Arizona Lawmakers Take a Stand Against Governor Hobbs’ Water Policies in the Face of Housing Emergency

Arizona’s housing crisis is escalating, prompting a significant response from state lawmakers. House Majority Leader Michael Carbone is leading the charge against Governor Katie Hobbs’ controversial water policies, arguing that they worsen the existing housing shortage. Recently, Carbone praised House Speaker Steve Montenegro for initiating a lawsuit against the Arizona Department of Water Resources (ADWR), which has enacted a contentious 33.3% groundwater tax. This tax, Carbone claims, is inflating housing costs and adversely affecting residents struggling with high prices.

The debate centers on a housing moratorium that critics argue illegally restricts the development of vast land areas suitable for affordable homes. Critics assert that this moratorium has rendered hundreds of thousands of acres undeveloped, constraining new housing options and pushing demand into already congested urban areas. This situation has severe implications for housing affordability.

Carbone emphasized the interconnectedness of water policies and land use, stating, “Water policy is land use policy, and land use policy is housing policy.” The existing restrictions, while aimed at water conservation, carry far-reaching economic repercussions.

The housing moratorium is projected to elevate home prices by $19,600 to $23,700, while the groundwater tax could add another $5,100 to $7,900 to new home costs. As Arizona grapples with rapid population growth, these developments intensify concerns over housing affordability.

In response, the Arizona House of Representatives has allied with the Home Builders Association of Central Arizona (HBACA) and certain members of the Arizona Senate in legal action against the ADWR. Their lawsuit seeks to halt the implementation of the 33.3% groundwater tax, contending that both the tax and the moratorium are unlawful and detrimental to the housing market. Carbone criticized Hobbs’ initiatives, claiming they represent an overreach of government authority rather than genuine efforts to ensure water security.

“The Governor wants to dictate where and how Arizona families live, limiting all future growth to cities and driving up home prices,” Carbone asserted. He stressed that affordable housing is vital to achieving the American Dream and vowed to challenge policies that exacerbate the housing crisis.

The lawsuit questions the legal authority of ADWR in imposing the groundwater tax. Supporters of the case argue that homebuilders have responsibly managed water usage, having replenished all groundwater used since 1995. They contend that imposing extra taxes on these builders is both inequitable and counterproductive to the state’s needs.