2023 Summary of Arizona Legislation Regarding Community Associations

The Arizona Legislature began the session on January 9, 2023.

Please contact Beth Mulcahy, Esq. (bmulcahy@mulcahylawfirm.com) any time with questions regarding the bills.


SB1034: HOMEOWNERS’ ASSOCIATIONS; FLAG BAN; PROHIBITION

This bill would make it so an association cannot ban any flag unless the flag is obscene, defamatory or likely to incite violence.

This bill applies to both planned communities and condominiums.


SB1049: HOMEOWNERS’ ASSOCIATIONS; BETSY ROSS FLAG

This bill would make it so an Association cannot ban any historic version of the American flag, including the Betsy Ross flag, without regard to how the stars and stripes are arranged on the flag.

This bill applies to both planned communities and condominiums.


HB2047: VACATION RENTALS; SHORT-TERM RENTALS; RESTRICTIONS

This bill would allow a city or town with a population of less than 17,000 people to limit the number vacation rentals and short-term rentals based on a percentage of total residentially zoned buildings or structures in that city or town.

It also allows cities and towns to regulate vacation rentals or short-term rentals in the same manner as transient lodging activities.


HB2251: CONDOMINIUMS; INSURANCE COVERAGE; CLAIMS

This bill would require the association to maintain insurance on common elements and the units. It would give each owner the right to report a loss under the Associations’ property insurance policy.

If the cause of any damage to or destruction of any portion of the condominium originates from the common elements or an event outside of the units and common elements, the association’s property insurance deductible is a common expense.

Subsection K states if the cause of any damage to or destruction of any portion of the condominium originates from a unit, the owner of the unit in which the cause of the damage or destruction originated is responsible for the association’s property insurance deductible of not more than $10,000.

The association shall inform each unit owner annually in writing of both:

  1. The unit owner’s responsibility for the association’s property insurance deductible pursuant to subsection K.
  2. The amount of the deductible.

The association’s property insurance deductible amount of more than the $10,000 responsibility of the unit owner is a common expense.

The association may make an annual assessment as prescribed by section 33-1255 against the unit owner who is responsible pursuant to subsection K.

This bill applies to Condominiums.


HB2298: PLANNED COMMUNITY AUTHORITY; PUBLIC ROADWAYS

This bill would require any planned community whose declaration was recorded before January 1, 2015 and that regulates any roadway for which the ownership has been dedicated to or is otherwise held by a governmental entity, the existing regulations continue in effect until either of the following occurs:

  1. No later than June 30, 2025, the planned community shall hold a vote of the membership on the question of whether to continue to regulate public roadways. If the number of owners voting on the question is sufficient to constitute a quorum of the membership and a majority of that number votes to continue regulating public roadways in the planned community, the planned community retains its authority to regulate those public roadways. The board of directors shall record in the office of the county recorder of the county in which the planned community is located a document confirming that the planned community continues to regulate the public roadways.
  2. If the vote prescribed by paragraph 1 fails or if the planned community does not hold a vote of the membership in compliance with paragraph 1, the planned community no longer has authority to regulate the public roadways in the planned community and any existing regulations expire.

This bill applies to Planned Communities


HB2301: HOMEOWNERS’ ASSOCIATIONS; POLITICAL ACTIVITY

This bill would prevent an association from restricting an owner from conducting door-to-door political activity, including solicitations of support or opposition regarding candidates or ballot issues, and may not prohibit a unit owner from circulating political petitions, including candidate nomination petitions or petitions in support of or opposition to an initiative, referendum or recall or other political issue.

This bill applies to both planned communities and condominiums.


HCR2011: VACATION RENTALS; SHORT-TERM RENTALS

This bill would send a referendum to be voted on in the next election. The referendum would be to repeal limits on short term rental/vacation rentals in sections 9-500.39 and 11-269.17 of the Arizona Revised Statutes. Since this is a bill that would lead to a vote by the public it is different than the usual legislation. Our office will monitor this bill along with the regular association bills.


HCR2019: TRIAL BY JURY; ADMINISTRATIVE PROCEEDINGS

This bill would send a referendum to be voted on in the next election. The referendum would allow anyone to request a jury hearing on almost any administrative hearing. This will change the ADRE hearing process if the owner can request a jury trial. Since this is a bill that would lead to a vote by the public it is different than the usual legislation. Our office will monitor this bill along with the regular association bills.