The Arizona Department of Real Estate (ADRE) has sent a cease-and-desist order against three entities to stop illegal subdividing, also known as “wildcat development,” in the unincorporated Rio Verde Foothills community located east of Scottsdale.
The ADRE alleged the Morning Vista Homes LLC, 2PHDS LLC and Andrei Polukhtin were involved in selling parcels without obtaining a public report, which includes documents that affirm the area has an assured water supply. By recording the cease-and-desist order, ADRE will prevent the final sale of homes until a reliable, 100-year water supply has been identified and proven as a part of the project’s public report.
Last year, hundreds of households in Rio Verde Foothills were cut off from their water supply following drought restrictions enacted in adjacent Scottsdale.
“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,” said Gov. Katie Hobbs in a press 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.”
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