By Carolyn B. Goldschmidt, Esq.

Effective Date of New Laws:  Wednesday, September 19, 2007.

Summary of Session: There are five new laws that pertain to community associations, which are summarized below. In this session, approximately fifteen bills were introduced, including failed attempts: (a) to limit an association’s authority to control parking on public streets; (b) to require reasonable accommodations for ham radio antennae; (c) to allow amendment of CC&Rs by a majority vote of the owners, regardless of the amendment requirement in the document; (d) to have the homestead exemption (up to $150,000 of equity in a residence) apply to HOA liens; and (e) to require the sale of property at an HOA lien foreclosure sale to be for at least “fair market value.”

Summary of New Laws:

A. COMMERCIAL SIGNAGE AND SOLAR DEVICES [SB1254].  

This law, which applies only to Planned Communities, states that after an association has approved a commercial sign, its Board cannot revoke or modify the approval if the owner or operator of the sign has received approval from the local or county government. The law also states that an association may not prohibit the installation or use of a solar energy device, as defined in the Arizona statutes (A.R.S. §44-1761). An association may adopt reasonable rules regarding the placement of a solar energy device. This law adds Sections 33-1815 and
33-1816 to the Planned Communities Act.

B. FOR SALE SIGNS [SB 1062]. 

This law applies to Condominiums and Planned Communities. The law states that regardless of any provision in the CC&Rs, an association cannot prohibit the indoor or outdoor display of one “For Sale” sign and one sign rider on an owner’s property. The sign may indicate that the owner is offering the property “for sale by owner.” The size of the “For Sale” sign needs to be in conformance with the industry standard size sign, which shall not exceed 18" x 24", and the industry standard size sign rider, which shall not exceed 6" x 24". This law amends Section 33-1261 of the Condominium Act and Section 33-1808 of the Planned Communities Act.

C. CHILDREN AT PLAY SIGNS [HB2503]. 

This law applies to Planned Communities only and allows residents to use cautionary signs when children are present within 50 feet of the sign. The requirements for use of the signs are:

(1) The signs may be displayed in residential areas only.

(2) The signs must be removed within one hour of children ceasing to
play.

(3) The signs may be displayed only when children are actually present
within 50 feet of the sign.

(4) The temporary signs are no taller than three feet in height.

(5) The signs are professionally manufactured or produced. This law also prohibits an association from preventing children who reside in the Planned Community from engaging in recreational activity on residential roadways that are under the jurisdiction of the association and on which the posted speed limit is 25 mph or less.  This law amends Section 33-1808 of the Planned Communities Act.

D. TELECOMMUNICATION VEHICLES [HB2254]. 

This law applies only to Planned Communities and expands parking privileges to “telecommunication” vehicles. The definition of “telecommunications” is stated as “the transmission of information of the user’s choosing between or among points specified by the user without change in the form or content of the information as sent and received.” This law amends Section 33-1809 of the Planned Communities Act, which prohibits an association from restricting a resident from parking a motor vehicle on a street or driveway in a Planned Community if the vehicle is required to be available at the person’s residence as a condition of the person’s employment. The employment must be for a public service corporation, municipal utility, or public safety agency. This law amends Section 33-1809 of the Planned Communities Act.

E. CONDOMINIUM RECOVERY FUND [SB1546].

This law applies only to Condominiums and establishes a Condominium Recovery Fund within the Arizona Department of Real Estate for the benefit of any buyer damaged by the failure of a developer to complete the condominium project. This law creates Article 5.1 “Condominium Recovery Fund,” Arizona Revised Statutes §32-2193.31 through 32-2193.43.

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Please note that these laws pertain only to Planned Communities or Condominiums, as indicated. A Planned Community is defined as a community association which: (a) owns common area; (b) has mandatory membership in an association; and (c) has mandatory dues or assessments. A Condominium is defined as a community in which the common elements are owned in common by all the owners and in which the owner owns a “unit,” which is generally defined as the air space within the finished walls, ceilings, and floors of the dwelling unit.