Plain English Breakdown
The official source material does not specify the exact process for reestablishing a planned community or what happens to rules and fees after expiration, leaving these points as unknowns.
Homeowner's Associations; Expiration
This bill sets a mandatory expiration date for declarations of homeowner's associations and planned communities in Arizona.
What This Bill Does
- Sets January 1, 2127 as the expiration date for all declarations of homeowner's associations (HOAs) unless they are older than that date.
- Declares that HOA declarations expire one hundred years after their original recording date.
- Requires that when an HOA expires and dissolves, it must wind up its business and liquidate its affairs as required by law.
- Allows property owners to voluntarily reestablish a planned community after the expiration of the declaration.
Who It Names or Affects
- Homeowner's associations
- Planned communities
- Property owners in these communities
Terms To Know
- declaration
- The legal document that establishes and governs a homeowner's association or planned community.
- dissolution
- The process of ending an organization, in this case, a homeowner's association.
Limits and Unknowns
- Does not specify what happens to the rules and fees set by HOAs after their expiration.
- Does not provide details on how property owners can reestablish a planned community.
- The bill has passed both chambers but its final status is pending executive action.