2024 Arizona Legislative Session – Session Adjourned Sine Die
The 56th Legislature, 2nd Regular Session, adjourned Sine Die at 9:55 P.M. on Saturday, June 15, 2024. The General Effective date when new laws from this session will take effect is Saturday, September 14, 2024.
2024 Arizona Legislative Session – HOA Bill Summaries
HB2119 – Real property (Homeowner’s associations; fees; related parties)
Sponsor: Rep. Laurin Hendrix (R)
Summary: Prohibits an Association from charging certain fees as outlined in state law and those exempted in this legislation, excepting for service fees authorized in a document to manage real property within the Association. AS PASSED HOUSE.
Summary: Allows a unit owner to make improvement or alterations to a condo if those activities do not impair the structural integrity or mechanical systems, or lessen any support of any part of the condo. Prohibits a condo association from prohibiting a unit owner to improve or alter their condo if the improvements or alterations disturb another unit, provided the unit owner purchases and installs materials, accessories or equipment to minimize the potential disturbance. Prohibits an association from prohibiting a unit owner from using any manner of decoration on the interior of the unit. AS PASSED HOUSE.
HB2325 – Backyard fowl; regulation; prohibition
Sponsor: Rep. Kevin Payne (R)
Summary: Counties and municipalities are prohibited from adopting any law, ordinance, or other regulation that prohibits a resident of a single-family detached residence that is one-half acre or less in size from keeping “fowl” (defined as a cock or hen of the domestic chicken) in the backyard of the property. Counties and municipalities are allowed to establish specified regulations on fowl, including restricting the number of fowl and prohibiting a resident from keeping male fowl, including roosters. AS PASSED HOUSE.
HB2328 – Mobile food vendors; operation; rules
Sponsor: Rep. Kevin Payne (R)
Summary: Permits a mobile food vendor to operate on a private, residential property in a residential area if the property is the primary resident of the property owner, a tenant with a lease or a trustee of a living trust that owns the property, the vendor has secured written permission to operate on the property, does not serve members of the public, is not the spouse trustee of the property, does not serve food between the hours of 10 p.m. and 6 a.m., and removes all food waste, cooking grease and other trash from the property in compliance with all applicable laws. Prohibits a city or town to charge more than $150 annually for a location based license or permit, and requires that all fees imposed adhere to state law governing mobile food vendors. Prohibits counties from requiring generators be attached to mobile food units. Permits the mobile food unit to request an exemption from serving area requirements if the unit can meet health and safety standards on its own. AS PASSED HOUSE.
HB2470 – Planned communities; authority; public roadways
Sponsor: Rep. Cory McGarr (R)
Summary: Stipulates that if a government entity accepts a transfer of ownership of community roadways of a planned community the association, then relinquishes authority to regulate that roadway. Removes the approval process for relinquishing the roadway(s,) including meeting requirements and deadlines, voting requirements, public recording requirements and the exclusion of one-way and privately owned roadways included in the transfer.
HB2570 – Planning; home design; restrictions; prohibition
Sponsor: Rep. Leo Biasiucci (R)
Summary: Prevents a municipality from interfering with a home buyer’s right to choose the features, amenities, structure, floor plan and interior and exterior design of a home; and from requiring the formation of a homeowners’ association, a condominium association or any other association or a shared feature or amenity that would require a homeowners’ association, a condominium association or any other association to maintain or operate the feature or amenity, unless necessary for stormwater management. Prevents a municipality from requiring screening, walls or fences, or private streets. Notwithstanding any other law, prevents any municipality from adopting or enforcing any code, ordinance, regulation, standard, stipulation or other requirement establishing, directly or indirectly, for new developments that are five or more acres in size that will be platted and located in an area zoned for single-family homes, minimum lot sizes that are greater than 1,500 square feet except a municipality may enforce adopted minimum lot sizes greater than 1,500 square feet where multiple lots smaller than five acres with existing dwelling units exist. Further, a municipality may not establish maximum or minimum lot sizes for a single-family home or accessory structures, minimum building setbacks for a single-family home greater than five feet from the side lot lines and 10 feet from the front and rear lot lines, or design architectural or aesthetic elements for a single-family home except for those located in historical districts or are of historical significance. This legislation does not supersede applicable building codes, fire codes or health and safety provisions and it applies to developments constructed after the effective date of this legislation and applies to developments constructed after the effective date in a municipality of more than 70,000 persons. Contains a statement of legislative intent. Is entitled the “Arizona Starter Homes Act.” AS PASSED HOUSE.
HB2575 – Homeowners’ associations; powers
Sponsor: Rep. Leo Biasiucci (R)
Summary: Permits an HOA to adopt and amend bylaws, rules, budgets, expenditures, and reserves, collect assessments for common expenses, hire and discharge managing agents and independent contractors, institute, defend or intervene in litigation or administrative proceedings as its own entity on behalf of itself, two or more members on matters affecting the association or in the members’ interest, make contracts, and incur liabilities. Permits an association to regulate the use, maintenance repair, replacement and modification of common areas, grant easements, leases, licenses and concessions pertaining to common areas, impose and receive payments, fees or charges for the use, rental and operation of common areas. Permits an association to impose reasonable charges for preparation and recordation of amendments to official association documents, provide indemnification of its officers and executive board and maintain liability insurance, and exercise any other powers conferred to it by community documents, per state law.
Summary: Establishes a “common expense” (defined) lien on a unit for an assessment levied against that unit from the time the assessment becomes due and permits foreclosure if the unit owner is delinquent in payment of monies secured by the common expense, excluding late payment charges if authorized in the declaration and costs incurred or applied by the association related to the lien if awarded by the court. Requires the association board to exercise all reasonable efforts to communicate with the owner, negotiate reasonable payment and to implement relevant and applicable collection remedies before initiating foreclosure. Creates an envelope of “member expenses” (defined) that includes fees, charges, late charges, and monetary penalties that would create an automatic lien for nonpayment and includes member expenses in actions not prohibited in regards to efforts related to attempts to recover outstanding debt. Excludes delinquent assessments as part of payment distribution to cover unpaid assessments, charges for late payment if authorized in association documents and costs incurred or applied by the association regarding unpaid assessments, if awarded by a court. Removes the date commence stipulation for providing unit owners a statement of account for complexes with less than 50 units. Prohibits an association from transferring ownership or control of debt for common or member expenses. AS PASSED HOUSE.
Summary: Requires the secretary of a unit owners’ association to provide an agenda for any meeting of the unit owner’s association, in writing, in advance, per state law, by hand, mail, website posting, email or other form of electronic communication, or by posting it at a community center or similar location. AS PASSED HOUSE.
Summary: Requires a declaration that provides for a period of declarant control of an association to provide a date of or method of calculating the date of the termination of the declarant control. For planned communities, whether the community documents cover the termination of declarant control, the declarant control termination date shall be no later than the date on which the second to last lot in the planned community is conveyed. Requires an association to provide the same level maintenance of common areas as the declarant provided upon termination of the period of declarant control and while the declarant owns one or more lots in a planned community and to not impede the declarant’s ability to sell its lots, or impede access to and use of common areas. AS PASSED HOUSE.
HB2861 – Condominiums; terminations
Sponsor: Rep. Judy Schwiebert (D)
Summary: Stipulates that the respective interests of unit owners are to be calculated based on the fair market values of their units, limited common elements, and common element interests immediately before the termination, and their pro rata share of any monies in the association’s reserve fund and the operating account immediately before the termination and only applies to a unit that is owner-occupied. Increases the additional amount of share a “unit owner” (defined) receives upon termination to 10% of the total amount of relocation costs, plus closing costs of the sale of the transaction, including title insurance costs if requested by the unit owner. Requires that for all owners, the fair market value of the unit must be determined by an independent appraisal of the unit and based on units with similar square footage, age, number of bedrooms and bathrooms, and other similar features, including common element amenities such as swimming pools, recreational courts, and clubhouses. Requires that the appraiser be a state-licensed real estate appraiser, state-certified real estate appraiser, or state-certified general real estate appraiser as prescribed by law. Requires that the appraisal include at least three comparable sales, one being a unit from within that condominium complex, if available, and two comparable sales from outside that condominium complex and that it be based on completed transactions. Requires that the appraiser be chosen by the owner and that the cost of the appraisal be covered by the buyer, and if the owner chooses not to use an appraisal, the fair market value must be determined without it pursuant to this legislation. Prohibits the fair market value of a unit to be reduced by any special assessments, capital improvement fees, or other charges imposed by the association during the two years Immediately preceding the termination. Removes the requirement that an independent appraiser be selected by the association, their appraisal be distributed to the unit owners, any objection must be recorded within sixty days after distribution, a unit owner may obtain a second independent appraisal at the unit owners’ expense, and if the owner’s independent appraisal amount differs from the association’s independent appraisal amount by 5% or less, and the total amount of compensation owed determined by the second appraiser is more than 5% higher then the amount determined by the association’s appraiser, the higher appraisal is the official appraisal. Provides an option of arbitration if a unit owner and the buyer do not agree on the fair market value of the unit or on the relocation costs and other additional amounts due to the owner of an owner-occupied unit. Removes the requirement that during the arbitration process, the appraisers must disclose their appraisal methodologies and any other transaction occurring between the buyer and the sellers. Assigns an additional 5% of the final sale amount to the total for relocation costs. Removes a commence date for declaring conflicts with this legislation as void as a matter of public policy. Requires a unit owner to provide written notice to a purchaser where the purchaser’s authorized agent that per state law, the sale of a condominium may be terminated by a vote of 80% or more of the owners of the units in the condominium complex 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. Requires the unit owner to notify the purchaser in writing that the condominium is governed by the recorded covenants, conditions, and restrictions that regulate the use of the property. Requires the condominium association’s board of directors to provide a notice to all unit owners that includes a statement that under the laws of the state, the condominium may be terminated by a vote of 80% or more of the units in the complex, 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, and a statement that provides the total number of units in the condominium, the number of units owned by each unit owner, and the name of each unit owner. Contains a notice of legislative intent. Stipulates that this legislation, as amended, applies retroactively to all condominiums in the state, whether established before or after the effective date of this legislation.
SB1016 – Homeowners’ associations; flagpoles
Sponsor: Sen. John Kavanagh (R)
Summary: Allows a Homeowner’s association to limit a member to two wall mounted flagpole holders. AS PASSED SENATE.
SB1022 – Associations; appeal to heaven flags
Sponsor: Sen. John Kavanagh (R)
Summary: Prohibits condo associations from prohibiting outdoor, or outdoor front yard or back yard displays of the “Appeal to Heaven” flag, which is defined as “a historic flag of the Revolutionary War consisting of a green pine tree on a white background with the words “An Appeal to Heaven” placed above the pine tree.”
SB1112 – Planning; home design; restrictions; prohibition.
Sponsor: Sen. Sonny Borrelli (R)
Summary: Prevents a municipality from interfering with a home buyer’s right to choose the features, amenities, structure, floor plan and interior and exterior design of a home; and from requiring the formation of a homeowners’ association, a condominium association or any other association or a shared feature or amenity that would require a homeowners’ association, a condominium association or any other association to maintain or operate the feature or amenity, unless necessary for stormwater management. Prevents a municipality from requiring screening, walls or fences, or private streets. Notwithstanding any other law, prevents any municipality designated as an urban area by the census bureau with a population greater than 50,000 may not regulate maximum or minimum lot sizes on which a single-family home may be located; minimum square footage or dimensions for a single-family home; maximum or minimum lot coverage for a single-family home and any accessory structures; minimum building setbacks greater than five feet for a single-family home; design, architectural or aesthetic elements for a single-family home. The provisions do not supersede applicable building codes, fire codes or public health and safety regulations.
Summary: Permits an owner of property subject to an unlawful restriction to submit an amendment to remove that restriction to the Recorder for recordation in the Lands Records office of the County where the property is located. Modifies definition of “governing instrument”. Permits the governing body of an association of owners to vote to remove an “unlawful restriction” (defined) without a vote by the members of the association. Permits a member or members of an association to request in a record that identifies an unlawful restriction to remove that restriction and requires the association to act on that request no later than 90 days after receipt of the request. A submitted or approved amendment must identify the owner of the property in question, the property affected and the document containing the unlawful restriction. Defines the specific wording and form of an amendment request that must be included in the amendment and requires it conform to required formats and wording for the Lands Record office. Requires the Recorder to add the amendment to the index and cross reference the amendment to the document containing the unlawful restriction. Requires a court to consider the promotion of uniformity of the law when applying and construing this Act. Lists federal laws or acts the Act modifies, limits or supersedes and what federal laws or acts it does not. Provides severability clause. Entitles the bill as the “Uniform Unlawful Restrictions in Land Act.” AS PASSED SENATE.
2024 Arizona Legislative Session – HOA Bill Tracking
In this session, there are a number of bills currently on our radar that may directly impact Arizona HOAs.
The 56th Arizona Legislative-Second Regular Session kicked off, on Monday, January 8, 2024.
With 100 days in regular session, AAM will track bills pertinent to our industry and keep you informed through emails and updated posts to our website.
In this session, there are a couple of bills currently on our radar that may directly impact Arizona HOAs.
