HOA Law Changes - Legislative Updates

Synopsis of A.R.S. § 33-1260.01 & A.R.S. § 33-1806.01, which are the 2 statutes amended and changed with the law, effective as of Thursday, 7/24/14, as presented by Attorney Denise Holliday with Hull, Holliday & Holliday, at the 7/22/14 West-side NARPM meeting at WeMAR.

Section (A):  Unit owner may use as a rental property unless prohibited in the declaration (original CC&R’s) and use according to the CCR’s rental time period restrictions (i.e. has to be at least 3-month rental.)

Section (B):  Allows owner to designate property manager as their agent and the HOA must deal with us.  Designation must be in writing and copy of that given to the HOA.  Any notice given to property manager constitutes notice to owner.

Section (C):  Only the following have to be given to the HOA within 15 days after the request by the HOA:

  • Name and contact information for any adults (not children)
  • Time period of lease, including beginning & ending dates
  • Description and license plate numbers of the tenants’ vehicles
  • If it is an age-restricted community, tenant shall show a government issued ID bearing a photograph and that confirms tenant meets the community’s age restrictions or requirements

Section (D):  HOA may charge a fee of no more than $25 for each new tenancy (not per person) and cannot be charged on a renewal of the tenancy.  HOA shall not assess, levy or charge a fee or fine or impose a requirement any differently on a rental property than on an owner-occupied property in the HOA.

Section (E):  The HOA is prohibited from doing any of the following:
Requiring a copy of tenant’s rental application, credit report, lease agreement or rental contract or other personal information other than prescribed in Section C.
Requiring the tenant to sign a waiver or other document limiting the tenant’s due process right
Prohibit an owner from serving on the HOA Board of Directors
Imposing any fee, assessment, penalty or other charge in an amount greater than $15 for incomplete or late information required by Section C.  Any attempt by an HOA to charge anything other than what is authorized by the statute voids the fee authorized in Section D and voids the required to provide the information as prescribed in Section C.

Section (G):  Owner may use a crime-free addendum – not required and an HOA cannot require its use.

Section (H):  HOA can prohibit certain levels of Registered Sex Offenders.

Section (I):  Owner shall abate criminal behavior.