The proposed bill HB2861 amends Arizona's condominium statutes to enhance protections for unit owners during the termination process. Key changes include clarifying that unit owners' interests upon termination are based on their pro rata share of the reserve fund and operating account. The bill increases relocation cost benefits for owner-occupied units from 5% to 10% of total relocation costs, now including all closing costs. It also introduces new appraisal requirements, allowing unit owners to opt for an appraisal at their expense, while prohibiting reductions in fair market value due to special assessments or fees imposed in the two years prior to termination.

Additionally, the bill mandates that written notices of pending sales include specific statements about potential condominium termination and governing covenants. It requires annual notifications from the association's board to unit owners regarding these matters and allows unit owners to submit disputes over fair market value to arbitration, with the arbitration amount being final. Overall, the legislation aims to address inequities faced by condominium owners and strengthen their rights in light of recent court decisions.

Statutes affected:
Introduced Version: 33-1228, 33-1260, 33-1262, 33-1256, 32-2183, 32-2197.02, 32-2181.02, 11-1134
House Engrossed Version: 33-1228, 33-1260, 33-1262, 33-1256, 32-2183, 32-2197.02, 32-2181.02, 11-1134