HOA Bill Signed; Legislative Session Ends

Over the course of the last year, the Arizona Association of REALTORS® (AAR) continued to field complaints from our membership, and the public, on escalating efforts by homeowner associations (HOAs) to interfere in private contracts and profit off these efforts. Some HOAs sought to obtain inappropriate information from tenants such as a copy of the tenant’s rental application, credit report, lease agreement, and social security number. To make matters worse, these HOAs charged the tenants unreasonable fees to process this information. AAR is charged with protecting the rights of homeowners and our efforts proved successful on April 17, 2014, when Governor Jan Brewer signed SB 1482, homeowners’ associations amendments; omnibus, into law. Pursuant to SB 1482, HOAs will now be limited as to what information they can seek to obtain from tenants. Additionally, the association will be precluded from charging more than $25 to process rental documentation.

As some will recall, this bill reintroduced protections for homeowners and tenants against HOAs was passed by the legislature and signed by the governor last year, but ultimately challenged in court based on the “single subject rule” of the constitution. As a result of the constitutional challenge, HOAs were left with no restrictions on what documents they could require of a tenant and no limit on what could be charged for the collection of these documents.

After many attempts to get this legislation to the finish line, Governor Brewer’s signature solidified the multi-year effort to establish protections for homeowners and tenants. SB 1482 contained a general effective date and will become effective 90-days after the legislature adjourns.

For more information on the bill, please visit: http://www.azleg.gov/DocumentsForBill.asp?Bill_Number=1482&Session_Id=112

As the 51st, 2nd Regular Legislative Session adjourned Sine Die in the early morning hours of Thursday, April 24, the Arizona legislative session saw a total of 1,205 bills introduced this year — an increase of 47 bills introduced over the prior year. Of those bills, 303 were passed by the legislature. To date, Governor Brewer has signed 229 bills, vetoed 19 bills and 56 bills still require action. The Governor has 10-days from Sine Die to either sign a piece of legislation, let the bill go into law without her signature or veto the bill. All legislation, unless it contains a delayed effective date or emergency enactment clause, becomes effective 90-days after the legislature adjourns Sine Die.

Results, such as these, are not achieved without the contribution, dedication and support of our members. To become more involved in the legislative process and help kick off our legislative year, please save the date for the Arizona Association of REALTORS® annual REALTOR® Caucus, which will take place on September 12 at the Chaparral Suites in Scottsdale Arizona. For more information please visit https://www.aaronline.com/calendar/view-event/?id=561

About the Author

Michelle Lind

K. Michelle Lind, CEO of Arizona REALTORS®, is also an attorney, State Bar of Arizona board certified real estate specialist, and the author of Arizona Real Estate: A Professional’s Guide to Law and Practice.
Please note that this article is of a general nature and may not be updated or revised for accuracy as statutory or case law changes following the date of first publication. Further, this article reflects only the opinion of the author, is not intended as definitive legal advice and you should not act upon it without seeking independent legal counsel.