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.

Join Carolyn Goldschmidt and Mike Shupe for their 2023 Summer Series, featuring three new webinars this June, July, and August. Registration for all three sessions is available now using the links below.

Insurance & Liability
When: Wednesday, June 21st at 12:00pm
Registration: CLOSED

Mike and guest speaker, Scott McLaughlin, insurance professional with LeBaronCarroll, will discuss common insurance and liability issues community associations face.

2023 Legislative Update 
When: Tuesday, July 25th at 12:00pm
Registration: CLOSED

Highlights from the 2022-2023 Legislative session, including new laws, and their impact on community associations

CC&Rs Amendments
When: Tuesday, August 22nd at 12:00pm
Registration: CLOSED

Practical and legal realities of amending your CC&Rs post Kalway v. Calabria Ranch

This year’s Arizona legislative session adjourned on June 25, 2022. The general effective date for new laws is September 24, 2022. 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. §33-1819 (NEW): Artificial Grass Ban Prohibited

In a Planned Community where natural grass is not already prohibited, the Association cannot prohibit a member from installing artificial turf on their property. If the CC&Rs are amended to prohibit new installation of natural grass, then the Association can prohibit new installations of artificial turf except for the conversion of existing natural grass to artificial turf. The Association is able to adopt reasonable rules regarding the installation and appearance of artificial turf, and/or require its replacement or removal if it presents a health issue or is not maintained according to the Association’s standards. There are also exceptions for planned communities that have reason to protect the natural environment, or unique vegetation or geologic characteristics.

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

Expands the list of flags or categories of flags that cannot be prohibited in a Planned Community or a Condominium to include: 1) First Responder Flags and 2) Blue/Gold Star Service Flags. First Responder Flags are specifically defined as a flag that recognizes and honors the services of any of the following:

(a) Law enforcement and that is limited to the colors: blue, black, and white; the words: “law enforcement”, “police”, “officers”, “first responder”, “honor our”, “support our”, and “department”; and the symbol of a generic police shield in a crest or star shape.
(b) Fire department and that is limited to the colors: red, gold, black, and white; the words: “fire”, “fighters”, “F”, “D”, “FD”, “first responder”, “department”, “honor our”, and “support our”; and the symbol of a generic maltese cross.
(c) Paramedics or emergency medical technicians and that is limited to the colors: blue, black, and white; the words: “first responder”, “paramedic”, “emergency medical”, “service”, “technician”, “honor our” and “support our”; and the symbol of a generic star of life.

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

Expands the categories of signs that cannot be prohibited in a Planned Community or a Condominium to include Association-specific political signs that support or oppose a candidate for the board of directors or the recall of a board member or a condominium ballot measure that requires a vote of the Association unit owners. An Association may establish reasonable rules regarding placement, location, and manner of display, but signs 1) must be allowed for a certain time after ballots are provided to the membership, 2) cannot be limited to an aggregate total size of less than nine square feet, 3) cannot be required to be commercially produced or limited to one-side only, 4) cannot be limited as to the number of candidates or issues, or otherwise as to content, except as to the use of profanity and discriminatory text; images; or content based on race, color, religion, sex, familial status, or national origin as prescribed by federal or state fair housing laws.

Also, limits the Association’s ability to prohibit or unreasonably restrict a member’s ability to peacefully assemble and use common elements/areas if done in compliance with reasonable restrictions for the use of that property adopted by the board of directors and if the assembly is for the purpose of discussing matters related to the condominium or community (i.e., board of director elections or recalls, potential or actual ballot issues or revisions to the governing documents, property maintenance or safety issues, or any other condominium or community matters). A member may invite one political candidate or one non-member guest to speak to an assembly of members about matters related to the condominium or community, and must be allowed to post notices regarding the assembly of members on bulletin boards located on the common elements/areas. Clarification is made that any such assembly of members will not constitute an official members’ meeting unless the meeting is noticed and convened as required by statute and/or the governing documents.

Last month, the Arizona Supreme Court issued a decision and opinion that has significant ramifications for Amendments to CC&Rs – past, present, and future. A copy of the Court’s opinion can be found here.

Briefly, the Court determined that mere compliance with the general amendment provision currently in the CC&Rs is not sufficient to amend the CC&Rs. In order for the general amendment provision in the CC&Rs to apply, the original CC&Rs “must give sufficient notice of the possibility of a future amendment”. A general statement of purpose is insufficient. Instead, the CC&Rs must provide notice that the particular covenant or restriction in question can be amended to “refine it, correct an error, fill in a gap, or change it in a particular way…, but cannot be ‘entirely new and different in character’, untethered to an original covenant”.

The reasonable conclusion from this decision is that, for a vast majority of amendments to the CC&Rs, unanimous approval of all Owners is necessary. Furthermore, the Court failed to establish any limitations as to the reach of its decision, calling into serious question any amendments to CC&Rs that received less than unanimous approval since the recording of the original CC&Rs.

Given the gravity of the decision on Community Associations of all types, sizes, and ages, you are invited to join Michael Shupe for a Webinar focused on an in-depth analysis of this case and the impact of the Court’s decision on your communities. If your community has recently amended your CC&Rs, or if you are currently considering any amendments now, or in the future, your attendance at one of the offered sessions is strongly encouraged.

When: Friday, April 8, 2022 at 12:00pm and Wednesday, April 13, 2022 at 10:00am

Registration: REGISTRATION NOW CLOSED

Contact: Feel free to contact us at office@gshoalaw.com if you have any questions or trouble registering.

Join Carolyn and Mike for this virtual webinar as they discuss some of their most asked-about issues HOAs are facing today. Topics will include short-term rentals, meeting procedures, and security devices.

When: Wednesday, November 17, 2021 at 12:00pm

Registration: Click here to register.

Q&A Session Questions: During the Webinar, questions may be entered via Chat. However, if you would like to submit questions on this topic ahead of time, you may do so via the email address below.

Contact: Feel free to contact us at office@gshoalaw.com if you have any questions or trouble registering.

This year’s Arizona legislative session adjourned on June 30, 2021. The general effective date for new laws is September 29, 2021. For the full text of the laws go to www.azleg.gov. 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.

Tuesday, August 17, 2021:

Carolyn Goldschmidt and Mike Shupe discussed some of their most memorable HOA cases and important takeaways for Associations.

Thursday, July 15, 2021:

Carolyn Goldschmidt and Mike Shupe fielded questions from the audience during an always popular Q&A session.

Join Carolyn and Mike for a discussion about managing common areas during the continuing pandemic, as well as bills currently pending in the State Legislature, and what you need to know about how each will affect the operations of your community association in 2021 and beyond. Information will also be shared as to how you can contact the State Legislators and the Governor to voice your concerns, opposition, and/or support for the various bills affecting your communities. Please sign up quickly, as you will not want to miss this webinar!

When: Monday, March 1, 2021 at 12:00pm

Registration: Click here to register.

Q&A Session Questions: During the Webinar, questions may be entered via Chat. However, if you would like to submit questions on this topic ahead of time, you may do so via the email address below.

Contact: Feel free to contact us at office@gshoalaw.com if you have any questions or trouble registering.