Arizona’s planned communities are facing a significant shift in governance with the enactment of House Bill 2298. Effective from October 30, 2023, HB 2298 alters the control that community associations have over public roadways within their jurisdictions. This article aims to provide an overview of the bill and outline actionable steps for compliance, helping to ensure Arizona HOAs and planned communities are well-prepared to navigate these changes.
Key Provisions of House Bill 2298: Understanding the Details
The essence of Arizona House Bill 2298 lies in its specific provisions, which bring about a substantial change in how planned communities in Arizona manage parking rules and public roadways. This part of the legislation focuses for which the declaration was recorded before January 1, 2015. Understanding these key provisions is the first step towards ensuring that your community is not only aware of the changes but is also taking proactive measures to align with the new legal requirements.
- Authority Restriction for Post-2014 Declarations: Planned communities in which the declaration was recorded after December 31, 2014, may not regulate the public roadways within their communities.
- Ongoing Regulations for Pre-2015 Declarations: For planned communities with declarations recorded before January 1, 2015, the situation is slightly different. These communities are currently allowed to maintain their existing public roadway regulations. However, this is not an indefinite grant of authority. By June 30, 2025, communities that wish to continue to regulate the public roadways are mandated to hold a vote among their members to decide whether they wish to continue exerting control over public roadways. At the meeting, a quorum must be present in-person or by absentee ballot. A majority of the votes cast must vote in favor of continuing to enforce on the public roadways in the community. If the vote fails, the community does not get a second chance. If the quorum is not met, then the association can attempt to call another meeting to hold the vote. If the vote passes, then a notice must be recorded with a county recorder stating that the association will continue to enforce on the public roadways.
Having a clear understanding of these key provisions is crucial, but it’s just the first part of the equation. Each planned community must now consider the practical steps they need to take to ensure compliance with HB 2298.
Steps for Ensuring Compliance with House Bill 2298
As HOA and planned community boards and members across the state address this new law, here are some of the key steps to ensure that your community adheres to the legal requirements and continues to foster a supportive and well-managed environment for all residents:
- Initial Assessment: Start with identifying the date when your community’s declaration was recorded. This critical first step will determine your immediate priorities and legal needs in the context of HB 2298.
- Organizing the Vote (For Pre-2015 Communities): Communities with pre-2015 declarations must prepare for a crucial vote by June 30, 2025. This process includes scheduling a meeting, educating members about the importance of this vote, and encouraging active participation to meet quorum requirements. Boards may wish to survey the members prior to scheduling the vote.
- Documenting Outcomes: If your community votes to continue regulating public roadways, it’s imperative to officially document and record this decision. Our legal team is ready to assist in ensuring this documentation meets all legal standards.
- Amending Guidelines: Depending on the outcome of your assessment or vote, it may be necessary to update your community guidelines. Our experienced HOA attorneys are equipped to guide you in revising these documents to ensure they are in full compliance with HB 2298.
- Community Education: Transparency and clear communication are key in navigating these changes. Regular updates, informational meetings, and the dissemination of revised guidelines are essential to keep all community members informed and engaged.
- Get Expert HOA Legal Guidance: As your community works through these steps to stay in compliance, our law firm is here to offer expert legal advice and support. We are committed to helping your community make any necessary updates to your governing docs and guidelines. We only represent HOAs and planned communities in Arizona.
These steps are designed to prepare your community for a seamless transition into compliance with HB 2298. By taking these actions, you ensure that your community is legally compliant and help avoid potential issues in the future.
Attorneys for HOAs Guiding You Through HB 2298 Compliance
Adapting to the changes brought about by House Bill 2298 is a significant undertaking for any planned community. However, with careful planning, clear communication, and expert legal support, this transition can be managed effectively, ensuring that your community continues to operate efficiently and in the best interests of its residents. Halk, Oetinger, and Brown is dedicated to guiding your community through every step of this process, providing the legal expertise necessary to navigate these changes efficiently and effectively. Schedule an initial consultation with our attorneys for HOAs today using our contact us page here.
Halk, Oetinger, and Brown shares this article for informational purposes only, and it does not create an attorney-client relationship.