HOA Governance
your rights in a Homeowners Association or Condominium Association in Arizona.
There are thousands of homeowner associations, or HOAs, in Arizona. HOAs include planned communities and condominiums. The vast majority of new residential development is governed by an HOA. Spurred by homeowners' rights groups, legislators, and attorneys, new laws are created every year that provide new or modified rights and remedies for homeowners living in an HOA. Unfortunately, most homeowners are not aware of many of these rights.
The other factor in determining homeowner rights is the HOA's governing documents. This includes the Articles of Incorporation, Bylaws, and perhaps most importantly the Declaration of Covenants, Conditions, and Restrictions (referred to as the Declaration or CC&Rs). The HOA board of directors may also adopt rules that interpret and carry out the Declaration or Bylaws. These governing documents are the specific regulations that apply to your community and often include restrictions on parking, pets, landscaping requirements, payment of HOA assessments, etc. In most cases, if there is a conflict between the HOA's governing documents and state law, the state law will generally control.
Assessments or Dues
Homeowners must pay the assessments of the HOA on a monthly, quarterly or annual basis, as the case may be. However, the following general principles apply:
1. Any monies paid by the homeowner must first be applied to the principal balance of the assessments and then to late charges, collection fees, or other unpaid penalties.
2. Upon written request, your HOA must furnish a written statement setting forth any unpaid assessments on your property. The HOA must provide this statement within 15 days of your request.
3. The HOA's lien for assessments, late fees, and reasonable collection fees may be foreclosed in the same manner as a mortgage on real estate. But the HOA can only foreclose on your home if you are at least one year overdue on assessments, or if you owe $1,200 or more, excluding reasonable collection fees, attorney fees and late fees incurred.
Access to Homeowner Association Records, Meeting Minutes and Accountings
As a homeowner, you have the right to view all records, books, meeting minutes, etc. of the HOA. Upon your written request specifying which records you wish to view, the HOA must provide you access to the records within 10 business days. If you do not wish to view the documents on site, you may also request copies of specific documents. The HOA must provide the copies within 10 business days and may not charge you more than 15 cents per page. There are a few exceptions to this law, such as attorney-client privileged material, but the exceptions are rare.
Open Meetings of the Board
In general, all meetings of the board of directors must be open to all members of the HOA. Notice of the meetings must be provided in a reasonable manner at least 48 hours in advance of the meeting. A "meeting" can occur anytime two or more board members discuss HOA business or issues.
There are 4 very specific exceptions to the open meeting requirement that involve discussion of the following topics:
Legal advice from an attorney for the board or the HOA.
Pending or contemplated litigation.
Personal, health, or financial information about or against an individual member of the HOA, an employee of the HOA, or an employee of a contractor of the HOA.
Matters relating to the job performance of, compensation of, health records of, or specific complaints against an employee of the HOA or an employee of a contractor of the HOA who works under the direction of the HOA.
Unless one of these exceptions applies, your board should be holding open meetings. The board is also required to allow a reasonable number of speakers on either side of an issue. The board is also required to let homeowners who are present to speak before they vote on any issue.