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House Engrossed
claims against HOAs; filing fees |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HOUSE BILL 2834 |
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AN ACT
Amending sections 32-2199.01 and 33-1270, Arizona Revised Statutes; amending title 33, chapter 16, Arizona Revised Statutes, by adding article 2; Relating to COMMUNITY ASSOCIATION DISPUTES.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 32-2199.01, Arizona Revised Statutes, is amended to read:
32-2199.01. Hearing; rights and procedures
A. For a dispute between an owner and a condominium association or planned community association that is regulated pursuant to title 33, chapter 9 or 16, the owner or association may petition the department for a hearing concerning violations of condominium documents or planned community documents or violations of the statutes that regulate condominiums or planned communities. The petitioner shall file a petition with the department and pay a filing fee in an amount to be established by the commissioner Of $300 per issue claimed in the petition. The filing fee shall be deposited in the condominium and planned community hearing office fund established by section 32-2199.05. On dismissal of a petition at the request of the petitioner before a hearing is scheduled or by stipulation of the parties before a hearing is scheduled, the filing fee shall be refunded to the petitioner. The department does not have jurisdiction to hear:
1. Any dispute among or between owners to which the association is not a party.
2. Any dispute between an owner and any person, firm, partnership, corporation, association or other organization that is engaged in the business of designing, constructing or selling a condominium as defined in section 33-1202 or any property or improvements within a planned community as defined in section 33-1802, including any person, firm, partnership, corporation, association or other organization licensed pursuant to this chapter, arising out of or related to the design, construction, condition or sale of the condominium or any property or improvements within a planned community.
B. The petition shall be in writing on a form approved by the department, shall list the complaints and shall be signed by or on behalf of the persons filing and include their addresses, stating that a hearing is desired, and shall be filed with the department.
C. On receipt of the petition and the filing fee, the department shall mail by certified mail a copy of the petition along with notice to the named respondent that a response is required within twenty days after mailing of the petition showing cause, if any, why the petition should be dismissed.
D. After receiving the response, the commissioner or the commissioner's designee shall promptly review the petition for hearing and, if justified, refer the petition to the office of administrative hearings. The commissioner may dismiss a petition for hearing if it appears to the commissioner's satisfaction that the disputed issue or issues have been resolved by the parties.
E. Failure of the respondent to answer is deemed an admission of the allegations made in the petition, and the commissioner shall issue a default decision.
F. Informal disposition may be made of any contested case.
G. Either party or the party's authorized agent may inspect any file of the department that pertains to the hearing, if the authorization is filed in writing with the department.
H. At a hearing conducted pursuant to this section, a corporation may be represented by a corporate officer, employee or contractor of the corporation who is not a member of the state bar if:
1. The corporation has specifically authorized the officer, employee or contractor of the corporation to represent it.
2. The representation is not the officer's, employee's or contractor of the corporation's primary duty to the corporation but is secondary or incidental to the officer's, employee's or contractor of the corporation's, limited liability company's, limited liability partnership's, sole proprietor's or other lawfully formed and operating entity's duties relating to the management or operation of the corporation.
Sec. 2. Section 33-1270, Arizona Revised Statutes, is amended to read:
33-1270. Department of real estate; enforcement
A. Nothing in This chapter shall be construed to does not increase or decrease or otherwise affect any rights or powers granted to the commissioner of the department of real estate under title 32, chapter 20 with respect to the issuance of public reports.
B. The commissioner of the department of real estate shall require compliance with section sections 33-1215 and section 33-1219 in connection with the administration of the subdivision laws of this state under title 32, chapter 20, article 4. The commissioner shall is not be required to administer or enforce any other provisions of this chapter but shall administer the dispute resolution process authorized under section 32-2199.01.
Sec. 3. Title 33, chapter 16, Arizona Revised Statutes, is amended by adding article 2, to read:
ARTICLE 2. ADMINISTRATION
33-1831. State real estate department; enforcement
A. THIS CHAPTER DOES NOT INCREASE OR DECREASE OR OTHERWISE AFFECT ANY RIGHTS OR POWERS GRANTED TO THE STATE REAL ESTATE COMMISSIONER UNDER TITLE 32, CHAPTER 20 WITH RESPECT TO THE ISSUANCE OF PUBLIC REPORTS.
B. THE STATE REAL ESTATE COMMISSIONER is not required to enforce any provision of this chapter as part of THE ADMINISTRATION OF THE SUBDIVISION LAWS OF THIS STATE UNDER TITLE 32, CHAPTER 20, ARTICLE 4 BUT SHALL ADMINISTER THE DISPUTE RESOLUTION PROCESS AUTHORIZED UNDER SECTION 32-2199.01.