ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

Second Regular Session

House: GOV DP 7-1-1-0

HB 2575: homeowners' associations; powers

Sponsor: Representative Biasiucci, LD 30

House Engrossed

Overview

Outlines powers of homeowners' associations.

History

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

Provisions

1.   Permits, unless otherwise prescribed in an association's declaration, an association to:

a)   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Noteadopt and amend bylaws and rules;

b)   adopt and amend budgets for revenues, expenditures and reserves;

c) collect assessments for common expenses from their members;

d)   hire and discharge managing agents and other employees, agents, and independent contractors;

e)   institute, defend or intervene in litigation or administrative proceedings on behalf of itself or two or more members on matters affecting the association or planned community;

f) make contracts and incur liabilities;

g)   regulate the use, maintenance, repair, replacement and modification of common areas;

h)   grant easements, leases, licenses and concessions within common areas;

i) impose and receive any payments, fees or charges for the use, rental or operation of common areas;

j) impose reasonable charges for the preparation and recordation of amendments to the declaration or statements of unpaid assessments;

k)   provide for the indemnification of its officers and executive board of directors;

l) maintain directors' and officers' liability insurance;

m)  exercise any other powers granted by community documents; and

n)   exercise powers that may be exercised in Arizona by legal entities of the same type as the association. (Sec. 1)

2.   Specifies that to ensure claims regarding faulty construction are effectively made, and unless a member assigns a claim to an association, an association may not institute, defend or intervene in litigation or arbitration in its own name on behalf of itself or a member with respect to a homeowners' association dwelling action unless the action pertains to:

a)   a planned community's common areas;

b)   any portion of a planned community owned by an association; and

c) any portion of a planned community not owned by an association but the association is obligated to maintain, repair, insure or replace because the community documents expressly impose that obligation. (Sec. 1)

d)    

e)    

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g)                           HB 2575

h)   Initials SJ/AC            Page 0 House Engrossed

i)  

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