Assigned to GOV AS PASSED BY COMMITTEE ARIZONA STATE SENATE Fifty-Seventh Legislature, First Regular Session AMENDED FACT SHEET FOR S.B. 1337 homeowner's associations; violations; notice Purpose Requires written notice of violation (written notice) from a condominium unit owners' association (COA) or planned community association (HOA) to provide outlined information about the alleged violation and the process by which the person may respond and petition on the matter. Background A COA or HOA may issue a written notice to a member who is in violation of the community documents. A member who receives a written notice that the condition of the property owned by the member is in violation of the community documents, without regard to whether a monetary penalty is imposed, may provide the COA or HOA with a written response, by certified mail, within 21 days of the date of the written notice. Within 10 business days of the member's written response by certified mail, the COA or HOA must respond to the member with an explanation regarding the written notice and, unless previous provided in the written notice, the explanation must include: 1) the provision of the community documents that has allegedly been violated; 2) the date of the violation or observation; 3) the first and last name of the persons who observed the violation; and 4) the process the member must follow to the contest the written notice. Unless the outlined information is in the initial written notice, a COA or HOA may not proceed with any action to enforce the community documents before or during the prescribed time for the exchange of information initiated by a member's written response. A COA or HOA must inform a member, in writing, of the member's option to petition the Arizona Department of Real Estate (AZRE) for an administrative hearing on the matter (A.R.S. §§ 33-1242 and 33-1803). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Requires a COA or HOA written notice to a unit owner or member to provide: a) the provision of the community documents that has allegedly been violated; b) the date of the violation or the date that the violation was observed; c) the process the member must follow to contest the notice; and d) that the member may petition the AZRE for a hearing on the matter. 2. Allows a unit owner or member who receives a written notice to request that the COA or HOA provide the name of the person or persons who observed the alleged violation and upon receipt of the request, requires the COA or HOA must provide the name. FACT SHEET – Amended S.B. 1337 Page 2 3. Allows a unit owner or member to provide a COA or HOA with a written response to a written notice by electronic submission, if available. 4. Makes technical and conforming changes. 5. Becomes effective on the general effective date. Amendments Adopted by Committee • Replaces the requirement that a written notice include the name of the persons who observed the violation with the requirement that a COA or HOA provide the name upon request from a unit owner or member. Senate Action GOV 2/12/25 DPA 7-0-1 Prepared by Senate Research February 13, 2025 AN/slp