HB 2866
Initials PB Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
House: COM DPA 9-1-0-0
HB 2866: homeowner's associations; unlawful enforcement; damages
Sponsor: Representative Carter N, LD 15
Caucus & COW
Overview
Prescribes liability damages for associations that attempt to enforce provisions of their
governing documents that are prohibited by law.
History
A unit owner or homeowner who receives a written notice that the condition of the unit
owner's or homeowner's property is in violation of a requirement of the governing documents
may provide the association with a written response within 21 calendar days after the date
of the notice. The association must respond within 10 business days of receiving the owner's
written response with a written explanation regarding the notice specifying: 1) the provision
of the governing documents that has allegedly been violated; 2) the date of the violation or
the date the violation was observed; 3) the first and last name of the person or persons who
observed the violation; and 4) the process the unit owner must follow to contest the notice.
The violation notice must include the process to contest the notice in order for the association
to proceed with any action to enforce the governing documents and provide information on
petitioning the Arizona Department of Real Estate for an administrative hearing regarding
a dispute (A.R.S. §§ 33-1242, 33-1803).
Provisions
1. Stipulates an association that attempts to enforce any provision of their governing
documents that is prohibited by law is liable for the following damages:
a) for a first attempt to enforce, $1,000;
b) for a second attempt to enforce, $10,000;
c) for a third and any additional attempts to enforce, $100,000. (Sec. 1, 2)
2. Specifies the association's liability accrues based on the number of attempts to enforce
without regard to whether enforcement is attempted against the same or different unit
owners of the condominium, or members of the planned community. (Sec. 1,2)
3. Asserts a unit owner, or member, has recourse for damages against the association in any
court of competent jurisdiction. (Sec. 1, 2)
Amendments
Committee on Commerce
1. Removes references of a third attempt to enforce.
2. Sets the amount for a second and subsequent attempts to enforce to $2,500.
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note