Bill > SB1674

This bill amends Arizona law concerning homeowners' associations (HOAs) and planned communities, primarily by clarifying the duties and powers of HOA boards of directors and ensuring fair enforcement of rules. Key provisions include a new requirement that associations must reasonably and fairly enforce their governing documents to protect property values, meaning enforcement cannot be arbitrary, capricious, or selective. The bill also updates cross-references within existing statutes to reflect changes in section numbering, particularly concerning the termination of declarant control and the election of board members. Additionally, it clarifies that when a board member has a conflict of interest due to a contract that benefits them or their relatives, they must declare this conflict in an open meeting before voting on the issue, and contracts entered into in violation of this rule are void. The bill also makes minor adjustments to definitions and procedures related to board elections and the removal of board members.

Government Affairs

https://apps.azleg.gov/BillStatus/BillOverview/85314