AZHOC - Arizona Homeowners Coalition
Voice for homeowner rights and justice.

Legislation

We need you.

In honor of Jill Schweitzer:

(This page is a tribute to Ms. Jill Schweitzer whose perseverance and tireless efforts to change legislation  for homeowner’s rights in Arizona will be forever remembered.)

JILL’S ACTION ALERT is dedicated to Jill Schweitzer and her passion to inform and protect future homeowners.

Jill fought to protect potential homeowners by allowing them full access to HOA records before purchasing a home in a home owners association. This included: Financials, Future Assessments and Pending Law Suits.

Just as a prospective home owner is given full access to the records and history of the home they wish to purchase, they should have the same access to HOA records allowing them to make an informed decision.

Jill passed away on October 25, 2016 before her dream was realized, but we at the AZHOC continue to promote legislation to support her goal.

2019 Proposed Legislation

Overall Proposal Document  — A brief rundown of all 10 items on our list for 2019. See more details below:

  1. Duties and Standards for Directors and Boards
    • Provides for the codification of simple and straightforward duties and responsibilities of boards and individual directors established in both national common law and Arizona case law.
    • Makes relevant provisions on this subject currently contained in either Chapter 9 or 16 of this title consistent between chapters.
    • Prevents directors with a stated conflict of interest on an issue to participate in the deliberations and vote on that issue.
    • Provides for a civil penalty up to $500 for violations of any provisions in either chapter.
    • Prevents the association from assessing legal fees unless the association prevails in a civil action and were awarded those fees, by the court.
  2. Open Meeting & Voting
    • Replaces the “regularly scheduled” qualifier for committees of the board with “business committees” relative to applicability of the requirements of this section.
    • Requires that all actions of the board, committees, and members must be taken at meetings subject to the requirements and allowances of this section. Allows emergency meeting to be conducted by any means.
    • Clarifies that the requirement to hold an annual meeting is not satisfied if a quorum is not present at an attempt, and the meeting needs to be recalled until held.
    • Requires that proposed agendas be provide along with the notice of any meeting.
    • Requires that background information on board meeting agenda items be made available to any member so requesting that material prior to the meeting.
    • Allows for the conduct of board meetings by teleconferencing or other technological means. And requires that they be utilized if the meeting is conducted 25 miles or further away from the community.
    • Clarifies Absentee Ballots, and allows absentee ballots to be distributed and returned by any means.
    • Provides for the acceptable use of on-line voting services.
    • Requires that any member determined by the association to be ineligible to vote must be notified prior to the election and given an opportunity to correct or contest that ineligibility.
    • Makes the period of declarant control consistent with other sections of statutes
  3. Resale Disclosure
    • Makes Arizona Statutes on this subject consistent with almost every other state statute in the country, by specifying that the disclosure information be provided by the seller to the potential buyer prior to the acceptance of an offer contract.
    • Specifies that the seller may request the association to provide a dated certificate of the disclosure statement, to satisfy this requirement. The seller assumes no responsibility for the accuracy of the information provided by the Association.
    • The seller is responsible to maintain the disclosure information current as applicable, until an offer contract is signed.
    • The actual disclosure information is expanded to provide a better picture of financial health of the association and potential financial liability for the buyer, and other significant materially relevant information.
    • Provides for a more specific and accurate Buyer acknowledgement statement of the fundamental contractual obligation to comply with the community documents and pay common expense assessments.
    • The buyer is given 5 days from the acceptance of the offer contract to retract the offer without penalty based on the disclosure information.
    • The association will provide any information requested by a title agent or lien holder directly within 10 days from a request for that information, without additional charge.
  4. Amendments to declarations
    • Makes relevant provision on this subject currently contained in either Chapters 9 or 16 or section 33440 consistent between chapters. Most significantly, the requirement that certain amendments to declarations require unanimous consent of the members.
    • Reduces the statutory limit for votes required to implement an amendment to the declaration from 67% to 51%, or any higher percentage required in the Declaration, and applies it to both chapters 9 and 16.
    • Requires any notice of a meeting to consider an amendment to the declaration, provide arguments from either the board or members for and against the proposal. Additionally if the board uses association resources to promote their position on the proposal they must allow equal access to those association resources for any opposing group of homeowners.
    • Provides for a statute of limitation to contest an amendment to the declaration of 4 years consistent with Section 12-546 for Contracts.
  5. Budgets and Assessments
    • Relocates the budget ratification process from section 33-1243 to section 33-1255. Since in condominiums the unit owners own all common property and the association manages that property for the owners it is appropriate for the unit owners to ratify a budget proposed by the board of directors. This change simplifies and makes logical and eliminates any exceptions to the ratification process for all condominium budgets and the associated common expense assessment. This requirement for ratification is not appropriate for planned communities because the common property is owned by the association not the members.
    • Modifies the current statutory limit for planned communities and applies that requirement to condominiums, for assessment increases without requiring approval of a majority of members or unit owners to an aggregate of 20% over two year’s vs the current limit of 20% in one year.
  6. Declarant control; Board Elections and Removals
    • Makes relevant provisions on this subject currently contained in either Chapter 9 or 16 of this title consistent between chapters.
    • Clarifies that irrespective of any provision in the community documents to the contrary members of the board are elected by the members and serve the term specified in the bylaws unless they resign or are removed by the members, and that after the term expires they are no longer on the board unless re-elected to that position by the members. Boards can fill vacancies by appointment for the unexpired term only. A quorum of the board may not be occupants of the same lot or unit.
    • Eliminated the different statutory requirement for members to petition for a special meeting based on the subject matter of the meeting and provides for one process for the calling of any special meeting by the members.
    • Provides a requirement that any board member removed from office by the members may only be reinstated to the board by a vote of the members.
    • Modifies the statutory requirement for the termination of declarant control to recognize the time based limitation included in many Declarations for that termination, without any constraint on that provision.
  7. Transfer Fees
    • Clarifies and makes consistent with the specific language contained in 29 of the 44 states that have a similar prohibition on transfer fees associated with private covenants, relative to Condominiums and Planned communities. This language would apply the prohibition to any fee charged the buyer as part of the transfer, by the association
    • Eliminates the exception based or mandatory membership Recreation associations.
    • Reduces the statutory limit and makes consistent with every other state with similar fees, the maximum fee from $400 to actual direct and reasonable cost up to $275. This makes Arizona consistent with the next highest other state, all other states have significantly lower limits on this fee.
    • Revives time limits for rush service and monetary limit for document update fees.
    • All fees must be paid to the association to allow for auditability of those transactions. If the association has contract with an agent to provide this service they can pay the agent separate from the closing transaction. Any contract in effect that requires payment of fees contrary to the new limits will stand but must be made consistent at the next annual renewal of that contract.
  8. Association Liens
    • Requires associations to notify the home or unit owner by certified mail 10 days prior to assigning any delinquent account to either a collection agency or attorney for collection.
    • Makes clarification and definition of Common Expense Assessments provisions currently contained in Chapter 9 of this title consistent in Chapter 16 of this title.
    • Clarifies the difference between Common Expense assessment liens and other liens available to the association for fees, fines, penalties or other charges.
    • Establishes a monetary limit only for foreclosure of common expense assessment liens only and set that limit at the greater of the current annual common expense assessment of the association or $1,200. The current time based limit would allow foreclosure proceedings to commence with as little as $1 of delinquent assessments.
    • Require the association or any agent of the association to accept partial payments to any lien and apply that payment to the principal of the lien first.
    • Allows the association to charge interest on the delinquent common expense assessment but not on any other fees or charges on any liens.
    • Provides direct reference to the mortgage foreclosure statutes and judicial lien process statutes where appropriate.
  9. Fines and Penalties
    • Clarifies that association are free to assess reasonable fines for violations of community documents in accordance with a published fine schedule commensurate with the significance of the violations.
    • Makes the process of citing violations and contesting violations consistent between chapter 9 and 16.
    • Clarifies and simplifies the due process for contesting violations and getting an opportunity to be heard before the board on the violation. Eliminates the need for certified mail and reduces the time limit for members to contest any violation.
  10. Revisions to public offering statements
    • Requires that any material change to a public offering statement that is made after the first lot, home or unit is sold that adversely affects the current owners, must receive the unanimous approval of the current homeowners prior to the Department of Real Estate approval of that request.

Historical Information from 2017 & 2018:

Your Arizona Homeowner Coalition team is constantly monitoring the state Legislature for any activities that would adversely impact homeowners in common interest communities in the state. We will inform you all of the details of that activity and why we either support or oppose that legislation. We meet with Legislators, the governor’s office and state agencies continually to keep your interest and perspective present to all of them. We monitor HOA cases before the Administrative Law Judges and the Arizona Superior, Appellate and Supreme Courts to help keep you all appraised on important cases.

For every Legislative Session we will consider the possibility of proposing changes to legislation to address issues that impact a majority of homeowners in these communities. Unfortunately it is highly unlikely that any legislation that only impacts a small percentage of our community will ever get the support necessary to become law so until we solved the larger issues we cannot spend the time and energy attempting to solve those issue with laws. We will however strive to find ways to help those communities to address those issue in any other way that we can.

In this section we will describe the proposed changes that we are attempting to get introduces for each session. The Legislative sessions start the first week of January and usually end by late April or early May. Approximately 2000 Bills are introduced each year with only about ¼ actually becoming law.

For the 2017 session we were able to get one of those laws passed relative to open meetings and voting.

Let your voices be heard:

For Registered Arizona Legislature Website: Click Here

      To Register, instructions are available: Click Here
      AZ Legislative document on Bill Status Inquiry: Click Here

For Non-Registered, please go to Arizona Voices site and register to vote: Click Here

Arizona Homeowners Coalition 2018 Legislative Proposals

General standards for directors, boards, and managing agencies; Duties, Certification, Conflicts of interest, Rule making, Contracts

Foreclosure Reform (revised 1/15/18)

Improvement District

Open meetings and voting

Resale disclosure requirements and fees

Legislation Updates

2018

AZHOC Legislative Update 1-6-18

Call for action on Senate Bill SB1080

2017 Legislation Proposals

HB 2020 Bill boards; directors; conflict of interest

HB 2146 Bill homeowners’ associations; disclosure documents; agent

HB 2321 Bill homeowners’ associations; cumulative voting; prohibition

HB 2411 Bill homeowners’ associations; open meetings

SB 1019 Bill public records; unduly burdensome requests

SB 1060 Bill homeowners’ associations; dispute process

SB 1072 Bill administrative decisions; scope of review

SB 1113 Bill HOAs; artificial grass ban prohibited

SB 1175 Bill real estate transfer fees; definition

SB 1240 Bill homeowners’ associations; streets; authority

SB 1288 Bill homeowners associations board conflicts

SB 1289 Bill homeowners associations hearings attorneys fees

SB 1371 Bill delinquent property taxes; common areas

SB 1400 Bill homeowners’ associations; assessment liens; foreclosure

SB 1401 Bill homeowners’ associations; managers; duties; gratuities

SB 1402 Bill homeowners’ associations; improvement districts; zoning

SB 1265 State-owned bank task force

SB 1429 Homeowner’s Association; electronic records; fees

HOA laws: Who influences the Legislators?

Most homeowners are struggling to meet their mortgage payments and other obligations while paying a fee to their association. These fees support the HOA industry, creating a business with deep pockets that can afford attorneys and lobbyist to influence laws governing your home.

  • Do these laws favor the homeowner or the HOA industry?
  • Who protects the rights of those living in an HOA community?
  • Who lobbies for the homeowner rights and protections?
  • Who regulates the HOA industry?