HB 2723

Municipal Requirements for Association Regulations

A proposal to amend A.R.S. § 9-461.15 such that if a municipality requires a developer to establish a community association, then a regulation or restriction adopted by that association may not be more restrictive than any existing municipal regulation or restriction.

Overview

A proposal to amend A.R.S. § 9-461.15 such that if a municipality requires a developer to establish a community association, then a regulation or restriction adopted by that association may not be more restrictive than any existing municipal regulation or restriction. This applies only to associations established after the effective date of the bill, if enacted.

Key Changes

Proposed Amendment (Inactive)

Limitations on Municipal Requirements for Associations

The bill would prohibit municipalities from requiring associations to adopt rules or regulations that are more restrictive than any existing municipal regulations or restrictions. This limitation would apply only to associations established after the effective date of the legislation.

Note: The original bill proposed limiting associations from adopting regulations more restrictive than municipal regulations. Through two floor amendments, the bill was revised to instead limit what municipalities can require associations to adopt, rather than limiting what associations themselves can choose to adopt.

Legislative Timeline

  • March 19, 2025: Held in Senate Committee on Government
  • March 10, 2025: Senate Second Read
  • March 6, 2025: Senate First Read; Assigned to Senate Committee on Government and Senate Committee on Rules
  • March 3, 2025: House Third Read; Passed 36-22-2 and transmitted to Senate
  • February 27, 2025: Motion by Rep. Carbone that the bill be calendared for an additional Committee of the Whole for further amendments; Motion passed; On agenda for House Committee of the Whole; Floor amendment by Rep. Carter N. deleted previously added language and only added that municipalities may not require associations to adopt rules or regulations that are more restrictive than any existing municipal regulations or restrictions; “Do Pass Amended” recommendation by House Committee of the Whole
  • February 25, 2025: On agenda for House Committee of the Whole; Floor amendment by Rep. Carter N. removed language that an association’s regulations or restrictions may not be more restrictive than any existing municipal regulations or restrictions, and added that municipalities may not require associations to adopt rules or regulations that are more restrictive than any existing municipal regulations or restrictions; “Do Pass Amended” recommendation by House Committee of the Whole
  • February 24, 2025: Passed out of House Committee on Rules with a “Constitutional and Proper” determination
  • February 20, 2025: Passed out of House Committee on Government with a “Do Pass” recommendation
  • February 14, 2025: On February 20, 2025 agenda for House Committee on Government
  • February 5, 2025: House Second Read
  • February 4, 2025: House First Read; Assigned to the House Committee on Government and House Committee on Rules

Impact

For Planned Communities

This bill would affect the relationship between municipalities and newly established associations by limiting what municipalities can require associations to adopt in terms of restrictive regulations. While associations would retain the ability to voluntarily adopt regulations more restrictive than municipal standards, municipalities would be prohibited from mandating such restrictions as a condition of development approval. This could provide more flexibility for associations in determining their own governance standards while preventing municipalities from using association requirements as a mechanism to impose regulations beyond their own municipal codes. The bill would only apply prospectively to associations established after its effective date.

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