Arizona House Bill HB2865

Arizona 2025 Regular Session

• Introduced: 2/12/25
• Report Pass: 2/18/25
• Report Pass: 2/24/25
• Engrossed: 2/27/25

Caption

Homeowners' associations; attorney fees

Impact

The passage of HB 2865 would significantly alter the financial dynamics within homeowners' associations by curbing their power to impose legal costs on individual members unless the association has a valid claim against them. This legislative change is designed to reduce the financial burden on unit owners when disputing charges or actions taken by their associations. It establishes a clearer pathway for unit owners to pursue legal actions without the fear of incurring additional costs that they might be forced to bear regardless of the outcome of the litigation.

Summary

House Bill 2865 seeks to amend the Arizona Revised Statutes concerning homeowners' associations by introducing provisions that limit the ability of these associations to charge attorney fees and related costs to unit owners or former unit owners. Under the proposed legislation, associations are prohibited from assessing such fees unless a unit owner successfully prevails in a legal action against the association. The bill aims to provide stronger protections for homeowners and former homeowners within condominium and planned communities by allowing them to recover attorney fees if they win a case against the association.

Sentiment

Public and legislative sentiment surrounding HB 2865 appears to be largely supportive among homeowners' groups and consumer advocacy organizations, who argue that the bill enhances protection and fairness for residents within these communities. However, there may be contention from homeowners' associations that view the bill as an infringement on their ability to manage legal affairs and a potential deterrent against legitimate actions required to protect community interests. The debate reflects broader tensions between the rights of individual homeowners and the governance of community associations.

Contention

The discussion around HB 2865 has highlighted concerns from various stakeholders, particularly those representing homeowners' associations who argue that the bill could limit their ability to effectively enforce community rules and collect costs associated with legal disputes. Critics may argue that this legislation could impair the ability of associations to function effectively, as it could lead to an increase in frivolous lawsuits by allowing unit owners to challenge attorney fees without the risk of financial consequences. The implications of this bill thus rest on the balancing act between protecting homeowners and safeguarding the operational integrity of homeowners' associations.