Assigned to GOV                                                                                                                    FOR COMMITTEE

 

 

 

 


ARIZONA STATE SENATE

Fifty-Sixth Legislature, First Regular Session

 

FACT SHEET FOR H.B. 2298

 

planned community authority; public roadways

Purpose

Requires, by June 30, 2025, certain planned community associations (HOAs) to call a meeting on the question of whether to continue to regulate public roadways.

Background

An HOA whose declaration was recorded after December 31, 2014, has no authority over and may not regulate any roadway for which the ownership has been dedicated or is otherwise held by a governmental entity if the period of declarant control has ended (A.R.S.
§ 33-1818).

An HOA is a nonprofit corporation or unincorporated association of owners that is created by a declaration to own and operate portions of a planned community. Under the declaration, the HOA has the power to assess association members to pay the costs and expenses incurred in the performance of the HOA's obligations (A.R.S. § 33-1802).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Requires, by June 30, 2025, an HOA to call a meeting of the membership on the question of whether to continue to regulate public roadways if:

a)   the declaration for the HOA was recorded before January 1, 2015;

b)   it is after the period of declarant control; and

c)   the HOA that regulates any roadway for which the ownership has been dedicated to or is otherwise held by a governmental entity.

2.   Stipulates that, if the number of owners voting at the meeting constitutes a quorum and a majority votes to continue regulating public roadways, the HOA retains its authority to regulates those public roadways.

3.   Requires, for an HOA that retains its authority to regulate the public roadways, the board of directors of the HOA to record a document in the office of the county recorder confirming that the HOA will continue to regulate public roadways.

4.   Stipulates that an HOA no longer has authority to regulate the public roadways and any existing regulations expire if:

a)   the vote on the question of whether to continue to regulate public roadways fails; or

b)   the HOA does not hold a vote as required.

5.   Becomes effective on the general effective date.

House Action

GOV               2/8/23        DP          8-1-0-0

3rd Read          2/21/23                     59-1-0

Prepared by Senate Research

March 6, 2023

AN/slp