This year’s Arizona legislative session adjourned on June 15, 2024. The general effective date for new laws is September 14, 2024. 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. §33-531-539 (NEW): Unlawful Restrictive Covenants; Uniform Act
Permits the governing body (i.e., a Board of Directors) in a common-interest community to amend governing documents to remove unlawful restrictive covenants without a vote of the owners/members of the common-interest community association and notwithstanding any provision in the governing document or other law. An unlawful restriction means a prohibition, restriction, covenant, or condition in a document that interferes with or restricts the transfer, use or occupancy of real property on the basis of race, color, religion, national origin, sex, familial status or disability in violation of state or federal law. Allows an Owner/Member to request such an amendment and provides 90 days for the governing body to determine whether the governing document includes an unlawful restriction. If so, the governing body then has 90 days to amend the governing document to remove the unlawful restriction.
A.R.S. §§9-462.10 & 11-820.04 (NEW): Unlawful Restrictive Covenants; Uniform Act
Applies only to Municipalities and Counties, defining “fowl” as “a cock or hen of the domestic chicken” and specifically protecting the ability of a resident of a single family detached residence on a Lot of ½ acre or less in size from keeping up to six (6) fowl in the backyard. Regulations may be adopted to prohibit male fowl, including roosters, to prohibit fowl “running at large”, to require enclosures (20-foot setbacks, max. 200 square feet, max. height 8 feet), to limit enclosures to shorter than the fence line of Lots less than 1 acre, and to require regular maintenance, disposal of waste, storage of food, and appropriate water sources.
A.R.S. §33-1820 (NEW): Declarant Control; Planned Communities
Establishes new requirements regarding Declarant Control of Planned Communities. Declarations must include the date or method of calculating the date of the termination of the Declarant Control Period, which shall in no circumstance be later than the date on which the Declarant conveys the second to last Lot to a buyer. Also requires the Association to maintain the Common Area to at least the same standard as under Declarant Control and to not impede the Declarant’s development rights or use of the Common Areas in the same manner as other Members so long as the Declarant still owns at least one Lot.
A.R.S. §§33-1202, 33-1256, 33-1802, & 33-1807 (AMENDED): Condominiums; Planned Communities; Lien; Assessment
Defines new terms: “Assessment (Condo Act only),” “Common Expense Lien,” and “Unit Owner/Member Expenses.” Clarifies the distinction between amounts secured by the Association’s automatic lien and other Owner/Member charges. Modifies the assessment lien to include only assessments, charges for late payment of assessments if authorized in the Declaration, reasonable collection fees incurred or applied by the Association, and reasonable attorneys’ fees and costs incurred with respect to those assessments, if the attorneys’ fees and costs are awarded by a court. Requires that the Association’s Board of Directors exercise “reasonable efforts” to communicate with the Owner/Member and to offer a reasonable payment plan before filing a foreclosure action. Modifies the priority of payment application to include payment of due, but not yet delinquent, assessments before charges for late payment of the assessment(s), and any collection costs or attorneys’ fees and costs. Prohibits an Association from transferring ownership or control of debt for common expense liens or Owner/Member expenses to a third-party entity or collector.
A.R.S. §§33-1248 & 33-1804 (AMENDED): Homeowners’ Associations; Meeting Agendas
For Members’ meetings, the Association Secretary must provide an agenda along with the meeting notice for Members’ Meetings by hand-delivery, mail, website posting, email or other electronic means or posting at a community center or other similar location. For Board meetings, the meeting agenda must be delivered in advance of the Board meeting along with the meeting notice at least 48 hours before the meeting.
A.R.S. §33-442 (AMENDED): Homeowners’ Associations; Fees
Prohibits an Association from charging a Transfer Fee otherwise allowed in accordance with ARS §33-442(C) for any conveyance between parties prescribed by ARS 11-1134(B)(3) or (7). These provisions apply to conveyances involving nominal or no consideration between certain enumerated related-parties.
A.R.S. §33-1808 (AMENDED): Homeowners’ Associations; Flagpoles
Associations cannot prohibit an Owner from using two or fewer wall-mounted flagpole holders.
A.R.S. §33-1221 (AMENDED): Condominiums; Interior Improvements; Approvals
Prevents a Condominium Association from either: 1) prohibiting a Unit Owner from using any manner of decoration on the interior of a Unit; and 2) prohibiting a Unit Owner from improving or altering the interior of a Unit in a manner that may disturb adjacent Unit occupants if the Unit Owner purchases and installs reasonably necessary improved materials, accessories or other adjustments that eliminate or minimize the potential disturbance.
