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ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
AMENDED
homeowners' associations; payment coupon books
Purpose
Repeals the requirement that condominium unit owners' associations and planned community associations (HOAs) provide all unit owners and members (owners) with a statement of account in lieu of a periodic payment book. Requires HOAs, beginning January 1, 2021, to provide a semi-annual statement of account to all owners and a monthly statement of delinquent account to each owner with a delinquent account.
Background
HOAs with more than 50 units or lots or that do not contract with a third party to perform management services must provide a statement of account to each owner in lieu of a periodic payment book. The statement of account must be sent with the same frequency that assessments are provided and include the current account balance due and immediately preceding ledger history. An HOA can stop providing further statements of account to an owner if collection activity begins by an attorney or collection agency that is not acting as the HOA's managing agent regarding the owner's unpaid account.
Additionally, HOAs must provide written notice to an owner with a delinquent account for unpaid assessments at least 30 days before authorizing collection activity by an attorney or collection agency that is not acting as the HOA's managing agent. The notice must be sent by certified mail, return receipt requested, and may be included within other correspondence sent to the owner regarding the delinquent account (A.R.S. §§ 33-1256 and 33-1807).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows an HOA to send a 30-day collection activity notice to an owner by first class mail, rather than regular mail.
3. Repeals the requirement that certain HOAs provide a statement of account in lieu of a periodic payment book to owners that includes the current account balance due and the immediately preceding ledger history.
4. Requires an HOA, beginning January 1, 2021, and regardless of other statements, coupons, notices or other communications sent to an owner, to provide a:
a) statement of account at least twice a year to each owner, at the beginning and midpoint of each HOA's fiscal year; and
b) statement of delinquent account at least monthly to each owner with a delinquent account for unpaid assessments, late fees, fines or other costs and fees.
5. Allows HOAs with annual assessments prior to January 1, 2020, to send an annual, rather than semi-annual, statement of account.
6. Requires the semi-annual statement of account to include the current account balance due for assessments, late fees, fines or other costs and fees.
7. Requires an HOA to stop providing a statement of delinquent account once the:
a) owner has paid the full balance of all assessments, late fees, fines or other costs and fees; or
b) HOA receives notice that an owner has filed a petition for bankruptcy.
8. Requires the statement of delinquent account to include the name and telephone number of a person authorized to provide further information and receive information about disputed amounts.
9. Allows an owner to opt to receive the semi-annual statement of account or monthly statement of delinquent account by electronic means, if the HOA offers the statements by electronic means and the owner keeps a current email on record with the HOA.
10. Makes technical and conforming changes.
11. Becomes effective on the general effective date, with a delayed effective date as noted.
Amendments Adopted by Committee
1. Adopted the strike-everything amendment.
2. Removes the requirement that an HOA provide a notice of full amount due to certain owners and instead requires an HOA, beginning January 1, 2021, to provide an annual statement account to all owners and a monthly statement of delinquent account to all owners with a delinquent account.
3. Outlines information that must be included in the annual statement of account and monthly statement of delinquent account.
4. Allows an owner to opt to receive a statement of account or statement of delinquent account electronically, if offered by the HOA.
5. Allows an HOA to charge an owner for the direct cost of providing an annual statement of account or monthly statement of delinquent account.
6. Requires a 30-day collection activity notice to state that the owner's account may, rather than will, be turned over for collection proceedings.
7. Makes technical and conforming changes.
Amendments Adopted by Committee of the Whole
1. Requires an HOA to provide each owner with a semi-annual statement of account at the beginning and midpoint of the HOA's fiscal year, rather than annually.
3. Requires HOAs to send a 30-day collection activity notice to an owner by first class mail, rather than certified or regular mail.
4. Requires an HOA to provide statements of account and statements of delinquent account regardless of if the HOA provides other statements, coupons, notices or communications that may be sent to an owner.
5. Requires an HOA to stop providing statements of delinquent account once an owner has paid the full balance of all assessments and fees or once an HOA receives notice that an owner has filed a petition in bankruptcy.
6. Removes language authorizing an HOA to charge an owner for the direct cost of providing a statement of account or statement of delinquent account.
7. Specifies that an owner must keep a current email address on record with the HOA in order to opt to receive statements of account or statements of delinquent account electronically.
8. Makes technical and conforming changes.
Senate Action
GOV 2/17/20 DPA/SE 5-1-1
Prepared by Senate Research
March 5, 2020
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