Bill > HB2614

This bill modifies Arizona law concerning homeowners' associations (HOAs) and planned communities, primarily by clarifying definitions and procedures related to assessments and liens. It redefines "assessment" to mean the share of money required for common expenses that an association levies against a unit or property according to the governing documents or state law, rather than just periodically against each unit. The bill also clarifies that "unit owner expenses" (fees, charges, late fees, penalties, or interest) are distinct from "common expenses" and cannot be enforced as common expense liens; instead, associations must obtain a court judgment to create a lien for these expenses, which is only effective upon the sale of the property. Furthermore, it specifies how payments received by an association are applied, prioritizing unpaid assessments and related costs before other fees, and mandates that HOAs provide specific written notice to unit owners at least thirty days before turning over delinquent accounts for collection, outlining the consequences of non-payment and providing contact information for resolution. The bill also adjusts the conditions under which an HOA can foreclose on a common expense lien, increasing the delinquency period or amount required before foreclosure can begin for planned communities and clarifying the process for condominiums.

Government Affairs

https://apps.azleg.gov/BillStatus/BillOverview/84424