This bill seeks to amend the Arizona Revised Statutes related to condominiums and planned communities by redefining key terms such as "assessment" and "common expense liability" to include specific charges associated with common expenses and special expenditures. It introduces new provisions that outline the conditions under which the period of declarant control will terminate, such as the conveyance of 75% of units to non-declarants and the cessation of sales by the declarant. Additionally, it establishes the declarant's responsibilities during this control period, including maintaining financial records and providing annual reports to unit owners. The bill also repeals conflicting statutes and clarifies the rights and responsibilities of both declarants and unit owners, promoting transparency and accountability in association management.

Moreover, the bill updates the governance and operational authority of homeowners' associations (HOAs) post-declarant control. It includes provisions that allow the declarant to exercise development and annexation rights without interference from the association and to amend declarations or plats without member approval. The bill ensures that any restrictions on the elected board of directors' authority by the declarant will expire, transferring control to the members. It introduces civil penalties for associations that infringe on the declarant's rights and mandates specific contract provisions, allowing for termination without penalty under certain conditions. Definitions for "Class A Membership" and "Class C Membership" are also added to clarify membership rights within the association.

Statutes affected:
Introduced Version: 33-1202, 33-1243, 33-1245, 33-1255, 33-1802, 33-1803, 33-1820, 33-1241, 33-1246, 33-1217, 33-1230, 33-1212, 6-801, 32-2183, 33-741, 33-1242, 33-1250, 33-1248, 33-1258, 33-1801, 32-2199.01