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REFERENCE TITLE: homeowners' associations; condominiums; fees; signs |
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State of Arizona House of Representatives Forty-ninth Legislature Second Regular Session 2010
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HB 2345 |
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Introduced by Representatives Antenori, Gowan, Jones, Montenegro: Goodale, Kavanagh, Stevens, Weiers JP
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AN ACT
amending sections 33-1258, 33-1260, 33-1261, 33-1805, 33-1806 and 33-1808, Arizona Revised Statutes; relating to condominiums and planned communities.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section. 1. Section 33-1258, Arizona Revised Statutes, is amended to read:
33-1258. Association financial and other records; applicability
A. Except as provided in subsection B of this section, all financial and other records of the association shall be made reasonably available for examination by any member or any person designated by the member in writing as the member's representative. The association shall not charge a member or any person designated by the member in writing for making material available for review. The association shall have ten business days to fulfill a request for examination. On request for purchase of copies of records by any member or any person designated by the member in writing as the member's representative, the association shall have ten business days to provide copies of the requested records. An association may charge a fee for making copies of not more than fifteen cents per page.
B. Books and records kept by or on behalf of the association and the board may be withheld from disclosure to the extent that the portion withheld relates to any of the following:
1. Privileged communication between an attorney for the association and the association.
2. Pending litigation.
3. Meeting minutes or other records of a session of a board meeting that is not required to be open to all members pursuant to section 33‑1248.
4. Personal, health or financial records of an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association, including records of the association directly related to the personal, health or financial information about an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association.
5. Records relating to the job performance of, compensation of, health records of or specific complaints against an individual employee of the association or an individual employee of a contractor of the association who works under the direction of the association.
C. The association shall not be required to disclose financial and other records of the association if disclosure would violate any state or federal law.
d. tHE ASSOCIATION SHALL MAKE AVAILABLE ON THE INTERNET AT NO CHARGE A COPY OF THE MOST CURRENT DECLARATIONS OF THE condominium AND SHALL PROMPTLY UPDATE THE POSTED COPY OF THE DECLARATIONS AFTER ANY AMENDMENT.
D. E. This section does not apply to an association for a timeshare plan that is subject to chapter 20 of this title.
Sec. 2. Section 33-1260, Arizona Revised Statutes, is amended to read:
33-1260. Resale of units; information required; applicability; definition
A. For condominiums with fewer than fifty units, a unit owner shall mail or deliver to a purchaser within ten days after receipt of a written notice of a pending sale of the unit, and for condominiums with fifty or more units, the association shall mail or deliver to a purchaser 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:
1. A copy of the bylaws and the rules of the association.
2. A copy of the declaration.
3. A dated statement containing:
(a) The telephone number and address of a principal contact for the association, which may be an association manager, an association management company, an officer of the association or any other person designated by the board of directors.
(b) The amount of the common expense assessment for the unit and any unpaid common expense assessment, special assessment or other assessment, fee or charge currently due and payable from the selling unit owner.
(c) A statement as to whether a portion of the unit is covered by insurance maintained by the association.
(d) The total amount of money held by the association as reserves.
(e) If the statement is being furnished by the association, a statement as to whether the records of the association reflect any alterations or improvements to the unit that violate the declaration. The association is not obligated to provide information regarding alterations or improvements that occurred more than six years before the proposed sale. Nothing in this subdivision relieves the seller of a unit from the obligation to disclose alterations or improvements to the unit that violate the declaration, nor precludes the association from taking action against the purchaser of a unit for violations that are apparent at the time of purchase and that are not reflected in the association's records.
(f) If the statement is being furnished by the unit owner, a statement as to whether the unit owner has any knowledge of any alterations or improvements to the unit that violate the declaration.
(g) A statement of case names and case numbers for pending litigation with respect to the unit filed by the association against the unit owner or filed by the unit owner against the association. The unit owner or the association shall not be required to disclose information concerning the pending litigation that would violate any applicable rule of attorney‑client privilege under Arizona law.
(h) A statement that provides "I hereby acknowledge that the declaration, bylaws and rules of the association constitute a contract between the association and me (the purchaser). By signing this statement, I acknowledge that I have read and understand the association's contract with me (the purchaser). I also understand that as a matter of Arizona law, if I fail to pay my association assessments, the association may foreclose on my property." The statement shall also include a signature line for the purchaser and shall be returned to the association within fourteen calendar days.
4. A copy of the current operating budget of the association.
5. A copy of the most recent annual financial report of the association. If the report is more than ten pages, the association may provide a summary of the report in lieu of the entire report.
6. A copy of the most recent reserve study of the association, if any.
B. A purchaser or seller who is damaged by the failure of the unit owner or the association to disclose the information required by subsection A of this section may pursue all remedies at law or in equity against the unit owner or the association, whichever failed to comply with subsection A of this section, including the recovery of reasonable attorney fees.
C. The association may not charge the unit owner a reasonable any fee to compensate the association for the costs incurred in the preparation of a statement furnished by the association pursuant to this section. The association shall make available to any interested party the amount of any fee established from time to time by the association.
D. A sale in which a public report is issued pursuant to sections 32‑2183 and 32‑2197.02 or a sale pursuant to section 32‑2181.02 is exempt from this section.
e. aN ASSOCIATION AND ANY OF ITS REPRESENTATIVES, INCLUDING A MANAGEMENT COMPANY, SHALL NOT ASSESS OR COLLECT A FEE FOR THE TRANSFER OR INSPECTION OF AN INTEREST IN A LOT OR UNIT IN THE condominium, REGARDLESS OF HOW THE FEE IS DENOMINATED.
E. F. This section does not apply to timeshare plans or associations that are subject to chapter 20 of this title.
F. G. For the purposes of this section, unless the context otherwise requires, "unit owner" means the seller of the condominium unit title and excludes any real estate salesperson or real estate broker who is licensed under title 32, chapter 20 and who is acting as a salesperson or broker and also excludes a trustee of a deed of trust who is selling the property in a trustee's sale pursuant to chapter 6.1 of this title.
Sec. 3. Section 33-1261, Arizona Revised Statutes, is amended to read:
33-1261. Flag display; for sale signs; political petitions; applicability
A. Notwithstanding any provision in the condominium documents, an association shall not prohibit the outdoor 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 a unit owner on that unit owner'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.
B. The association shall adopt reasonable rules and regulations regarding the placement and manner of display of the American flag, the military flag, the POW/MIA flag, the Arizona state flag or an Arizona Indian nations flag. The association rules may regulate the location and size of flagpoles but shall not prohibit the installation of a flagpole.
C. Notwithstanding any provision in the condominium documents, an association shall not prohibit the indoor or outdoor display of a for sale sign and a sign rider by a unit owner on that owner's property, including a sign that indicates the unit owner is offering the property for sale by owner. The size of a sign offering a property for sale shall be in conformance with the industry standard size sign, which shall not exceed eighteen by twenty-four inches, and the industry standard size sign rider, which shall not exceed six by twenty-four inches. WITH RESPECT TO REAL ESTATE FOR SALE IN THE condominium, aN ASSOCIATION SHALL NOT PROHIBIT OR OTHERWISE REGULATE ANY OF THE FOLLOWING:
1. oPEN HOUSE OR OTHER TEMPORARY FOR SALE SIGNS. tHE ASSOCIATION SHALL NOT REQUIRE THE USE OF PARTICULAR SIGNS INDICATING AN OPEN HOUSE OR REAL PROPERTY FOR SALE AND MAY NOT FURTHER REGULATE THE USE OF OPEN HOUSE OR TEMPORARY FOR SALE SIGNS THAT ARE INDUSTRY STANDARD SIZE AND THAT ARE OWNED OR USED BY THE SELLER OR THE SELLER'S AGENT.
2. oPEN HOUSE HOURS. tHE ASSOCIATION MAY NOT LIMIT THE HOURS FOR AN OPEN HOUSE FOR REAL ESTATE THAT IS FOR SALE IN THE CONDOMINIUM, EXCEPT THAT THE ASSOCIATION MAY PROHIBIT AN OPEN HOUSE BEING HELD BEFORE 6:00 A.M. OR AFTER 10:00 P.M.
D. Notwithstanding any provision in the condominium documents, an association shall not prohibit but may reasonably regulate the circulation of political petitions, including candidate nomination petitions or petitions in support of or opposition to an initiative, referendum or recall or other political issue on property dedicated to the public within the association. A condominium is not required to comply with this section subsection if the condominium restricts vehicular or pedestrian access to the condominium. Nothing in this section subsection requires a condominium to make its common elements available for the circulation of political petitions to anyone who is not an owner or resident of the community.
E. This section does not apply to timeshare plans or associations that are subject to chapter 20 of this title.
Sec. 4. Section 33-1805, Arizona Revised Statutes, is amended to read:
33-1805. Association financial and other records
A. Except as provided in subsection B of this section, all financial and other records of the association shall be made reasonably available for examination by any member or any person designated by the member in writing as the member's representative. The association shall not charge a member or any person designated by the member in writing for making material available for review. The association shall have ten business days to fulfill a request for examination. On request for purchase of copies of records by any member or any person designated by the member in writing as the member's representative, the association shall have ten business days to provide copies of the requested records. An association may charge a fee for making copies of not more than fifteen cents per page.
B. Books and records kept by or on behalf of the association and the board may be withheld from disclosure to the extent that the portion withheld relates to any of the following:
1. Privileged communication between an attorney for the association and the association.
2. Pending litigation.
3. Meeting minutes or other records of a session of a board meeting that is not required to be open to all members pursuant to section 33‑1804.
4. Personal, health or financial records of an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association, including records of the association directly related to the personal, health or financial information about an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association.
5. Records relating to the job performance of, compensation of, health records of or specific complaints against an individual employee of the association or an individual employee of a contractor of the association who works under the direction of the association.
C. The association shall not be required to disclose financial and other records of the association if disclosure would violate any state or federal law.
d. tHE ASSOCIATION SHALL MAKE AVAILABLE ON THE INTERNET AT NO CHARGE A COPY OF THE MOST CURRENT DECLARATIONS OF THE PLANNED COMMUNITY AND SHALL PROMPTLY UPDATE THE POSTED COPY OF THE DECLARATIONS AFTER ANY AMENDMENT.
Sec. 5. Section 33-1806, Arizona Revised Statutes, is amended to read:
33-1806. Resale of units; information required; definition
A. For planned communities with fewer than fifty units, a member shall mail or deliver to a purchaser 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 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:
1. A copy of the bylaws and the rules of the association.
2. A copy of the declaration.
3. A dated statement containing:
(a) The telephone number and address of a principal contact for the association, which may be an association manager, an association management company, an officer of the association or any other person designated by the board of directors.
(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.
(c) A statement as to whether a portion of the unit is covered by insurance maintained by the association.
(d) The total amount of money held by the association as reserves.
(e) If the statement is being furnished by the association, a statement as to whether the records of the association reflect any alterations or improvements to the unit that violate the declaration. The association is not obligated to provide information regarding alterations or improvements that occurred more than six years before the proposed sale. Nothing in this subdivision relieves the seller of a unit from the obligation to disclose alterations or improvements to the unit that violate the declaration, nor precludes the association from taking action against the purchaser of a unit for violations that are apparent at the time of purchase and that are not reflected in the association's records.
(f) If the statement is being furnished by the member, a statement as to whether the member has any knowledge of any alterations or improvements to the unit that violate the declaration.
(g) A statement of case names and case numbers for pending litigation with respect to the unit filed by the association against the member or filed by the member against the association. The member shall not be required to disclose information concerning such pending litigation which would violate any applicable rule of attorney‑client privilege under Arizona law.
(h) A statement that provides "I hereby acknowledge that the declaration, bylaws and rules of the association constitute a contract between the association and me (the purchaser). By signing this statement, I acknowledge that I have read and understand the association's contract with me (the purchaser). I also understand that as a matter of Arizona law, if I fail to pay my association assessments, the association may foreclose on my property." The statement shall also include a signature line for the purchaser and shall be returned to the association within fourteen calendar days.
4. A copy of the current operating budget of the association.
5. A copy of the most recent annual financial report of the association. If the report is more than ten pages, the association may provide a summary of the report in lieu of the entire report.
6. A copy of the most recent reserve study of the association, if any.
B. A purchaser or seller who is damaged by the failure of the member or the association to disclose the information required by subsection A of this section may pursue all remedies at law or in equity against the member or the association, whichever failed to comply with subsection A of this section, including the recovery of reasonable attorney fees.
C. The association may not charge the member a reasonable any fee to compensate the association for the costs incurred in the preparation of a statement furnished by the association pursuant to this section. The association shall make available to any interested party the amount of any fee established from time to time by the association.
D. A sale in which a public report is issued pursuant to sections 32‑2183 and 32‑2197.02 or a sale pursuant to section 32‑2181.02 is exempt from this section.
e. aN ASSOCIATION AND ANY OF ITS REPRESENTATIVES, INCLUDING A MANAGEMENT COMPANY, SHALL NOT ASSESS OR COLLECT A FEE FOR THE TRANSFER OR INSPECTION OF AN INTEREST IN A LOT OR UNIT IN THE PLANNED COMMUNITY, REGARDLESS OF HOW THE FEE IS DENOMINATED.
E. f. For purposes of this section, unless the context otherwise requires, "member" means the seller of the unit title and excludes any real estate salesperson or real estate broker who is licensed under title 32, chapter 20 and who is acting as a salesperson or broker and also excludes a trustee of a deed of trust who is selling the property in a trustee's sale pursuant to chapter 6.1 of this title.
Sec. 6. Section 33-1808, Arizona Revised Statutes, is amended to read:
33-1808. Flag display; political signs; caution signs; for sale signs; political petitions
A. Notwithstanding any provision in the community documents, an association shall not prohibit the outdoor 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.
B. The association shall adopt reasonable rules and regulations regarding the placement and manner of display of the American flag, the military flag, the POW/MIA flag, the Arizona state flag or an Arizona Indian nations flag. The association rules may regulate the location and size of flagpoles but shall not prohibit the installation of a flagpole.
C. Notwithstanding any provision in the community documents, an association shall not prohibit the indoor or outdoor display of a political sign by an association member on that member's property, except that an association may prohibit the display of political signs earlier than forty‑five days before the day of an election and later than seven days after an election day. An association may regulate the size and number of political signs that may be placed on a member's property if the association's regulation is no more restrictive than any applicable city, town or county ordinance that regulates the size and number of political signs on residential property. If the city, town or county in which the property is located does not regulate the size and number of political signs on residential property, the association shall permit at least one political sign with the maximum dimensions of twenty‑four inches by twenty‑four inches on a member's property. For the purposes of this subsection, "political sign" means a sign that attempts to influence the outcome of an election, including supporting or opposing the recall of a public officer or supporting or opposing the circulation of a petition for a ballot measure, question or proposition or the recall of a public officer.
D. Notwithstanding any provision in the community documents, an association shall not prohibit the use of cautionary signs regarding children if the signs are used and displayed as follows:
1. The signs are displayed in residential areas only.
2. The signs are removed within one hour of children ceasing to play.
3. The signs are displayed only when children are actually present within fifty feet of the sign.
4. The temporary signs are no taller than three feet in height.
5. The signs are professionally manufactured or produced.
E. Notwithstanding any provision in the community documents, an association shall not prohibit children who reside in the planned community from engaging in recreational activity on residential roadways that are under the jurisdiction of the association and on which the posted speed limit is twenty-five miles per hour or less.
F. Notwithstanding any provision in the community documents, an association shall not prohibit the indoor or outdoor display of a for sale sign and a sign rider by an association member on that member's property, including a sign that indicates the member is offering the property for sale by owner. The size of a sign offering a property for sale shall be in conformance with the industry standard size sign, which shall not exceed eighteen by twenty-four inches, and the industry standard size sign rider, which shall not exceed six by twenty‑four inches. WITH RESPECT TO REAL ESTATE FOR SALE IN THE PLANNED COMMUNITY, aN ASSOCIATION SHALL NOT PROHIBIT OR OTHERWISE REGULATE ANY OF THE FOLLOWING:
1. oPEN HOUSE OR OTHER TEMPORARY FOR SALE SIGNS. tHE ASSOCIATION SHALL NOT REQUIRE THE USE OF PARTICULAR SIGNS INDICATING AN OPEN HOUSE OR REAL PROPERTY FOR SALE AND MAY NOT FURTHER REGULATE THE USE OF OPEN HOUSE OR TEMPORARY FOR SALE SIGNS THAT ARE INDUSTRY STANDARD SIZE AND THAT ARE OWNED OR USED BY THE SELLER OR THE SELLER'S AGENT.
2. oPEN HOUSE HOURS. tHE ASSOCIATION MAY NOT LIMIT THE HOURS FOR AN OPEN HOUSE FOR REAL ESTATE THAT IS FOR SALE IN THE PLANNED COMMUNITY, EXCEPT THAT THE ASSOCIATION MAY PROHIBIT AN OPEN HOUSE BEING HELD BEFORE 6:00 A.M. OR AFTER 10:00 P.M.
G. Notwithstanding any provision in the community documents, an association shall not prohibit but may reasonably regulate the circulation of political petitions, including candidate nomination petitions or petitions in support of or opposition to an initiative, referendum or recall or other political issue on property dedicated to the public within the association. A planned community is not required to comply with this section subsection if the planned community restricts vehicular or pedestrian access to the planned community. Nothing in this section subsection requires a planned community to make its common elements available for the circulation of political petitions to anyone who is not an owner or resident of the community.