In Arizona, the Planned Communities Act is the primary legal document presiding over homeowners’ associations within the state. HOAs must also be registered with the state as non-profit organizations and must obey state Non-Profit Law as well.
Homeowners’ associations are becoming more prevalent in Arizona and most new residential developments are governed by an HOA. Every community association is different, so it is important to understand your community’s specific Declaration and Bylaws.
Homeowners’ Association Rights and Responsibilities in Arizona
Community associations in Arizona may create and enforce Articles of Incorporation, Conditions and Restrictions, and Bylaws for their community. Participation in the homeowners’ association is mandatory for all unit owners within the community upon purchase of the property. Be sure to check association documents before purchasing property in the development.
HOAs may place liens on property for overdue fees. An account becomes delinquent if payment is not made 15 days after the due date unless otherwise specified by association bylaws. If an account is more than one year overdue, the board of directors may foreclose on the property, despite on-time mortgage payments, as long as the delinquencies on the account are not exclusively fines.
Annual Financial Audit
The board of directors must prepare an annual financial audit at the end of every fiscal year. All audit information must be made available to owners within 180 days of the end of the fiscal year.
The homeowners’ association retains the right to increase dues up to a maximum of 20% per year. To increase more than 20%, they must obtain a majority vote from all association members.
Unit owners have a right to view all HOA records and documents including meeting minutes and financial documents within 10 days of written notice to the board of directors. The community association may charge up to $0.15 per page copied.
Annual Member Meetings
Full member meetings must be held annually. Special meetings may be called by the board president, a majority vote by the board of directors, or by a 25% vote by association members. A board member may be removed from their position for any reason with a majority vote from all eligible owners at a member’s meeting that has reached a quorum.
Closed Sessions On Meetings
Association members may be present at all board meetings throughout the year. It is also required that the board of directors allow a reasonable number of members to speak on both sides of an issue. There are a few exceptions that would permit the board to have closed sessions:
Legal advice regarding pending litigation.
Pending or contemplated litigation.
Personal, health, or financial information about a member of the association.
Matters related to the job performance, compensation, or health records of an employee or contractor of the association.
Discussion regarding a member’s appeal of any violation or penalty unless that member requests an open meeting.
HOAs in Arizona are prohibited from banning rooftop solar panels. They may regulate the placement of solar panels so long as it does not interfere with efficiency. All property owners also retain the right to fly national, state, and/or military flags on their property. The HOA can regulate the number and size of flags but may not prohibit flags entirely.
Arizona Planned Communities Act
To ensure that your community association is being run following all state and local laws, it helps to have a professional on your side. CSM has a team of experienced professionals that have worked with communities in almost every state in the US. Specializing in HOA financial management, we can help your board of directors manage association finances, write and submit documents, and prepare for audits. If you have any questions regarding state HOA laws and regulations, give us a call at (865) 315-7505, contact us online or email us at firstname.lastname@example.org.