homeowner's associations; declaration amendment

SB1806 - 572R - I Ver

REFERENCE TITLE:
homeowner's associations; declaration amendment

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1806

Introduced by

Senator
Gowan

AN
ACT

amending sections 33-1227 and 33-1817,
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 33-1227, Arizona Revised
Statutes, is amended to read:

START_STATUTE
33-1227.

Amendment of declaration

A. Except in cases of amendments that may be
executed by a declarant under section 33-1220, by the association under
section 33-1206 or section 33-1216, subsection D, or by certain
unit owners under section 33-1218, subsection B, section 33-1222
, section
or
33-1223 or section 33-1228,
subsection D, and except to the extent allowed or required by other provisions
of this chapter, the declaration, including the plat, may be amended only by a
vote of the unit owners to which at least sixty-seven percent of the
votes in the association are allocated, or any larger majority the declaration
specifies. The declaration may specify a smaller percentage only if
all of the units are restricted exclusively to nonresidential
use. The declaration may also provide that the consent of the
declarant is required to an amendment during any period of declarant control
pursuant to section 33-1243. Within thirty days after
the adoption of
adopting
any amendment
pursuant to this subsection, the association shall prepare, execute and record
a written instrument setting forth the amendment.

B. Notwithstanding any other law, if
at least ninety-five percent of the units in the condominium have been
sold to persons other than the declarant, the declaration may be amended as
follows:

1. The board of directors shall call
A meeting of the unit owners or the members of the unit owners' association may
call a special meeting of the unit OWNERS' association as prescribed by section
33-1248.

2. The board of directors or the unit
owners, as applicable, shall provide notice of the meeting and notice of the
possible amendment to the declaration at least sixty days before the date of
the meeting.� The text of the proposed amendment to the declaration shall also
be made available to all of the unit owners at least sixty days before the date
of the meeting.

3. If a majority of those voting on
the matter votes to approve the proposed amendment, the declaration is
amended.� The board of directors shall promptly record the amended declaration
in the office of the county recorder for the county in which the condominium is
located.

B.

c.
An
action to challenge the validity of an amendment adopted by the association
pursuant to this section shall not be brought more than one year after the
amendment is recorded.

C.

d.
An
amendment to the declaration shall be recorded in each county in which any
portion of the condominium is located and is effective only on recordation in
the same manner as required for the declaration under section 33-1211.

D.

e.
Except
to the extent expressly allowed or required by other provisions of this
chapter, an amendment shall not create or increase special declarant rights,
increase the number of units or change the boundaries of any unit, the
allocated interests of a unit or the uses to which any unit is restricted, in
the absence of unanimous consent of the unit owners.

E.

f.
An
amendment shall not terminate or decrease any unexpired development right,
special declarant right or period of declarant control unless the declarant
approves.

F.

g.
Amendments
to the declaration required by this chapter to be executed by the association
shall be executed on behalf of the association by any officer of the
association designated for that purpose or, in the absence of designation, by
the president of the association.
END_STATUTE

Sec. 2. Section 33-1817, Arizona Revised
Statutes, is amended to read:

START_STATUTE
33-1817.

Declaration amendment; design, architectural committees; review

A. Except during the period of declarant control, or
if during the period of declarant control with the written consent of the
declarant in each instance, the following apply to an amendment to a
declaration:

1. The declaration may be amended by the
association, if any, or, if there is no association or board, the owners of the
property that is subject to the declaration, by an affirmative vote or written
consent of the number of owners or eligible voters specified in the
declaration, including the assent of any individuals or entities that are
specified in the declaration.

2. An amendment to a declaration may apply to fewer
than all of the lots or less than all of the property that is bound by the
declaration and an amendment is deemed to conform to the general design and
plan of the community, if both of the following apply:

(a) The amendment receives the affirmative vote or
written consent of the number of owners or eligible voters specified in the
declaration, including the assent of any individuals or entities that are
specified in the declaration.

(b) The amendment receives the affirmative vote or
written consent of all of the owners of the lots or property to which the
amendment applies.

3. Within thirty days after
the
adoption of

adopting
any amendment pursuant to
this section, the association or, if there is no association or board, an owner
that is authorized by the affirmative vote on or the written consent to the
amendment shall prepare, execute and record a written instrument setting forth
the amendment.

4. Notwithstanding any provision in the declaration
that provides for periodic renewal of the declaration, an amendment to the
declaration is effective immediately on recordation of the instrument in the
county in which the property is located.

B. Notwithstanding any other law, if
at least ninety-five percent of the properties in the planned community have
been sold to persons other than the declarant, the declaration may be amended
as follows:

1. The board of directors shall call
A meeting of the members of the association or The members of the association
may call a special meeting of the members' association as prescribed by section
33-1804.

2. The board of directors or the
members, as applicable, shall provide notice of the meeting and notice of the
possible amendment to the declaration at least sixty days before the date of
the meeting.� The text of the proposed amendment to the declaration shall also
be made available to all of the members at least sixty days before the date of
the meeting.

3. If a majority of those voting on
the matter votes to approve the proposed amendment, the declaration is
amended.� The board of directors shall promptly record the amended declaration
in the office of the county recorder for the county in which the planned
community is located.

B.

c.
Notwithstanding
any provision in the community documents:

1. Membership on a design review committee, an
architectural committee or a committee that performs similar functions, however
denominated, for the planned community shall include at least one member of the
board of directors who shall serve as chairperson of the committee.

2. For new construction of the main residential
structure on a lot or for rebuilds of the main residential structure on a lot
and only in a planned community that has enacted design guidelines,
architectural guidelines or other similar rules, however denominated, and if
the association documents
permit
allow

the association to charge the member a security deposit and the association
requires the member to pay a security deposit to secure completion of the
member's construction project or compliance with approved plans, all of the
following apply:

(a) The deposit shall be placed in a trust account
with the following instructions:

(i) The cost of the trust account shall be shared
equally between the association and the member.

(ii) If the construction project is abandoned, the
board of directors may determine the appropriate use of any deposit monies.

(iii) Any interest earned on the refundable security
deposit shall become part of the security deposit.

(b) The association or the design review committee
must hold a final design approval meeting for the purpose of issuing approval
of the plans, and the member or member's agent must have the opportunity to
attend the meeting. If the plans are approved, the association's design review
representative shall provide written acknowledgement that the approved plans,
including any approved amendments, are in compliance with all rules and
guidelines in effect at the time of the approval and that the refund of the deposit
requires that construction be completed in accordance with those approved
plans.

(c) The association must provide for at least two
on-site formal reviews during construction for the purpose of determining
compliance with the approved plans. The member or member's agent
shall be provided the opportunity to attend both formal reviews.� Within five
business days after the formal reviews, the association shall cause a written
report to be provided to the member or member's agent specifying any
deficiencies, violations or unapproved variations from the approved plans, as
amended, that have come to the attention of the association.

(d) Within thirty business days after the second
formal review, the association shall provide to the member a copy of the
written report specifying any deficiencies, violations or unapproved variations
from the approved plans, as amended, that have come to the attention of the
association.� If the written report does not specify any deficiencies,
violations or unapproved variations from the approved plans, as amended, that
have come to the attention of the association, the association shall promptly
release the deposit monies to the member. If the report identifies
any deficiencies, violations or unapproved variations from the approved plans,
as amended, the association may hold the deposit for one hundred eighty days or
until receipt of a subsequent report of construction compliance, whichever is
less. If a report of construction compliance is received before the
one hundred eightieth day, the association shall promptly release the deposit
monies to the member.� If a compliance report is not received within one
hundred eighty days, the association shall release the deposit monies promptly
from the trust account to the association.

(e) Neither the approval of the plans nor the
approval of the actual construction by the association or the design review
committee shall constitute a representation or warranty that the plans or
construction comply with applicable governmental requirements or applicable
engineering, design or safety standards. The association in its
discretion may release all or any part of the deposit to the member before
receiving a compliance report. Release of the deposit to the member does not
constitute a representation or warranty from the association that the
construction complies with the approved plans.

3. Approval of a construction project's
architectural designs, plans and amendments shall not unreasonably be withheld.

END_STATUTE