FACTS: Owner has a property within a community governed by homeowner’s association (“HOA”). Owner receives notice from the HOA that owner must pay a $250 security deposit to the HOA because owner’s property is a rental. The deposit shall be used in the event a tenant violates the HOA rules and incurs fines.

ISSUE: May the HOA collect a $250 security deposit because owner’s property is a rental?

ANSWER: No.

DISCUSSION:

A.R.S. §33-1806.01(D) states: Except for the fee permitted by this subsection ($25 for tenant disclosures) and fees related to the use of recreational facilities, the association … shall not assess, levy or charge a fee or fine or otherwise impose a requirement on a member’s rental property any differently than on an owner-occupied property in the association.

Therefore, because the HOA is collecting a $250 deposit only on rental property in the community, the deposit requirement is improper.