first-time buyers,” said Zachary Milne, Senior Economist and Research Analyst. “While minor improvements in mortgage rates have provided some relief, the state’s overall housing deficit continues to widen, reflecting the need for housing policies that boost supply and affordability.”
CSI found that “it would take at least ten years for Arizona to resolve this [housing] deficit, that “it would still take 41 months for housing prices to fall back in line with the 2012-2019 trend if prices continued to decline at this pace [of July and August], that “new homebuyers today face nearly $500 more in monthly mortgage costs,” and that “it would take Maricopa County over 85 years to close their housing deficit.”
In a comment to AZ Free News about the report, Arizona Senate President Warren Petersen said, “It’s truly unfortunate the Governor vetoed the bipartisan Arizona Starter Homes Act and halted new home construction in two of the most booming areas in the Valley. Her actions have negatively impacted Arizona’s housing supply by contributing to the shortage, and as a result, hardworking Arizonans are having a difficult time achieving their American dream of homeownership because of skyrocketing prices. Republicans will continue to put bills on her desk to help alleviate the supply shortage next session, and we hope she will do the right thing by signing them.”
Recent polls have indicated that the issue of housing affordability is a top-three concern for many voters around the country, including in Arizona, affecting the upcoming election in November.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Oct 7, 2024 | Economy, News
By Daniel Stefanski |
Arizona voters are increasingly worried about the rising cost of housing as the November General Election approaches.
Last month, Noble Predictive Insights (NPI) released the findings of a poll, showing that “affordable housing has officially cemented its status as a top-tier issue for Arizona voters.”
In the top issues facing Arizona for this survey, “Affordable Housing” registered third in importance. “Inflation” and “Immigration” were the top two issues on the minds of Arizonans.
Affordable Housing was ranked as the third-highest issue for Republicans, Democrats, and Independents alike. Inflation was also a top three issue for all three voter demographics.
“Immigration, abortion, inflation – when these issues come up, the parties know what they’re talking about. And voters know who they trust. Housing is a different animal. Housing costs are just too high, and it’s becoming a bipartisan concern,” stated David Byler, NPI Chief of Research. “This is a rare opportunity for both parties – an important issue where neither side has a pre-existing advantage or even a defined message. The party that figures out how to win on housing will benefit hugely.”
The survey conducted by NPI occurred in mid-August with just over 1,000 registered voters.
According to Zillow, the average home value in the State of Arizona is $431,492 as of August 31, which is up 2.4% over one year. Meanwhile, the average United States home value, per Zillow, is $361,282, which is up 2.9% over the past year.
Arizona Senate President Warren Petersen addressed the poll’s findings with AZ Free News, saying, “The American dream of homeownership has become unattainable for the working-class under the Biden-Harris Administration. We attempted to make homes more affordable last year for our citizens with the Arizona Starter Homes Act, but unfortunately, the Governor vetoed the bill after caving to pressure from special interests and the Biden-Harris Administration’s Department of Defense. To add insult to injury, the Governor halted home construction in two of the most booming areas of the Valley, worsening Arizona’s supply shortage. Republicans at the Legislature will continue to draft commonsense solutions to get government out of the way, and to speed up home construction, so prices can come down. We’re hopeful the Governor will do the right thing by signing those bills into law.”
In a piece for The Heritage Foundation this summer, EJ Antoni, a Research Fellow, wrote about the reasons for skyrocketing home values and costs in Arizona. He said, “Over the last four years, the federal government spent trillions of dollars it didn’t have and far more than it was capable of even borrowing. To cover the shortfall, the Federal Reserve created money for the Treasury to borrow and spend. While that solved the federal finance problem, it also unleashed the worst inflation in four decades and spawned a cost-of-living crisis. While inflation causes prices everywhere to rise, the housing market in particular has seen stratospheric increases in sales prices. Part of the Fed’s plan of creating trillions of dollars for the Treasury was keeping interest rates artificially low, and that made borrowing extremely inexpensive, including borrowing for a home.”
Antoni added, “Potential home buyers had access to so much cheap credit that they collectively bid up the prices of homes to never-before-seen levels. After the Fed’s low interests and easy credit created inflation, however, the central bank swung the monetary levers in the other direction and initiated fast interest rate hikes. That suddenly made borrowing prohibitively expensive for countless Americans.”
As Antoni concluded his piece, he stated that “in Arizona, it has reached the point where a single working adult needs to earn $97,000 to live comfortably. That’s over 50 percent higher than the median income for a single full-time worker. If you want to comfortably support a family of four in Arizona, you’ll need to earn $231,000. Even with two working adults, they’d need to each earn almost twice the median income of a full-time worker to hit that annual income.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
