This year’s Arizona legislative session adjourned on June 27, 2025. The general effective date for new laws is September 26, 2025. 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. §§33-1248 & 33-1804 (AMENDED): Homeowners’ Associations; Meetings; Recordings

For Planned Community and Condominium Associations, if a board records a meeting that is open to the Members, the board shall keep a copy of the recording for at least six months and make the unedited recording available to any member on request, according to the applicable record’s examination statutes in the Planned Communities Act or the Condominium Act.

A.R.S. §§33-1202, 33-1217, & 33-1255 (AMENDED): Condominiums; Commercial Structures; Residential Structures

Applies to Condominiums that include one or more commercial structures that are separate from one or more residential structures. Requires that common expenses that exclusively benefit the commercial structure(s) be exclusively assessed against only the commercial structures, and that common expenses that exclusively benefit the residential structure(s) be exclusively assessed against only the residential structures. Otherwise, common expenses that benefit both types of structures must be assessed proportionately. After the period of Declarant control, common expense allocations may differ from these statutory requirements only after a unanimous vote of the Unit Owners. The definitions of commercial structure and residential structure are defined based on the designation of use of a majority of the units in the structure. A commercial structure is considered separate from a residential structure if no residential units are located on top of or below the commercial structure.

A.R.S. §33-1807 (AMENDED): Common Expense Liens; Foreclosure; Amount

Applies only to Planned Communities. Prohibits an Association from initiating a judicial lien foreclosure action in Superior Court until the owner has been and remains delinquent in the payment of any assessment or portion of the assessment for a period of eighteen months or in the amount of $10,000 or more, whichever occurs first, as determined on the date the action is filed.

A.R.S. §22-503 (AMENDED): Small Claims Court; Jurisdictional Limit

Increases the jurisdictional limitation for Small Claims actions from $3,500 to $5,000.

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

For Planned Communities and Condominiums, includes flags in the definition of “Political Sign”.

A.R.S. §9-500.52 & 11-269.30 (NEW): Municipalities; Counties; Construction Hours

Prevents municipalities and counties from prohibiting any general construction activities (subject to a validly issued building permit) between May 1 and October 15 between the hours of 5 AM and 7 PM on business days, and 7 AM and 7 PM on Saturdays. The law further allows concrete to be poured at least one hour before general construction activities begin. Emergency measure effective May 13, 2025.

A.R.S. §9-461.18, 9-500.39, 9-500.49, & 11-269.17 (AMENDED) AND A.R.S. §11-810.01 (NEW): Accessory Dwelling Units; Requirements

Generally makes clarifying corrections to the existing statutes, and also makes the requirements previously applicable only to municipalities to counties as well. The applicable statutes already require the adoption of regulations applicable to accessory dwelling units that generally allow for at least one attached and one detached accessory dwelling unit on a lot where a single-family dwelling unit is allowed, and prohibit a variety of possible restrictions on the uses of accessory dwelling units. However, these statutes explicitly recognize the enforceability of private restrictive covenants (i.e., CC&Rs). As to the regulation of short-term or vacation rentals, municipalities or counties may require the property owner to reside on the property if the owner wishes to use the accessory dwelling unit for short-term rental or vacation rental purposes, if the Certificate of Occupancy or similar final approval for the accessory dwelling unit was issued on or after September 14, 2024.

To view and/or download a PDF of the Condominium Act, click here.

The Arizona Condominium Act packet contains the following:

• General Provisions
• Creation, Alteration, and Termination of Condominiums
• Management of the Condominium
• Administration of the Condominium Act
• Other Pertinent Statutes

Effective: September 26, 2025

To view and/or download a PDF of the Planned Communities act, click here.

The Planned Communities Act packet contains the following:

• Applicability; exemptions; voluntary election to be subjected to chapter
• Definitions
• Assessment limitation; penalties; notice to member of violation
• Open meetings; exceptions; notice; agenda; policy statement
• Association financial and other records
• Resale of units; information required; fees; civil penalty; definition
• Rental property; member and agent information; fee; disclosure
• Common expense liens; priority; mechanics’ and materialmen’s liens; notice
• Flag display; political signs; caution signs; for sale, rent or lease signs; political and community activities; definitions
• Parking; public service and public safety emergency vehicles; definition
• Board of directors; annual audit
• Board of directors; contracts; conflict
• Proxies; absentee ballots; definition
• Removal of board member; special meeting
• Slum property; professional management
• Association authority; commercial signage
• Solar energy devices; reasonable restrictions; fees and costs
• Declaration amendment; design, architectural committees; review
• Community Authority Over Public Roadways: Applicability
• Artificial turf ban; prohibition; restrictions; attorney fees; applicability
• Declarant control
• Other Pertinent Statutes

Effective: September 26, 2025

Thank you to everyone that joined us for this year’s Summer Series! We hope you found the information helpful. If you weren’t able to attend live, Replays for all three sessions are now available for on-demand viewing. Registration links are below.

Meetings & Voting Procedures
Original Air Date: Tuesday, June 17th
Registration for On-Demand Viewing: https://my.demio.com/ref/hyNWWDFrKHxqFIMj

Mike discussed meeting and election/voting procedures for community associations.

2025 Legislative Update 
Original Air Date: Wednesday, July 16th
Registration for On-Demand Viewing: https://my.demio.com/ref/1KiDrpKqnpXBquRv

Mike covered highlights from the 2025 Legislative session, including new laws, and their impact on community associations.

HOAs in the Media
Original Air Date: Tuesday, August 26th
Registration for On-Demand Viewing: https://my.demio.com/ref/pzg8cigYKifrB17j

Mike covered various stories from the news and social media and discussed how volunteers and management professionals can learn from them and adjust their community’s policies and procedures.

March 2, 2025: The United States Treasury Department announced on Sunday, March 2, 2025 that all enforcement against U.S. citizens or domestic reporting companies or their beneficial owners under the Corporate Transparency Act (“CTA”) will end with new rule changes scheduled to go into effect later this month. The Department indicated that the new rules will be limited in effect to foreign reporting companies only. Until those new rules are put into effect, no fines or other penalties will be applicable.

You can read the full statement from the U.S. Department of the Treasury here: https://home.treasury.gov/news/press-releases/sb0038

What does this mean for Homeowners Associations?

After a long few months of start-and-stop uncertainty about the long-term future of the CTA and BOI Reporting applicable to homeowners associations and other common-interest community associations, the Treasury Department’s announcement effectively ends all enforcement, meaning that homeowners associations and their beneficial owners are no longer subject to the BOI Reporting requirements under the CTA by FinCen’s recently rescheduled deadline of March 21, 2025, or afterwards.

What does this mean for Homeowners Associations that have already filed BOIRs?

If your Association has already filed its report with FinCen, no corrected or updated filings will be required after the new rules go into effect, and there will be no enforcement of fines or other penalties in the meantime.

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We will continue to monitor the Department of Treasury and FinCen closely for any further developments, and further updates will be provided if there are any changes to compliance requirements.

Click here to be directed to the Community Associations Institute’s website with more information about the CTA. 

Last Updated: 03/02/2025

UPDATE: As of March 2, 2025, CTA and BOI Reporting Enforcement has ENDED. Please click here to be taken to the most up-to-date information.

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FEBRUARY 19, 2025: In the Federal Court System’s continuing saga concerning the Corporate Transparency Act (the “CTA”), nationwide compliance by all small businesses, including Homeowners Associations, is again REINSTATED until further decision of the Federal Courts.

As of February 19, 2025, FinCen has extended the deadline to file an initial, updated, and/or corrected BOI Report by 30 days. The new deadline is now March 21, 2025. The FinCen website now also includes the following Notice:

NOTICE: Failure to file the Beneficial Ownership Information Report before March 21, 2025 will result in penalties of up to $593/day.

Here is a brief recap of the recent federal Court decisions:

• February 17, 2025: The United States District Court for the Eastern District of Texas, in the matter of Samantha Smith and Robert Means v. U.S. Department of the Treasury, reversed its prior decision and ordered a STAY of its preliminary nationwide injunction (originally issued on January 7, 2025) against the enforcement of the CTA. The District Court referenced the January 23, 2025 U.S. Supreme Court’s decision to stay the similar injunction issued in the matter of Texas Top Cop Shop, Inc., et al. v. Garland, et al. in granting the stay.
• January 23, 2025: The United States Supreme Court, in the matter of Texas Top Cop Shop, Inc., et al. v. Garland, et al., granted the U.S. Government’s request for emergency relief in the form of a STAY of the nationwide injunction that was previously REINSTATED by the U.S. Court of Appeals for the Fifth Circuit on December 26, 2024. This STAY means that the nationwide injunction issued in the case is put on hold pending the disposition of the pending appeal to the U.S. Court of Appeals for the Fifth Circuit and a possible appeal to the U.S. Supreme Court. The Supreme Court unfortunately did not decide to immediately address the legal question of whether a U.S. District Court can issue nationwide injunctions, so that question remains for future consideration by the Courts.
• January 7, 2025: The United States District Court for the Eastern District of Texas issued a preliminary nationwide injunction against the enforcement of the CTA in the matter of Samantha Smith and Robert Means v. U.S. Department of the Treasury. This was the second nationwide preliminary injunction issued by this same Court to block the U.S. Department of Treasury from enforcing the CTA’s beneficial ownership information reporting requirements.
• December 26, 2024: The U.S. Court of Appeals for the Fifth Circuit REVERSED its earlier decision to stay the District Court’s nationwide preliminary injunction, and reinstated the nationwide preliminary injunction.
• December 23, 2024: FinCen announced that the deadline for filing the necessary BOI Reports was extended to January 13, 2025.
• December 23, 2024: The U.S. Court of Appeals for the Fifth Circuit, issued a stay of the preliminary injunction issued by the U.S. District Court, effectively reinstating the enforceability of the January 1, 2025 BOIR deadline.
• December 3, 2024: The United States District Court for the Eastern District of Texas issued a preliminary nationwide injunction against the enforcement of the CTA in the matter of Texas Top Cop Shop, Inc., et al. v. Garland, et al. The injunction blocked the U.S. Department of Treasury from enforcing the CTA’s beneficial ownership information reporting requirements, rendering the previous January 1, 2025 deadline for compliance unenforceable.

What does this mean for Homeowners Associations?

Unfortunately, this means that the temporary relief from the enforcement of the CTA during the pendency of the ongoing legal process has ended. Homeowners Associations nationwide, like all other small businesses subject to the CTA, are once again under the legal obligation to file an initial BOIR by the above-referenced new deadline.

What does this mean for Homeowners Associations that have already filed BOIRs?

If your Association has already filed its report with FinCen, further filings by the new deadline may still be required. If any information that was provided at the time of your initial filing has changed, then you must now file an updated or corrected BOIR with FinCen. Changes include any new election or appointments of Directors or Officers since the original filing, or any change to the Association’s contact information or the personal information related any of the Beneficial Owners listed on the initial BOIR.

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Of course, this case will be monitored closely for further developments, and further updates will be provided if there are any changes to compliance requirements.

Click here to be directed to the Community Associations Institute’s website with more information about the CTA. 

Last Updated: 03/02/2025

SECOND UPDATE: As of March 2, 2025, CTA and BOI Reporting Enforcement has ENDED. Please click here to be taken to the most up-to-date information.

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UPDATE: As of February 19, 2025, CTA Compliance has been REINSTATED and the Deadline has been EXTENDED to March 21, 2025. Please click here to be taken to the most up-to-date information.

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On December 26th, in yet another change of direction, nationwide compliance by all small businesses, including Homeowners Associations, with the reporting requirement under the Corporate Transparency Act (the “CTA”) has been SUSPENDED AGAIN until further decision of the federal courts.

Here is a brief recap of the recent federal Court decisions:

• December 26, 2024: The U.S. Court of Appeals for the Fifth Circuit REVERSED its earlier decision to stay the District Court’s nationwide preliminary injunction, and reinstated the nationwide preliminary injunction.
• December 23, 2024: FinCen announced that the deadline for filing the necessary BOI Reports was extended to January 13, 2025.
• December 23, 2024: The U.S. Court of Appeals for the Fifth Circuit, issued a stay of the preliminary injunction issued by the U.S. District Court, effectively reinstating the enforceability of the January 1, 2025 BOIR deadline.
• December 3, 2024: The United States District Court for the Eastern District of Texas issued a preliminary nationwide injunction against the enforcement of the CTA in the matter of Texas Top Cop Shop, Inc., et al. v. Garland, et al. The injunction blocked the U.S. Department of Treasury from enforcing the CTA’s beneficial ownership information reporting requirements, rendering the previous January 1, 2025 deadline for compliance unenforceable.

IS YOUR HEAD SPINNING YET?

What does this mean for Homeowners Associations?

Once again, all small businesses subject to the CTA, including Homeowners Associations, have been given temporary relief from the enforcement of the CTA during the pendency of the ongoing legal process that continues to play itself out in the federal courts. Homeowners Associations, who have not yet filed a BOI Report, are now allowed to wait to file BOI reports until further decision from the federal courts. Clearly, as the circumstances can change quickly, it is advisable that all Homeowners Associations that are not otherwise subject to an exemption, be prepared with the necessary information to file a BOI Report promptly if required in the future.

What does this mean for Homeowners Associations that have already filed BOIRs?

If your Association has already filed its report with FinCen, then there is no further action necessary at this time. While enforcement of all BOI Reporting requirements, including any updated reporting following any change to any previously filed BOI reports, is again suspended, if you have a Board of Director’s election coming up in the first quarter of 2025, you should remain vigilant in awaiting further updates about the pending court proceedings as well as other legislative actions or administrative decisions related to the CTA and BOI Reporting.

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Of course, this case will be monitored closely for further developments, and further updates will be provided if there are any changes to compliance requirements.

Click here to be directed to the Community Associations Institute’s website with more information about the CTA. 

Last Updated: 03/02/2025

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THIRD UPDATE: As of March 2, 2025, CTA and BOI Reporting Enforcement has ENDED. Please click here to be taken to the most up-to-date information.

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SECOND UPDATE: As of February 19, 2025, CTA Compliance has been REINSTATED and the Deadline has been EXTENDED to March 21, 2025. Please click here to be taken to the most up-to-date information.

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UPDATE: As of December 27, 2024, the CTA Compliance Deadline has been SUSPENDED again. Please click here to be taken to the most up-to-date information.

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Nationwide compliance by all small businesses, including Homeowners Associations, with the reporting requirement under the Corporate Transparency Act (the “CTA”) has been REINSTATED until further decision of the federal courts. The result is that all small businesses, including homeowners associations not otherwise subject to an exception, MUST submit their Beneficial Ownership Information Reports (“BOIRs”) by the January 1, 2025 deadline.

Earlier this month, the United States District Court for the Eastern District of Texas issued a preliminary nationwide injunction against the enforcement of the CTA in the matter of Texas Top Cop Shop, Inc., et al. v. Garland, et al. The injunction blocked the U.S. Department of Treasury from enforcing the CTA’s beneficial ownership information reporting requirements, rendering the previous January 1, 2025 deadline for compliance unenforceable. However, late on Monday December 23, 2024, the U.S. Court of Appeals for the Fifth Circuit, issued a stay of the preliminary injunction issued by the U.S. District Court, effectively reinstating the enforceability of the January 1, 2025 BOIR deadline.

What does this mean for Homeowners Associations?

Unfortunately, this means that the temporary relief from the enforcement of the CTA during the pendency of the ongoing legal process has now ended after only a few short weeks. Homeowners Associations, nationwide, like all other small businesses subject to the CTA, are once again under the legal obligation to file an initial BOIR by January 1, 2025.

Given the short period of time between the Fifth Circuit’s ruling on December 23, 2024 and the January 1, 2025 deadline, questions about “what happens if we file after the deadline?” are understandable. In September 2024, FinCen provided the following guidance on its FAQs page on its website (https://fincen.gov/boi-faqs):

“FinCEN is working hard to ensure that reporting companies are aware of their obligations to report, update, and correct beneficial ownership information. FinCEN understands this is a new requirement. If you correct a mistake or omission within 90 days of the deadline for the original report, you may avoid being penalized. However, you could face civil and criminal penalties if you disregard your beneficial ownership information reporting obligations.”

What does this mean for Homeowners Associations that have already filed BOIRs?

If your Association has already filed its report with FinCen, then there is no further action necessary at this time. All future reporting under the CTA within 30 days of any change to any information in a previously filed BOIR is required and enforceable.

***

Of course, this case will be monitored closely for further developments, and further updates will be provided if there are any changes to compliance requirements.

Click here to be directed to the Community Associations Institute’s website with more information about the CTA. 

Last Updated: 03/02/2025

Happy holidays from all of us at Goldschmidt|Shupe!

Our office will be closed Monday, December 23rd through Wednesday, January 1st, for the holidays. We will reopen Thursday, January 2nd, at 9:00am.

If you have any questions, feel free to email us at office@gshoalaw.com. During the closure, email and voice messages will be monitored for urgent situations.