Overview
A proposal to amend A.R.S. §§ 33-1202, 33-1256, 33-1802 and 33-1807 to modify the assessment lien/collection statutes further by: removing language that “Assessments” secured by the statutory assessment lien are those that are periodically assessed against each unit/lot and instead defining “Assessments” as those assessments levied pursuant to the CC&Rs or Arizona law; adding a definition for “Assessment” into the planned community statutes; and clarifying certain provisions (such as making it clear that payments must be applied as specified in the statutes absent an owner’s direction in an “instrument signed” by the owner and adding “Common Expense” as a preface when the term lien or liens is used).
Key Changes
Current Law
“Assessments” secured by the statutory assessment lien are defined as those periodically assessed against each unit or lot. Payment application procedures and terminology are not explicitly clarified in certain statutory provisions.
Proposed Amendment (Inactive)
- Expanded Assessment Definition: “Assessments” are redefined as those levied pursuant to the CC&Rs or Arizona law, rather than limited to periodically assessed charges against each unit or lot.
- Planned Community Assessment Definition: A definition for “Assessment” is added to the planned community statutes.
- Payment Application Clarification: Payments must be applied as specified in the statutes unless the owner provides direction in an instrument signed by the owner.
- Terminology Clarification: “Common Expense” is added as a preface when the term “lien” or “liens” is used in relevant statutory provisions.
Legislative Timeline
- January 22, 2025 – House Second Read
- January 21, 2025 – House First Read; Assigned to House Committee on Government and House Committee on Rules
Impact
The expanded definition of “assessments” would broaden the scope of charges secured by the statutory lien to include all assessments levied under CC&Rs or Arizona law, not just periodic regular assessments. This clarification would confirm that special assessments, fines, and other charges authorized by governing documents or statute are secured by the lien. The payment application clarification would require associations to follow statutory payment application procedures unless an owner provides written direction, reducing disputes over how payments are credited. The addition of “common expense” terminology provides consistency in how liens are described throughout the statutes. The planned community assessment definition would align planned community and condominium statutory language.