ARIZONA STATE SENATE

MIKE HANS

LEGISLATIVE RESEARCH ANALYST

GOVERNMENT COMMITTEE

Telephone: (602) 926-3171

RESEARCH STAFF

 

 

TO:                  MEMBERS OF THE SENATE

                        GOVERNMENT COMMITTEE

DATE:            February 6, 2020

SUBJECT:      Strike everything amendment to S.B. 1001, relating to payment coupon books; homeowners' associations


 


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 to provide a notice of full amount due to owners under certain criteria.

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 management 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 regular mail, rather than certified mail, if the owner's address of record is outside of the United States.

2.      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.

3.      Requires an HOA to notify owners whose common expense assessment account balance for any billing period exceeds the regular periodic common expense assessment of the full amount due at least 10 business days before the next common expense assessment due date.

4.      Requires an HOA to provide a notice of full amount due to the mailing address of record for the owner and include the name and telephone number of a person authorized to provide further information and receive information about disputed amounts.

5.      Allows an owner to opt to receive the notice of full amount due by email.

6.      Allows an HOA or managing agent that does not routinely provide current account balance information to all owners for each billing period to add the direct cost for providing a notice of full amount due to an owner's common expense assessment account.

7.      Allows an owner to request a notice of full amount due, rather than a statement of account, from an attorney or collection agency after collection activity begins.

8.      Makes technical and conforming changes.

9.      Becomes effective on the general effective date.