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HB2834 - 572R - H Ver
House Engrossed
claims against HOAs;
filing fees
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2834
AN
ACT
Amending sections 32-2199.01 and 33-1270,
Arizona Revised Statutes; amending title 33, chapter 16, Arizona Revised
Statutes, by adding article 2; Relating to COMMUNITY ASSOCIATION DISPUTES.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Section 32-2199.01, Arizona Revised
Statutes, is amended to read:
START_STATUTE
32-2199.01.
Hearing; rights and procedures
A. For a dispute between an owner and a condominium
association or planned community association that is regulated pursuant to
title 33, chapter 9 or 16, the owner or association may petition the department
for a hearing concerning violations of condominium documents or planned
community documents or violations of the statutes that regulate condominiums or
planned communities. The petitioner shall file a petition with the
department and pay a filing fee
in an amount to be established by
the commissioner
Of
$300 per issue
claimed in the petition
. The filing fee shall be deposited in
the condominium and planned community hearing office fund established by
section 32-2199.05. On dismissal of a petition at the request
of the petitioner before a hearing is scheduled or by stipulation of the
parties before a hearing is scheduled, the filing fee shall be refunded to the
petitioner. The department does not have jurisdiction to hear:
1. Any dispute among or between owners to which the
association is not a party.
2. Any dispute between an owner and any person,
firm, partnership, corporation, association or other organization that is
engaged in the business of designing, constructing or selling a condominium as
defined in section 33-1202 or any property or improvements within a
planned community as defined in section 33-1802, including any person,
firm, partnership, corporation, association or other organization licensed
pursuant to this chapter, arising out of or related to the design,
construction, condition or sale of the condominium or any property or
improvements within a planned community.
B. The petition shall be in writing on a form
approved by the department, shall list the complaints and shall be signed by or
on behalf of the persons filing and include their addresses, stating that a
hearing is desired, and shall be filed with the department.
C. On receipt of the petition and the filing fee
,
the department shall mail by certified mail a copy of the
petition along with notice to the named respondent that a response is required
within twenty days after mailing of the petition showing cause, if any, why the
petition should be dismissed.
D. After receiving the response, the commissioner or
the commissioner's designee shall promptly review the petition for hearing and,
if justified, refer the petition to the office of administrative
hearings. The commissioner may dismiss a petition for hearing if it
appears to the commissioner's satisfaction that the disputed issue or issues
have been resolved by the parties.
E. Failure of the respondent to answer is deemed an
admission of the allegations made in the petition, and the commissioner shall
issue a default decision.
F. Informal disposition may be made of any contested
case.
G. Either party or the party's authorized agent may
inspect any file of the department that pertains to the hearing, if the
authorization is filed in writing with the department.
H. At a hearing conducted pursuant to this section,
a corporation may be represented by a corporate officer, employee or contractor
of the corporation who is not a member of the state bar if:
1. The corporation has specifically authorized the
officer, employee or contractor of the corporation to represent it.
2. The representation is not the officer's,
employee's or contractor of the corporation's primary duty to the corporation
but is secondary or incidental to the officer's, employee's or contractor of
the corporation's, limited liability company's, limited liability
partnership's, sole proprietor's or other lawfully formed and operating
entity's duties relating to the management or operation of the corporation.
END_STATUTE
Sec. 2. Section 33-1270, Arizona Revised Statutes, is amended to read:
START_STATUTE
33-1270.
Department of real estate; enforcement
A.
Nothing in
This chapter
shall be construed to
does not
increase or
decrease or otherwise affect any rights or powers granted to the commissioner
of the department of real estate under title 32, chapter 20 with respect to the
issuance of public reports.
B. The commissioner of the department of real estate
shall require compliance with
section
sections
33-1215 and
section
33-1219 in connection with the administration of
the subdivision laws of this state under title 32, chapter 20, article
4. The commissioner
shall
is
not
be
required to
administer or enforce any other provisions of this chapter
but
shall administer the dispute resolution process authorized under section 32-2199.01
.
END_STATUTE
Sec. 3. Title 33, chapter 16, Arizona Revised
Statutes, is amended by adding article 2, to read:
ARTICLE 2. ADMINISTRATION
START_STATUTE
33-1831.
State real estate department; enforcement
A. THIS CHAPTER DOES NOT INCREASE OR
DECREASE OR OTHERWISE AFFECT ANY RIGHTS OR POWERS GRANTED TO THE STATE REAL
ESTATE COMMISSIONER UNDER TITLE 32, CHAPTER 20 WITH RESPECT TO THE ISSUANCE OF
PUBLIC REPORTS.
B. THE STATE REAL ESTATE COMMISSIONER
is not required to enforce any provision of this chapter as part
of
THE ADMINISTRATION OF THE SUBDIVISION LAWS OF THIS
STATE UNDER TITLE 32, CHAPTER 20, ARTICLE 4
BUT SHALL
ADMINISTER THE DISPUTE RESOLUTION PROCESS AUTHORIZED UNDER SECTION 32-2199.01.
END_STATUTE