|
Since 1995, many new homes in the Phoenix, Casa Grande and Tucson areas have become
members of the Central Arizona Groundwater Replenishment District
("CAGRD"). Real estate professionals and homeowners may not be aware of
this service and the annual assessment charged to member homes.
Following is a brief explanation of what membership in the CAGRD means.
If a landowner in the Phoenix, Pinal or Tucson AMA has
access to a large groundwater supply and desires to rely primarily on
that groundwater to demonstrate a 100-year assured water supply, he may
do so by enrolling the land as a "Member Land" of the CAGRD. Buyers of
CAGRD Member Land homes are required to pay an annual replenishment
assessment to CAGRD based on the amount of groundwater served to that
home. Under existing statutes, the assessment is included in the annual
county property tax collection process. Because replenishment for Member
Lands is mandated by state law, it must be accomplished regardless of
cost. The assessment will increase (possibly substantially) over
time as the cost of water and replenishment services increases, and the
CAGRD may impose a lien on the property if the assessment is not paid.
The CAGRD provides a valuable service in protecting
the state's groundwater supplies for the future while maintaining
landowners' ability to subdivide their land. However, the only way a
homebuyer can understand what it means for a home to be a Member Land of
the CAGRD is through diligent reading of the subdivision's public report
(issued by the Department of Real Estate for new subdivisions) and the
conditions in the title report, and by doing additional research. There
is no requirement for a homebuyer to sign a disclosure statement that
acknowledges an understanding that the land they are buying is a CAGRD
Member Land. Therefore, many people are probably buying homes without
this knowledge.
Additional information on the CAGRD can be found at www.cagrd.com
Cliff Neal is manager of the CAGRD for Central
Arizona Project. He can be reached at 623-869-2672 or email to
caneal@cap-az.com.
|
