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.

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.

HB2251: CONDOMINIUMS; INSURANCE COVERAGE; CLAIMS

This bill would require property insurance to cover the units, only if the insurance coverage of individual units is required by the condominium documents. This would make each unit owner an insured person under the policy with respect to liability or property damage arising out of the unit owner’s interest in the common elements, the unit, if required by the condominium documents, or membership in the association.

Prior to reporting a loss under the association’s master property insurance policy, a unit owner shall report the loss to the association and give the association ten business days to provide the unit owner with a copy of its written decision stating whether the association will be reporting a claim to the master policy. If the association decides not to report a claim to the master policy, the association shall provide the reason for the decision in the written decision.

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

  1. The unit owner’s responsibility for the association’s insurance deductibles for all property and liability coverage.
  1. The amount of each deductible.

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 call a meeting of the membership on the question of whether to continue to regulate public roadways. If the number of owners voting at the meeting 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.
  1. If the vote fails or if the planned community does not hold a vote 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 allow the Association to prohibit a person who is not accompanied by a unit owner or resident of the Association from entering the Association premises if the Association restricts vehicular or pedestrian access.

This bill applies to both Planned Communities and Condominiums.

HB2607: HOMEOWNERS’ ASSOCIATIONS; MEETINGS

This bill would add a deadline to the Board to act upon receipt of a petition that calls for removal of a member.

If all of the requirements for removal of a member of the board of directors are met and the board of directors fails to call, notice and hold a special meeting within thirty days after receipt of the petition, the members of the board of directors are deemed removed from office effective at midnight of the thirty-first day.

Applies to Planned Communities and Condominiums.

Bills that did not pass through their original committees by March 15, 2023 have been removed from this list.