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.
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.
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.
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.
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.
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.
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.
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.
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.
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.