2023 Arizona Legislative Session - Priority Bills
In this session, there are a couple of bills currently on our radar that may directly impact Arizona HOAs.
HOA Priority Bills:
HOMEOWNERS’ ASSOCIATIONS; FLAG BAN; PROHIBITION
Condominium associations and homeowners' associations cannot prohibit the outdoor display of any flag unless the flag is obscene, defamatory, or likely to incite violence.
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HOMEOWNERS’ ASSOCIATIONS; BETSY ROSS FLAG
Homeowners' associations and condo associations cannot prohibit the outdoor display of any historic version of the American flag, including the "Betsy Ross flag" (defined), without regard to how the stars and stripes are arranged on the flag.
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HOME-BASED BUSINESSES; RESTRICTIONS; PROHIBITION
A home-based business must be allowed as a use by right if the home-based business does not supersede any deed restriction, covenant or agreement restricting the use of land, a master deed or any other document applicable to a common interest ownership community. Counties and municipalities cannot prohibit a "no-impact home-based business" (defined) or require a person to apply for, register, or obtain a permit, license, variance or other type of prior municipal approval to operate a no-impact home-based business. Counties and municipalities are authorized to establish reasonable regulations on a home-based business if the regulations are narrowly tailored for specified purposes, including protecting public health and safety and ensuring that the business activity is compatible with residential use of the property.
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CONDOMINIUMS; INSURANCE COVERAGE; CLAIMS
Condominium associations are required to maintain property insurance on the units. Each unit owner has the right to report a loss under the association's property insurance policy. If the cause of damage to or destruction of any portion of a condominium originates from the common elements or an event outside of the units and common elements, the insurance deductible is a common expense for the association. If the cause originates from a unit, the owner of the unit is responsible for the deductible of up to $10,000.
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PLANNED COMMUNITY AUTHORITY; PUBLIC ROADWAYS
If a planned community regulates any public roadway, the planned community is required, by June 30, 2025, to hold a vote of the membership on the question of whether to continue to regulate public roadways. If a majority of a quorum of the membership of the community votes to continue regulating public roadways in the planned community, the planned community retains its authority to regulate those public roadways. If the vote fails or if the planned community does not hold a vote, the planned community no longer has authority to regulate the public roadways in the planned community and any existing regulations expire.
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HOMEOWNERS’ ASSOCIATIONS; POLITICAL ACTIVITY
Condominium associations and planned community associations cannot restrict a unit owner from conducting door-to-door political activity, and cannot prohibit a unit owner from circulating political petitions.
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FORECLOSURE SALES; HOUSING DEPARTMENT; REGISTRY
For a trustee's sale of residential property with up to four residential units, an "eligible tenant buyer" (defined) is allowed to submit a bid in an amount equal to the full amount of the successful bid at the trustee's sale, along with an affidavit stating that the eligible tenant buyer will occupy the residential property as his/her primary residence within 60 days after the recording of a trustee's deed in favor of the eligible tenant buyer, and will maintain occupancy for at least one year. For a trustee's sale of residential property with up to four residential units, an "eligible bidder" (defined) is allowed to submit a bid in an amount that exceeds the full amount of the successful bid along with an affidavit stating that the eligible tenant buyer will occupy the residential property as his/her primary residence within 60 days after the recording of a trustee's deed in favor of the eligible tenant buyer, and will maintain occupancy for at least one year. These types of bids must be submitted within 30 days after the trustee sale. For a trustee's sale of residential property with up to four residential units, the trustee is required to allow eligible tenant buyers and eligible bidders to match or exceed the bid amount and are prohibited to execute the trustee's deed until expiration of the 30-day period. Also, the Arizona Department of Housing (ADOH) is required to establish and operate a registry of persons or entities that own more than 25 residential properties in Arizona, and monitor the level of compliance with state and local laws with respect to those properties. ADOH is also required to acquire and assist in acquiring at trustee sales residential housing appropriate for maintaining and increasing the supply of housing for purchase or rent by low and moderate income persons, including nonprofit corporations that provide housing assistance to acquire residential properties for sale or rent.
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