Bill > HB2277

This bill makes several changes to Arizona law regarding condominiums and planned communities, primarily focusing on the fiscal duties and transparency of Homeowners Associations (HOAs). Key provisions include requiring HOAs to provide unit owners with a summary of proposed budgets and mandating that any budget increase of five percent or more over the prior year's assessment must be ratified by the unit owners, unless the condominium documents specify otherwise. The bill also clarifies that surplus funds in an HOA's operating account must generally be refunded to unit owners or used to reduce future assessments, though HOAs can propose using these surplus funds for long-term maintenance reserve accounts with a majority vote of the unit owners. Furthermore, it emphasizes the board of directors' duty to act in the best interest of the association by ensuring prudent financial management, proper oversight of contractors, secure deposit of association funds with at least one board member having signature authority, and thorough review of financial reports. The bill also introduces new requirements for special assessments or financing that assigns future revenues or creates a security interest in common property, mandating ratification by fifty-five percent of allocated votes, and states that any assessment violating these budget or ratification rules is invalid. Finally, it updates provisions related to contract termination, late fees for assessments and penalties, and the process for notifying members of violations and responding to their concerns.

Government Affairs

https://apps.azleg.gov/BillStatus/BillOverview/84003