Arizona HOA Legislative Update 2023

This year’s Arizona legislative session adjourned on July 31, 2023. The general effective date for new laws is October 30, 2023. Summaries for the new and/or amended statutes that impact planned communities and condominiums are below and the full text of the statutes can be found at www.azleg.gov. Updated copies of the Arizona Condominium Act and Arizona Planned Communities Act are available to view and download on our website under the G|S Resources tab.

A.R.S. §33-1253 (AMENDED): Condominiums; Insurance Coverage; Claims

Formally recognizes the fact that Condominium Unit Owners are insureds under the Association’s Property Damage and Liability Insurance Policies with respect to the Unit and the Owner’s interest in the Unit and Membership in the Association. Accordingly, the law establishes the Unit Owner’s right to report a loss to the Association’s Insurance Company directly. The Unit Owner must also report to loss the Association. The Unit Owner must give the Association at least 10 business days to decide whether the Association will report the loss, and if it decides not to, it must notify the Unit Owner as to its reason for the decision. Finally, the Association is required report annually to the Members in writing: 1) the Owners’ responsibility for payment of Insurance deductibles for property and liability coverage, if any, and 2) the amount of such deductibles.

A.R.S. §33-1818 (AMENDED): Planned Community Authority; Public Roadways

Currently, in any Planned Community where the Declaration of CC&Rs was recorded after December 31, 2014, the Planned Community Association has no authority to regulate public streets. This law applies to any Planned Community for which the Declaration was recorded before January 1, 2015 and that regulates any public roadway. Now, such Planned Community Association’s must hold a Members’ Meeting, prior to June 30, 2025, for the purpose of a vote to continue to regulate public roadways. Approval by a majority of a quorum is required. If the vote is successful, the Board must record a document confirming the Members approval to continue to regulate the public roadways. If the vote fails or the vote does not occur by the deadline, the Association’s authority to regulate public roadways expires and cannot be “revived.” The law does not apply to “one-way streets” or to any privately owned roadways.

A.R.S. §33-1261 & 33-1808 (AMENDED): Homeowners’ Associations; Betsy Ross Flag

Expands the list of flags or categories of flags that cannot be prohibited in a Planned Community or a Condominium to include any historic version of the American flag, including the Betsy Ross Flag, regardless how stars/stripes are arranged. The Betsy Ross Flag is defined as “an historic flag of the United States that consists of thirteen stripes alternating between red and white stripes and thirteen five-pointed white stars arranged in a circle against a blue background.”

A.R.S. §33-1261 & 33-1808 (AMENDED): Homeowners’ Associations; Political Activity

Removes the exception applicable to Planned Communities and Condominiums that restrict vehicular or pedestrian access to the community, such that an Association cannot restrict door-to-door political activity, except to restrict such activity from sunset to sunrise, and require the prominent display of ID for each person engaged in the activity as the candidate or ballot issue. If a Planned Community or Condominium restricts vehicular or pedestrian access for other reasons, then the person engaged in the protected political activity must be accompanied by a member or resident of the community.

A.R.S. §33-1243 & 33-1813 (AMENDED): Board Members; Condominiums; Planned Communities

Directors are deemed automatically removed if the Board fails to call, notice, and hold a Special Meeting of the Members within 30 days after the receipt of the petition for removal of a single or multiple Directors.

A.R.S. §13-2909 (AMENDED): Residential Picketing; Offense

Residential Picketing is a class 3 misdemeanor, and is now defined as occurring if “a person intentionally engages in picketing or otherwise demonstrates before or about an individual’s residence or dwelling place”, the picketing or demonstrating is “intentionally directed at a person who resides in the residence or dwelling place”, and a “reasonable person would find the person’s picketing or demonstrating to be harassing, threatening or alarming to a person in the residence or dwelling place.” The protections under this law do not apply to a residence or dwelling place that is also used as the individual’s principal place of business.