This bill proposes to amend existing statutes by establishing a clear duty for homeowners' associations (HOAs) to act reasonably when exercising their discretionary powers. Specifically, it would insert new language into section 33-1242 and add section 33-1821 to title 33, chapter 16 of the Arizona Revised Statutes. The new provisions would explicitly state that "the association has a duty to act reasonably in the exercise of its discretionary powers," and define this duty to include exercising those powers neutrally, fairly, without favoritism, and in a nonarbitrary manner.

The bill does not delete any existing language but rather enhances the current legal framework governing HOAs by clarifying their responsibilities. The inclusion of these definitions aims to provide greater accountability and transparency in the decision-making processes of associations, thereby potentially improving governance within condominium and planned community associations.

Statutes affected:
Introduced Version: 33-1242, 33-1821, 33-1252, 33-1212, 32-2199.01