House Bill 4011 — amending A.R.S. § 33-1242 and adding A.R.S. § 33-1821
Applies to both planned communities and condominiums.
We close our coverage of the bills that directly impact community associations with the broadest of them, a new standard that applies any time a board exercises discretion.
House Bill 4011 became effective on September 12, 2026. It imposes upon associations a “duty to act reasonably” in the exercise of their discretionary powers, and describes “duty to act reasonably” as a “duty to exercise discretionary powers neutrally, fairly, without favoritism and in a nonarbitrary fashion.”
This statute largely codifies existing Arizona case law requiring boards to treat owners fairly and to act reasonably when enforcing covenants or making discretionary decisions; it reinforces best practices rather than introducing a completely new standard.
Boards with questions about how the new standard applies to a particular enforcement or discretionary decision are welcome to contact Mulcahy Law Firm.
Information in this article reflects the law as of the publication date. Laws are subject to change, and this post may not be updated to reflect subsequent legal developments. Contact Mulcahy Law Firm, P.C. with questions at info@mulcahylawfirm.com.
