This bill proposes to amend current statutes by establishing that both condominium unit owners' associations (COAs) and planned community associations (HOAs) have a duty to act reasonably when exercising their discretionary powers. Specifically, it introduces new language that defines this "duty to act reasonably" to include the requirement that such powers be exercised neutrally, fairly, without favoritism, and in a non-arbitrary manner.

The bill will insert this new language into existing statutes, specifically amending section 33-1242 and adding section 33-1821 to title 33, chapter 16, article 1 of the Arizona Revised Statutes. The current law does not explicitly outline this duty, and the proposed changes aim to clarify the expectations for COAs and HOAs in their decision-making processes.

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