Overview
A proposal to amend A.R.S. §§ 33-1202, 33-1243, 33-1245, 33-1255, 33-1802 and 33-1803 to modify declarant rights; require declarants to construct improvements as set forth in the initial public report issued for the development and the approved plat; to ensure members have the right to vote on certain matters despite the community still being under declarant control; to limited a declarant’s weighted votes to three times that of non-declarant members; to add additional occurrences for when the period of declarant control ends; to require the recording of a document indicating the end of the period of declarant control and notifying non-declarant members of the same; to subject declarants to penalties for failing to turn over communities; to establish specific duties owed to the association and unit owners by the declarants; to preserve certain rights for declarants following the end of the period of declarant control; and to provide for developer and special declarant rights for planned communities, among other amendments. This bill also proposes to repeal A.R.S. § 33-1820.
Key Changes
Proposed Amendment (Inactive)
- Construction Requirements: Requires declarants to construct improvements as set forth in the initial public report issued for the development and the approved plat
- Member Voting Rights: Ensures members have the right to vote on certain matters despite the community still being under declarant control
- Weighted Vote Limitations: Limits declarant’s weighted votes to three times that of non-declarant members
- Declarant Control Period: Adds additional occurrences that trigger the end of the period of declarant control
- Turnover Documentation: Requires recording of a document indicating the end of the period of declarant control and notifying non-declarant members
- Turnover Penalties: Subjects declarants to penalties for failing to turn over communities
- Declarant Duties: Establishes specific duties owed to the association and unit owners by declarants
- Post-Control Rights: Preserves certain rights for declarants following the end of the period of declarant control
- Developer Rights: Provides for developer and special declarant rights for planned communities
- Statutory Repeal: Repeals A.R.S. § 33-1820
Legislative Timeline
- February 18, 2025: Held in committee
- February 14, 2025: On February 18, 2025 agenda for House Committee on Regulatory Oversight
- January 28, 2025: House Second Read
- January 27, 2025: House First Read; Assigned to House Committee on Regulatory Oversight and House Committee on Rules
Impact
If passed, this legislation would significantly strengthen protections for homeowners in newly developed planned communities and condominiums still under declarant control. The construction completion requirements would help ensure developments are built as promised in marketing materials and public reports. Limiting declarant weighted voting to three times that of regular members would accelerate the transition to member control and reduce declarant dominance in association decisions. Requiring members to have voting rights on certain matters even during declarant control would provide earlier homeowner input into community governance. The establishment of specific declarant duties and penalties for failing to turn over communities would create stronger accountability and legal recourse for homeowners when developers fail to meet turnover obligations. Communities would benefit from clearer documentation of when declarant control ends through the required recording and notification process.