On April 28, 2026, the Arizona Court of Appeals issued a decision that significantly impacts Board meeting procedures for planned community and condominium associations in Arizona.
In AZNH Revocable Trust v. Sunland Springs Village Homeowners Association, the Court emphasized Arizona’s statutory policy favoring transparency in association governance and provided critical guidance on how boards must conduct meetings under A.R.S. § 33-1804 and its condominium counterpart, A.R.S. § 33-1248.
Most importantly, the Court held that while boards may meet in closed session to discuss limited categories of sensitive matters (e.g., legal advice, litigation, personnel issues, or member violation appeals), boards may not vote or take any formal action in closed session. Closed meetings must be limited to discussion only.
Key Rulings Every Board Should Know
Closed sessions are limited to discussion only.
- Boards are still permitted to meet in closed (executive) session to discuss the matters identified in A.R.S. § 33-1804(A)(1) – (5) / A.R.S. § 33-1248(A)(1) – (5)
- Boards may not vote or take any formal action in a closed session meeting.
- The authority to identify topics that may be discussed in a closed session meeting may be delegated to a managing agent or Board member. The decision of whether a topic is a closed session topic does not require formal action by the Board during an open meeting so long as there has been a delegation.
Closed‑session agendas must be descriptive.
- Agendas must include enough information to reasonably inform members of the general topics being discussed.
- The common practice of only citing the subsection of A.R.S. § 33-1804(A) / § 33-1248(A) on the closed session agenda to identify the authorization for the closed meeting is no longer sufficient by itself.
- Agendas do not need to disclose privileged, confidential, or personal information, but they must go beyond the generic statutory references.
Meeting notices may remain brief.
- Notices continue to be compliant if they include:
- Date
- Time
- Place
- Statutory basis for closing the meeting
- The Court made clear that the enhanced transparency requirement applies to agendas, not notices.
This decision marks a significant departure from the practices commonly accepted and adhered to by association boards of directors in Arizona. The opinion is problematic for a number of reasons, but for now it is here to stay, and Boards must adapt their practices and procedures in order to avoid potential liability.
How CHDB Can Help:
CHDB is ready to help. We can review and update your board’s meeting and executive‑session practices, provide training for board members and managers on the new requirements, assist in ensuring confidential and/or privileged information remains confidential and privileged, and provide guidance and pointers for efficient decision making.
Associations that proactively address these issues can significantly reduce legal exposure, avoid disputes, and demonstrate a strong commitment to open and effective governance.
If you have questions about how this new case law affects your association or need assistance in implementing these new protocols, please contact CHDB.
The information contained in this article is not intended to be legal advice and is provided for educational purposes only.