Bill > HB2442

This bill modifies several sections of Arizona law related to homeowners' associations (HOAs) and condominiums, focusing on budget development, assessment procedures, and member rights. The bill introduces several key provisions, including requiring the board of directors to develop annual operating budgets based on a good faith estimate of common expenses, with a copy available for review at least 48 hours before approval. If a proposed budget would result in an assessment increase greater than the Consumer Price Index change, the budget must be ratified by unit owners. The bill also mandates that the board hold an informal meeting to explain the budget and address member concerns, and provides mechanisms for members to challenge board decisions. Additionally, the bill restricts how reserve accounts can be used, requiring prior member authorization for transfers outside of declared purposes, and introduces new requirements for special assessments and litigation, including mandatory member voting for major financial decisions. The legislation aims to increase transparency, provide more member oversight, and prevent unilateral financial actions by HOA boards, ultimately giving homeowners more control over their community's financial management.

Government Affairs

https://apps.azleg.gov/BillStatus/BillOverview/82240