The bill HB2575 amends existing Arizona law regarding the powers of homeowners' associations (HOAs) by adding specific provisions that outline their authority and limitations. It allows associations to adopt and amend bylaws, budgets, and rules, hire managing agents, and engage in litigation on behalf of themselves or their members. However, it restricts associations from initiating legal actions related to homeowners' association dwelling claims unless the claims pertain to common areas, portions owned by the association, or portions that the association is obligated to maintain as per community documents.

Additionally, the bill clarifies that associations can impose fees for the use of common areas, indemnify their officers, and maintain liability insurance. It emphasizes the need for associations to effectively manage claims related to faulty construction while ensuring that they operate within the framework of their governing documents and state laws. Overall, the bill aims to enhance the operational clarity and legal standing of homeowners' associations in Arizona.

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