Prop. 207 goes into effect: Now what?
by Kathleen Stinson

CAREFREE – Local municipalities are not certain what effect Proposition 207 will have on them.

Prop. 207, passed by Arizona voters in November, allows property owners to sue governmental bodies that enact ordinances or regulations that affect the value of their land. They are entitled to compensation for a loss in value.

Carefree Planning Director Gary Neiss said one immediate effect is to limit a town’s ability to act proactively for the broader good.

“Most people would not disagree with desert preservation and scenic setbacks along roads,” but this could affect the value of an individual property for development, Neiss said.

“It defeats the town’s ability to preserve a scenic corridor.”

Every municipality across the state is concerned about how far‑reaching this new law will be, Neiss said. So far there have been no test cases. He related that it is really up to judges and juries to define what this new law will mean, as the language of the law includes many gray areas.

Carefree’s master plan will not substantially change, so the effect on the town should be minimal, Neiss said, noting zoning ordinances are not static and only involve small changes.

Another example of where this law ties government’s hands is historical preservation ordinances, according to Neiss. If a town establishes such an area, a property owner might want to add a second floor to an historic home. Under the new law, if denied, he can now claim the town has reduced the value of his property and sue for compensation.

Reach the reporter at kathleen@thedesertadvocate.com.