HB 2575
Initials SJ/AC Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
House: GOV DP 7-1-1-0
HB 2575: homeowners' associations; powers
Sponsor: Representative Biasiucci, LD 30
House Engrossed
Overview
Outlines powers of homeowners' associations.
History
Statute defines an association as a nonprofit corporation or unincorporated association of
owners that is created to own and operate portions of a planned community as prescribed in
its own declaration. An association has the power to assess association members to pay the
costs and expenses incurred in the performance of the association's obligations under its own
declaration (A.R.S. § 33-1802).
Provisions
1. Permits, unless otherwise prescribed in an association's declaration, an association to:
a) adopt and amend bylaws and rules;
b) adopt and amend budgets for revenues, expenditures and reserves;
c) collect assessments for common expenses from their members;
d) hire and discharge managing agents and other employees, agents, and independent
contractors;
e) institute, defend or intervene in litigation or administrative proceedings on behalf of
itself or two or more members on matters affecting the association or planned
community;
f) make contracts and incur liabilities;
g) regulate the use, maintenance, repair, replacement and modification of common
areas;
h) grant easements, leases, licenses and concessions within common areas;
i) impose and receive any payments, fees or charges for the use, rental or operation of
common areas;
j) impose reasonable charges for the preparation and recordation of amendments to the
declaration or statements of unpaid assessments;
k) provide for the indemnification of its officers and executive board of directors;
l) maintain directors' and officers' liability insurance;
m) exercise any other powers granted by community documents; and
n) exercise powers that may be exercised in Arizona by legal entities of the same type as
the association. (Sec. 1)
2. Specifies that to ensure claims regarding faulty construction are effectively made, and
unless a member assigns a claim to an association, an association may not institute,
defend or intervene in litigation or arbitration in its own name on behalf of itself or a
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2575
Initials SJ/AC Page 2 House Engrossed
member with respect to a homeowners' association dwelling action unless the action
pertains to:
a) a planned community's common areas;
b) any portion of a planned community owned by an association; and
c) any portion of a planned community not owned by an association but the association
is obligated to maintain, repair, insure or replace because the community documents
expressly impose that obligation. (Sec. 1)