Homeowners get $12m after suing over ‘unsightly’ construction near their houses – they were plagued by noise & pollution

FED-UP homeowners are getting a $12 million payout after complaining about unsightly construction near their houses.

The legal battle over the construction project started years ago when residents spoke up about noise and pollution plaguing their neighborhood.

Arizona's Family

The Arizona Supreme Court awarded $12 million to Ahwatukee Homeowner Association for property value loss[/caption]

Arizona's Family

The HOA pointed to noise, pollution, and a ruined view, calling the freeway’s impact ‘unsightly’ and damaging to their homes’ worth[/caption]

Their homes neighbor the South Mountain Loop 202 freeway project in Arizona, which, though it didn’t physically impact their properties, dramatically lowered their quality of life and property worth.

The homeowners association over the neighborhood, which represents 589 property owners, insisted the freeway slashed property values.

Neighbors also complained about noise, pollution, and a ruined view, calling the freeway’s impact “unsightly.”

They took their fight to court and in 2017, the Arizona Department of Transportation was ordered to pay $6 million for common areas that were affected by the construction.

But homeowners argued it wasn’t enough.

The Arizona Supreme Court stepped in, ruling that the Foothills Reserve Community in Ahwatukee, Phoenix was entitled to more than just the original payout.

The homeowners 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.

Now the Arizona Supreme Court has ultimately sided with the homeowners, agreeing they deserved more compensation due to the drop in property value.

The state Supreme Court took on the case to clarify Arizona’s property laws, NBC local affiliate KPNX reported.

In its ruling, the court explained because the state condemned the homeowners’ easements—integral to their property—it was entitled to compensation for the loss in property value caused by the freeway’s proximity.

“Those damages would comprise the reduction in the Homeowners’ property values due to their proximity to the freeway,” the Supreme Court ruling states.

Recognizing the severe impact the freeway had on the community, the court ordered the state to pay $12 million in damages.

The HOA was awarded a total of $18 million, with $12 million of that tied to how the courts ultimately resolved the dispute.

The case has now set the stage for future lawsuits over infrastructure projects that damage residential areas.

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.

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.