Carbone Applauds Montenegro's Lawsuit Against Arizona Department of Water Resources

Arizona State Representative Michael Carbone (R-25) issued a statement applauding State Speaker of the House Steve Montenegro's (R-29) lawsuit against the Arizona Department of Water Resources (ADWR), saying, "Make no mistake—Governor Hobbs' water policies are driving Arizona's housing crisis."

For additional context, Arizona, specifically certain areas of Maricopa County, requires builders to secure a certificate proving a 100-year groundwater supply before starting new construction.

However, as JD Supra explained, November 2024 modified the rule to require an "unmet" demand standard. This means the groundwater rule must now apply across an entire water management area rather than just at the proposed development's specific site. The unmet demand standard takes the form of a 33.3% groundwater tax.

As a result, the new rule prevents new housing projects in affordable and growing areas of Arizona, such as Phoenix, Buckeye, and Queen Creek.

Moreover, Speaker Montenegro's lawsuit, filed in conjunction with the Home Builders Association of Central Arizona (HBACA), said that the "unmet demand" rule is illegal, as it was imposed without legislative approval.

"Water policy is land use policy, and land use policy is housing policy," said Rep. Carbone in his statement, adding, "We've all heard about the illegal 'housing moratorium' that's in place. Just to be clear, that's a water policy, and it's designed to stop housing growth. Not only was the moratorium adopted illegally, but it also renders hundreds of thousands of acres of affordable land undevelopable, land that could be used to help address the housing shortage."

Rep. Carbone further suggested that the "unmet demand" rule "drives demand toward cities, increasing demand where land is already extremely limited. This makes housing even less affordable for Arizona families. Make no mistake—Governor Hobbs' water policies are driving Arizona's housing crisis."

The District 25 Representative pointed to an HBACA study suggesting that the groundwater tax raises housing costs by $4,100 while new home costs will rise by a shocking $2,800 per home.

"These illegal actions aren't about water security; they're about government control," Carbone continued, "The Governor wants to dictate where and how Arizona families live, limiting all future growth to cities and driving up home prices. Arizonans deserve better than a governor who plays politics with their future."