ARIZONA HOUSE OF REPRESENTATIVES Fifty-fourth Legislature Second Regular Session
	Senate: GOV DPA/SE 5-1-1-0 | 3^rd Read 30-0-0-0

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SB 1001: payment coupon books; homeowners' associations

Sponsor:  Senator Farnsworth D, LD 16

Committee on Government

Overview

Requires a unit owner's association or planned community association (association) to provide a statement of account to each unit owner or member (member) at least twice a year and removes the requirement that associations must provide a statement of account instead of a periodic payment book to members.

History

An association must provide members with a written notice stating that if their account is not made current, or if the member does not notify the association of arrangements being made to make the account current, that their account will be turned over for further collection proceedings. The notice is sent by certified mail with a return receipt requested.

On January 1, 2020, associations were required to begin providing statements of account in lieu of a periodic payment book to the member with the same frequency that assessments are provided for in the declaration. Statements of account include the current account balance due and the immediately preceding ledger history (A.R.S. § § 33-1256, 33-1807).

Provisions

1. Specifies that a member's account may be turned over for further collection proceedings if an account is not made current or if the member does not notify the association of arrangements being made to make the account current. (Sec. 1, 2)

2. Provides that notices must be sent by first class mail as opposed to certified mail. (Sec. 1, 2)

3. Repeals statute relating to the responsibility of an association to provide a statement of account instead of a periodic payment book to members. (Sec. 1, 2)

4. Requires, beginning January 1, 2021, an association to provide a statement of account to each member at least twice a year unless the assessment was paid annually before January 1, 2020; in which case only an annual statement of account is required to be sent. (Sec. 1, 2)

5. Stipulates that the semiannual statement of account must include the current account balance due for assessments, late fees, fines and other costs and fees at the beginning and midpoint of each fiscal year of the association. (Sec. 1, 2)

6. Instructs an association to provide a statement of delinquent account to a member at least monthly if a member has a delinquent account for unpaid assessments, late fees, fines or other costs and fees. (Sec. 1, 2)

7. States that an association must stop providing the statement of delinquent account once the member has paid the full balances or once the member notifies the association of a filing of a petition of bankruptcy. (Sec. 1, 2)

8. Requires the statement of delinquent account to include the name and phone number of a person or entity authorized to provide further information on the amount due and receive information on disputed amounts. (Sec. 1, 2)

9. Permits a member to choose to receive an electronic statement if the association offers the semiannual statement of account or statement of delinquent account by electronic means and the member keeps a current email on record with the association. (Sec. 1, 2)

10. Makes conforming changes. (Sec. 1, 2)

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14.                   SB 1001

15. Initials SJ/IR         Page 0 Government

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