ARIZONA STATE SENATE
Forty-seventh Legislature, Second Regular Session
FACT SHEET FOR S.B. 1208
planned communities laws; applicability
Purpose
Expands the definition of “planned community association” to include a nonprofit corporation that is the subject of a recorded facilities agreement and subjects the nonprofit corporation to the planned community association statutes.
Background
Laws 1994, Chapter 310 established regulations pertaining to the formation and operation of master planned community associations.
A planned community association is a common interest organization to which all the owners of lots in a planned community must belong. The four defining characteristics of a planned community association are: 1) all owners are automatically members; 2) governing documents create mutual obligations; 3) mandatory fees or assessments are generally levied against owners and used for the operation of the association; and 4) owners share a property interest in the community.
There is no fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Expands the definition of “planned community association” to include a nonprofit corporation or unincorporated association that is the subject of a recorded facilities agreement and subjects the nonprofit corporation to the following statutes (Arizona Revised Statute, Title 33, Chapter 16):
a) regulates a planned community’s ability to increase assessments, impose late charges on delinquent assessments and impose fines for violations of the community’s governing documents (§ 33-1803).
b) requires meetings of the association and the board of directors to be open, with some exception, and specifies notice requirements (§ 33-1804).
c) requires all financial and other records of the association to be available for examination, with some exceptions (§ 33-1805).
d) requires disclosure of certain information upon the sale of a unit in the association, including the community documents and financial information of the association, and authorizes the association to charge the unit owner a reasonable fee for the costs (§ 33-1806).
e) addresses the lien for assessments including the priority of the lien and foreclosure procedures (§ 33-1807).
f) requires an association to allow the display of the American flag and political signs (§ 33-1808).
g) prohibits an association from restricting the parking of public service and public safety vehicles (§ 33-1809).
h) requires an association to conduct an annual review of the association’s finances (§ 33-1810).
i) addresses board of directors conflict of interest (§ 33-1811).
j) governs the use of absentee ballots and proxies (§ 33-1812).
k) establishes procedures for the removal of board members (§ 33-1813).
2. Makes technical changes.
3. Becomes effective on the general effective date.
Prepared by Senate Research
February 7, 2006
NS/jas