Arizona HOA Laws

Homeowners associations in Arizona are bound by their governing documents and state laws. While there are too many Arizona HOA laws to list down, some come up more often than others.

For Homeowners Associations

The Arizona Planned Communities Act governs all planned communities. This Act tackles member notices, dues collection, liens, records inspection, and many more.

There are 19 sections under the Act, which can be found within the Arizona Revised Statutes.

• Applicability; exemptions; voluntary election to be subjected to chapter
• Definitions
• Assessment limitation; penalties; notice to member of violation
• Open meetings; exceptions
• Association financial and other records
• Resale of units; information required; fees; civil penalty; definition
• Rental property; member and agent information; fee; disclosure
• Lien for assessments; priority; mechanics’ and materialmen’s liens; notice
• Flag display; political signs; caution signs; for sale, rent or lease signs; political activities
• Parking; public service and public safety emergency vehicles; definition
• Board of directors; annual audit
• Board of directors; contracts; conflict
• Proxies; absentee ballots; definition
• Removal of board member; special meeting
• Slum property; professional management
• Association authority; commercial signage
• Solar energy devices; reasonable restrictions; fees and costs
• Declaration amendment; design, architectural committees; review
• Community authority over public roadways; applicability

For Condominiums

The Arizona Condominium Act oversees the formation, alteration, management, and dissolution of condominiums in the state. It does not matter when the condominium was created — the Act governs all of them nevertheless.

There are four articles under the Act, each one divided further into sections.

Article 1 – General Provisions

• Applicability
• Definitions
• Variation
• Separate titles and taxation
• Applicability of local ordinances, rules and building codes
• Eminent domain
• Severability

Article 2 – Creation, Alteration, and Termination of Condominiums

• Creation of condominium
• Unit boundaries
• Construction and validity of declaration and bylaws
• Description of units
• Contents of declaration
• Leasehold condominiums
• Allocation of common element interests, votes and common expense liabilities
• Limited common elements
• Plat
• Exercise of development rights
• Alterations of units
• Relocation of boundaries between adjoining units
• Subdivision of units
• Easement for encroachments
• Use for sale purposes
• Easement to facilitate exercise of special declarant rights
• Amendment of declaration
• Termination of condominium
• Rights of secured lenders
• Merger or consolidation of condominiums

Article 3 – Management of the Condominium

• Organization of unit owners’ association
• Powers of unit owners’ association; notice to unit owner of violation
• Board of directors and officers; conflict; powers; limitations; removal; annual audit; applicability
• Transfer of special declarant rights
• Termination of contracts and leases of declarant; applicability
• Bylaws
• Upkeep of the condominium
• Open meetings; exceptions
• Quorums; applicability
• Voting; proxies; absentee ballots; applicability; definition
• Tort and contract liability
• Conveyance or encumbrance of common elements
• Conveyance of certain real property
• Insurance
• Surplus monies
• Assessments for common expenses; applicability
• Lien for assessments; priority; mechanics’ and materialmen’s liens; notice; applicability
• Other liens affecting the condominium
• Association financial and other records; applicability
• Association as trustee
• Resale of units; information required; fees; civil penalty; applicability; definition
• Rental property; unit owner and agent information; fee; disclosure
• Flag display; for sale, rent or lease signs; political signs and activities; applicability

Article 4 – Administration of the Condominium Act

• Department of real estate; enforcement

Corporate Governance

Both homeowners associations and condominiums can be formed as unincorporated organizations or non-profit corporations. This is in accordance with the Arizona Revised Statutes Section 33-1241 (for condominiums) and Section 33-1802 (for planned communities). For non-profit corporations, the Arizona Nonprofit Corporation Act serves as a guide for corporate governance relating to procedures and structures.

Arizona HOA Laws on Dues and Assessments

Homeowners associations in Arizona have the authority to collect monthly dues from homeowners as well as special assessments. There is a limit, however, to how much an HOA may raise these fees. According to the Arizona Revised Statutes Section 33-1803, associations can’t impose regular dues that are 20 percent higher than the dues charged the fiscal year prior unless a majority of the community members approve it.

Homeowners associations can also charge an additional fee for late payments, which are payments that remain unpaid after the due date for 15 days or more. Late fees are computed as 10 percent of the unpaid amount due or $15, whichever is higher. But, associations must notify homeowners of the overdue fees before they can apply any late charges.

Arizona HOA Laws on Liens and Foreclosures

When homeowners fail to pay their dues, Arizona HOAs can attach a lien to the property of the delinquent owner (Arizona Revised Statutes Section 33-1807). Associations don’t need to record the lien with the county recorder’s office. It remains valid nonetheless.

Following the attachment of a lien, homeowners associations can foreclose on that lien even if the property owner is up to date on their mortgage. The process requires HOAs to file a lawsuit to initiate foreclosure proceedings since Arizona law requires judicial foreclosures.

Arizona HOA Laws on Property Use Restrictions

The Arizona Planned Communities Act, as they appear in the Arizona Revised Statutes (A.R.S.), sheds some light on what homeowners associations can and can’t impose when it comes to property use restrictions.

• Rental Property Restrictions. Unless the association’s declaration says otherwise, A.R.S. Section 33-1806.01 states that members can rent out their property provided they follow time period restrictions outlined within the declaration.
• Flags and Political Signs. According to the A.R.S. Section 33-1808, associations may not restrict homeowners from displaying the U.S. flag and the Arizona state flag, among other things. The same section outlines that HOAs also may not prohibit members from displaying political signs but can regulate the size and number of signs. Associations can also restrict political sign displays between 71 days prior to election day and 3 days after.
• Solar Energy Devices. A.R.S. Section 33-1816 protects homeowners’ rights to install solar energy devices on their property. Associations can’t ban solar energy devices from the community but can regulate other things such as the placement of the device.

Arizona HOA Laws on Dispute Resolution

The Arizona Department of Real Estate (ADRE) regulates the HOA Dispute Process, providing residents with a method for resolving conflict that does not require the involvement of the judicial system. To make use of this process, HOAs or homeowners can petition the ADRE for a hearing. Then, an administrative law judge will determine what each party should do — whether that means adhering to the governing documents or paying a penalty.

You can find details of this dispute process within the Arizona Revised Statutes.

• Administrative adjudication of complaints
• Hearing; rights and procedures
• Orders; penalties; disposition
• Rehearing; appeal
• Condominium and planned community hearing office fund

Arizona HOA Laws on Records Inspections

Most homeowners associations must allow their members to review community records. According to the A.R.S. Section 33-1805, HOAs must make association records reasonably available to all homeowners or their representatives. Associations have 10 days to fulfill a member’s request to view the records and can’t charge any fees for the production of said records.

Some records, of course, must remain confidential. According to the same section, associations can withhold documents from disclosure if they relate to pending litigation issues, personal information, minutes of board meetings held in executive session, and are protected by the attorney-client privilege.

Fair Housing

The Arizona Civil Rights Act, also known as the Arizona Fair Housing Act, protects certain classes from discrimination in housing and accommodation based on their race, color, sex, religion, national origin, and familial status. It is modeled after the federal Fair Housing Act and the Americans with Disabilities Act.

Residents who feel they have fallen victim to housing discrimination by their HOA can file a complaint with the U.S. Department of Housing and Urban Development or with the Arizona Attorney General. They may also deal with the matter privately through a lawsuit.