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 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.

Prior to reporting a loss under the association’s 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 carrier or paying for the association’s portion of the loss without reporting a claim. If the association decides not to report a claim to the master carrier, the written decision shall provide for how the portion of the repairs.

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.

Applies to Condominiums.

HB2298: PLANNED COMMUNITY AUTHORITY; PUBLIC ROADWAYS

This bill would require any planned community whose declaration was recorded after 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.