Arizona has one of the highest percentages of homes governed by Homeowners' Associations (HOAs) in the nation. Understanding your rights and obligations is essential.
Governing documents: HOAs are governed by their CC&Rs (Covenants, Conditions & Restrictions), bylaws, and articles of incorporation. These documents must comply with Arizona's Planned Communities Act (A.R.S. §33-1801+).
Homeowner rights: Arizona law protects homeowners in several ways. HOAs must provide at least 10 days' notice before a hearing on violations. They cannot prohibit displaying the American flag, political signs (during election season), or for-sale signs. Solar panel restrictions are also limited.
Assessment increases: Regular assessments can be increased, but special assessments exceeding a threshold require a member vote. The HOA must maintain adequate reserves for common area maintenance.
Dispute resolution: Arizona requires HOAs to offer alternative dispute resolution (mediation or arbitration) before pursuing litigation. The Arizona Department of Real Estate also handles certain HOA complaints.
Liens and foreclosure: HOAs can place liens on properties for unpaid assessments and in some cases can foreclose. However, Arizona law provides specific protections and notice requirements before foreclosure can proceed.