2019 Arizona Legislative Update Regarding Community Associations The Arizona Legislature adjourned on May 28, 2019. The effective (or start) date for all bills signed by Governor Ducey is August 27, 2019, unless otherwise specified. SUMMARY OF SENATE BILL 1531 - HOAs; Assessments; Costs The law amends ARS 33-1256 and ARS 33-1807 and therefore applies to both condominiums and planned communities. It [...]
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There are thousands of community associations in Arizona today. Characteristics of a Community Association All owners become members of a community association when they accept a deed to a lot/unit located in a community association. The governing documents (i.e. CC&Rs, articles of incorporation, bylaws and rules and regulations) create obligations on the part of the homeowners and the community association. [...]
Trustee’s Sale If an owner becomes delinquent on his/her mortgage or deed of trust, the deed of trust company may initiate foreclosure proceedings on the owner’s property by noticing a Trustee’s Sale. Secure the association’s interests: A lien places the Trustee on notice of the association’s interests, so the association will receive notice of the Trustee’s Sale and notice of [...]
Transition From Developer Control The transition from developer control occurs when control of the association shifts from the developer to the owners. The transfer of control can occur in several ways. However, the most common method is a weighted voting approach whereby the membership voting ratio is arranged so that the developer will transfer control to the association after a [...]
1. The Arizona Open Meeting Law A.R.S. 33-1804 / Condo A.R.S. 33-1248 Pursuant to Arizona law, all meetings of an association, board of directors, and regularly scheduled committee meetings are required to be open to all association members or their representatives (who have been designated as such in writing) and held in the State of Arizona. Members or their designated representatives [...]
Theft of Association Funds Theft of association funds is, unfortunately, becoming common in community associations. Arizona newspapers have reported in the past few years misappropriation of funds by a management company, the unexpected closure of a small management company after individuals absconded with funds from several associations, and a manager taking a million dollars from an association. If you have [...]
Code of Conduct Overview An association board of directors code of conduct explains the expectations of board members regarding ethical rules and procedures, standards of behavior, and professional conduct while they serve as a director for their association. The code may be necessary because of the director’s diverse work experiences, personalities, and reasons for serving. A code of conduct creates [...]
AN OVERVIEW OF THE SELF-MANAGED COMMUNITY ASSOCIATION A community association is a nonprofit corporation, a business that is governed by federal law, nonprofit corporation law, Arizona State statutes, and the governing documents of the association. The volunteer board of directors has fiduciary duties to the association and a responsibility to protect the assets of the association. It is important to remember that self-managed and professionally [...]
Technology and Community Associations Technology is an important part of our day to day lives. There are increasingly more technological advances available to community associations. The Arizona legislature has included the use of technology into new state laws. Online voting, association websites, online payments and virtual meetings have been created to make information, communication and accessibility easier for the association [...]
STATE LAWS THAT APPLY TO OFFICE CONDOMINIUMS Arizona Nonprofit Corporation Act: A.R.S. Sections 10-3101 through 10-11909 All associations that are incorporated as Nonprofit corporations are subject to the Arizona Nonprofit Corporation Act. The Arizona Nonprofit Corporation Act contains extensive provisions governing the formation and operation of Nonprofit corporations. These provisions are usually (but not always) “gap fillers” and apply only if the association’s articles [...]