SB1007 - 472R - House Bill Summary

House of Representatives

SB 1007

condominiums; homeowners' associations; records; fees

Sponsor: Senator Waring

DPA	Committee on Federal Mandates and Property Rights
DPA	Caucus and COW
X	As Transmitted to the Governor

SB 1007 limits the fees that condominium or planned community homeowners’ associations (HOA) may charge for records and stipulates that a meeting may be closed when pertaining to records of the HOA that are directly related to personal, health or financial information.

History

In accordance with Arizona Revised Statute (A.R.S.) §§33-1248 and 33-1804, all meetings of condominium and planned community HOAs and board of directors are open to all members of the HOA or any person designated by a member in writing as the member’s representative and all members or designated representatives who wish to do so, must be permitted to attend and speak at an appropriate time during the deliberation and proceedings. Any portion of a meeting may be closed if that portion of the meeting is limited to consideration of one or more of the following:

1. Legal advice from an attorney for the board or the HOA in which the board may disclose information on final resolution of any matter for which the board received legal advice except for matters that are required to remain confidential by the terms of a settlement agreement or judgment.

2. Pending or contemplated litigation.

3. Personal, health and financial information about an individual member of the HOA, an individual employee of the HOA or an individual employee of a contractor for the association.

4. Matters relating to the job performance of, compensation of, health records of or specific complaints against an individual employee of the HOA or an individual employee of a contractor of the HOA who works under the director of the HOA.

A.R.S. §§33-1258 and 33-1805 state that except for the following, all financial and other records of the condominium and planned community HOAs must be made reasonable available for examination by any member or any person designated by the member in writing as the member’s representative:

1. Privileged communication between an attorney and the HOA for the HOA.

2. Pending or contemplated litigation.

3. Meeting minutes or other records of a session of a board meeting that is not required to be open to all members pursuant to §33-1248.

4. Personal, health and financial records of an individual member of the HOA, an individual employee of the HOA, or an individual employee of a contractor for the HOA.

5. Records relating to the job performance of, compensation of, health records of or specific complaints against an individual employee of the association or an individual employee of a contractor of the association who works under the direction of the association.

Provisions

· Allows condominium and planned community HOAs to close a portion of a meeting if it is limited to records of the HOA directly related to personal health or financial information.

· Removes records related to contemplated litigation from the list of records that are exempt from disclosure.

· Prohibits an HOA from charging a member or any person designated by the member in writing for making material available for review and specifies that an HOA have 10 business days to fulfill a request for examination.

· Stipulates that on a request for purchase of copies or records by any member or any person designated by the member in writing as the member’s representative, the HOA must have 10 business days to provide copies of the requested records.

· Allows an HOA to charge a fee for making copies of not more than $.15 per page.

· Requires an HOA to provide the unit owner with written notice of a violation of condominium documents along with a description of the process the unit owner must follow before taking action to enforce the provisions for the condominium documents regarding the condition of the unit owner’s property.

· Establishes that a unit owner or member who has received a written notice from the condominium or planned community HOA that his/her property is in violation, regardless of monetary penalty, may provide the HOA a written response by certified mail within 10 business days after the date of the notice.

· Directs that the response must be sent to the address contained in the record that is held in the office of the county recorder in the county in which the HOA is located.

· Stipulates that within 10 days after receiving written response from the property owner, the HOA must respond to the property owner with a written explanation regarding the notice which must provide at least the following information:

The provision of the HOA documents that allegedly has been violated.

The date of the violation or the date the violation was observed.

The name of the person or persons who observed the violation.

The process the unit owner or member must follow to contest the notice.

· Prohibits the HOA from proceeding with any action to enforce the condominium documents, including the collection of attorney fees, before or during the time prescribed.

· Stipulates that a condominium or planned community HOAs with a lien on a unit can only foreclose on the property if the owner has been delinquent in the payments of the assessments secured by the lien for a period of one year or in the amount of $1,200 or more, whichever occurs first.

- Excludes reasonable collection fees, reasonable attorney fees, charges for late payment, and costs incurred with respect to those assessments.

· Makes technical and conforming changes.

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Forty-seventh Legislature