We have had several people reach out with concerns about the new construction at 2nd Street and Bethany Home Road, nicknamed the “monopoly houses” (so much easier than stating the address over and over again). Here is a summary overview.
These oversized houses came about because of three factors: (1) state legislation allowing 2- 1000 square-foot ADUs (accessory dwelling unit) per lot and limiting the city's ability to control their height or design; (2) mistakes made by the City of Phoenix during the permitting process; and (3) a confrontational out-of-state developer.
For quite a while it was obvious to those of us who were paying attention that the developer was building 4 separate full sized homes on the two parcels at that corner-- he obtained 4 addresses, built full sized walls separating each ADU from it's main home, put a swimming pool in each of the four yards. To top it off, the realtor told anyone who inquired that he was instructed to sell 4 separate homes. Selling 4 homes on two lots in an R1-10 zoned neighborhood is not allowed under the current zoning, city statutes, or state laws.
NCPHA took the lead in asking Phoenix, the county, and anyone who would talk to them if this were legal and was told it absolutely was not but that nothing could be done until the homes were completed and up for sale.
On Wednesday, February 25, 2026., “coming soon” MLS listings were posted officially listing a home and its ADU as two separate homes for sale on a single parcel. The listing had an illegitimate APN # associated with the ADU with illegitimate lot sizes. NCPHA immediately sent the city and county a formal complaint letter highlighting that there was no legal lot split to support selling the two homes separately. MTENA, another registered neighborhood group nearby, also sent the city a complaint that selling two homes on the same lot was a potential zoning violation.
On Friday, February 27, 2026, representatives from NCPHA and MTENA met with Councilman Robinson, his staff, and City Manager, Ed Zuercher about this issue and they provided us with a letter they had sent (see below) in response to the complaints NCPHA and MTENA had made. In addition, NCPHA was able to connect with a AZ Department of Real Estate commissioner later in the day who was able to act promptly to respond to one of the MLS listing's use of an illegitimate APN number and false lot sizes.
The result was that by Friday night, there was a revised MLS listing that offers a single home and ADU for sale at 6010 N. 2nd Street which replaced the two separate previous MLS listings.
It's a small success because we are still stuck with the huge dense buildings that are so out of place in our neighborhood. But this strong message from the city will help to assure that this is not the beginning of a trend in our neighborhood or elsewhere in the county. This is a good reminder to future buyers to do their due diligence to make sure you are buying a home on a legal, legitimate lot.
Thank you to the neighbors who noticed something was wrong and spoke up about it.
Formal Complaint to the City of Phoenix by NCPHA
The North Central Phoenix Homeowners Association hereby submits a formal code violation complaint regarding the property located at 6010 N. 2nd Street, Phoenix, AZ (APN# 161-24-092).
In 2024, the original 20,000 square-foot parcel at 134 E. Bethany Home Road was divided into two 10,000 square-foot lots (APN #161-24-092 and APN# 161-24-093, now APN# 161-24-093A) and recorded with the Maricopa County Assessor and Recorder. To our knowledge, no required City of Phoenix lot split approval, subdivision approval, or rezoning entitlement has been obtained since the original lot split in 2024.
Following the 2024 division, a primary resident and non-compliant oversized accessory dwelling unit (ADU) were constructed on each parcel. This formal complaint pertains to the northern parcel (APN# 161-24-092) identified by the City as 6010 N. 2nd St. (primary house) and 6008 N. 2nd Street (the ADU).
We have now been informed that two separate “For Sale” signs have been installed-one for the primary house and one for the ADU-with separate MLS listings. Upon review:
1. The MLS listing (#6989313) for the ADU references APN# 162-24-092-2, which has been confirmed by the Maricopa County Assessor as an illegitimate APN.
2. The listing describes the ADU as being located on a 4,295 square-foot lot, which does not correspond to any legally established parcel.
The situation raises serious concerns that the property owner may be providing false and misleading information and conveying what appears to be a separately subdivided lot that has not been legally created under City regulations.
Beyond the clear zoning and subdivision compliance issues, this matter has broader implications:
1. Neighborhood Impact-The creation and marketing of de facto subdivided parcels without proper review undermines the City’s planning process, density standards, and established neighborhood character. Allowing such actions to proceed without enforcement sets a troubling precedent.
2. Potential Buyer Harm- Prospective purchases may reasonably rely on MLS representations and APN information when evaluating property. Marking a dwelling as situated on a separate lot, supported by an illegitimate APN and inaccurate lot size, risks significant financial harm, title complications, and future legal disputes for unsuspecting buyers.
Since time is of the essence, our Association requests that the City promptly investigate this matter to determine whether an illegal subdivision has occurred, whether misrepresentations are being made in connection with the sale of the property, and whether enforcement is warranted to prevent further harm.
Attached please find documentation supporting this formal complaint.
Sincerely,
Mary L. Crozier
North Central Phoenix Homeowners Association
City of Phoenix’s Response to Statutory Agent of Developer
Dear Mr. Armstrong,
You are the listed agent for Perpetuity LLC, the owner of 6010 and 6008 N. 2nd Street, Phoenix, Arizona, 85012 (“Subject Property"). The City of Phoenix has become aware of the marketing and/or listing activity, MLS Listing #6989313, indicating that one of the accessory dwelling units (“ADUs”) located on APN #161-24-092 is being offered for separate sale independent of the primary dwelling and underlying parcel.
City records reflect that the ADUs on the Subject Property were approved and constructed as accessory residential structures to a single-family lot. They are not located on separate legal lots and have not been approved through a subdivision, lot split, condominium plat, rezoning process, or other lawful land division process recognized by the City. Additionally, the property appears to be advertised using an APN that does not exist in he County Assessor’s records.
Both Arizona law and the Phoenix Zoning Ordinance require that an accessory dwelling unit be located on the same parcel as the principal single-family dwelling. See A.R.S.sec. 9-461.18(1) (defining”accessory dwelling unit” as a self-contained living unit “on the same lot or parcel as a single-family dwelling”); Phoenix Zoning Ordinance Sec. 706(A) (permitting ADUs only on a lot containing a primary single-family dwelling). Because the ADUs remain accessory to and part of the primary parcel, they do not constitute separate legal lots or independent conveyable units.
Phoenix City Code further prohibits the sale or offering for sale of any lot, piece, or parcel of land that has not been created through an approved subdivision or City-approved partition process. Phoenix City Code Sec. 32-43(A). Even where land is divided into two or three parts (a partition rather than a subdivision), Planning and Development Department approval is required before any sale may occur. Phoenix Code Sec 32-5(B).
Accordingly, any listing, marketing, or transaction purporting to convey ownership of an ADU separate from the primary parcel would not create a legally recognized parcel or ownership interest under Arizona law or City regulations and would constitute an unlawful land division.
The City requests that you immediately cease any advertising, marketing, or sale activity representing the ADUs as separately conveyable properties and confirm in writing within ten (10) days that no such conveyance will occur absent lawful City approval of a land division. If you believe City records are incomplete or that lawful approval has been obtained, please provide supporting documentation for review.
Sincerely,
Joshua Bednarek
Planning and Development Director