In Arizona, certain planned communities are managed by a homeowners association (HOA). The laws governing HOAs in Arizona are set forth by various local and state regulations, as well as by each individual HOA’s governing documents.
Who Regulates HOAs in Arizona?
In Arizona, an HOA is regulated by the Arizona Planned Communities Act found at Title 33 Chapter 16 of the Arizona Code. This Act applies to all common interest communities (condominiums, cooperatives, and other planned communities) created in Arizona.
An HOA is also regulated by its own governing documents. Although every HOA is different, the governing documents typically include: Articles of Incorporation, Bylaws, Declaration of Covenants, Conditions and Restrictions, and other rules and regulations.
HOAs in Arizona may also be subject to applicable federal laws such as:
HOAs may also be subject to certain state laws such as:
How to Find HOA Regulations in Arizona
HOA governing documents are public record in Arizona. An HOA must record its governing documents with the county land records to be enforceable. To obtain these documents visit the local county clerk’s office or website, such as the Maricopa County Recorder’s Website, and search for an HOA’s name.
In some instances, one can also obtain certain records online by using the Arizona Corporation Commission Entity Search, such as an HOA’s name, status, approval date, and annual reports.
HOA Powers in Arizona.
In Arizona, an HOA has the power to:
- Collect assessments for common expenses
- Impose charges for late payments of assessments
- Regulate common areas
- Collect charges to maintain and operate the common areas
- Levy reasonable fines
- Foreclose on a house for unpaid liens
Additionally, HOA governing documents can grant further powers such as restrictions on home ownership, exterior paint colors, fencing and parking requirements.
Can an HOA Impose Fines on a Homeowner in Arizona?
In Arizona, an HOA can impose fines on a homeowner for violating its rules. An HOA can also impose reasonable charges for the late payment of assessments. In both cases, an HOA must provide the homeowner with notice and an opportunity to be heard.
An HOA can charge the greater of either $15 or 10% of the amount unpaid for late fees. A payment is considered late after 15 days. If a homeowner is in violation of the governing documents, an HOA can impose reasonable fines, and in some cases, collect attorney fees for any legal proceedings.
An HOA cannot fine a homeowner for (or generally prohibit) any of the following:
- Displaying the American flag or U.S. Military flag so long as the flag is displayed in a manner consistent with federal flag display law
- Displaying the Arizona state flag
- Displaying an Arizona Indian nations flag
- Displaying the Gadsden flag
- Installing solar energy panels
- Installing satellite dishes and antennas
An HOA’s governing documents can include reasonable rules and regulations regarding the placement and manner of display of these flags, solar energy panels, and satellite dishes and antennas.
Can an HOA Take a Homeowner’s House in Arizona?
An HOA can foreclose on a homeowner’s house in Arizona for unpaid liens if the homeowner has been delinquent in payment for at least a year or the total late fees equals at least $1,200 (not including late fees, collection fees, or attorney fees).
An HOA cannot foreclose without first mailing notice to the homeowner and giving the homeowner a chance to pay the debts. The HOA must provide the delinquent homeowner with at least 30 days to pay the debt.
If the debt isn’t paid within 30 days, the HOA must file a lawsuit for a foreclosure and follow the same legal process that a mortgage lender would to foreclose on a house.
An HOA cannot evict a homeowner or a tenant of a homeowner unless it is expressly authorized in the governing documents. The HOA also does not have the power to force a homeowner to evict their tenant. However, the HOA may have other powers or restrictions about rental properties in its governing documents.
Can an HOA Enter a Homeowner’s Property in Arizona?
In Arizona there is no provision in the law that allows an HOA to enter a homeowner’s property. However, most governing documents contain a provision allowing an HOA to enter a homeowner’s house as reasonably necessary to maintain units, common elements, or shared utilities.
Units are solely used by the property owners, but have certain spaces that require maintenance by the HOA, such as balconies. Common elements are the shared spaces in and around the house that are collectively owned by the HOA, such as a pool. Shared utilities may include water or sewage that are provided directly through the HOA.
Except in the case of an emergency, the HOA must generally give prior notice before entering a homeowner’s property. Typically, an HOA will give 1-2 weeks’ notice, but notice requirements are determined by the governing documents.
Where Do Homeowners File Complaints Against Their HOA in Arizona?
The venue for filing a Complaint against an HOA in Arizona depends on the complaint.
For complaints concerning HOA fees, a homeowner can file a complaint with the Attorney General’s Office, the Federal Trade Commission, or the Consumer Financial Protection Bureau. Under the Fair Debt Collection Practices Act, homeowners may also file in state or federal court within one year of the violation date.
If a homeowner feels they are a victim of housing discrimination, they can file a complaint with the U.S. Department of Housing and Urban Development, or file a private lawsuit in Arizona federal or state court.
Otherwise, a homeowner can also bring a claim in state court in the appropriate county.
Joining and Leaving an HOA in Arizona
In Arizona, if a person purchase a home in a neighborhood with a preexisting HOA, they are required to join and abide by the HOA rules. The homeowner should be presented with documents explaining the HOA and its rules at the closing of their home purchase.
If a person bought a house in a neighborhood with an HOA, they cannot simply leave or opt-out of the HOA. To leave an HOA, a homeowner can sell their house or try to petition the HOA to have their home removed. However, there is no guaranteed right the petition will be granted.
How to Dissolve an HOA in Arizona
The process for dissolution of an HOA in Arizona can be found in the HOA’s governing documents. If it is not, the board members of the HOA must propose dissolution to the members of the HOA.
For a proposal to dissolve to be adopted, all of the following must occur:
- The board of directors must recommend dissolution to the members
- The members entitled to vote must approve the proposal to dissolve
- Each person whose approval is required by the governing documents for dissolution must approve the plan in writing
Unless the governing documents state otherwise, a majority of the votes cast or a majority of the voting power, whichever is less, must approve the proposal to dissolve.
If approved, the agreeing members will sign a termination agreement, settle any debts, dispose of assets belonging to the HOA, and file the necessary documentation, such as Articles Of Dissolution, with the Arizona Corporate Commission to complete the dissolution.
Sources
- 1 Ariz. Rev. Stat. § 33-1803
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A. Unless limitations in the community documents would result in a lower limit for the assessment, the association shall not impose a regular assessment that is more than twenty percent greater than the immediately preceding fiscal year’s assessment without the approval of the majority of the members of the association. Unless reserved to the members of the association, the board of directors may impose
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reasonable charges for the late payment of assessments. - 2 Ariz. Rev. Stat. § 33-1806
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A. For planned communities with fewer than fifty units, a member shall mail or deliver to a purchaser or a
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purchaser’s authorized agent within ten days after receipt of a written notice of a pending sale of the unit,
and for planned communities with fifty or more units, the association shall mail or deliver to a purchaser or
a purchaser’s authorized agent within ten days after receipt of a written notice of a pending sale that
contains the name and address of the purchaser all of the following in either paper or electronic format… (b) The amount of the common regular assessment and the unpaid common regular assessment, special assessment or other assessment, fee or charge currently due and payable from the selling member. - 3 Ariz. Rev. Stat. § 33-1807
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A. The association has a lien on a unit for any assessment levied against that unit from the time the assessment becomes due. The association’s lien for assessments, for charges for late payment of those assessments, for reasonable collection fees and for reasonable attorney fees and costs incurred with respect to those assessments may be foreclosed in the same manner as a mortgage on real estate but may be foreclosed only if the owner has been delinquent in the payment of monies secured by the lien,
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excluding reasonable collection fees, reasonable attorney fees and charges for late payment of and costs incurred with respect to those assessments, for a period of one year or in the amount of one thousand two hundred dollars or more, whichever occurs first. - 4 Ariz. Rev. Stat. § 33-1803
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B. After notice and an opportunity to be heard, the board of directors may impose reasonable monetary
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penalties on members for violations of the declaration, bylaws and rules of the association. Notwithstanding any provision in the community documents, the board of directors shall not impose a charge for a late payment of a penalty that exceeds the greater of fifteen dollars or ten percent of the amount of the unpaid penalty. A payment is deemed late if it is unpaid fifteen or more days after its due date, unless the declaration, bylaws or rules of the association provide for a longer period. Any monies
paid by a member for an unpaid penalty shall be applied first to the principal amount unpaid and then to
the interest accrued. - 5 Ariz. Rev. Stat. § 33-1808
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A. Notwithstanding any provision in the community documents, an association shall not prohibit the
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outdoor front yard or backyard display of any of the following: 1. The American flag or an official or replica of a flag of the United States army, navy, air force,
marine corps or coast guard by an association member on that member’s property if the American flag or military flag is displayed in a manner consistent with the federal flag code (P.L.
94-344; 90 Stat. 810; 4 United States Code sections 4 through 10). 2. The POW/MIA flag. 3. The Arizona state flag. 4. An Arizona Indian nations flag. 5. The Gadsden flag. - 6 Ariz. Rev. Stat. § 33-1816
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A. Notwithstanding any provision in the community documents, an association shall not prohibit the
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installation or use of a solar energy device… - 7 Over-the-Air Reception Devices Rule
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Enforceable placement preferences must be clearly articulated in writing and made available to all residents of the community in question. A requirement that an antenna be located where reception or transmission would be impossible or substantially degraded is prohibited by the rule… A valid enforceable placement preference should not contain prohibited provisions such as prior approval or require professional installation… when an antenna is professionally installed, the installer often determines the location of the antenna at the time of installation based upon the type of antenna installed and the ability of the antenna to receive an acceptable quality signal.
Source Link - 8 Ariz. Rev. Stat. § 33-1807
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K. For a delinquent account for unpaid assessments or for charges related to unpaid assessments, the association shall provide the following written notice to the member at the member’s address as provided to the association at least thirty days before authorizing an attorney, or a collection agency that is not acting as the association’s managing agent, to begin collection activity on behalf of the association…
Source Link - 9 Ariz. Rev. Stat. § 33-1802
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1. “Association” means a nonprofit corporation or unincorporated association of owners that is
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created pursuant to a declaration to own and operate portions of a planned community and that
has the power under the declaration to assess association members to pay the costs and expenses incurred in the performance of the association’s obligations under the declaration…. 4. “Planned community” means a real estate development that includes real estate owned and operated by or real estate on which an easement to maintain roadways or a covenant to maintain roadways is held by a nonprofit corporation or unincorporated association of owners, that is created for the purpose of managing, maintaining or improving the property and in which the
owners of separately owned lots, parcels or units are mandatory members and are required to pay assessments to the association for these purposes…. - 10 Ariz. Rev. Stat. § 10-1403
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3. If dissolution was approved by the shareholders, both: (a) The number of votes entitled to be cast on the proposal to dissolve. (b) Either the total number of votes cast for and against dissolution or the total number of undisputed votes cast for dissolution and a statement that the number cast for dissolution was sufficient for approval. 4. If voting by voting groups was required, the information required by paragraph 3 of this subsection shall be separately provided for each voting group entitled to vote separately on the plan to dissolve.
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