ARIZONA STATE SENATE

RESEARCH STAFF

NADINE SAPIEN

LEGISLATIVE  RESEARCH ANALYST

GOVERNMENT COMMITTEE

Telephone: (602) 926 -3171

Facsimile: (602) 926 -3833

TO:                  SENATOR JIM WARING               

DATE:                        April 3, 2006

SUBJECT:      House Changes to S.B. 1007 – condominiums; homeowners’ associations; records; fees

________________________________________________________________________________                                                                                                                                                            

            As passed by the Senate, S.B. 1007 establishes a timeline for a homeowners’ association (HOA) to make records available for review and to provide copies of the records to an HOA member.

            The House of Representatives amended the bill as follows:

1. Prohibits foreclosure by an HOA until an owner has been delinquent in the payment of monies secured by a lien, excluding reasonable collection fees, reasonable attorney fees and charges for late payment of those assessments, for a period of one year or in the amount of $1,200 or more, whichever occurs first.

2. Requires an HOA to provide a unit owner with written notice of violation of the community documents and a description of the process to contest the notice before the HOA enforces the documents regarding the condition of the property.

3. Provides an HOA member who receives the notice regardless of whether a monetary penalty is imposed by the notice an opportunity to send the HOA a written response by certified mail within ten business days after the date of the notice.

4. Requires the HOA to respond to the HOA member with a written explanation regarding the notice within ten business days of receipt of the response from the HOA member.

5. Requires the HOA’s explanation to provide at least the following information:

a) the provision of the community documents that has been allegedly violated.

b) the date of the violation or the date the violation was observed.

c) the process the HOA member must follow to contest the notice.

6. Prohibits an HOA from proceeding with any action to enforce the community documents before or during the exchange of information period between the HOA and the HOA member.

Senate Action House Action

GOV               1/12/06     DPA     5-2-0                     FMPR             3/6/06     DPA     5-0-1

3^rd Read           2/6/06                    26-1-3                    3^rd Read           3/30/06                57-0-3

NS/jas

cc:  All Senators