Hello and Happy New Year to our Desert Ridge Community Residents:
First, thank all of you again for the support that you have provided our board of directors and committee members over many years.
I hope your Spring is off to a great start and that we can enjoy the continued good weather while it lasts.
I also want to provide you with some information that the Desert Ridge Community Association Board of Directors will be monitoring concerning 14 proposed bills that are slated to come before the Arizona Legislature House (HB) and Senate (SB) for consideration during this year’s legislative session. We’ll update you if any of these bills are enacted into law and provide how any newly enacted bills may impact the community association.
HB2083
A proposal to amend A.R.S. § 33-1242 to cap annual assessment increases at 20% greater than the prior year’s assessment unless the members approve a greater increase. A proposal to amend A.R.S. § 33-1803 to adjust the language that currently caps assessment increases for planned communities at 20% greater than the prior year’s assessment, to allow for greater increases if provided for in the community documents, and only permit greater increases if approved by 67% of the members who are voting on such greater increase at a meeting called for such purpose.
Status as of 1/18/2024 – House Second Read
HB2084
A proposal to amend A.R.S. §§ 33-1248 and 33-1804 to allow community associations to provide notice of membership meetings to the members in person, by mail, or by email, to prohibit cumulative voting for directors, to prohibit director nominations from the floor of the annual membership meeting, to require the names of all eligible candidates nominated for the board to be included on the ballot, and to establish a quorum of 1/10 of the members for any membership meeting at which the election of directors occurs. This bill also proposes to amend A.R.S. §§ 33-1250 and 33-1812 to expressly allow for voting by a written ballot process, to adjust the requirements for ballots, to also authorize a written consent process, and to establish a quorum of 1/10 of the members for the annual membership meeting.
Status as of 1/18/2024 – House Second Read
HB2085
A proposal to amend A.R.S. §§ 33-1258 and 33-1805 to establish specific requirements for a member’s request for records and to define what constitutes a community association’s records.
Status as of 1/18/2024 – House Second Read
HB2098
A proposal to amend various statutes relating to property tax to increases the tax lien redemption period from 3 to 5 years; to provide that foreclosure of redemption rights cannot occur sooner than five years after a tax lien sale and not later than ten years after the sale; to prohibit the foreclosure of redemption rights unless the amount required to redeem exceeds the lesser of 5% of the fair market value (according to county assessor’s valuation) or $50,000.
Status as of 1/18/2024 – House Second Read
HB2119
A proposal to amend A.R.S. §§ 33-1260 and 33-1806 to prohibit charging resale disclosure fees for transactions between certain related parties for nominal or no consideration, e.g., spouses, parent-child, affiliated entities.
Status as of 1/18/2024 – House Second Read
HB2126
A proposal to amend A.R.S. §§ 33-1202, 33-1215, 33-1243, and 33- 1245 to require member ratification of the community association’s annual budget and to require the approval of at least a majority of the members for any special assessment or financing of more than one year in duration. This bill also proposes to amend A.R.S. § 33-1803 to clarify that an annual assessment increase and a mid-year assessment increase may not be greater than 20% of the prior year’s assessment unless the members approve a greater increase, and to require the approval of at least a majority of the members for any special assessment or financing of more than one year in duration.
Status as of 1/18/2024 – House Second Read
HB2141
A proposal to amend A.R.S. § 33-1221 limit a condominium association’s right to prohibit interior modifications, even if they “may disturb adjacent unit occupants” so long as the unit owner installs “reasonably necessary improved materials, accessories or other adjustments” that minimize the potential disturbance.
Status as of 1/18/2024 – House Second Read
HB2270
A proposal to amend A.R.S. §§ 33-1243, 33-1248, 33-1804, and 33- 1813 to clarify that a director cannot be subjected to a recall vote more than once a term; require any rulemaking, enforcement, design control, or financial advisory committee meetings to be open to members; make other open meeting requirements (recording, right to speak, etc.) applicable to these committee meetings; require matters concerning member violations, fines, and delinquencies to be discussed in open session unless the member requests an appeal to be heard in executive session (consideration of personal health or financial hardships impacting a member’s ability to pay or comply may still be heard in executive session); include bid proposals and negotiations with financial institutions or other entities related to acquisition of property to matters that may be discussed in executive session; provide an automatic reduction in quorum and reconvened meetings for purposes of the annual membership meeting; require the posting of the draft agenda for open board or committee meetings at least 48 hours in advance of the meeting; require the posting of draft meeting minutes within 10 business days after a meeting; apply open meeting requirements to any quorum of the board that “communicates in the official capacity of the board of directors” (i.e., email); require declarant controlled community associations to provide advance notice of board meetings, provide agendas, and otherwise comply with other board meeting requirements; and provide that any action in violation of the statute’s policy statement on open meetings is null and void.
Status as of 1/18/2024 – Introduced
HB2470
A proposal to amend A.R.S. § 33-1818 to eliminate all community association regulation of roadways “for which the ownership has been dedicated to or is otherwise held by” a “governmental entity.” The voting process to allow community associations to retain control and enforce rules/restrictions contained in the association’s governing documents that govern public roadways and that was passed into law last year would be eliminated.
Status as of 1/18/2024 – Introduced
HB2531
A proposal to add a new Article 7 relating to real property conveyances and deeds to A.R.S. Title 33, Chapter 4. This new article will make it easier to remove unlawful or unenforceable restrictions from recorded documents (e.g., restrictions based on race and other protected classes), and includes a process for community associations to do this.
Status as of 1/18/2024 – Introduced.
HB2541
A proposal to amend A.R.S. §§ 10-130, 33-1258, and 33-1805 to require a community association to file with the Arizona Corporation Commission (ACC), and for the ACC to make accessible, all governing documents of a community association that is located in a county with a population of more than 800,000, and to keep such governing documents updated.
Status as of 1/18/2024 – House First Read
HB2575
A proposal to add A.R.S. § 33-1820, “Powers of the association,” to expressly authorize certain power/authority, all subject to the provisions of the declaration.
Status as of 1/18/2024 – Introduced
SB1016
A proposal to amend A.R.S. § 33-1801 to allow community associations to limit the number of flagpoles on a member’s lot to two.
Status as of 1/18/2024 – Senate Second Read
SB1022
A proposal to amend A.R.S. § 33-1261 and 33-1808 to require community associations to allow “An Appeal to Heaven Flag.”
Status as of 1/18/2024 – Senate Second Read
Note: All legislative hearings are open to the public. Statutes that begin with 33-12 are a part of Arizona’s Condominium Act. Statutes that begin with 33-18 are a part of Arizona’s Planned Communities Statutes. Statutes that begin with 10 are a part of Arizona’s Corporations Act.
Reginald Younger, Jr.
President
Desert Ridge Community Association
