Local county and city are to blame for what is happening in Lemmon Valley, them and greedy developers. Houses should not have been allowed to be built there without proper drainage and infrastructure. State really has nothing to do with it other then they have a bigger pool of money to pul from. the city/county should issue some low interest bonds and pay them back with a special property tax assessment on the affected area. Unfortianally now there are homes there it is going to cost 10x more money to fix the problem and will likely take a couple years to actually fix the problems.
The flood impacted homes should be torn down and converted back to open space. Unfortunately that area wasn't added to the FEMA map as a flood zone until '84 so some of these homes were built before it was mapped. Once it was declared a flood zone they should have stopped development in the area because the additional homes cause more runoff which only made the problem worse. At the very least I hope our planners take a good look at what is going on out there and make appropriate changes to prevent this from happening in future developments.