Buckeye OKs 400 single-family rental homes as council grapples with water restrictions
Buckeye has narrowly approved the development of about 400 single-family rental homes that do not require the same water guarantees as single-family homes for sale.
The development, known as Arroyo Verde, will be constructed over about 98 acres at the southeast corner of Thomas Road and Tuthill Road near Verrado.
The Buckeye City Council first learned about the project on Oct. 17. It was approved by the Planning and Zoning Commission in September.
The council on Monday approved the development on a 4-3 vote. Mayor Eric Orsborn, Vice Mayor Michelle Hess and Councilmembers Craig Heustis and Clay Goodman voted yes, while Councilmembers Tony Youngker, Patrick HagEstad and Janine Guy voted no.
It will be developed by AMH Development LLC, also known as the Las Vegas-based developer American Homes 4 Rent. The company specializes in building single-family rental homes.
The property is surrounded by single-family residential developments, said Hobart Wingard, Buckey's principal planner. The designation in the city's general plan is residential, allowing for either single- or multifamily housing to be built.
Wingard said the homes will differ from build-to-rent homes, which look like single-family homes but are typically all built on one lot. Wingard said Arroyo Verde will function like a typical single-family residential neighborhood in the sense that the leased lots will look like typical single-family residential lots, although technically, houses will not be platted in individual lots.
"These are regular, single-family residential homes on regular lots. The difference is these are going to be rental units," Wingard said.
The council's approval established site standards for leased lots, as opposed to platted lots, which are typically associated with single-family homes.
Under the approval, the land will be split into two parcels, being divided by 202nd Avenue, which runs north-south and will remain a public road. It also established three different sizes for the leased lots.
At the Oct. 17 City Council meeting, resident Jason Johnston, a law enforcement officer in another city, expressed concerns about the potential higher crime rate that this "type of development" would bring.
Johnston also expressed concern over the property values being lowered and said he does not want the issues associated with rental communities in his backyard.
The homes will be at the market rate, as opposed to subsidized housing.
Where will the water come from?
Water will be provided by Arizona Water Company, a utility company based in Phoenix.
Because Buckeye does not have a designation of assured water supply from the Arizona Department of Water Resources, developers either must obtain a certificate of assured water supply or be serviced by a designated water provider.
Because Arroyo Verde does not fall within Buckeye's water service area, it has a $4.7 million contract to be serviced by Arizona Water Co.
According to city documents, the community was changed to a rental community because the developer was unable to obtain a certificate of assured water supply.
Developers must obtain a certificate of assured water supply if the project has more than six lots. Because rental communities are typically built on one lot, they are currently exempt from the requirement.
Adam Baugh, an attorney representing AMH Development LLC, said the company would be open to moving forward with efforts to obtain a certificate of assured water supply in the future.
Alex Carter, a resident who spoke at the City Council meeting, expressed concern over the city's water supply. The development will be using just as much water as a traditional single-family home for sale but will not be required to replenish the water, Carter said.
He advocated for holding all developers to the same standard in needing to replenish water. If developers of rental communities don't have to replenish water, that will impact the development of for-sale homes, Carter said.
"This may currently seem like the only path forward for growth, but I urge the council to carefully weigh the consequences," Carter said.
Reach the reporter at ahardle@gannett.com or by phone at 480-259-8545. Follow her on X, formerly Twitter: @AlexandraHardle.
This article originally appeared on Arizona Republic: Buckeye approves Arroyo Verde, a rental-home development near Verrado
