Arizona Legislative Update 2018
Prior to this legislative session, there were numerous bills being discussed that could have impacted homeowners associations and the community management industry. However, Arizona Association of Community Managers (AACM) lobbying efforts were successful in limiting the introduction of many bills. This was likely due in part to AACM’s extensive education efforts conducted with legislators. In the end, there were nine bills that were tracked as having a direct impact on homeowners associations and the community management industry. Of the nine priority bills, only one was successfully passed by the Legislature and signed by the Governor, and the remaining eight failed to pass the Legislature. The single bill signed into law impacts condominium communities that are having their condominium agreements terminated.The effective date for all non-emergency measures is August 3, 2018. The bills containing an emergency clause take effect immediately upon signature.
Bill Passed by the Legislature and Signed by the Governor
H2262: CONDOMINIUMS; TERMINATION; APPRAISALS (Toma R-22) - HB2262 modifies statutes related to the termination of condominium associations. This bill provides for an individual unit owner to disapprove of an independent appraisal. A determination of fair market value of a condominium unit as determined by an independent appraiser selected by the condominium association becomes final unless disapproved by the unit owner within 60 days. A unit owner is authorized to obtain a second independent appraisal at the unit owner’s expense and if the total amount of compensation owed as determined by the second appraiser is less than five percent, the higher appraisal is final. If the second appraisal is more than five percent higher than the amount determined by the association’s appraiser, the unit owner must submit to arbitration at the association’s expense and the arbitration amount is the final sale amount. Finally, this legislation establishes a unit owner receives an additional five percent of the final sale amount for relocation costs for owner-occupied units.