This bill proposes significant updates to the statutes governing condominium and homeowners' associations (COAs and HOAs) in Arizona. Under the new law, the threshold for a unit owner to be considered delinquent for the purpose of foreclosure on a common expense lien would increase from $1,200 to $10,000. Additionally, the period of delinquency required for foreclosure would extend from one year to 18 months. For special assessments with an initial value of $10,000 or more, only the 18-month delinquency requirement would apply. These changes aim to provide greater protection for unit owners by raising the financial thresholds that must be met before foreclosure actions can be initiated.

The bill also includes technical amendments and conforming changes to existing statutes. It clarifies that the association's common expense lien can be foreclosed only if the unit owner has been delinquent in the payment of any assessment or portion of the assessment for the specified period and amount. Furthermore, it restores statutory definitions and requirements related to common expense liens and unit owner expenses, ensuring that associations must communicate with unit owners and offer payment plans before pursuing foreclosure. Overall, these updates are designed to enhance the legal framework surrounding COAs and HOAs, balancing the interests of associations with those of individual unit owners.

Statutes affected:
Introduced Version: 33-1202, 33-1256, 33-1802, 33-1807, 33-1241, 33-1246, 33-1217, 33-1255, 33-1243, 33-1212, 6-801, 33-741, 33-1242, 33-1801
Senate Engrossed Version: 33-1256, 33-1807