Overview
HB 2909 modifies Arizona law to refine the dispute resolution process for condominium and planned community associations, limiting petitions to 4 distinct complaints and tying filing fees to superior court application fees. It enables the administrative law judge to order compliance with relevant statutes or documents, impose financial penalties, and require losing parties to reimburse the filing fee. The bill clarifies procedures for rehearing, includes fee refunds if a rehearing is denied, and specifies representation guidelines for corporations. It also designates the Department of Real Estate and State Real Estate Commissioner to administer, but not enforce, the dispute resolution process under these statutes except for certain compliance aspects.
Note that HB 2909 is identical to SB 1158.
Key Changes
- Amending A.R.S. 32-2199.01 to change the amount of the filing fee for ADRE complaints from $400 per issue to an amount not to exceed Superior Court application fees, and to limit the number of complaint issues to not more than 4 distinct and separate complaints of alleged statutory or governing document violations.
- Amending A.R.S. 32-2199.02 to authorize the administrative law judge to levy a civil penalty not to exceed $500 per complaint or any other monetary penalty or nonmonetary penalty permitted by statute.
- Amending A.R.S. 32-2199.04 to require a filing fee to be paid with any request for rehearing and requiring a refund of the filing fee if the request for rehearing is denied.
- Amending A.R.S. 33-1270 to clarify that Arizona’s Condominium Act does not increase or decrease or otherwise affect the rights or powers granted to the Commissioner of the Department of Real Estate with respect to the issuance of public reports and to require the Commissioner to administer the ADRE dispute resolution process.
- Adding A.R.S. 33-1831 to Arizona’s Planned Community statutes to codify the Department of Real Estate dispute resolution process for planned communities and establishing the extent of the Commissioner’s powers.
Legislative Timeline
- January 29, 2026 – Withdraw from House Government Committee and Reassigned to House Commerce Committee
- January 28, 2026 – House Second Reading
- January 27, 2026 – Introduced; House First Reading; Assigned to House Government and Rules Committees
Impact
Overall, HB 2909 increases the accountability of community associations and their boards of directors by formalizing the dispute resolution process and introducing penalties for non-compliance. Boards of directors and managers will need to be more diligent in adhering to governing documents and statutes to avoid disputes and associated penalties.