2022 AZ Legislative Session - Summaries of Tracked Bills
Below is the summary of each priority HOA bill that AAM is tracking this session:
HOAS; ARTIFICIAL GRASS BAN PROHIBITED
In any planned community that allows natural grass on a member's property, a homeowner's association (HOA) cannot prohibit installing or using artificial turf on any member's property. An HOA is allowed to adopt reasonable rules regarding the installation and appearance of artificial turf if those rules do not prevent installing or using the artificial grass in the same manner that natural grass would be allowed. 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. AS SIGNED BY GOVERNOR
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.]
FIRST RESPONDER FLAGS; HOMEOWNERS' ASSOCIATIONS
Condominium associations and homeowners' associations cannot prohibit the display of a “first responder flag” (defined).
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
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.