SB 1290 – Open Meetings; Planned Communities (Amending A.R.S. § 33-1804)
CLOSED MEETING DISCUSSIONS & OPEN SESSION VOTING
A.R.S. § 33-1804(A) permits a Board meeting to be closed only if the closed portion of the meeting is limited to consideration of five specific topics. The legislation specifies that the items allowed for discussion may only be considered without action. All formal action must take place at an open session.
This amendment essentially codifies the holding from AZNH Revocable Tr. v. Sunland Springs Vill. Homeowners Ass’n, an Arizona Court of Appeals case passed in April of this year. AZNH Revocable Tr. v. Sunland Springs Vill. Homeowners Ass’n, No. 1 CA-CV 25-0424, 2026 WL 1145908, (Ariz. Ct. App. Apr. 28, 2026). While this legislation only applies to planned communities, the Sunland decision applies to both planned communities and condominiums.
Historical Trends – Meetings
(2025) SB1039 – Open Meetings; Recordings – A.R.S. §§33-1248, 33-1804
If a Board records a meeting that is open to the members, the Board must keep a copy of that recording for at least six months. The Board must also make the unedited recording available to any member upon request, within ten business days.
HB2342 – HOAs; Shade Structures – A.R.S. § 33-1816.01
ASSOCIATIONS MUST PERMIT BACKYARD SHADE STRUCTURES
This new statute prevents planned community associations from prohibiting the backyard installation or use of a shade structure. A shade structure is defined as “a commercially produced or professionally manufactured movable or permanent structure that is designed to protect an area from sunlight.” Some examples include umbrellas, an awning, shade sail, gazebo, pergola, or canopy.
The association may adopt reasonable rules on size, placement, or appearance that do not impair function, restrict use, unreasonably increase cost, or exceed applicable municipal zoning height and setback standards.
HB4011 – HOAs; Duties – Amending A.R.S. § 33-1242 & Adding A.R.S. § 33-1821
BOARDS MUST ACT REASONABLY; CODIFICATION OF TIERRA RANCHOS V. KITCHUKOV
This legislation provides that condominium and planned community associations have a duty to act reasonably in the exercise of its discretionary powers. “Duty to act reasonably” is defined as acting neutrally, fairly, without favoritism, and in a nonarbitrary fashion. This has been the legal standard since the case of Tierra Ranchos v. Kitchukov (2007). The legislation simply codifies this rule.
SB 1246 – HOAs; Expense Liens; Special Assessment Amending A.R.S. §§ 33-1256
18 MONTHS OR $10,000 TO FORECLOSE; SPECIAL ASSESSMENT
This Bill amends A.R.S. § 33-1256 to increase the assessment foreclosure in a condominium association to a period of 18 months or in the amount of $10,000. Last year, SB 1494 made this change only to Planned Communities. This now applies to Condominiums.
Additionally, for any special assessment with an initial value of $10,000 or more, only the 18-month delinquency threshold applies. Condominium Associations should consider only allowing payment plans for special assessments of up to 18 months.
HB2397 – HOAs; Property Covenants; Disclosures – Amending A.R.S. §§ 33-1260 & 33-1806
CHANGES RELATING TO RESALE DISCLOSURE REQUIREMENTS
These amendments pertain to the association’s disclosure requirements when an owner sells their property. The amendments require condominium and planned community associations to provide additional disclosures to purchasers, including:
- Approved minutes from the last three open meetings;
- Current Income & Financial statements;
- Copies of current Bylaws, Rules, Regulations, and Policies;
- Any Special Assessment approved by the Board or sent out for a vote within the last four months, even if not yet assessed, including the amount and its purpose; • A statement as to whether the association is under declarant control, and the approximate percentage of homes owned by the declarant;
- The amount of any fee due upon sale, such as a working capital or reserve fee; • Any outstanding or unresolved violation against the Unit/Lot;
The following items must be disclosed for condominiums only:
- Any known deficiencies or conditions of Common Elements/Limited Common Elements that affect the unit for sale, the costs of which the purchaser will be liable (condominium only), and
- Copies of all insurance certificates identifying coverage limits and deductibles; and • A statement identifying whether any corporation or LLC owns and leases 35% or more of the Units.
If the property is governed by multiple associations, there must be a statement the property is subject to each association’s disclosure report and disclosure fee.
The maximum amount that the association may charge for services related to the sale or transfer of the property remains unchanged, at $400, and an additional $100 for a rush fee. Any purchaser or seller who is damaged by the association knowingly or recklessly failing to provide the required information, or by the association providing false or misleading statements is entitled to an award of attorney fees in a successful action against the association.
For associations with less than fifty units, this obligation is still the responsibility of the unit owner. The legislation also provides for a stronger statement to be signed by the purchaser to acknowledge that they are contractually bound by the CC&Rs, and that the Association may foreclose if the owner does not pay assessments.
SB1184 – HOAs; Uniformed Services Division Flags – Amending A.R.S. §§ 33-1261 & 33-1808
PERMITTED FLAGS EXPANDED TO INCLUDE UNIFORMED SERVICES DIVISION FLAGS
This Bill amends existing A.R.S. §§ 33-1261 & 33-1808 to include protection for division flags. Section (A)(1) of each statute is amended to include “division flag of the Army, Navy, Marine Corps, Air Force, Space Force, or Coast Guard.” Both statutes define division flag as “a flag that is authorized by the United States Army, Navy, Marine Corps, Air Force, Space Force, or Coast Guard to represent a divisional level unit, that bears the approved insignia, designation, or nickname and that is used for ceremonial, identification, or representational purposes.”
SB 1808 – HOAs; Allied Countries’ Flags – Amending A.R.S. §§ 33-1261 & 33-1808
PERMITTED FLAGS EXPANDED TO INCLUDE THE ISRAELI FLAG
This Amendment to A.R.S. §§ 33-1261 & 33-1808 includes protection for display of “a flag from a nation that is allied with the United States as a major non-NATO ally and that was established on May 14, 1948.”
Historical Trends – Political Signs
(2025) SB 1378 – Political Signs; Flags – Amends A.R.S. §§ 33-1261 & 33-1808
Associations must allow homeowners to display political signs and political flags during an election period. Previously, Arizona law did not require associations to allow homeowners to display political flags, only political signs.
Every year, the Arizona legislature introduces and passes several laws that impact planned communities and condominiums. Change is inevitable and we’ve provided this summary as a guide to assist your understanding of these new laws that will impact your communities. Our team of knowledgeable attorneys and paralegals stand ready to help your communities navigate these changes.
Focused on Results, Not Billable Hours.
The information provided in this document is intended for informational purposes only and is not distributed as legal advice. The dissemination of this document does not create, nor does its receipt constitute an attorney-client relationship. Each case has unique facts that require legal review and you should contact your attorney. If you would like to discuss one or more of the topics presented and how they may affect your community association, please contact us at: kellyo@azhoalaw.net.
