Month: July 2022

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Arizona HOA Laws

Can Your HOA Prohibit Short Term Rentals in Arizona?

As the popularity of short term rentals continues to grow, it is important for associations and planned communities to stay up to date on Arizona short term rental laws and how they apply to HOAs.  We put together this article as an update to our previous post on some of the most common questions we have received related to HOAs and short term rental laws in Arizona.

What tenant information can you request from a property landlord that you may suspect is renting their property?

A rental property in an Arizona HOA must comply with the requirements contained in the covenants, conditions and restrictions (CC&Rs). If rentals are permitted, tenants may only rent for the minimum period specified in the CC&R’s rental time period restrictions. An HOA can require the following information regarding the tenants: their names, contact information for any adults living in the unit, the time period of the lease (including the beginning and end dates), and the license plate numbers of the residents’ vehicles. In a 55+ community, the HOA can also require a government-issued identification with an image showing that tenant meets the age restriction requirements.

You discovered a property is being rented out. What information can you request about the tenant?

As a homeowners association in Arizona, you must follow specific rules and guidelines that protect the owner’s property values and shared community areas. HOAs are prohibited from requesting the following information from a landlord about its tenant:

  • Requiring a copy of the tenant rental application
  • Credit report
  • Lease agreement
  • Rental contract
  • Or any other personal information about any of the tenants residing on the property.

If your HOA does not have a template for tenant information requests, the board of directors should put together a simple breakdown of what details can and cannot be requested from the property owner regarding tenants. The Brown Law Group can assist with developing a standard template for the tenant information requests.

Can HOAs amend existing CC&Rs to restrict short term rentals in Arizona?

Arizona has taken a welcoming approach to short term rentals as a state that protects property rights and encourages tourism. The state, cities, and towns are forbidden from banning short-term rentals. Thus, short-term rentals are legal in any neighborhood within the state.

Any time period restriction must be in the CC&Rs. If your CC&Rs do not include a time period restriction and simply allow rentals, your HOA cannot prohibit short term rentals. To amend the CC&Rs to prohibit or restrict short term rentals, it is important to ensure that the amendment is carefully and thoughtfully drafted. It is important to have an attorney review the CC&Rs and draft the proposed language for the amendment to ensure that the amendment complies with Arizona law and will hold up to scrutiny if challenged.

Find an Experienced Arizona HOA Law Firm

If your HOA or planned community is dealing with issues related to short term rentals, it is important to work with an experienced Arizona HOA law firm. The Brown Law Group provides industry-leading general counsel for planned communities and condominiums of all types throughout Arizona. Our firm can assist with any issues related to short-term rentals in your association and help make sure that all policies and governing documents are following current state laws. Contact us today in our Phoenix office at 602-952-6925 or our Tucson office at 520-299-3377 to schedule an initial consultation. You can also make an appointment on our contact us page.

The Brown Law Group provided this article for informational purposes only, and it does not create an attorney-client relationship.

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Arizona HOA Laws

What are Federal HOA Laws and How Do They Impact Arizona HOAs?

Arizona has many state specific laws for planned communities and condominiums, but there are several overriding federal laws that apply to all HOAs.  All HOA board members and individual property owners should understand the federal HOA laws that apply to their association and how they impact operations in Arizona HOAs.

HOAs: Federal and State Laws

Homeowners associations in Arizona are governed by many state laws, including the Nonprofit Corporation Act, the Planned Community Act, and the Condominium Act.  There are also several federal laws which apply to Arizona HOAs. These federal laws are superior to state or local laws. That means, if the laws conflict, the federal law will take precedence. The federal laws will also take precedence over any confliction provision of the community’s governing document.

Federal Laws Governing the Operation of HOAs in Arizona

State authorities allow for the creation of associations and planned communities to ensure smooth running and maintenance of all the houses within that defined area. From maintenance to fee collection, the association is responsible for all governance and operation of that community detailed in the covenants, conditions and restrictions (CC&Rs).  State laws include statutes that govern the HOA’s ability to file a lawsuit against an owner to collect delinquent HOA dues. For instance, if the homeowner owes more than $1200 to the HOA or the homeowner has not paid his or her dues in at least 12 months, the HOA can even pursue a lien foreclosure on the property.

Although HOAs do everything to make the area safe for homeowners, they might sometimes make unfair decisions. That’s why federal laws include a set of rules and restrictions that govern the operation of any HOAs in Arizona. Here are the main federal HOA laws all Arizona HOAs need to follow:

Arizona HOAs and Americans with Disabilities Act of 1990

The Americans with Disabilities Act (ADA) impacts Arizona HOAs that have publicly accessible common areas and employees. The law was established in the 1990s to protect disabled people from discrimination at work, transportation, and public accommodations. The public accommodations include recreational areas, gyms, swimming pools, and other areas open to the general public. For any place to be considered a public accommodation, it must be accessible to the public, not just the HOA members. If the HOA is building a recreational spot or a pool in the area that is open to the general public, it must be built and maintained to ADA specifications for accessibility.  If the HOA’s amenities are not open to the general public, and only to its members and guests, the ADA will not apply.

Applying the Fair Housing Act as an HOA

The Fair Housing Act prevents discrimination in residential housing based on race, color, religion, sex (including gender identity and sexual orientation), disability, familial status, or national origin. The law prohibits any HOA in Arizona from taking any action against a member based on their membership in a protected class.  Most people understand that overt discrimination is unacceptable and illegal.  However, there are many ways the Fair Housing Act can be violated unintentionally.  Issues most often arise when a disabled owner requests a reasonable accommodation to assist with a disability. It is important to forward all such requests to an Arizona HOA attorney to review the request. All HOA board members need to be familiar with the Fair Housing Act and generally aware of any potential violations related to discrimination.

What HOAs Need to Know about the Fair Debt Collection Practices Act

Federal laws have established legal ways to collect debts. Association dues, assessments and other charges that homeowners owe to the HOA are considered valid and enforceable debts. HOAs are not considered debt collectors as long as the association collects the dues and assessment from their own members. The Fair Debt Collection Practices Act (FDCPA) does apply when an HOA utilizes an HOA law firm to collect those same debts. Attorneys and debt collectors appointed by the HOA must comply with the FDCPA while collecting dues from homeowners. These laws put restrictions on the language and collection techniques they can use when attempting to collect any debt for an HOA.

Freedom to Display the American Flag Act

The Freedom to Display the American Flag Act (FDAFA) is unique among the federal HOA laws because it speaks directly to associations and planned communities.  The 2005 Act made it illegal for any HOA to restrict the ability of residents and members of the community from displaying the American flag.  The FDAFA does allow reasonable restrictions on displaying the flag properly as defined by law and community rules on the time, place and manner that protects a substantial interest of the association members.

Benefits of Working with an Arizona HOA Law Firm

Arizona HOA board members need to understand the federal HOA laws and state HOA laws that govern the association.  Having a basic understanding of these federal laws and how they can impact your decisions helps guide board members, but any legal matter or issue with a member that delves into these laws should not be taken lightly.  Working with an Arizona HOA law firm that specializes in representing associations and planned communities means your association will know that your rules and regulations are in line with federal and state laws.  The Brown Law Group can help Arizona HOAs review any matters related to state and federal HOA laws.  Contact us today at 602-952-6925 to schedule an initial consultation or make an appointment for your association on our contact us page.

The Brown Law Group shares this article for informational purposes only and it does not create an attorney-client relationship.

Categories
Arizona HOA Laws

What Arizona HOAs Need to Know About HB2131 and Artificial Turf Laws in Planned Communities

It should come as no surprise to Arizona residents that the state needs to find ways to effectively conserve water.  This can be at odds with Arizona associations and planned communities that restricted members from replacing natural grass with artificial turf.  In response to some property owners that faced substantial fines from their HOA for installing artificial turf in their yard, Arizona passed HB2131 to establish laws that prevent HOAs from restricting members from replacing natural grass with artificial tur =if that HOA permits natural grass.  Here is what HOAs and members need to know about HB2131 and artificial turf laws in Arizona planned communities.

Debate on Water Usage and Artificial Turf in Arizona

The debate over appropriate measures for water conservation and sustainable growth in Arizona has been going on for decades.  However, the drought impacting the Southwest and some of the recent decisions regarding the Colorado river has made the issue more important than ever before.  For the first time ever in August 2021, the Bureau of Reclamation announced a water shortage at Lake Mead and mandatory water restrictions were put in place for Arizona, Nevada and Mexico.  The federal government agency’s plans to release less water this year has left Arizona cities and towns scrambling to find immediate ways to reduce water usage in their areas.

Natural grass lawns require a lot of water, especially in places as hot as the Phoenix valley.  Any areas where natural grass can be removed will cut down on water usage.  Installing artificial turf keeps the same aesthetic appeal without any need for water and maintenance.  One of the main problems is that artificial turf gets extremely hot during Arizona summers.  Recent studies have shown that artificial turf actually gets hotter than asphalt during the day so homeowners should not assume covering their whole yard in artificial grass is the perfect solution.

What is Arizona HB2131?

Governor Ducey signed HB2131 into law on March 30, 2022 to establish rules against banning artificial turf by associations and planned communities.  The bill faced substantial debate before being passed in the first Arizona legislative session of the year.  Here are the most important aspects of HB2131 for HOAs and association members to understand:

Planned communities in Arizona that allow natural grass on a member’s property cannot ban the installation or use of artificial turf on the property of any of its members. This new law does not apply to condominiums. 

Planned communities can adopt and enforce reasonable regulations regarding installation, aesthetics, and appearance of the artificial turf, as long as those rules do not prevent installing artificial turf the same way that natural grass is allowed by the community documents.

HB2131 affirms that planned communities can establish rules regarding the location on the property and the percentage of the property that can be covered with natural grass or artificial turf, as long as they are treated the same.

Planned communities can prohibit the installation of artificial turf in the following circumstances:

If the planned community has banned new installation of natural grass on member properties, it can also ban installation of artificial turf.  However, the HOA cannot deny a member from converting natural grass to artificial turf on their property.

If the area of the property is maintained or irrigated by the association in the governing documents, like a common area or front yard, the planned community can prohibit the installation of artificial turf.

For artificial turf, HOAs can require the following:

Remove and replace the artificial turf if it is not maintained according to the HOA’s maintenance standards.

Removal of the artificial turf that the member has already installed if that artificial turf creates any health or safety issues or hazards, especially if the member has not corrected the problem.

This law will not apply to any planned community with some unique vegetation or geologic characteristics that need preservation by the HOA. Those characteristics and features are enhanced, supported, or viably protected because of the natural landscaping materials that have continuously existed.

Handling Artificial Turf Laws as an Arizona HOA

When new laws pass that impact associations and planned communities specifically, it is advisable to review your covenants, conditions and restrictions (CC&Rs) to make sure there are no rules that need to be updated.  If your community has debated how to handle landscaping issues like artificial turf or removal of natural grass, it is an important time to work with an HOA law firm to make sure your governing documents are not at odds with HB2131 and the new artificial turf laws in Arizona.  The Brown Law Group only represents associations and planned communities in Arizona.  Our experienced HOA attorneys can quickly review your governing documents and assess any required updates.  Contact us today at 602-952-6925 to schedule an initial consultation or make an appointment online here.

The Brown Law Group shares this article for informational purposes only and it does not create an attorney-client relationship.