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SB1260 - 572R - I Ver
REFERENCE TITLE:
HOAs; complaints; dispositions; online access
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SB 1260
Introduced by
Senator
Kavanagh
AN
ACT
amending sections 33-1242 and 33-1803,
Arizona Revised Statutes; relating to condominiums and planned communities.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 33-1242, Arizona Revised
Statutes, is amended to read:
START_STATUTE
33-1242.
Powers of unit owners' association; notice to unit owner of
violation; duties; maintenance of violation records; civil penalties
A. Subject to the provisions of the declaration, the
association may:
1. Adopt and amend bylaws and rules.
2. Adopt and amend budgets for revenues,
expenditures and reserves and collect assessments for common expenses from unit
owners.
3. Hire and discharge managing agents and other
employees, agents and independent contractors.
4. Institute, defend or intervene in litigation or
administrative proceedings in its own name on behalf of itself or two or more
unit owners on matters affecting the condominium.
5. Make contracts and incur liabilities.
6. Regulate the use, maintenance, repair,
replacement and modification of common elements.
7. Cause additional improvements to be made as a
part of the common elements.
8. Acquire, hold, encumber and convey in its own
name any right, title or interest to real or personal property, except that
common elements may be conveyed or subjected to a security interest only
pursuant to section 33-1252.
9. Grant easements, leases, licenses and concessions
through or over the common elements.
10. Impose and receive any payments, fees or charges
for the use, rental or operation of the common elements other than limited
common elements described in section 33-1212, paragraphs 2 and 4 and for
services provided to unit owners.
11. Impose charges for late payment of assessments
after the association has provided notice that the assessment is overdue or
provided notice that the assessment is considered overdue after a certain date
and, after notice and an opportunity to be heard, impose reasonable monetary
penalties on unit owners for violations of the declaration, bylaws and rules of
the association.
12. Impose reasonable charges for the preparation
and recordation of amendments to the declaration or statements of unpaid
assessments.
13. Provide for the indemnification of its officers
and executive board of directors and maintain directors' and officers'
liability insurance.
14. Assign its right to future income, including the
right to receive common expense assessments, but only to the extent the
declaration expressly provides.
15. Be a member of a master association or other
entity owning, maintaining or governing in any respect any portion of the
common elements or other property benefitting or related to the condominium or
the unit owners in any respect.
16. Exercise any other powers conferred by the
declaration or bylaws.
17. Exercise all other powers that may be exercised
in this state by legal entities of the same type as the association.
18. Exercise any other powers necessary and proper
for the governance and operation of the association.
B. A unit owner who receives a written notice that
the condition of the property owned by the unit owner is in violation of a
requirement of the condominium documents without regard to whether a monetary
penalty is imposed by the notice may provide the association with a written
response by sending the response by certified mail within twenty-one
calendar days after the date of the notice.� The response shall be sent to the
address identified in the notice.
C. Within ten business days after receipt of the
certified mail containing the response from the unit owner, the association
shall respond to the unit owner with a written explanation regarding the notice
that shall provide at least the following information unless previously
provided in the notice of violation:
1. The provision of the condominium documents that
has allegedly been violated.
2. The date of the violation or the date the
violation was observed.
3. The first and last name of the person or persons
who observed the violation.
4. The process the unit owner must follow to contest
the notice.
D. Unless the information required in subsection C,
paragraph 4 of this section is provided in the notice of violation, the
association shall not proceed with any action to enforce the condominium
documents, including the collection of attorney fees, before or during the time
prescribed by subsection C of this section regarding the exchange of
information between the association and the unit owner and shall give the unit
owner written notice of the unit owner's option to petition for an administrative
hearing on the matter in the state real estate department pursuant to section�
32-2199.01.� At any time before or after completion of the exchange of
information pursuant to this section, the unit owner may petition for a hearing
pursuant to section 32-2199.01 if the dispute is within the jurisdiction
of the state real estate department as prescribed in section 32-2199.01.
E. Each association shall maintain a
written or electronic record of all alleged violations of the condominium
documents that OCCURed within the preceding two years, including both resolved
and unresolved violations.
F. For each violation, the record
must include:
1. The date of the alleged violation.
2. A brief description of the rule or
provision violated.
3. The disposition of the matter,
including whether the violation was cured, dismissed or upheld.
4. The date of the disposition of the
matter.
5. Any fine or penalty imposed.
G. The association shall make the
record available to all unit owners by either:
1. Posting the record on a website
that is accessible to all members of the association.
2. If the association does not
maintain a website, providing the record expeditiously on written or electronic
request of a unit owner.
H. The ASSOCIATION shall update the
record at least monthly and shall clearly distinguish between unresolved and
resolved violations.
I. The association shall REDACT from
the record the name and unit number of an owner or resident to protect personal
privacy but may identify the condominium by street name or general location
sufficient to inform unit owners of the nature and scope of violations within
the condominium.
J. An association that fails to
comply with subsection E of this section is subject to a civil penalty of not
more than $500 for each month of noncompliance.� The state real estate
department, or an affected unit owner through an administrative hearing, may
enforce the civil penalty.
END_STATUTE
Sec. 2. Section 33-1803, Arizona Revised
Statutes, is amended to read:
START_STATUTE
33-1803.
Assessment limitation; penalties; notice to member of violation;
duties; maintenance of violation records; civil penalties
A. Unless limitations in the community documents
would result in a lower limit for the assessment, the association shall not
impose a regular assessment that is more than twenty percent greater than the
immediately preceding fiscal year's assessment without the approval of the
majority of the members of the association. Unless reserved to the
members of the association, the board of directors may impose reasonable
charges for the late payment of assessments.� A payment by a member is deemed
late if it is unpaid fifteen or more days after its due date, unless the
community documents provide for a longer period. Charges for the
late payment of assessments are limited to the greater of
fifteen
dollars
$15
or ten percent of the amount of the
unpaid assessment and may be imposed only after the association has provided
notice that the assessment is overdue or provided notice that the assessment is
considered overdue after a certain date.� Any monies paid by the member for an
unpaid assessment shall be applied first to the principal amount unpaid and
then to the interest accrued.
B. After notice and an opportunity to be heard, the
board of directors may impose reasonable monetary penalties on members for
violations of the declaration, bylaws and rules of the association.�
Notwithstanding any provision in the community documents, the board of
directors shall not impose a charge for a late payment of a penalty that
exceeds the greater of
fifteen dollars
$15
or ten percent of the amount of the unpaid penalty. A payment is
deemed late if it is unpaid fifteen or more days after its due date, unless the
declaration, bylaws or rules of the association provide for a longer period.�
Any monies paid by a member for an unpaid penalty shall be applied first to the
principal amount unpaid and then to the interest accrued.� Notice pursuant to this
subsection shall include information pertaining to the manner in which the
penalty shall be enforced.
C. A member who receives a written notice that the
condition of the property owned by the member is in violation of the community
documents without regard to whether a monetary penalty is imposed by the notice
may provide the association with a written response by sending the response by
certified mail within twenty-one calendar days after the date of the
notice. The response shall be sent to the address identified in the
notice.
D. Within ten business days after receipt of the
certified mail containing the response from the member, the association shall
respond to the member with a written explanation regarding the notice that
shall provide at least the following information unless previously provided in
the notice of violation:
1. The provision of the community documents that has
allegedly been violated.
2. The date of the violation or the date the
violation was observed.
3. The first and last name of the person or persons
who observed the violation.
4. The process the member must follow to contest the
notice.
E. Unless the information required in subsection D,
paragraph 4 of this section is provided in the notice of violation, the
association shall not proceed with any action to enforce the community
documents, including the collection of attorney fees, before or during the time
prescribed by subsection D of this section regarding the exchange of
information between the association and the member and shall give the member
written notice of the member's option to petition for an administrative hearing
on the matter in the state real estate department pursuant to section 32-2199.01. At
any time before or after completion of the exchange of information pursuant to
this section, the member may petition for a hearing pursuant to section 32-2199.01
if the dispute is within the jurisdiction of the state real estate department
as prescribed in section 32-2199.01.
F. Each association shall maintain a
written or electronic record of all alleged violations of the community
documents that OCCURRed within the preceding two years, including both resolved
and unresolved violations.
G. For each violation, the record
must include:
1. The date of the alleged violation.
2. A brief description of the rule or
provision violated.
3. The disposition of the matter,
including whether the violation was cured, dismissed or upheld.
4. The date of the disposition of the
matter.
5. Any fine or penalty imposed.
H. The association shall make the
record available to all members by either:
1. Posting the record on a website
that is accessible to all members of the association.
2. If the association does not
maintain a website, providing the record expeditiously on written or electronic
request of a member.
I. The ASSOCIATION shall update the
record at least monthly and shall clearly distinguish between unresolved and
resolved violations.
J. The association shall REDACT from
the record the name and lot number of a member to protect personal privacy but
may identify the property by street name or general location sufficient to
inform members of the nature and scope of violations within the community.
K. An association that fails to
comply with SUBSECTION F of this section is subject to a civil penalty of not
more than $500 for each month of noncompliance.� The state real estate
department, or an affected member through an administrative hearing, may
enforce the civil penalty.
END_STATUTE