Legislative Update - CHANGE/UPDATE to SB1454 HOA Omnibus Bill
Many of you are already aware that a lawsuit was filed this summer by two individuals regarding the constitutionality of SB 1454 which Governor Brewer signed on June 14, 2013 and would have taken effect on September 13, 2013. The following Community Action Notice from our trade association the Arizona Association of Community Managers (AACM) provides the outcome of the lawsuit (consent agreement), information on the sections of the bill that will not become law on September 13th, as well as the section that will become law.
COMMUNITY ACTION NOTICE (CAN) from AACM
The court hearing Staropoli v. Arizona has accepted the proposed consent agreement discussed in our previous email. Under the terms of the agreement all HOA related provisions (except for Section 18 dealing with the placement of political signs in a condominium association) of SB1454 are void and unenforceable and DO NOT become effective on September 13, 2013. A copy of SB1454 as passed by the Legislature is here: http://www.azleg.gov/legtext/51leg/1r/laws/0254.pdf.
The void and unenforceable sections would have made the following changes to Arizona law:
Section 2: Prohibited municipalities from mandating the creation of homeowner associations.
Section 3: Prohibited counties from mandating the creation of homeowner associations.
Section 15: Allowed HOA management companies to record a Notice of Lien or Notice of Claim of Lien on behalf of the association, and allowed the HOA management company to appear on behalf of the association in a small claims action.
Section 16: Clarified the allowance of electronic mail and facsimile as acceptable forms of delivery for voting ballots in a condominium association.
Section 17: Permitted a unit owner in a community governed by a condominium association to use a unit as a rental property unless prohibited in the declaration and subject to rental time period restrictions of the declaration. Also, restricted the type of information an association may require be provided related to a renter. Provided for a maximum fee as compensation for the collection of permitted renter information.
Section 19: Permitted a property owner in a community governed by a planned community association to use the property as a rental property unless prohibited in the declaration and subject to rental time period restrictions of the declaration. Also, restricted the type of information an association may require be provided related to a renter. Provided for a maximum fee as compensation for the collection of permitted renter information.
Section 20: Clarified the allowance of electronic mail and facsimile as acceptable forms of delivery for voting ballots in a planned community association.
Section 21: Provided for the refund of filing fees to the petitioner should the petitioner request dismissal before a hearing is scheduled, or by stipulation of the parties before a hearing is scheduled, in an administrative law proceeding.
REMEMBER: SECTION 18 DEALING WITH THE PLACEMENT OF POLITICAL SIGNS IN A CONDOMINIUM ASSOCIATION REMAINS, AND BECOMES EFFECTIVE THIS FRIDAY, SEPTEMBER 13, 2013.
For your information, a copy of the Stipulation in the matter and the Order for the court in their proposed forms are avialable here:
Please visit the Arizona State Legislature website at www.azleg.gov for more information regarding the 2013 session. To check the status of a bill, go to http://www.azleg.gov and in the top right hand corner of the home page type in the applicable bill (e.g. SB1454) and hit enter. The next page that appears will give you a bill overview, a list of the sponsors, the bill versions and the applicable calendar for the bill’s journey through the legislative process.