Court awards $12 million to Ahwatukee HOA over seized property

The case was based on the 2017 construction of Loop 202, which took away common areas within the Foothills Reserve Master Planned Community in Phoenix.
Published: Jan. 28, 2025 at 9:01 PM MST
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PHOENIX (AZFamily) — The Arizona Supreme Court ruled in favor of property owners in Ahwatukee after they filed a case saying the construction of the South Mountain Loop 202 freeway brought down the value of their homes and weren’t correctly compensated.

The Court ruled that the owners must receive just compensation, and that will be an additional $12 million from the state.

The case was based on the 2017 construction of Loop 202, which took away common areas within the Foothills Reserve Master Planned Community in Phoenix but not their homes.

The Arizona Department of Transportation paid $6 million as fair market value for the common areas.

However, the homeowners association, representing 589 property owners, filed for damages since the loss of property directly impacted the value of their homes because of “noise, pollution, loss of view and the unsightliness as a result of the South Mountain Freeway.”

The Maricopa County Superior Court ruled in favor of the homeowners, but the Arizona Court of Appeals overturned that decision.

The Arizona Supreme Court disagreed with the lower court and said the property value loss should be included in the compensation to the HOA because of how close the freeway is.

The opinion was unanimous. The case could have an impact on future lawsuits involving Arizona’s infrastructure projects and property value.

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