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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
AMENDED
telecommunications fund; report; posting
(NOW: planned communities; applicability; recreational center)
As passed by the Senate, S.B. 1094 requires the Director of the Arizona Department of Administration (ADOA) to post the annual report of the Telecommunications Fund on the ADOA website.
The House of Representatives adopted a strike-everything amendment that does the following:
Purpose
Exempts nonprofit corporations or unincorporated associations of owners (corporations or associations) that meet certain criteria from Planned Community statutes. Allows corporations or associations exempted from Planned Community statutes to elect to subject the corporation or association to Planned Community statutes.
Background
Title 33, Chapter 16 of the Arizona Revised Statutes governs Planned Communities and outlines requirements relating to planned community assessments, boards of directors, declarations and financial records. These requirements apply to all planned communities, except for schools that receive state monies and timeshare plans or associations subject to the Timeshare Owners' Association and Management Act (A.R.S. § 33-1801).
A planned community is a real estate development: 1) that includes real estate owned or operated by a corporation or association or real estate on which an easement to maintain roadways or a covenant to maintain roadways is held by a corporation or association; 2) that is created for managing, maintaining or improving property; and 3) in which the owners of separately owned lots, parcels or units are mandatory members and are required to pay assessments to the association.
A planned community association includes a corporation or association that is 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 outlined in the declaration (A.R.S. § 33-1802).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Exempts, from Planned Community statutes, corporations or associations that:
a) are created or incorporated before January 1, 1974; and
b) do not have authority to enforce covenants, conditions and restrictions related to the use, occupancy or appearance of separately owned lots, parcels or units in a real estate development.
2. Allows a corporation or association that has the power under recorded covenants to assess members to pay the costs and expenses incurred in the performance of obligations created by recorded covenants for a real estate development and that does not qualify as a planned community, to elect to subject the corporation to Planned Community statutes with the written approval of a majority of the corporation or association members.
3. Requires a notice of an election held by an association or corporation to be subject to Planned Community statutes to be recorded by the corporation or association with the county recorder of the county or counties in which the real estate development is located.
4. Asserts that the notice of election is effective as of the date of recording of the notice by the county recorder.
5. Allows an election to be rescinded in the same manner as the original election and effective as of the date of recording the notice of rescission with the county recorder.
6. Excludes, from the definition of a planned community association and retroactive to July 16, 1994, a corporation or association that meets the following criteria, unless the corporation or association elects to be subject to Planned Community statutes:
a) the corporation or association is created or incorporated before January 1, 1974; and
b) the corporation or association does not have authority to enforce covenants, conditions and restrictions related to the use, occupancy or appearance of separately owned lots, parcels or units in a real estate development.
7. Exempts, from the definition of planned community and retroactive to July 16, 1994, a real estate development that is not managed or maintained by an association.
8. Requires, retroactive to July 16, 1994, the declaration of a planned community that is subject to Planned Community statutes to expressly state that:
a) owners of separately owned lots, parcels or units are mandatory members; and
b) owners are required to pay assessments to the association.
9. Contains a legislative intent clause.
10. Contains a severability clause.
11. Becomes effective on the general effective date, with retroactive provisions as noted.
Amendments Adopted by the House of Representatives
· Adopted the strike-everything amendment.
House Action
GOV 3/28/19 DPA/SE 6-5-0-0
3rd Read 4/24/19 33-25-2
Prepared by Senate Research
April 24, 2019
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