Overview
HB 2172 would impose a mandatory expiration on all planned community declarations and associations, eliminating perpetual HOAs and requiring automatic dissolution on the later of January 1, 2127 or 100 years after the original declaration was recorded.
Key Changes
- Adding A.R.S. 33-1801.01 to:
- Provide that each declaration expires and is unenforceable, and each association dissolves on the later of January 1, 2127 or 100 years after the date the original declaration was recorded;
- Amendments to the original declaration do not establish a new 100 year period;
- Upon expiration of the declaration and dissolution of the association, the dissolved association shall wind up and liquidate its business and affairs;
- After expiration of the declaration and dissolution of the association, any or all of the owners in the terminated planned community may voluntarily reestablish a planned community for the properties.
Legislative Timeline
- January 14, 2026 – House Second Reading
- January 13, 2026 – Introduced; House First Reading; Assigned to House Commerce and Rules Committees
Impact
If passed into law, this bill would apply to all planned community association in Arizona. In anticipation of the expiration of a declaration and termination of an association, the association, the owners, and the local municipality must determine what happens to the common property (e.g., community club houses, pools, green belts, private roads, etc.).