In any planned community that allows grass on a member’s property, a homeowner’s association (HOA) cannot prohibit installing or using artificial grass on any member’s property. An HOA is allowed to adopt reasonable rules regarding the installation and appearance of artificial grass if those rules do not prevent installing or using the artificial grass. The court is required to award reasonable attorney fees and costs to any party that prevails in an action against the HOA for a violation of this legislation.
A condominium may be terminated only be agreement of unit owners of units to which 100 percent of the votes in the association are allocated, increased from at least 80 percent. [Capitol Reports Note: This provision was originally signed into law as part of Laws 2021, chapter 405 (part of the FY2021-22 budget), but was deemed unconstitutional by the Arizona Supreme Court in Arizona School Boards Association et al v. State of Arizona.]
Status: 2/21 Referred to Senate Commerce Committee
HOMEOWNERS’ ASSOCIATIONS; POLITICAL; COMMUNITY ACTIVITY
Condominium associations and planned community associations cannot prohibit or unreasonably restrict a unit owner or member’s ability to peacefully assemble and use common elements of the community if done in compliance with reasonable restrictions for the use of that property adopted by the board of directors. An individual unit owner or member or a group of unit owners or members are permitted to assemble to discuss matters related to the association, including board elections or recalls, potential or actual ballot issues or revisions to the community documents, and property maintenance or safety issues. A unit owner or member is allowed to invite a political candidate or other non-unit owner guest to speak to an assembly of unit owners or members. Condominium associations and planned community associations cannot prohibit or unreasonably restrict the indoor or outdoor display of an association-specific political sign by a unit owner or member on that unit owner or member’s own property. AS PASSED HOUSE
Status: 2/17 Referred to Senate Government & Elections Committee
Modifies the list of regulations that counties and municipalities are authorized to impose on vacation rentals or short-terms rentals to include requiring the owner of a vacation rental or short-term rental to maintain liability insurance appropriate to cover the rental in the aggregate of at least $500,000 or to advertise and offer each vacation rental or short-term rental through a hosting platform that provides equal or greater coverage. Counties and municipalities are authorized to impose civil penalties against an owner of a vacation rental or short-term rental for “verified violations” (defined) of specified provisions. Modifies civil penalties for online lodging operators that fail to comply with applicable transaction privilege tax requirements. After notice and a hearing, the Department of Revenue is authorized to suspend for a period of 12 months the transaction privilege tax license of the owner of a vacation rental or short-term rental that has three verified violations within the same 12-month period.
Status: 2/16 Referred to House Commerce Committee do pass
The list of purposes for which counties and municipalities are permitted to regulate vacation rentals and short-term rentals is expanded to include requiring the owner to provide contact information for the owner or the owner’s designee to all property owners within 300 feet of the vacation rental or short-term rental property, requiring the owner to display a sign attached to the property near the front door that contains a local 24-hour emergency contact number, and requiring the owner to obtain and maintain a local regulatory permit or license before offering the property for rent.
Status: 2/17 From House Appropriations Committee with amend #4253
A municipality with a population of less than 17,000 persons is allowed to require the owner of a vacation rental or short-term rental to obtain and maintain a permit or license issued by the municipality before renting or operating a vacation rental or short-term rental, is allowed to limit the number of vacation rentals and short-term rentals based on a percentage of total residentially zoned buildings or structures in that municipality, and is allowed to regulate vacation rentals or short-term rentals in the same manner as transient lodging activities.
Status: 2/15 Referred to House Land, Agriculture & Rural Affairs Committee
Modifies the list of regulations that counties and municipalities are authorized to impose on vacation rentals or short-terms rentals to include requiring the owner of a vacation rental or short-term rental to maintain liability insurance appropriate to cover the rental in the aggregate of at least $500,000 or to advertise and offer each vacation rental or short-term rental through a hosting platform that provides equal or greater coverage. Counties and municipalities are authorized to impose civil penalties against an owner of a vacation rental or short-term rental for “verified violations” (defined) of specified provisions. Modifies civil penalties for online lodging operators that fail to comply with applicable transaction privilege tax requirements. After notice and a hearing, the Department of Revenue is authorized to suspend for a period of 12 months the transaction privilege tax license of the owner of a vacation rental or short-term rental that has three verified violations within the same 12-month period.
A municipality with a population of less than 17,000 persons is allowed to require the owner of a vacation rental or short-term rental to obtain and maintain a permit or license issued by the municipality before renting or operating a vacation rental or short-term rental, is allowed to limit the number of vacation rentals and short-term rentals based on a percentage of total residentially zoned buildings or structures in that municipality, and is allowed to regulate vacation rentals or short-term rentals in the same manner as transient lodging activities.
Status: 2/7 Referred to House Land, Agricultures & Rural Affairs Committee
A municipality with a population of less than 17,000 persons is allowed to require the owner of a vacation rental or short-term rental to obtain and maintain a permit or license issued by the municipality before renting or operating a vacation rental or short-term rental, is allowed to limit the number of vacation rentals and short-term rentals based on a percentage of total residentially zoned buildings or structures in that municipality, and is allowed to regulate vacation rentals or short-term rentals in the same manner as transient lodging activities.
Status: 2/7 Referred to House Land, Agricultures & Rural Affairs Committee
The list of purposes for which counties and municipalities are permitted to regulate vacation rentals and short-term rentals is expanded to include requiring the owner to provide contact information for the owner or the owner’s designee to all property owners within 300 feet of the vacation rental or short-term rental property, requiring the owner to display a sign attached to the property near the front door that contains a local 24-hour emergency contact number, and requiring the owner to obtain and maintain a local regulatory permit or license before offering the property for rent.
A landlord that owns five or more dwelling units and a landlord that owns a mobile home park is prohibited from inquiring about, considering or requiring disclosure of the criminal history record of an applicant for tenancy during the leasing process except after the applicant has received a conditional offer on tenancy and the disclosure is only for the period of the seven most recent consecutive years preceding the date that that conditional offer of tenancy is made. Some exceptions. If the applicant for tenancy discloses a crime, the landlord is required to provide the applicant a reasonable opportunity to present evidence of rehabilitation or other mitigating factors regarding the conviction, and to consider the evidence of rehabilitation in making decisions regarding the tenancy. The landlord is prohibited from retaliating against the applicant or any other tenant for making a complaint against the landlord for noncompliance with these requirements. A landlord who fails to comply is liable to the applicant or tenant under statute governing an unlawful ouster, and an applicant is deemed to be a tenant for that purpose and may file an action for unlawful ouster and damages.
Status: 1/31 – Referred to Senate Commerce Committee
Repeals statutes prohibiting municipalities and counties from prohibiting vacation rentals or short-term rentals and limiting the restrictions that municipalities and counties may place on those rentals to a list of specified purposes. Repeals the online lodging marketplace transaction privilege tax classification, and the requirement for online lodging marketplaces to register with the Department of Revenue for payment of transaction privilege taxes on online lodging transactions. Repeals the requirement for online lodging operators to have a current transaction privilege tax license and related civil penalties for noncompliance. Repeals the Joint Legislative Study Committee on Transient Lodging.
Status: 1/31 – Referred to Senate Commerce Committee
The 2022 general election ballot is to carry the question of whether to amend state statute to repeal statutes prohibiting municipalities and counties from prohibiting vacation rentals or short-term rentals and limiting the restrictions that municipalities and counties may place on those rentals to a list of specified purposes. Land use laws that regulate a vacation rental or short-term rental are excluded from statute entitling a property owner to just compensation if existing rights to use private real property are reduced by the enactment of any land use law enacted after the date the property is transferred to the owner and the action reduces the fair market value of the property.
Status: 1/27 – Referred to Senate Commerce Committee
2022 Arizona Legislative Session – HOA Bill Tracking Update
In this session, there a couple of bills currently on our radar that may directly impact Arizona HOAs.
Rental agreements are prohibited from providing that the tenant agrees not to carry, possess, transport or store on the premises a firearm, a part of a firearm or firearm ammunition that is authorized under state or federal law. Applies to the tenant, the tenant’s guest, the tenant’s dwelling and any parking area or other area open for use by the tenant. Condo associations and homeowners’ associations cannot prohibit an owner, member, tenant or guest from carrying, possessing, transporting or storing a firearm, a part of a firearm or firearm ammunition that is authorized under state or federal law in any dwelling, office, parking lot or common element.
A recorded judgment cannot become a lien on any homestead property. Any person entitled to a homestead on real property as provided by law holds the homestead property free and clear of the judgment lien. Some exceptions.
A condominium may be terminated only be agreement of unit owners of units to which 100 percent of the votes in the association are allocated, increased from at least 80 percent. [Capitol Reports Note: This provision was originally signed into law as part of Laws 2021, chapter 405 (part of the FY2021-22 budget), but was deemed unconstitutional by the Arizona Supreme Court in Arizona School Boards Association et al v. State of Arizona.]
A recorded judgment cannot become a lien on any homestead property. Any person entitled to a homestead on real property as provided by law holds the homestead property free and clear of the judgment lien. Some exceptions.
The 2022 general election ballot is to carry the question of whether to amend the state Constitution to repeal statutes prohibiting municipalities and counties from prohibiting vacation rentals or short-term rentals and limiting the restrictions that municipalities and counties may place on those rentals to a list of specified purposes. Land use laws that regulate a vacation rental or short-term rental are excluded from statute entitling a property owner to just compensation if existing rights to use private real property are reduced by the enactment of any land use law enacted after the date the property is transferred to the owner and the action reduces the fair market value of the property.
The 55th Arizona Legislative-Second Regular Session kicked off, Monday, January 10, 2022.
With 100 days in regular session, AAM will track bills pertinent to our industry and keep you informed, posting updates on our website regularly and sending weekly email blasts.
In this session, there are a couple of bills currently on our radar that may directly impact Arizona HOAs.
In any planned community that allows grass on a member’s property, a homeowner’s association (HOA) cannot prohibit installing or using artificial grass on any member’s property. An HOA is allowed to adopt reasonable rules regarding the installation and appearance of artificial grass if those rules do not prevent installing or using the artificial grass. The court is required to award reasonable attorney fees and costs to any party that prevails in an action against the HOA for a violation of this legislation.
A person commits residential picketing, a class 3 (lowest) misdemeanor, if the person intentionally engages in picketing or otherwise demonstrates near the residence of an individual if the actions are such that a reasonable person would find the acts harassing, annoying, or alarming.
Repeals statute that prohibits municipalities and counties from prohibiting vacation rentals or short-term rentals and that restricts the types of regulations that municipalities and counties may impose on vacation rentals or short-term rentals.
HOMEOWNERS’ ASSOCIATIONS; POLITICAL; COMMUNITY ACTIVITY
Condominium associations and planned community associations cannot prohibit or unreasonably restrict a unit owner or member’s ability to peacefully assemble and use private or common elements of the community if done in compliance with reasonable restrictions for the use of that property adopted by the board of directors. An individual unit owner or member or a group of unit owners or members are permitted to organize to discuss or address association business, including board elections or recalls, potential or actual ballot issues or revisions to the community documents, property maintenance or safety issues or any other association business or actions. A unit owner or member is allowed to invite a political candidate or other non-unit owner guest to speak to an assembly of unit owners or members. For the purpose of the prohibition on condominium associations and planned community associations prohibiting the display of a political sign, the definition of “political sign” is expanded to include a sign regarding any activity to elect or remove association directors or in support of or opposition to a measure that requires a vote of the association membership.
Modifies the list of regulations that counties and municipalities are authorized to impose on vacation rentals or short-terms rentals to include requiring the owner of a vacation rental or short-term rental to maintain liability insurance appropriate to cover the rental in the aggregate of at least $500,000 or to advertise and offer each vacation rental or short-term rental through a hosting platform that provides equal or greater coverage. Counties and municipalities are authorized to impose civil penalties against an owner of a vacation rental or short-term rental for “verified violations” (defined) of specified provisions. Modifies civil penalties for online lodging operators that fail to comply with applicable transaction privilege tax requirements. After notice and a hearing, the Department of Revenue is authorized to suspend for a period of 12 months the transaction privilege tax license of the owner of a vacation rental or short-term rental that has three verified violations within the same 12-month period.
Repeals statute that prohibits municipalities and counties from prohibiting vacation rentals or short-term rentals and that restricts the types of regulations that municipalities and counties may impose on vacation rentals or short-term rentals.
A homeowners’ association cannot prohibit the installation of a water saving device or indoor or outdoor water conservation practice. A homeowners’ association is authorized to adopt reasonable rules regarding the placement of a solar energy device or water saving device or the use of a water conservation practice if those rules do not prevent the installation of the device or impair the functioning of the device. The association is required to provide written notice to members of any such rules adopted.
Modifies the list of regulations that counties and municipalities are authorized to impose on vacation rentals or short-terms rentals to include requiring the owner of a vacation rental or short-term rental to maintain liability insurance appropriate to cover the rental in the aggregate of at least $500,000 or to advertise and offer each vacation rental or short-term rental through a hosting platform that provides equal or greater coverage. Counties and municipalities are authorized to impose civil penalties against an owner of a vacation rental or short-term rental for “verified violations” (defined) of specified provisions. Modifies civil penalties for online lodging operators that fail to comply with applicable transaction privilege tax requirements. After notice and a hearing, the Department of Revenue is authorized to suspend for a period of 12 months the transaction privilege tax license of the owner of a vacation rental or short-term rental that has three verified violations within the same 12-month period.
