PHOENIX – In a decisive move against illegal development practices, the Arizona Department of Real Estate (ADRE) has issued a Cease & Desist Order to prevent a developer in Rio Verde Foothills, east of Scottsdale, from continuing unauthorized subdividing, known as “wildcat development.” The action is part of Governor Katie Hobbs’ broader effort to protect consumers and uphold Arizona’s real estate and water laws.
The developer in question was found to have bypassed crucial consumer protection requirements, including failing to obtain a subdivision public report—a document required by law to ensure that developments have a secured water supply. In Active Management Areas (AMAs), this report must include a certificate of assured water supply from the Arizona Department of Water Resources or a written commitment from a designated water provider.
“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,” Governor Hobbs said. “Rio Verde Foothills has suffered enough from developers skirting the law, building without securing a reliable water source. While this action is necessary, our laws must be strengthened to fully protect consumers from such exploitation.”
The Cease & Desist Order was recorded with the Maricopa County Recorder, halting the final sale of homes within the development until the required water supply is identified and verified. This enforcement action reflects Governor Hobbs’ ongoing commitment to safeguard Arizona’s water resources and ensure that developers adhere to legal standards before proceeding with construction.
Attorney General Kris Mayes voiced strong support for the crackdown, highlighting the importance of protecting consumers in water-scarce areas like Rio Verde Foothills. “My office remains firmly committed to holding accountable those who violate state law and put Arizonans at risk,” Mayes said, noting that collaboration between her office, ADRE, and the Governor’s Office was key to this enforcement effort.
The developer’s failure to meet Arizona’s water supply regulations posed a serious risk to potential buyers, exposing them to uncertain water availability in a region where resources are already strained. ADRE Commissioner Susan Nicolson stressed the importance of developer compliance: “When subdivision public report requirements are not followed, buyers are exposed to an unacceptable risk.”
In 2023, Governor Hobbs signed Senate Bill 1432, a bipartisan effort to secure a water solution for the Rio Verde Foothills area. Despite these efforts, loopholes in current laws still allow unscrupulous developers to bypass vital regulations. Governor Hobbs and her Water Policy Council are working to close these loopholes, though legislative action is still needed to prevent further exploitation.
As the investigation continues, the state remains committed to protecting both its residents and water supplies, ensuring that all developments comply with Arizona’s stringent real estate and environmental laws.
