February 6, 2017 Arizona HOA Legislation Update #3

Prior to the deadline to introduce bills in the Senate, six new bills were added, SB 1371, SB1400, SB1401, SB1402, SB1429 and HB2411. More details are below. 

This session, there are several bills currently on our radar that directly impact Arizona HOAs. These bills include:

House Bill 2146

Homeowners' associations; disclosure documents; agent

Status: 1/12 referred to House Committee  

House Bill 2321

Homeowners' associations; cumulative voting; prohibition

Status: 1/23 referred to House Local and International Affairs Committee 

House Bill 2411

Homeowners' associations; open meetings

Status: 2/6 Waiting on first House read

Senate Bill 1007

Home based business; operations; employees

Status: 1/9 referred to Senate Committee of Public Safety 

Senate Bill 1060

Homeowners' associations; dispute process

Status: 1/26 passed Senate 30-0, ready for House 

Senate Bill 1113

HOAs; artificial grass ban prohibited

Status: 1/26 from Senate gov do pass  

Senate Bill 1175

Real estate transfer fees; definition

Status: 2/6 to Senate consent calendar

Senate Bill 1240

Homeowners' associations; streets; authority

Status: 2/2 from Senate gov do pass 

Senate Bill 1288

Homeowners' associations; Board conflicts 

Status: 2/2 from Senate gov do pass

Senate Bill 1289

Homeowners' associations; hearings; attorney fees

Status: 2/6 to Senate consent calendar 

Senate Bill 1371

Delinquent property taxes; common areas

Status: 2/1 Senate second read 

Senate Bill 1400

Condominium association and homeowners' associations are required to offer a reasonable payment plan for assessments, for charges for late payment of assessments, for reasonable collection fees and for reasonable attorney fees and costs incurred with respect to assessments, and are required to make and document that offer before attempting to foreclose on the lien or otherwise collect those monies. Such liens can be foreclosed only if the owner has been delinquent for two years, increased from one year, or in the amount of $2,500 or more, increased from $1,200, whichever occurs first.

Status: 1/31 referred to Senate gov

Senate Bill 1401

A condominium association or homeowners' association's employees and independent contractors, including "community managers" (defined) are prohibited from soliciting, receiving or accepting any undisclosed fee, compensation, commission or gratuity from any third party that provides or solicits to provide goods or services to the HOA. A community manager is required to act in good faith and in compliance with HOA documents and applicable law, and is prohibited from requiring the HOA to indemnify or otherwise defend the community manager from claims or complaints arising from his/her actions.

Status: 1/31 referred to Senate gov

Senate Bill 1402

Counties and municipalities are no longer prohibited from requiring as part of a subdivision approval or regulation or a zoning ordinance that a subdivider or developer establish a homeowner's association, and are instead required to provide for the establishment of single-family residential property developments that do not include property held in common ownership and that are required to be included in an improvement district for the limited purpose of owning, operating and maintaining any detention and retention basins, landscaping, open spaces, parks, entryways, street rights-of-way, recreational facilities and other improvements for the benefit of the private property owners within the development and the improvement district. Does not prohibit a subdivider or developer from obtaining approval for a residential property development that does not include property held in common ownership without an improvement district.

Status: 1/31 referred to Senate gov

Senate Bill 1429

Condominium associations and homeowners' associations are prohibited from charging a fee for electronic records consisting of nine or less megabytes of electronic data, and may charge of fee of up to $5 for each additional nine megabytes of electronic data.

Status: 1/31 referred to Senate gov

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Key Dates / Links

January 6, 2017 - Session Starts 

January 30, 2017 - Last day for Senate bills to be introduced

February 10, 2017 - Last day for House bills to be introduced

April 18, 2017 - Tentative end of Session, 100th day in session  

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