HB2575 is a bill that amends the Arizona Revised Statutes relating to planned communities. It outlines the powers that homeowners' associations may exercise, subject to the provisions of their declarations. The bill grants associations the authority to adopt and amend bylaws and rules, budgets, and assessments for common expenses. They can also hire and discharge managing agents, employees, and contractors, and they are permitted to engage in litigation or administrative proceedings on matters affecting the association or community.

The bill further specifies that associations may not initiate or intervene in litigation or arbitration regarding homeowners' association dwelling actions unless a member assigns a claim to the association or unless the action pertains to common areas, portions owned by the association, or areas the association is obligated to maintain. Additionally, the bill allows associations to make contracts, incur liabilities, regulate common areas, grant easements, impose fees for common area use, and provide indemnification for officers and directors. Associations are also empowered to exercise any other powers granted by community documents or by legal entities of the same type in Arizona.

Statutes affected:
Introduced Version: 33-1820
House Engrossed Version: 33-1820