2016 Legislative Bills – Changes in the Law

The following changes will become effective August 6, 2016. This is a brief summary for reference only; you can read a longer summary version here provided as a courtesy of Maxwell & Morgan, P.C. With respect to specific questions or legal issues, you should seek legal advice/assistance.

  1. Enforcement Grace Period And ALJ Notice (Condominiums And Planned Communities):

Grace period for enforcement is extended and Notice about ALJ Process must now be provided.

  1. ALJ HOA Dispute Process Transferred To Department Of Real Estate (Condominiums And Planned Communities:

HOA Dispute Process is Transferred from the Department of Fire, Building and Life Safety to the Department of Real Estate. SB 1530 dissolves the Department of Fire, Building and Life Safety and transfers the functions of HOA disputes to the Department of Real Estate. There will be no practical change to the process.

  1. Online Voting; Ballots & Retention Of Voting Materials (Non-Profit Corporations, Planned Communities & Condominiums)

New procedures and requirements for online voting, ballots, secret ballots, and retention of voting material.

  1. Vacation & Short-Term Rentals; Online Lodging, Taxation (Planned Communities & Condominiums)

Cities and Counties can only regulate, but may not prohibit short-term and vacation rentals. This does not necessarily prevent community associations from prohibiting or restricting short term rentals if they are restricted or prohibited in the declaration.

  1. Removal And Filling Vacancies Of Removed Directors (Planned Communities And Condominiums)

Procedures in statutes must be followed for all director removal actions, but procedures in governing documents must be followed for filling the vacancies of removed directors. Directors removed are ineligible to serve on board until remainder of term expires.

  1. Late Fees (Planned Communities And Condominiums)

Requires notice of the delinquency be provided before late charges can be imposed.

  1. Procedure For Amending Declarations (Planned Communities & Private Covenant, Deed Restricted Communities)

New procedures for amending declarations and allows non-uniform amendments of declarations. Does not apply to condominium associations.

  1. Architectural Design Approval (Planned Communities)

HB 2172 amends A.R.S. §33-1817 by adding a provision that states an association may not unreasonably withhold approval of a construction project’s designs, plans and amendments.

  1. Potluck Regulation Exemptions (Condominiums and Planned Communities):

Potlucks are now allowed in community associations. HB 2341 amends A.R.S. §36-136 by broadening the food and drink rule exemption to include potlucks not conducted at the workplace. Previously, only “noncommercial social event(s) that take place at a workplace” qualified as exempt.

 

The summary contained herein is for reference only, is general in nature, and provided as a courtesy of Maxwell & Morgan, P.C. With respect to specific questions or legal issues, you should seek our advice and assistance.