January 8th, 2024, marked the opening of Arizona’s Fifty-Sixth Second Regular Legislative Session.

SB1016 Homeowners’ Associations; Flagpoles

Applies to Planned Communities.

This Bill would allow an association to limit an owner to two wall mounted flagpole holders.

SB1022 Associations; Appeal to Heaven Flags

Applies to Planned Communities and Condominiums.

This Bill would make it so an Association cannot ban the “an appeal to heaven” flag.

SB1205 Short-term Rentals; Ordinance; Limits

This Bill would allow a city or town to regulate short term and vacation rentals.

SB1293 Condominium Associations; Technical Correction

Applies to Condominiums.

This Bill is a technical correction for Condominiums.

SB1294 Elections; Homeowners’ Associations

Applies to Planned Communities and Condominiums.

This Bill sets forth rules for association elections as well as eligibility to vote in the elections.

SB1297 Planned Communities; No Quorum; Dissolution

Applies to Planned Communities.

This Bill would require that a planned community that fails to meet minimum quorum requirements for meetings of the association for three consecutive years must be dissolved and the covenants, conditions and restrictions and other community documents shall be void and unenforceable beginning with the next calendar year.

  1. Monies that are held by the association shall continue to be held in trust for the benefit of the members and shall be divided equally among the members within twenty calendar days after the effective date of the dissolution.
  2. A planned community that fails to meet minimum quorum requirements for meetings of the association for two consecutive years may not award new contracts or plan new projects and expenditures that would not be completed until after a possible dissolution pursuant to subsection a of this section.
SB1610 Homeowners’ Associations; Powers

Applies to Planned Communities and Condominiums.

This Bill would establish the Homeowners association’s powers subject to the provisions of the declaration

SB1718 Condominium Associations; Technical Correction

Applies to Condominiums.

This Bill is a technical correction for Condominiums.

HB2083 Homeowners’ Associations; Assessments

Applies to Planned Communities and Condominiums.

This Bill would prevent the Association from increasing the annual assessment by more than twenty percent notwithstanding any maximum annual assessment provision or any other provision in the community documents, unless the community documents do not require member approval for or otherwise do not limit increases in the annual assessment:

1. The board may increase the annual assessment by no more than twenty percent greater than the immediately preceding year’s annual assessment, or any greater percentage provided in the  community documents, without a vote of the members.

2. The annual assessment may be increased by more than twenty percent greater than the immediately preceding year’s annual assessment, or any greater percentage provided in the community documents, with the approval of sixty-seven percent of each class of members voting at a duly held meeting called for that purpose.

HB2084 Homeowners’ Associations; Annual Meeting

Applies to Planned Communities and Condominiums.

This Bill would make numerous changes to the open meeting requirements, voting and elections.

HB2085 Homeowners’ Associations; Records Requests

Applies to Planned Communities and Condominiums.

This Bill would add in requirements for a records request to comply with and expand on items that may be withheld.

HB2119 Homeowner’s Associations; Fees; Related Parties

Applies to Planned Communities and Condominiums.

This Bill has a technical correction as well as requiring that the association shall not charge a fee for any conveyance between parties.

HB2126 Homeowners’ Associations; Financial Approvals; Members

Applies to Planned Communities and Condominiums.

This Bill would require an assessment increase of more than twenty percent of the aggregate of the two immediately preceding fiscal years’ assessment be voted on by the members at an annual or special meeting of the members called for that purpose. If the members approve an annual common expense assessment increase, that approved assessment becomes the baseline amount for purposes of the limitation prescribed by this subsection for future assessments, without consideration of the previous year’s assessment.

Notwithstanding any provision of the community documents, if the Board of directors votes to propose a special assessment or to secure financing of more than one year’s duration for any reason, that special assessment or financing must first be approved by the affirmative vote of a majority of all of the members or by any larger percentage specified in the declaration or bylaws.

HB2141 Condominiums; Interior Improvements; Approvals

Applies to Condominiums.

This Bill would prevent the Association from prohibiting a unit owner from improving or altering the interior of a unit in a manner that may disturb adjacent unit occupants if the unit owner purchases and installs at the unit owner’s own expense any reasonably necessary improved materials, accessories or other adjustments that eliminate or minimize the potential disturbance. The association shall not prohibit a unit owner from using any manner of decoration on the interior of the unit.

HB2156 Short-term Rentals; Online Lodging Marketplace

This Bill would require a vacation rental or short-term rental to show that the owner of the vacation rental or short-term rental is in compliance with the licensing requirements before allowing an advertisement for rental of the vacation rental or short-term rental on the online lodging marketplace. An online lodging marketplace that allows an advertisement for a vacation rental or short-term rental if the owner of the vacation rental or short-term rental has not shown compliance with the requirements shall be subject to a civil penalty of up to $500 or up to an amount equal to one night’s rent for the vacation rental or short-term rental as advertised, whichever is greater, after thirty days of the vacation rental or short-term rental advertisement appearing on the online lodging marketplace.

HB2219 Vacation Rentals; Regulation; Location

This Bill would require a vacation rental or short-term rental be located at least four hundred linear feet from another vacation rental or short-term rental.

HB2220 Vacation Rentals; Number; Population; Cap

This Bill would allow a city or town to set a maximum number of short term and vacation rentals.

HB2270 Homeowners’ Associations; Meetings

Applies to Planned Communities and Condominiums.

This Bill would expand on the open meeting exceptions, open meeting requirements and quorum requirements for meetings.

HB2470 Planned Communities; Authority; Public Roadways

Applies to Planned Communities.

This Bill would reverse the HB2298 Bill from the last session requiring a meeting of the members to continue to maintain public roadways.

HB2488 Vacation Rentals; Short-term Rentals; Restrictions

This Bill would allow a city or town to set a maximum number of short term and vacation rentals.

HB2498 Short-term Rentals; Ordinance; Limits

This Bill would allow a city or town to set a maximum number of short term and vacation rentals.

HB2541 Planned Communities; Documents; Commission Database

Applies to Planned Communities and Condominiums.

This Bill would require the association to file and maintain the association documents with the Corporation Commission.

HB2555 Online Lodging Marketplaces

This Bill would allow cities and towns to verify and enforce an online lodging marketplace’s compliance of an online lodging marketplace. An online lodging marketplace may not display or offer for rent a property or transact business for a property or online lodging operator in this State if the property or online lodging operator is not in compliance with all applicable State, County and local laws at the time of the rental or occupancy. A person that violates this section is subject to a civil penalty of $250 per violation, and each day of a violation constitutes a separate violation.

HB2556 Vacation Rentals; Short-term rentals; Regulation

This Bill would allow a city or town to regulate short term and vacation rentals.

HB2575 Homeowners’ Associations; Powers

Applies to Planned Communities and Condominiums.

This Bill establishes the powers of an association.

Subject to the provisions of the declaration, the association may:

  1. Adopt and amend bylaws and rules.
  2. Adopt and amend budgets for revenues, expenditures and reserves and collect assessments for common expenses from members.
  3. Hire and discharge managing agents and other employees, agents and independent contractors.
  4. Institute, defend or intervene in litigation or administrative proceedings in its own name on behalf of itself or two or more members on matters affecting the association or planned community or the members’ interests.
  5. Make contracts and incur liabilities.
  6. Regulate the use, maintenance, repair, replacement and modification of common areas.
  7. Grant easements, leases, licenses and concessions through or over the common areas.
  8. Impose and receive any payments, fees or charges for the use, rental or operation of the common areas.
  9. Impose reasonable charges for the preparation and recordation of amendments to the declaration or statements of unpaid assessments.
  10. Provide for the indemnification of its officers and executive board of directors and maintain directors’ and officers’ liability insurance.
  11. Exercise any other powers conferred by the community documents.
  12. Exercise all other powers that may be exercised in this state by legal entities of the same type as the association.
HB2662 Homeowners’ Associations; Meeting Agendas

Applies to Planned Communities and Condominiums.

This Bill would require the secretary to provide an agenda for any meeting of the unit owners’ association by hand delivery, mail, website posting, email or other electronic means or posting at a community center or other similar location.

HB2663 Homeowners’ Associations; Assessment Liens

Applies to Planned Communities and Condominiums.

This Bill would require the association to exercise all reasonable efforts to communicate with the owner, negotiate reasonable payment plans and collect the debt through all remedies that are reasonably available under the law pursuant to title, chapter 9 before filing a foreclosure action.

Failure of the association or its authorized agents, including any attorney for the association or its authorized agent, to correct any error in the application of payments from the member pursuant to this subsection within ten calendar days after receiving notice of the error extinguishes any common expense assessment lien then due.

HB2698 Planned Communities; Declarant Control

Applies to Planned Communities

This Bill would require the declaration that provides a period of declarant control to also provide for the termination of declarant control. Declarant control terminates not later than the date on which the seconds to last lot in the planned community is conveyed to a buyer.

HB2861 Condominiums; Terminations

Applies to Condominiums.

This Bill would require a condominium provide an annual notice that, under the laws of this state, the condominium may be terminated by a vote of eighty percent or more of the owners of the units in the condominium and if a sufficient number of units are acquired by a potential buyer for the entire property, the unit owners may be required to sell their units. The statement must also provide the total number of units in the condominium, the number of units owned by each unit owner and the name of each unit owner.

 

 

2024 Summary of Arizona Legislation Regarding HOAs/Condos