Category: Arizona HOA Laws

Categories
Arizona HOA Laws

A Comprehensive Guide to Navigating HOA Foreclosures Responsibly

Homeownership in planned communities and condominiums often comes with the responsibility of being a part of the broader association. While HOAs play a crucial role in maintaining the aesthetics and functionality of these communities, they also have the authority to enforce rules and collect assessments from residents. In cases where homeowners fall behind on their assessments, the HOA has the right to pursue foreclosure as a last resort. In this comprehensive guide, we will delve into the intricate process of HOA foreclosures, shedding light on the regulations and steps involved.

The Basics of HOA Foreclosures

Before an HOA can initiate a foreclosure, certain conditions must be met. According to Arizona Revised Statutes (“A.R.S.”) 33-1807(A), for planned communities, and A.R.S. 33-1256(A) for condominiums, an HOA cannot proceed with a foreclosure unless there is a year of unpaid assessments or if the amount owed exceeds $1,200.00, excluding late fees and additional charges. These requirements provide Arizona homeowners with an opportunity to address their outstanding assessments and avoid the severe consequences of foreclosure.

Understanding the Impact of HOA Foreclosure

HOA foreclosures can have far-reaching consequences, affecting not only the homeowner but also the community as a whole. When a property falls into foreclosure, it can lead to a decline in property values for neighboring homes, as well as potential maintenance and upkeep challenges. Homeowners should be aware that addressing their assessment obligations in a timely manner is not only crucial for their individual property but also for the overall well-being of the community.

Considering Alternative Solutions

Prior to filing foreclosures, HOAs can file breach of contract lawsuits to encourage homeowners to pay. HOAs can then explore collection options through garnishment, however those powers were severely restricted in 2022. As a law firm specializing in HOA matters, we can provide expert guidance on negotiation and resolution strategies for resolving assessment delinquencies. Homeowners may also seek assistance from various public and private organizations that may offer assistance. These alternatives can offer homeowners the necessary respite to resolve their financial challenges while maintaining their property ownership.

The Crucial Role of Open Communication

Homeowners struggling to fulfill their assessment obligations should proactively engage with the HOA to discuss their circumstances prior to collections. Associations also need to have processes in place to make sure they are providing clear communication to any homeowners that have fallen behind on their obligations and make all reasonable attempts to work with those homeowners to get caught up on any past due obligations. Establishing a communication channel can lead to mutually advantageous agreements and avert the progression of foreclosure proceedings, which is generally best case for all parties. 

Navigating the Foreclosure Process

Foreclosure is a multifaceted process to ensure legal compliance. As a law firm specializing in HOA matters, we have the expertise to guide associations and planned communities through each step of the foreclosure process.

  • Initiation: The process commences when a homeowner fails to fulfill their assessment obligations, prompting the HOA to initiate collection actions. If the Association meets the statutory requirements, the HOA may file for foreclosure.

  • Foreclosure Judgment: Following successful legal proceedings, a foreclosure judgment is rendered. This judgment authorizes the HOA to proceed with the foreclosure sale.

  • Sheriff’s Sale: The HOA, in conjunction with the County Sheriff’s Office, schedules a Sheriff’s Sale, during which the property is auctioned to the highest bidder.

  • Redemption Period: Subsequent to the property being auctioned, the homeowner is afforded an additional six months to redeem the HOAs assessment lien and reclaim ownership of the property. This period allows the homeowner to resolve their debts and avert the transfer of property ownership.

  • Sheriff’s Deed and Ownership: If the homeowner fails to redeem the lien within the redemption period, the Sheriff’s Office issues a Sheriff’s Deed to the highest bidder, transferring ownership and the obligation to pay assessments.

The foreclosure process is intricate and demands a thorough understanding of each phase, from initiation to potential outcomes. It is imperative for HOAs to act with diligence, maintain open communication with homeowners, and explore all available options before resorting to foreclosure, ensuring a fair and equitable approach for all parties involved.

Guiding Principles for Navigating HOA Foreclosures

HOA foreclosures are intricate procedures that necessitate legal proceedings, meticulous compliance with regulations, and a comprehensive understanding of homeowners’ rights and responsibilities. Our firm has established itself as a leader in assisting Arizona’s planned communities and condominiums through the complex maze of assessment collections and HOA foreclosures. With our expertise and dedication to fair and transparent practices, both homeowners and HOAs can traverse the challenging landscape of foreclosure while aiming for fair resolutions. It is crucial to remember that foreclosure is a measure of last resort, and homeowners are urged to actively communicate with their HOA and seek legal counsel to explore alternative solutions and avert such severe repercussions.

At Halk, Oetinger, and Brown, we only represent associations and planned communities so we can assist HOAs with improvising assessment collections, considering alternative solutions for past due payments, and pursuing HOA foreclosure, if necessary. Schedule an initial consultation with our firm using the contact us page of our website here.

Halk, Oetinger, and Brown shares this article for informational purposes only, and it does not create an attorney-client relationship.

 

Categories
Arizona HOA Laws

Final Demand Letters: A Comprehensive Guide to A.R.S. 33-1807(K) Compliance

Homeowners’ associations (HOAs) and condominium associations play a vital role in maintaining the harmony and integrity of planned communities. To ensure timely payment of assessments, these associations may need to resort to a collections process when homeowners become delinquent. It is vital for board members to understand and follow the legal procedures outlined in Arizona statutes when sending a final demand letter. This article will discuss the main issues surrounding the requirements for a final demand letter and the importance of documentation in this process.  Here is what your HOA or condo association needs to know about final demand letter requirements in Arizona.

HOA Collections: Final Demand Letter Requirements Pursuant to A.R.S. 33-1807(K)

1) Statutory Disclaimer: The final demand letter must include the statutory disclaimer in ALL CAPS or in boldface type:

YOUR ACCOUNT IS DELINQUENT. IF YOU DO NOT BRING YOUR ACCOUNT CURRENT OR MAKE ARRANGEMENTS THAT ARE APPROVED BY THE ASSOCIATION TO BRING YOUR ACCOUNT CURRENT WITHIN THIRTY DAYS AFTER THE DATE OF THIS NOTICE, YOUR ACCOUNT WILL BE TURNED OVER FOR FURTHER COLLECTION PROCEEDINGS. SUCH COLLECTION PROCEEDINGS COULD INCLUDE BRINGING A FORECLOSURE ACTION AGAINST YOUR PROPERTY.

2) Certified Mail with Tracking: The letter must be sent by certified mail with tracking to provide proof the final demand letter was mailed.

3) Return Receipt Requested: The letter must also be sent return receipt requested to request the homeowner’s signature as proof of receipt. The statute does not require the homeowner’s signature, only that the final demand letter is sent return receipt requested.

4) HOA Contact Person: The letter must provide the name and contact information the homeowner can reach to resolve the assessment delinquency.

5) 30-day Waiting Period: After the letter is mailed, the HOA must wait for a minimum of 30 days to allow the homeowner an opportunity to make the necessary payment.

  • Contents of the Demand Letter
    The final demand letter should clearly state the amount of delinquent assessments owed, including any interest, late fees, and other charges applicable under the association’s governing documents and state law.

The Importance of Proper HOA Documentation

Documentation is the backbone of any legal process, including the collections procedure. Accurate and well-organized records can safeguard the HOA’s interests and provide evidence of compliance with the law. Important documents include:

  • Copies of the final demand letter, properly formatted with the statutory disclaimer.
  • Certified mail receipts and tracking information.
  • Return receipt documentation, including the United States Postal Service’s green card or electronic mailing.
  • Records of any payment receipts, communication, or agreements made with the homeowner during the process.

Condo Association Collections: Final Demand Letter Requirements under A.R.S. 33-1256(K)

Just like in planned communities, a condominium association must follow the same, specific requirements for sending a final demand letter. The association may not initiate collections until 30 days after they have provided written notice with the statutory language, as required in A.R.S. 33-1256(K).

  • Form and Delivery
    Similar to A.R.S. 33-1807(K), the final demand letter for condominium associations must be sent by certified mail, return receipt requested, to provide evidence of mailing. This ensures that the HOA provides notice of the association’s intent to pursue collections.
  • Opportunity to Cure
    The final demand letter must include the HOAs contact person to discuss payment of the delinquency within that 30 day period. The HOA may send the account to collections if the assessment debt is not resolved timely.

Navigating Collections with Confidence: How Our HOA Law Firm Supports Associations

Complying with the legal requirements for final demand letters is essential for both HOAs and condo associations when initiating collections proceedings. By following the specific statutes, including A.R.S. 33-1807(K) for HOAs and A.R.S. 33-1256(K) for condo associations, and maintaining comprehensive documentation, associations can protect their interests, minimize disputes, and pursue collections in a legally compliant manner. Seeking guidance from experienced HOA attorneys can provide valuable assistance in navigating complex situations and ensuring full compliance with the law.  Contact the attorneys at Halk, Oetinger, and Brown for an initial consultation using the form on our contact us page today.

Halk, Oetinger, and Brown shares this article for informational purposes only, and it does not create an attorney-client relationship.

Categories
Arizona HOA Laws

Understanding Kalway v. Calabria Ranch HOA

Kalway v. Calabria Ranch HOA LLC arose from a dispute between a homeowner, Maarten Kalway, and his homeowners association, Calabria Ranch HOA LLC.  Kalway is a case that affects all Arizona HOAs. The dispute was over amendments to the governing documents. The Arizona Supreme Court ruled that the Association did not provide proper notice to, or obtain consent from, Mr. Kalway. Ultimately, the Court ruled those provisions in the amendments that were not “reasonable and foreseeable” are invalid.

The conflict leading to the Kalway was extremely fact specific and unique to Calabria Ranch Estates.  Calabria Ranch Estates consists of only six lots, of which Kalway owned two.  The other four lot owners apparently conspired together to pass multiple amendments disproportionally affecting only Kalway’s much larger property.  Kalway received neither notice nor an opportunity to vote for or against the amendments.   Kalway was not aware that the other owners were making efforts to amend the declaration. 

Kalway argued that the amendments were invalid because he did not receive notice, and that unanimous consent was required for new provisions. The Supreme Court agreed and invalidated some amendments because they contained unreasonable provisions. The Court held that the original declaration must give sufficient notice of the possibility of a future amendment, and that didn’t occur in this case. So, for example, if there are no leasing provisions in the original declaration, the Members can’t amend the Declaration to add short-term leasing provisions without unanimous consent since it wasn’t foreseeable in the original declaration.

It is essential for Associations desiring to amend their declaration to obtain a legal opinion that carefully evaluates the proposed amendment for reasonableness and foreseeability. If, in the attorney’s legal opinion, the amendment is reasonable and foreseeable, the regular amendment provisions in the declaration apply. Those provisions are typically a majority of the Members, 67 percent of the Members, or 75 percent of the Members.

If the proposed amendment is not “reasonable or foreseeable” then a 100 percent vote of the Membership is required to add the amendment. It is clear that this holding puts the Members and the Arizona HOA attorneys in a perilous position. Attorneys will give more conservative advice simply to be safe since the attorney wants to protect the Association from litigation. However, obtaining a 100 percent vote of the Membership in most Associations is impossible.

As a practical matter, a complete amendment and restatement of the declaration in all but the smallest Associations is impossible. Associations may be able to amend their Declaration using the amendment provisions in the Declaration if the amendment is narrowly tailored and refers to existing provisions in the Declaration.

It is more important than ever for HOAs to have experienced legal representation that can assist with review of the current governing documents and help carefully draft proposed amendments that will stand up to a challenge based on the ruling in Kalway v. Calabria Ranch HOA.

Work with an Arizona HOA Law Firm

Following, establishing, and enforcing HOA rules and the law can be tricky. There are many factors to take into account. From keeping tabs on recent legislation that impacts your HOA to complying with state and federal laws to enacting protocols and objective enforcement policies, there are a long list of reasons why your association should be working with experienced HOA attorneys.  Halk, Oetinger, and Brown is a leader in HOA representation in Arizona because it is our only practice area.  We only represent associations and planned communities in Arizona. Schedule an initial consultation to review your HOA representation needs on our contact us page.

Categories
Arizona HOA Laws

Arizona Legislative Update for 2022

In 2022, the Arizona legislature passed several bills affecting community associations, all of which are effective as of September 24, 2022.

House Bill 2158: Political Signs and Assemblies

The legislature amended laws related to political signs and assemblies, Arizona Revised Statutes §§33-1261 and 33-1808. This legislation applies to both planned communities and condominiums.

Association Specific Political Signs: This legislation allows owners to place signs on their property in support of or opposition to 1) candidates in a Board election, 2) a recall effort, or 3) ballot measures, such as amendments to the Governing documents. This will allow owners to become more politically involved in the community. The association may adopt reasonable rules regarding the placement, location, and manner of display of association-specific political signs, except that the association may not:

  • Prohibit the display of association-specific political signs between the date that the association provides written or absentee ballots to members and three days after the vote.
  • Limit the number of association-specific signs, except that the aggregate total dimensions of all association-specific signs may be limited to no more than nine square feet.
  • Require association-specific signs to be commercially produced or professionally manufactured.
  • Prohibit using both sides of the sign.
  • Regulate the number of candidates supported or opposed in an election, the number of board members supported or opposed in a recall, or the number of ballot measures supported or opposed on an association-specific political sign.
  • Regulate the content of an association-specific sign, except that an association may prohibit the use of profanity, discriminatory text, images, or content based on race, color, religion, sex, familial status or national origin as prescribed by federal or state fair housing laws.

Unfortunately, the ability to regulate profanity on non-association-specific political signs was not included in this new law. This law firm advises that an association encourage respectful political signs for all elections. This law firm advises that associations adopt the following statement of values regarding political signs:

STATEMENT OF VALUES

The Board values the divergent and different political beliefs and values seeing those beliefs in an atmosphere of mutual respect. To that end the Board asks the Members and Residents to join us in committing to not displaying signs that contain curse words, are intentionally offensive, or are obvious symbols of racial or religious oppression. 

Right to Peacefully Assemble: This legislation prevents planned communities and condominiums from restricting a member’s ability to use the common areas of a planned community or the common elements of a condominium to peacefully assemble, if done in compliance with reasonable restrictions. Specifically, it provides that:

  • That a member, or group of members, may assemble on the common areas/elements to discuss matters related to the association, including, but not limited to elections, recalls, potential or actual ballot issues, revisions to the governing documents, safety issues, or property maintenance.
  • That a member may invite 1 political candidate or 1 non-member guest to speak at an assembly about matters related to the association.
  • That the association shall not prohibit a member from posting notices regarding an assembly of members on bulletin boards located within the common areas/elements. 
  • That an assembly of members does not constitute an official members’ meeting unless it is properly noticed and convened pursuant to Arizona law and the governing documents.

The association may adopt reasonable restrictions that govern the assemblies. These may include permitted hours during which the assemblies may take place, proper security and event insurance, or preapproved locations for the assemblies, such as the clubhouse or pool area. The Brown Law Group is happy to assist with adopting a policy that complies with this new law.

House Bill 2010: First Responder Flags

The legislature amended Arizona Revised Statutes §33-1261 and §33-1808 to add certain first responder flags to the list of flags an association cannot prohibit an owner from displaying. 

The Association cannot prohibit an owner from displaying 1) first responder flags, and 2) blue star service flags or gold star service flags. A first responder flag may incorporate the design of one or two other first responder flags to form a combined flag, for example, a flag that honors both the police and fire departments.

“First responder flag” is defined as one that recognizes and honors the services of 1) law enforcement, 2) fire departments, or 3) paramedics or emergency medical technicians. The specific requirements for each are below:

  • Law Enforcement:  Is limited to the colors blue, black and white, the words “law enforcement”, “police”, “officers”, “first responder”, “honor our”, “support our”, and “department”, and the symbol of a generic police shield in a crest or star shape.
  • Fire Department: Is limited to the colors red, gold, black and white, the words “fire”, “fighters”, “F”, “D”, “FD”, “First Responder”, “department”, “honor our”, and “support our”, and the symbol of a generic Maltese cross.
  • Paramedics or Emergency Medical Technicians:  Is limited to the colors blue, black, and white, the words “first responder”, “paramedic”, “emergency medical”, “service”, “technician”, “honor our”, and “support our”, and the symbol of a generic star of life.

There are many types of first responder flags with varying designs and language. Associations may prohibit all first responder flags that do not conform to the above specifications. If any association is unsure whether a flag a member is displaying complies with the above statute, BLG is happy to evaluate the flag for compliance.

House Bill 2131: Artificial Turf 

House Bill 2131 amends the Planned Community Act by adding section 33-1819 to prevent communities from prohibiting owners from installing artificial turf on their property. This section does not apply to condominiums.

This new law will help to preserve water by lowering water usage and costs. The association must allow artificial turf where natural grass is allowed. If natural grass is not permitted within the association, the association is not required to allow artificial turf. The association is permitted to create reasonable rules and regulations that govern the installation and quality of the artificial turf. Specifically, this new law provides that:

  • If a planned community allows for natural grass, the association may not prohibit the installation of artificial turf.
  • The association may adopt reasonable rules governing the installation and appearance of the artificial turf, but only if those rules do not prevent the installation of artificial turf in the same manner that natural grass would be allowed by the association.
  • The association may adopt reasonable rules governing the location and the percentage of the property that may be covered with artificial turf to the same extent as natural grass. The association may also adopt rules governing the quality of the artificial turf.
  • The association may require removal of artificial turf if it causes a health or safety issue that the owner fails to correct. The association may require replacement or removal of artificial turf if it is not maintained in accordance with the association’s maintenance standards.
  • An association can prohibit the installation of artificial turf if: 1) it is installed in an area that the association maintains or irrigates–for example front yards of Lots– and 2) if an association prohibits the new installation of natural grass on an owner’s property, the association can also prohibit the new installation of artificial turf on an owner’s property, except that, an association may not prohibit a member from converting natural grass to artificial turf.
  • If an owner files a lawsuit against the association for violating this new law, and the court finds in favor of the owner, the court will award reasonable attorneys’ fees and costs to the owner.
  • The law does not apply to associations that have unique vegetation or geologic characteristics that require preservation by the association and the viability of those characteristics is protected, supported, or enhanced as a result of the continued existence of natural landscaping materials.

House Bill 2275: Condominium Termination

This legislation amends Arizona Revised Statutes §33-1228 of the Condominium Act to update the percentage of members that most vote to terminate a condominium. This section does not apply to planned communities.

This legislation provides that an already existing condominium may only be terminated by the approval of 80% of the votes in the association, except:

  1. In the case of a taking of all of the units by eminent domain.
  2. If the declaration specifics a smaller percentage, but only if the units are restricted to non-residential uses.

This legislation provides that condominiums created on or after September 24, 2022 may only be terminated if 95% of the members vote in favor of the termination, or any larger percentage specified in the declaration.

Work with an Arizona HOA Law Firm

Following, establishing, and enforcing HOA rules and the law can be tricky. There are many factors to take into account. From keeping tabs on recent legislation that impacts your HOA to complying with state and federal laws to enacting protocols and objective enforcement policies, there are a long list of reasons why your association should be working with experienced HOA attorneys.  Halk, Oetinger, and Brown is a leader in HOA representation in Arizona because it is our only practice area.  We only represent associations and planned communities in Arizona. Schedule an initial consultation to review your HOA representation needs on our contact us page.

Categories
Arizona HOA Laws

How To Properly Establish and Enforce Parking Rules in an Arizona HOA

As an HOA you need to ensure that you have provided means by which the cars in your communities are adequately regulated in order to achieve cohesion between homeowners. While many HOAs already have these parking rules in effect, some may not realize that their rules do not comply state and federal law or may not be specific enough to properly oversee the conduct of vehicle owners in the community. This article will outline how to properly establish and enforce parking rules in an Arizona HOA.

Establishing HOA Parking Laws in Arizona

HOAs will find it useful to educate themselves on the HOA parking rules in Arizona. They will be adequately equipped with understanding the kinds of rules they can establish in their communities. Restricting parking conduct will more than likely create a defensive homeowner or two so understanding what you as an HOA Board are allowed to do to handle parking incidents can be the decision that saves you from a lawsuit from disgruntled homeowners.

The first step is for your HOA board understands the local administrative control on public roads as well as the commercial and residential HOA parking rules as the boundaries within which you can establish parking laws. Then your HOA board will need to ensure that the HOA parking policies are conveyed to the community with specific details and clear, concise language.

Using vague language or sentences that can be interpreted in several ways will pose an issue when confronting parking violators. The specific jargon to use when creating policies is usually best handled by a seasoned Arizona HOA law firm to ensure that your policies are airtight and difficult to be misunderstood.

Arizona Residential Parking Laws

There are three main categories of residential parking laws an Arizona HOA board should focus on:

  • Parking Locations
  • Abandoned Vehicles
  • Prohibited Vehicles

Arizona HOA Rules on Parking Locations

The rules governing parking locations will vary depending on the layout of each HOA community. Some communities may have rules which mandate that each homeowner should park in their driveways while others may establish that each homeowner, sometimes their visitors as well, are assigned parking spots. It is important to adopt rules that do not conflict with the CC&Rs.

In addition to establishing where homeowners should park, it needs to specify the areas in the community that they are not allowed to park which may be: a) in front of another homeowner’s house b) in front of communal areas and b) on the streets in the community.

If your HOA community consists of both private and public roads, your authority to establish where HOA homeowners park may be limited to only the private roads in the community according to A.R.S. §33-1818, prohibiting Arizona HOAs in which the CC&Rs were recorded after 2014 from regulating how public roads in the community are used for parking. With the guidance of an HOA law firm, you will be able to understand whether the use of public roads can be legally regulated by the HOA board.

Arizona HOA Rules on Abandoned Vehicles

To ensure that homeowners don’t end up leaving abandoned vehicles parked in the community, HOAs may devise regulations for cars to be parked on the streets at a specified amount of time. extend to any vehicle including motorboats, trailers, or RVs. An HOA may also adopt rules that prevent unregistered or inoperable vehicles from being parked in the streets.

Arizona HOA Rules on Prohibited Vehicles

Your parking policy can also specify the types of cars that are allowed to park in the community. Vehicle attributes that they can specify include, but are not limited to, trailers, boats, un-drivable, junk vehicles, and RVs. Associations have the right to protect their community’s appearance.

All of these restrictions will need to be placed in the CC&R so that the homeowners would have had a chance to look at these rules before agreeing to purchase property in the community.

Enforcing HOA Parking Rules in Arizona

In the same manner that the scope in which HOAs can regulate the use of roads depending on whether these roads are private or public, HOAs’ authority to enforce these parking rules is also contingent on this variable.

On private streets, HOAs are authorized to enforce parking rules by means of fining violators, or in some cases, towing vehicles. 

Towing of Vehicles in Arizona

Most states, including Arizona, permit HOAs to tow vehicles that violate the community’s parking policy. For instance, if a homeowner should park in a location that was established in the policy as prohibited, then HOAs will have authority to tow the vehicle out of the community which will also be reported to the local traffic law enforcement.

It is best to speak with an HOA attorney before enforcing parking rules in this way as there may have been steps, including appropriate signage and warnings, that could be taken before ultimately having to tow a homeowner’s property, potentially saving you the hassle of having to deal with disgruntled drivers filing lawsuits against the HOA board.

Work With An Arizona Law Firm That Specializes in Representing HOAs

As you may have noticed, establishing and enforcing parking policies in an HOA may be a bit tricky as there are many factors and federal laws to consider when organizing these rules. In order to ensure that your rules are established within the confines of state and federal laws and that these rules are overall reasonable, you will need the assistance of an experienced Arizona law firm that can guide you through the process. Halk, Oetinger, and Brown is a leader in HOA representation in Arizona because it’s our sole area of practice. Schedule an initial consultation to review your HOA representation needs on our contact us page.

Categories
Arizona HOA Laws

Arizona Prop 209: The Predatory Debt Collection Protection Act and How It Impacts Arizona HOAs

Arizona Proposition 209, otherwise known as the “Predatory Debt Collection Protection Act,” will directly impact homeowners associations and planned communities.  Prop 209 states that an HOA will be limited in its ability to garnish a delinquent owners’ earnings or bank account. This is especially important for board members to understand as garnishment can be a useful tool in collecting delinquent assessments. To help Arizona HOAs understand the implications of Prop 209, we put together this simple guide to the new legislation.

Arizona Proposition 209 Details

As a result of Arizona Prop 209 passing, HOAs will need to understand the following key points:

  • Creditors can no longer garnish the wages or bank accounts of almost half of the population of Arizona.
  • As a result, more HOAs will foreclose on its liens, causing members to pay more to resolve the debt, or to potentially lose their homes
  • With HOAs filing more often for assessment lien foreclosures to make up for their increased collection-related expenses and the risk that the HOA may not recover all of its delinquent assessments, HOAs will likely need to increase the annual assessments.

Wage Garnishments

Arizona law previously allowed 25% of disposable earnings to be garnished in order to satisfy judgments. With the passage of Prop 209, only 10% of disposable income can be garnished for debt collection. If anyone currently earns $51,000 or less per year, their wages cannot be garnished. This will limit Arizona HOAs’ ability to garnish wages because, according to a recent study by Phoenix Community and Economic Development, 41% of Arizonans make $50,000 or less annually.

Bank Garnishments

Arizona law previously provided that each individual can protect $300 per bank account from bank garnishments. If two people own the same bank account, they can protect $600. With Prop 209 going into effect, under the new law, each bank account holder can protect $5,000 per bank account from bank garnishments. If two people own the account, then they would be able to hold onto $10,000.

Homestead Exemption

Arizona law previously provided that $250,000 is protected from general creditors as a homestead exemption. Prop 209 increases that to $400,000. When an owner sells their house, judgments for fines will not be paid from escrow unless there is more than $400,000 in equity in the home.

Personal Property Exemptions

In accordance with the current law, $6,000 of personal items/household goods are shielded from debt collection. Prop 209 provides that $15,000 of personal items/household goods are protected from debt collection.

Keeping up with new and updated laws is a time-consuming and frustrating process. You can create legal issues for your HOA and put it in a vulnerable position by not being prepared for these new laws. Being proactive and working with a law firm specializing in Arizona HOA representation is essential. With solid planning and simple adjustments to internal procedures, most associations and planned communities can avoid common legal pitfalls.

Halk, Oetinger, and Brown represents planned communities and associations in Arizona and helps them to avoid as many of these common issues as possible. Our experienced attorneys routinely help associations with all their legal needs, including explaining new laws and how they can affect your HOA. Our firm can help your association make the necessary adjustments for Arizona Prop 209 and any other new legislation that might impact normal operations.  Contact us today to schedule your initial consultation on our contact us page.

Halk, Oetinger, and Brown shares this article for informational purposes only and does not create an attorney-client relationship.

Categories
Arizona HOA Laws

HOA Political Yard Sign Rules in Arizona: Prepare Your Community for Upcoming Elections

Election years can be an interesting time for everyone.  It is natural for people to want to show support for their preferred candidates, but associations also typically want to set reasonable ground rules for the acceptable ways to display political signs in the community. A community governed by a homeowner’s association (HOA) is governed by its declaration of covenants, conditions, and restrictions (CC&Rs). In addition, everyone who joins the community has to adhere to specific rules and regulations and bylaws. As community members start to post political signs and show their support, the community association and board has a responsibility to set reasonable ground rules for everyone. To help with navigating this election year and get any association ready, we put together an overview of HOA political yard sign rules in Arizona.

Arizona Political Yard Sign Rules – An Overview

Elections will come and go, but associations and board members need to find ways to maintain peace and stability for the community. Elections can get very heated. To assist the HOA in supporting the community with fair and reasonable ways to display political signs, here are examples of signs and boards protected by Arizona law and how an HOA can place reasonable regulations on them.  Arizona law provides that HOAs must allow owners to display political signs in areas under their control, such as their yard.

  1. Duration of Protected Political Signs – The Arizona Planned Community Act and the Condominium Act provide laws related to political signs in HOAs. In Arizona, HOAs must allow homeowners to display political signs on their lots beginning 71 days before the day of a primary election lasting up to 15 days after the general election. If the candidate does not advance to the general election, the sign must be removed no later than 15 days after the primary election.
  2. Do’s and Don’ts of Political Signage by HOAs – In Arizona, HOAs can regulate the number of political signs that homeowners can have on their property, provided that the local ordinance which regulates the activity permits such restrictions. Likewise, the size of the signs can also be regulated by HOAs. However, it is noteworthy to remember that HOAs cannot be more restrictive than any local sign ordinance and cannot contradict the state laws that protect political signs. Additionally, HOAs can generally restrict political signs if they meet any of the following conditions:
  • Signs that contain roofing material, plants, balloons, paving materials and lights
  • Political signs attached to plants, traffic signs, vehicles, and other similar objects
  • Signs painted on architectural surfaces
  • Signs that threaten public safety
  • Signs that include hate speech or discriminatory language
  • Signs that distract drivers through music, noise, or steamers
  • Political displays that violate the law
  1. Common Areas – HOAs in Arizona can prohibit the display of political signage in public spaces like parks, playgrounds or pool areas
  2. Number of Signs – If the city, town, or county does not regulate the size or number of the political signs, the HOA cannot limit the number of political signs, but may limit the maximum aggregate total dimensions of all political signs on that owners property to no more than 9 square feet.

Arizona associations and planned communities should not assume that state and local laws mean they do not need to address the matter of political signs in the community directly.  It is important to at least make clear what laws apply to the members in the association and certainly helps to detail in writing what is expected of all members.  If your community is considering some updates or changes to the rules and regulations for political signs, it is important to review the plans with an experienced HOA attorney in Arizona and have the updates drafted and implemented with the assistance of professionals focused on the potential legal impacts.

Simple Steps for Smooth Implementation of HOA Political Yard Sign Rules

  • Research is Key – Although we have mentioned the rules and regulations regarding political signs in the above section, they may vary by local ordinances. Therefore, it is necessary that as an HOA board member, you take the time to research the state and local laws in terms of size, number, and type of signposts permitted on private property. If your association does not work with a law firm that specializes in HOA representation, this is a perfect opportunity to find the right HOA lawyer to help with the process.
  • Clarity in CC&Rs – Typically, HOA rules on political signs come with reasonable checks and balances. They can allow residents to display their political opinions fairly and reasonably. These rules and regulations should be clearly detailed in the CC&Rs, and should not distract from the neighborhood’s appeal. Therefore, it is imperative to go through what your CC&Rs say to make sure that you are correctly enforcing the rules and the regulations are clearly understood by community members.
  • Set Timeframes – Most governing documents include a timeframe of when homeowners can put up a political sign and have to bring them down in compliance with Arizona law. As an HOA board member, it is your duty to make the people of your community aware of the rules so that they are respectful of the time frames and make sure the rules are being followed.
  • Handling Difficult Requests – Similar to all HOA issues, it is essential to work with residents respectfully. When someone is violating an Arizona state law or an HOA political yard sign rule, the key is to be civil and candid about the matter. Make sure that you have a copy of the CC&Rs and that you assist the resident in understanding the rules. Lastly, make sure that you enforce the rules equally and never take a sign down arbitrarily, irrespective of your political opinion.

Review HOA Policies with an Arizona HOA Law Firm

Most rules and regulations around political yard signs are straightforward if the community follows Arizona and local guidelines.  However, any HOA that is considering making changes to their governing documents and community rules should consult with an Arizona HOA law firm to make sure they are in compliance.  The board of directors for any HOA has an obligation to make sure the community follows state and federal laws.  The attorneys at Halk, Oetinger, and Brown only represent Arizona homeowners associations and planned communities.  We can review any proposed changes and help keep your community compliant with all applicable laws.  Contact us today at 602-952-6925 to schedule a consultation or make an appointment on our contact us page.

Categories
Arizona HOA Laws

Why Arizona HOAs Should Consider Electric Vehicle (EV) Charging Stations for Their Community

The rapidly increasing shift from conventional vehicles to electric vehicles has led several states, including Oregon, California, Hawaii, Washington, Florida, and Colorado, to draft specific laws for them. This includes provisions regarding the installation of charging stations for the vehicles. In addition, while commercial charging stations are being built, various residential areas are also equipped with charging stations for residents with electric vehicles. It is likely only a matter of time for Arizona to pass specific laws for electric vehicle charging stations and HOAs should start to consider how they want to address the growing popularity of electric vehicles.

Factors and Considerations for Community EV Charging Stations in HOAs

As the number of electric vehicles increases, homeowners associations (HOAs) will also be witnessing a surge in requests and demands to install charging stations as an amenity of the homeowners. Though Arizona has not passed specific legislation surrounding HOA electric vehicle charging station policies, the growing trend in favor of electric vehicles will likely push the state government to address it in some fashion.  Here are some of the things for any HOA to consider.

First, drafting a customized HOA policy enabling electric vehicle charging in condominiums or communities is essential as this policy draft can contain various rules and regulations applicable to all the community residents regarding the installation, use, and maintenance of charging stations. The installation of an EV charging station come  with expenses, including the installation charges, maintenance charges, usage charges, and permit charges. All these expenses must be paid by someone, and the HOA policy draft would help determine how best to cover those costs.

Next, finding ample space for installing EV charging stations is necessary. Any HOA also needs to determine where the charging stations could be installed and how they would function. For example, would the HOA be demarking specific parking spots for electric vehicles? Can normal cars be parked near the charging stations? How many charging stations may be required in a particular community? All these questions need to be resolved by the HOA and could take a considerable amount of time to assess. It is thus important that Arizona HOAs start getting input from your members and prevent last-minute rush decisions from taking place if state legislation is passed.

Permits: Once the optimal number of charging stations and placement has been determined, the HOAs would require permits from the zoning department and construction permits, which would lead to departmental assessments and inspections. The zoning department would have to conduct in-depth assessments of the community, the existing structures, and proposed ideas. They would then inspect, and hopefully approve, the new plans for EV charging stations to be built.

Schedules: HOAs choosing to install electric vehicle charging stations in the common areas would also need to determine a schedule for charging the EV.  This is a perfect opportunity for getting feedback from all community members. This is especially important in communities with a higher number of electric vehicles to ensure that every resident gets a fair opportunity to charge their vehicle and there are enough spaces for those members that need to utilize the charging station. Some communities may want to implement a reservation system, others may prefer a first come first served basis.

Infrastructural Capabilities: Installing community EV charging stations in Arizona would require HOAs to assess their infrastructural capabilities primarily. The electric charging stations require certain advanced features, and while most new communities are equipped with such infrastructure, older ones may not be. Similarly, high-rise buildings might not have the infrastructure to support an electric vehicle charging station. There are a lot of spatial considerations for every single EV charging station installed, which HOAs need to assess and apply for all proper permits.

Electric vehicles are rapidly becoming the norm with a growing awareness of environmental changes, marketing campaigns to reduce the use of gasoline and pollution, and the swiftly advancing technology which is making these vehicles much more affordable than before. The increasing inclination towards making more sustainable and environmentally-friendly choices are among the main reasons why EVs are continuing to grow in popularity. The availability of various options, thanks to almost all brands launching a lineup of electric vehicles, is another major reason behind more people choosing an electric vehicle.

Possible Complaints About EV Charging Stations

It is also possible that some members will dislike the idea of installing common charging stations because of potential inconveniences and costs. In such cases, the HOAs would need to consider whether they are willing to allow individual homeowners to install charging stations for themselves. If so, the HOAs would still need to complete some jobs like getting permits that allow homeowners to install their own charging stations at their own costs. However, this also needs to be aligned with the state laws and any HOA considering this option should review the potential policy with an experienced Arizona HOA attorney.

Until state laws dictate otherwise, it would fall upon the HOAs to determine the structure that will bring the most value to their members and community. The decision could be based on the overall feasibility in relation to the number of electric vehicles that are purchased by homeowners in a particular community. For example, a community that consists of older residents is less likely to be open to change and is also less likely to see as many electric vehicles. Newer communities with younger residents are more likely to see a surge in the number of electric vehicles.

Find the Best HOA Law Firm in Arizona

In order to keep up with the trends, it is vital for HOAs to keep up with the changing times and be adaptable to new technology, which could potentially lead to an increase or decrease in property values. With EVs becoming more popular, it is only advisable to draft a framework for the installation of charging stations for electric vehicles. The Brown Law Group only represents HOAs, condo associations and planned communities in Arizona.  Our firm can help draft a new HOA policy for EV charging stations or review your current rules.  Contact the Brown Law Group today at 602-952-6925 to schedule an initial consultation or make an appointment on our contact us page.

Categories
Arizona HOA Laws

Most Common Issues that Lead to HOA Litigation in Arizona

HOA litigation might not be as common as other types of business litigation, but claims against a homeowners association or planned community can be expensive and prolonged.  They can become a central focus for the board of directors and divisive for the community.  Our firm has represented hundreds of associations and planned communities in Arizona since our founding.  We put together an article on the most common issues that lead to HOA litigation in Arizona and what your association can do to avoid them.

Failure to Pay Assessments

The most common type of litigation is the collection of delinquent assessments.  When an owner purchases a property within an Arizona HOA, that owner becomes contractually obligated to pay the assessments when due. The assessments are also a lien on the property.  Each HOA should adopt a collections policy. If the owner does not pay, an association will usually send the case to a law firm like BLG to collect the unpaid assessments, and if necessary, file a lawsuit.

Violation Enforcement

The board of directors for an HOA is tasked with enforcing the association rules.  This generally includes the covenants, conditions and restrictions (CC&Rs) and bylaws.  Naturally, enforcing the rules with penalties and fines for violations can lead to disputes with members.  HOA litigation can arise from members that fail to accept penalties from the board and disputes about the validity of certain penalties.

Failure to Maintain Common Areas

There are many legitimate reasons that common areas in an association can create maintenance issues.  From a natural disaster to unexpected breakdowns, the board of directors can be caught off guard by serious maintenance challenges and these issues can quickly become a source of heated disputes with members in the community.  These maintenance issues can rise to HOA litigation if they are not resolved quickly and effectively.

Denying Member Requests

Denying member requests for their desired plans for their home and property creates the potential for legal disputes and HOA litigation.  It is also a necessary part of being on the board of directors for the association.  It is common for emotions to be heightened when a member feels their denied request was unjustified.  It is important for board members to understand this potential when reviewing member requests and be cognizant of this potential when crafting a denial for requests that violate governing rules.

Discrimination

Litigation related to discrimination is also common for HOAs and condo associations in Arizona.  All board members should be familiar with federal HOA laws that apply to their operations, like the and Fair Housing Act.  It is important to make sure your association has appropriate accommodations for any people with disabilities and stays vigilant against any discriminatory practices in leases, sales, and application of governing rules for the community.

Disputes Over Actions by Board of Directors

It is normal for members to take issue with some decision by the HOA board.  When these disputes over increased expenses or controversial decisions become contentious, they can lead to members suing the association to prevent these actions.  Many of these issues can be avoided by reviewing potentially controversial decisions with an Arizona HOA attorney.  They can make sure your actions are within the rights of the board of directors and follow state and federal laws.  This will not prevent every lawsuit, but it helps your board know they are following the appropriate process to make difficult decisions for the association.

HOA Election Issues

Close elections for the board of directors always have the potential for disputes.  Whether there are complaints about the election process or concerns from members about board members ability to do the job, these disputes can quickly escalate into time-consuming legal matters that are costly for the association.  Routine review of your association election process can give all members confidence in the process and discourage potential litigation.

HOA Pet Policies and Issues

Most people think of their pets as members of their family so it should not be a surprise that disputes with members over association pet policies can escalate into HOA litigation.  Many associations and planned communities assume their pet policy will be fine and they fail to make proactive efforts to get feedback from members on any potential issues or needs.  We put together an article on crafting an effective HOA pet policy in Arizona and how to make sure your association accommodates any support or service animals.

Tips to Avoid HOA Litigation in Arizona

Anyone can file a complaint in court against their association or planned community, but that does not mean it will be successful.  All HOAs need to have a plan in place to deal with contentious members and potential legal issues that arise.  While you cannot avoid all potential litigation, your association can take many proactive steps to protect the association as much as possible in the long term.  The simplest way to protect the association is routine review of your CC&Rs and bylaws with an experienced HOA law firm to make sure the governing rules are valid and enforceable.  As state and federal laws get updated, the governing rules might need changes.  Having experienced attorneys that specialize in representing associations also means you can leverage their expertise when potential problems arise.  Many common issues that lead to HOA litigation can be resolved appropriately before a lawsuit is filed.  Ignoring member issues or attempting to always squash small violations with excessive fines or penalties can cause the matter to escalate to litigation when it is not necessary. 

Get an Experienced HOA Attorney

Some associations and board members might feel that HOA litigation is something they will deal with when needed.  Proper planning and experienced legal representation can help your association avoid many matters rising to that level.  The Brown Law Group only represents Arizona homeowners associations and planned communities.  Our firm helps our clients keep their governing rules updated and enforceable.  We help associations keep operations as smooth and effective as possible, while addressing most potential legal matters before they become HOA litigation.  Contact our firm today at 602-952-6925 to schedule an initial consultation to review your HOA representation needs or make an appointment 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

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.