2022 Arizona Legislative Session - Committee of Origin Deadline Passed

In this session, there are a couple of bills currently on our radar that may directly impact Arizona HOAs.

HOA Priority Bills:

HOAS; ARTIFICIAL GRASS BAN PROHIBITED

In any planned community that allows grass on a member's property, a homeowner's association (HOA) cannot prohibit installing or using artificial grass on any member's property. An HOA is allowed to adopt reasonable rules regarding the installation and appearance of artificial grass if those rules do not prevent installing or using the artificial grass. The court is required to award reasonable attorney fees and costs to any party that prevails in an action against the HOA for a violation of this legislation.

Status: 2/23 Passwed House 57-2, ready for Senate

House Bill 2275

CONDOMINIUM TERMINATION; UNIT OWNERS; PERCENTAGE

A condominium may be terminated only be agreement of unit owners of units to which 100 percent of the votes in the association are allocated, increased from at least 80 percent. [Capitol Reports Note: This provision was originally signed into law as part of Laws 2021, chapter 405 (part of the FY2021-22 budget), but was deemed unconstitutional by the Arizona Supreme Court in Arizona School Boards Association et al v. State of Arizona.]

Status: 2/21 Referred to Senate Commerce Committee

House Bill 2010

FIRST RESPONDER FLAGS; HOMEOWNERS' ASSOCIATIONS

Condominium associations and homeowners' associations cannot prohibit the display of a “first responder flag” (defined).

Status: 2/17 Referred to Senate Government & Elections Committee

House Bill 2158

HOMEOWNERS' ASSOCIATIONS; POLITICAL; COMMUNITY ACTIVITY

Condominium associations and planned community associations cannot prohibit or unreasonably restrict a unit owner or member's ability to peacefully assemble and use common elements of the community if done in compliance with reasonable restrictions for the use of that property adopted by the board of directors. An individual unit owner or member or a group of unit owners or members are permitted to assemble to discuss matters related to the association, including board elections or recalls, potential or actual ballot issues or revisions to the community documents, and property maintenance or safety issues. A unit owner or member is allowed to invite a political candidate or other non-unit owner guest to speak to an assembly of unit owners or members. Condominium associations and planned community associations cannot prohibit or unreasonably restrict the indoor or outdoor display of an association-specific political sign by a unit owner or member on that unit owner or member's own property. AS PASSED HOUSE

Status: 2/17 Referred to Senate Government & Elections Committee

House Bill 2234

VACATION RENTALS; SHORT-TERM RENTALS; ENFORCEMENT.

Modifies the list of regulations that counties and municipalities are authorized to impose on vacation rentals or short-terms rentals to include requiring the owner of a vacation rental or short-term rental to maintain liability insurance appropriate to cover the rental in the aggregate of at least $500,000 or to advertise and offer each vacation rental or short-term rental through a hosting platform that provides equal or greater coverage. Counties and municipalities are authorized to impose civil penalties against an owner of a vacation rental or short-term rental for "verified violations" (defined) of specified provisions. Modifies civil penalties for online lodging operators that fail to comply with applicable transaction privilege tax requirements. After notice and a hearing, the Department of Revenue is authorized to suspend for a period of 12 months the transaction privilege tax license of the owner of a vacation rental or short-term rental that has three verified violations within the same 12-month period.

Status: 2/16 Referred to House Commerce Committee do pass

House Bill 2625

VACATION RENTALS; SHORT-TERM RENTALS; REGULATIONS

The list of purposes for which counties and municipalities are permitted to regulate vacation rentals and short-term rentals is expanded to include requiring the owner to provide contact information for the owner or the owner's designee to all property owners within 300 feet of the vacation rental or short-term rental property, requiring the owner to display a sign attached to the property near the front door that contains a local 24-hour emergency contact number, and requiring the owner to obtain and maintain a local regulatory permit or license before offering the property for rent.

Status: 2/17 From House Appropriations Committee with amend #4253

House Bill 2711

VACATION RENTALS; SHORT-TERM RENTALS; RESTRICTIONS

A municipality with a population of less than 17,000 persons is allowed to require the owner of a vacation rental or short-term rental to obtain and maintain a permit or license issued by the municipality before renting or operating a vacation rental or short-term rental, is allowed to limit the number of vacation rentals and short-term rentals based on a percentage of total residentially zoned buildings or structures in that municipality, and is allowed to regulate vacation rentals or short-term rentals in the same manner as transient lodging activities.

Status: 2/15 Referred to House Land, Agriculture & Rural Affairs Committee

Senate Bill 1168

VACATION RENTALS; SHORT-TERM RENTALS; ENFORCEMENT

Status: 2/23 Passed Senate 22-6, ready for House

Senate Bill 1249

HOMEOWNERS' ASSOCIATIONS; UNIFORMED SERVICES FLAG

Homeowners' associations and condo associations cannot prohibit the outdoor display of the flag of any uniformed services.

Status: 2/10 passed Senate 28-0; ready for House

Dead Bills:

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

House Bill 2700

CONDOMINIUMS; PLANNED COMMUNITIES; AMENDMENTS