2018 Legislative Update #1

2018 Legislative Session Begins

The 53rd Arizona Legislative-Second Regular Session kicked off, Monday, January 8, 2018. With 100 days in regular session, AAM will track bills pertinent to our industry and keep you informed, posting updates on our website regularly and sending weekly email blasts.

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

HOA Priority Bills:

House Bill 2262

For the purpose of termination of condominium procedures, an additional five percent of the calculated respective interests of condominium unit owners is added to the respective interest total for relocation costs. A determination of fair market value of a condominium unit as determined by an independent appraiser selected by the condominium association becomes final unless disapproved by the unit owner within 60 days, increased from 30 days, after distribution to the unit owner. A unit owner is authorized to obtain a second independent appraisal at the unit owner's expense and if the total amount of compensation owed as determined by the second appraiser is greater, the unit owner must be paid the average of the two amounts and an additional five percent of that amount for relocation costs. This legislation applies to all condominiums created in Arizona without regard to when the condominium was created.

Status: 1/17 - Referred to House Com.

House Bill 2308

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: 1/18 - Referred to House Gov.

Senate Bill 1012

In attempting to serve or while serving process, a duly appointed or certified private process server is authorized to enter and remain on real property, and to enter unannounced and remain in a planned community or condo association that is guarded or gated.

Status: 1/8 - Referred to Senate Jud. 

Senate Bill 1084

A determination of fair market value of a condominium unit as determined by an independent appraiser selected by the condominium association becomes final unless disapproved by the unit owner within 60 days, increased from 30 days, after distribution to the unit owner. A unit owner is authorized to select an independent appraiser other than the appraiser selected by the association and is required to submit the independent appraisal to the association within 90 days after distribution of the association's appraisal to the owner. If the appraisal amount differs by two percent or less, the owner's appraisal is final. If the appraisal amount differs by more than two percent, a jointly selected arbitrator or mediator must make a final determination as to the fair market value of the property, and the association is required to pay the cost of the arbitrator or mediator.

Status: 1/9 - Referred to Senate Gov. 

Dead Bills:

(please note that a "dead" status is subject to change)

Senate Bill 1080

A lien on a unit in a condominium association or homeowner's association may be foreclosed only if the owner has been delinquent in the payment of monies secured by the lien for a period of 6 months, instead of for one year or $1,200 or more, whichever occurred first.

Status: 1/9 - Referred to Senate Gov.