Arizona HOA Laws

Arizona HOA laws differ for planned communities and condominiums. To ensure your association complies with local legislation, you should be familiar with the laws that may affect your community. Here are the key ones to note.

Laws Governing HOAs in Arizona

Arizona has separate statutes for planned communities and condominiums. Nonprofit corporation laws may also apply to incorporated associations.

Planned Communities Act

• A.R.S. Title 33, Chapter 16: Planned Communities Act: Governs qualifying planned communities, including board meetings, assessments, records, enforcement, and liens.
• A.R.S. § 33-1802: Definitions: Defines planned communities by reference to association-managed property and declarations requiring membership and assessments. Condominiums and timeshares are excluded.
• A.R.S. § 33-1801: Applicability and Exemptions: Applies the Act to planned communities, with exceptions including certain pre-1974 associations without authority to enforce property-use covenants. Older communities are not automatically exempt because of their age.

Condominium Laws

• A.R.S. Title 33, Chapter 9: Condominium Act: Governs condominium creation, management, ownership, insurance, and termination.
• A.R.S. § 33-1201: Applicability: Applies the Condominium Act regardless of when the condominium was created.

Nonprofit Corporation Laws

• A.R.S. Title 10, Chapters 24–40: Nonprofit Corporations: Governs incorporated nonprofit associations, including corporate organization, directors, membership, and dissolution, subject to more specific association laws.

HOA Governance and Board Responsibilities

Arizona law establishes duties for association boards and protects owner participation. Different provisions govern planned communities and condominiums.

Board Structure and Duties

• A.R.S. § 10-3830: Director Duties: Requires nonprofit directors to act in good faith, exercise ordinary prudence, and pursue the corporation’s best interests.
• A.R.S. § 33-1821: Reasonable Exercise of Authority: Requires planned communities to exercise discretionary powers fairly, neutrally, and without favoritism.
• A.R.S. § 10-3802: Director Qualifications: Allows articles or bylaws to prescribe director qualifications.
• A.R.S. § 10-3805: Director Terms: Establishes a one-year default term for nonprofit directors when the articles or bylaws specify none.

Elections and Removal

• A.R.S. § 33-1812: Voting and Ballots: Requires in-person and absentee voting after developer control, prohibits proxies, and counts absentee votes toward quorum.
• A.R.S. § 33-1813: Director Removal: Establishes petition, quorum, voting, and replacement procedures for removing directors other than developer appointees.
• A.R.S. §§ 33-1243 and 33-1250: Condominium Governance: Provide separate condominium director-removal and voting requirements.

Developer Control

• A.R.S. § 33-1820: Planned Community Turnover: Requires developer control to end no later than conveyance of the second-to-last lot.
• A.R.S. § 33-1243: Condominium Turnover: Establishes separate turnover deadlines, including 90 days after conveyance of 75% of potential units to owners other than the developer.

Association Meetings

• A.R.S. § 33-1804: Meetings and Notices: Requires annual membership meetings, generally with 10–50 days’ notice. After developer control, board notices and agendas generally require 48 hours. Owners may attend, speak, and record open meetings, subject to statutory conditions.
• A.R.S. § 33-1248: Condominium Meetings: Establishes condominium meeting, notice, owner-participation, and closed-session requirements.

HOA Financial Requirements

Arizona regulates assessments, financial reporting, late fees, and collection procedures. Governing documents may impose additional requirements.

Budgets and Assessments

• A.R.S. § 33-1803: Assessment Increases: Requires majority membership approval for planned-community regular assessments more than 20% above the preceding fiscal year’s assessment, unless documents impose a lower limit.
• A.R.S. § 33-1243: Condominium Budgets: Establishes budget-summary and owner-ratification procedures, subject to declaration provisions.
• A.R.S. § 33-1242: Condominium Financial Powers: Authorizes budgets for revenues, expenditures, and reserves and collection of common-expense assessments, subject to the declaration.

Planned-community special assessments depend on governing-document authority and applicable approval requirements.

Financial Reports

• A.R.S. § 33-1810: Annual Financial Reports: Requires an audit, review, or compilation within 180 days after the fiscal year ends. A governing-document requirement for a CPA audit controls.
• A.R.S. § 33-1243(J): Condominium Financial Reports: Establishes the corresponding annual audit, review, or compilation requirement for condominiums.

Late Fees

• A.R.S. § 33-1803: Late Assessment Charges: Generally treats planned-community assessments as late after 15 days and caps late charges at the greater of $15 or 10% of the unpaid assessment. Notice is required, and documents may allow a longer grace period.

Liens and Foreclosure

• A.R.S. § 33-1807: Planned Community Liens: Generally permits foreclosure when assessment delinquency lasts 18 months or reaches $10,000, whichever occurs first. For special assessments initially worth at least $10,000, only the 18-month threshold applies.
• A.R.S. § 33-1256: Condominium Liens: Establishes the same foreclosure thresholds for condominiums.

Both statutes require reasonable communication efforts and a reasonable payment-plan offer before foreclosure. A specified 30-day notice precedes referral to outside collection counsel or agencies. Violation fines cannot support foreclosure through an assessment lien.

HOA Rules and Enforcement

Associations may enforce valid governing documents and properly adopted rules. They must also follow statutory notice and hearing requirements.

Governing Documents and Architectural Review

• A.R.S. § 33-1817: Amendments and Architectural Committees: Requires prescribed approvals and recording for planned-community declaration amendments. Amendments affecting fewer than all lots also require consent from affected owners. Architectural committees must include a board member as chair.

Specified construction projects involving security deposits require approval meetings, inspections, written findings, and safeguards for handling deposits. Architectural approval does not certify compliance with building codes.

Fines and Hearings

• A.R.S. § 33-1803: Violation Notices and Penalties: Requires notice and an opportunity to be heard before reasonable fines. Owners may respond by certified mail within 21 calendar days; the association generally has 10 business days to provide the required explanation and contest procedure.
• A.R.S. § 33-1242: Condominium Enforcement: Establishes condominium rulemaking powers, penalties, and violation-notice procedures.

HOA Maintenance and Insurance

Maintenance responsibilities depend on ownership and governing documents. Condominium law also establishes specific insurance obligations.

Maintenance and Access

• A.R.S. § 33-1247: Condominium Upkeep: Generally assigns common-element maintenance to the association and unit maintenance to owners, subject to the declaration and statutory exceptions. Owners must allow access for reasonably necessary repairs upon reasonable notice.

Planned-community documents allocate maintenance of common areas and individual lots.

Insurance and Property Damage

• A.R.S. § 33-1253: Condominium Insurance: Requires property and liability insurance to the extent reasonably available. It also addresses unit coverage, claims, insurance proceeds, and rebuilding after damage.

Planned-community insurance requirements depend primarily on the governing documents and applicable obligations.

Homeowner Rights and Protections

Arizona HOA laws protect access to records and certain property uses. Fair housing requirements also limit association rules and practices.

Association Records

• A.R.S. § 33-1805: Records Access: Generally requires access within 10 business days. Inspection is free, copies cannot exceed 15 cents per page, and specified confidential records may be withheld.
• A.R.S. § 33-1258: Condominium Records: Provides corresponding condominium record-access protections.

Fair Housing

• A.R.S. § 41-1491.19: Disability Protections: Requires reasonable disability accommodations and permits qualifying modifications, generally at the requesting person’s expense.

Solar Panels, Flags, and Landscaping

• A.R.S. § 33-1816: Solar Energy Devices: Protects planned-community solar installations against prohibitions and unreasonable placement restrictions.
• A.R.S. § 33-439: Solar Restrictions: Separately invalidates qualifying restrictions that effectively prohibit solar devices, subject to an older-instrument exception.
• A.R.S. § 33-1808: Flags, Signs, and Activities: Protects specified flags, political signs, sale and rental signs, and certain community activities, subject to statutory conditions.
• A.R.S. § 33-1819: Artificial Turf: Generally protects artificial turf after developer control where natural grass is allowed, with exceptions and reasonable regulation permitted.

Parking and Public Streets

• A.R.S. § 33-1809: Service Vehicle Parking: Protects qualifying public-service and emergency vehicles.
• A.R.S. § 33-1818: Public Roadways: Limits planned-community authority over public streets. Older communities needed a qualifying membership vote by June 30, 2025, to retain authority. Private roads and one-way streets are excepted.

HOA Disclosures and Property Transfers

Arizona requires buyers to receive association and property information. Delivery responsibilities depend partly on community size.

Resale Disclosures

• A.R.S. § 33-1806: Planned Community Disclosures: Requires governing documents, financial information, assessment details, unresolved violations, and other disclosures, including minutes from the previous three open board meetings.
• A.R.S. § 33-1260: Condominium Disclosures: Requires similar information plus specified defect and insurance disclosures.

For communities with fewer than 50 properties or units, sellers generally deliver within 10 days after offer acceptance. Larger associations deliver within 10 days after receiving the seller’s written notice.

Fees and Assessment Statements

• A.R.S. § 33-1806: Resale Fees: Generally caps resale services at $400, with authorized rush fees up to $100 and update fees up to $50. Section 33-1260 provides condominium counterparts.
• A.R.S. § 33-1807: Unpaid-Lien Statements: Requires requested statements within 10 days. Section 33-1256 provides the condominium counterpart. Failure to satisfy a qualifying escrow request can extinguish the unpaid-assessment lien.

Separate declaration-based transfer charges require their own legal authority. The resale statutes do not establish a general automatic buyer cancellation period.

HOA Disputes and Complaints

Owners may use internal review, voluntary mediation, or available legal remedies. Administrative jurisdiction depends on the parties and dispute.

Administrative Hearings and Court Remedies

• A.R.S. § 32-2199.01: Association Dispute Hearings: Allows owners or associations to petition the Department of Real Estate over qualifying statutory or document violations. Eligible cases proceed to the Office of Administrative Hearings; specified developer and owner-to-owner disputes are excluded.

Courts remain available for appropriate claims. Attorney-fee recovery depends on the applicable statute, contract, and proceeding.

Other HOA Laws in Arizona

Other Arizona HOA regulations address rentals and tenant information.

Rental Properties

• A.R.S. § 33-1806.01: Rentals and Tenant Information: Permits rentals unless the declaration prohibits them and recognizes declaration-based duration restrictions. It limits tenant information requests and caps the permitted information fee at $25 per new tenancy, not renewal.
• A.R.S. § 33-1260.01: Condominium Rentals: Provides corresponding condominium rental protections, including restrictions on demanding leases and tenant applications.

Frequently Asked Questions About Arizona HOA Laws

Is HOA membership mandatory in Arizona?

Yes, for properties in qualifying mandatory associations. Owners generally cannot opt out while retaining the property.

Does Arizona require HOA reserve studies?

Arizona’s principal association statutes do not impose a general periodic reserve-study mandate or minimum reserve-funding percentage. Governing documents may require them.

Can an Arizona HOA be dissolved?

Dissolving a nonprofit corporation does not itself remove recorded covenants. Planned communities must address corporate procedures, declaration requirements, property obligations, and creditor rights.

Can owners terminate an Arizona condominium?

Generally, yes. A.R.S. § 33-1228 generally requires 80% approval, or a higher threshold set in the declaration. Condominiums created on or after September 24, 2022, generally require 95%. Exceptions and additional termination safeguards apply.\