As the end of the 2023 Legislative Session nears its end, Governor Hobbs has signed several pieces of legislation that affect planned communities and condominiums. On April 18, 2023, Governor Hobbs signed legislation that regulates whether a planned community has the authority to regulate public streets within the community. Find more details about that new law here. The additional new laws are as follows:
Flag Display: This new legislation applies to both planned communities and condominiums. It provides that associations may not prohibit the display of any historic version of the American Flag, including the Betsey Ross Flag, without regard to how the stars and strips are arranged on the flag. Under the current law, associations also may not prohibit the display of the American Flag, the POW/MIA flag, the Arizona State Flag, an Arizona Indian Nations Flag, the Gadsden Flag, a first responder flag, and a blue star or gold service flag. This law firm is happy to assist with determining if any flag displayed by an owner is protected by this statute.
Political Activity: This new legislation applies to both planned communities and condominiums. It provides that, while an association may not prohibit door-to-door political activity, an association may prohibit a person who is not accompanied by a member or resident of the association from entering the association, if the association restricts vehicular or pedestrian access. This will allow the association to require any person who wishes to conduct door-to-door political activity within a gated or otherwise closed community to be accompanied by a member or resident. Currently, an association is also permitted to restrict political activity from sunset to sunrise, and to require identification tags for each person engaging in the activities, as well as the prominent display of the candidate or ballot issue. This law firm is happy to assist with determining if a specific type of door-to-door political activity is permitted by this statute.
Removal of Directors: This new legislation applies to both planned communities and condominiums. It is related to the process by which the members may vote to remove a director from the Board. Currently, upon receipt of a petition calling for the removal of a director signed by 25% of the members in an association with 1,000 or less members, or by the lesser of 10% or 1,000 members in an association with more than 1,000 members, the Board must call, notice, and hold a special meeting to vote on the removal within 30 days of receipt of the petition. This new law provides that if a valid petition is received, and the Board fails to call, notice, and hold the special meeting within 30 days of receipt of the petition, the members of the Board shall be deemed to have been removed from office effective at midnight of 31st day. Under current law, there is no penalty for a failure to hold the meeting within the statutory timeline. This new law will require Boards to act promptly upon receipt of a valid petition. If any association receives a petition calling for the removal of a director or directors, this law firm is happy to assist with ensuring that the Board conforms to the statutory timeline, as well as preparing the necessary documents for the special meeting.
Halk, Oetinger, and Brown routinely assists Arizona planned communities and condominium associations with reviews of how new legislation could impact their community. Schedule an initial consultation on our contact us page to meet with one of our experienced HOA attorneys.