FED-UP homeowners are getting a $12 million payout after complaining about unsightly construction near their houses.
A legal battle over the construction project started years ago when residents spoke up about noise and pollution plaguing their neighborhood.
Their homes in the Ahwatukee community neighbor the Loop 202 South Mountain Freeway in Phoenix, Arizona.
The Arizona Department of Transportation paid $6 million for easements in Ahwatukee in 2017 to build the Loop 202 freeway.
Though the construction didn’t physically impact their properties, it dramatically lowered homeowners’ quality of life and property worth.
The neighborhood’s homeowners association, which represents 589 property owners in the Foothills Reserve Community, insisted the freeway project slashed property values.
Neighbors also complained about noise, pollution, and a ruined view, calling the freeway’s impact “unsightly.”
The homeowners and the HOA didn’t feel the $6 million payment for the easements was enough so the HOA filed for damages, demanding compensation for the effect on homes.
They initially won their case in the Maricopa County Superior Court, but the Arizona Court of Appeals reversed that ruling, local CBS affiliate KTVK/KPHO reported.
The Arizona Supreme Court stepped in, ruling on January 28 that the Foothills Reserve Community was entitled to more than just the original payout.
The state Supreme Court agreed that homeowners deserved more compensation due to their drop in property value.
It ordered the state to pay $12 million in damages.
The state Supreme Court took on the case to clarify Arizona’s property laws, NBC local affiliate KPNX reported.
In its ruling, the court said because the state condemned the homeowners’ easements—integral to their property—the residents were entitled to compensation for the loss in property value caused by the freeway’s proximity.
The case has now set the stage for future lawsuits over infrastructure projects that damage residential areas.
Noise, traffic, and obstructed views are just some of the impacts that can make a property less desirable.
In some cases, property owners are entitled to compensation for the loss in value caused by these projects, according to Land Owner Attorney.
However, this depends on the specifics of each situation and local laws.
Court rulings, like in the Ahwatukee case, show homeowners can win compensation when their property values are affected by nearby infrastructure projects.
These rulings emphasize that homeowners shouldn’t bear the full burden of changes to their environment.
The Ahwatukee Homeowner Association didn’t immediately respond to a request for comment by The U.S. Sun.
What is an HOA?
One in five Americans live in an area with a Homeowners’ Association – or HOA. But what exactly is it that they do?
- An HOA is a homeowner’s association – an organization that aims to maintain a clean and cohesive place to live for its residents.
- Entire neighborhoods, subdivisions, condominiums, family homes, or townhouses within “a planned development” will often make up an HOA.
- They also act as a governing body for tenants, who run and fund the HOA through monthly fees.
- Their principal aims are to keep the community functioning and visually appealing and to maintain property values.
- They primarily focus on common areas of a neighborhood, such as roads, parks, and pools – but may also stipulate what residents can do with their properties, such as yards and driveways.
- Often these restrictions enforce uniformity on properties, for example, ensuring most houses look the same and all driveways are clear of weeds.
- An HOA rulebook of covenants, conditions, and restrictions (CC&R) is distributed to all residents, and an elected volunteer board of directors enforces these regulations.
- Breaking these rules can result in penalties such as fines and even litigation – as most HOAs are incorporated and subject to state law.
- HOAs are often the subject of controversy, with some members feeling that the rules are too punitive and restricting, or that the leadership has too much power.
- But others like that HOAs give communities the power of self-governance, and can ensure a degree of harmony between residents.
