Overview
HB 4011 establishes a duty for both condominium and planned community associations to act reasonably in the exercise of their discretionary powers.
Key Changes
- Amending A.R.S. 33-1242 and adding A.R.S. 33-1821 to provide that both condominium associations and planned community associations have a duty to act reasonably in the exercise of their discretionary powers and defining “duty to act reasonably” as the duty to exercise discretionary powers “neutrally, fairly, without favoritism and in a nonarbitrary fashion.”
Legislative Timeline
- March 30, 2026 – On the agenda of the Senate Rules Committee, 1:00 p.m.; passed out of committee; on the Senate Consent Calendar (objections due April 1st)
- March 25, 2026 – On the agenda of the Senate Government Committee, 7:00 a.m.; passed out of committee
- March 10, 2026 – Senate Second Reading
- March 9, 2026 – Senate First Reading; Assigned to the Senate Government and Rules Committees
- February 25, 2026 – Passed the House with zero ‘no’ votes
- February 25, 2026 – On the House Third Reading Calendar, 10:00 a.m.
- February 23, 2026 – On the agenda for the House Rules Committee, 1:00 p.m.; passed out of committee; on the House Consent Calendar (no objections)
- February 17, 2026 – On the agenda for the House Commerce Committee, 2:00 p.m.; unanimously passed out of committee without amendment
- February 16, 2026 – Rep. Carter posted an amendment to be considered in committee that would amend the bill’s language to more closely track with the duties described by the Arizona Court of Appeals in Tierra Ranchos Homeowners Ass’n v. Kitchukov, 216 Ariz. 195, 165 P.3d 173 (App. 2007)
- February 10, 2026 – House Second Reading
- February 9, 2026 – Introduced; House First Reading; Assigned to the House Commerce and Rules Committees
Impact
Overall, HB 4011 codifies Arizona’s existing common law duty that associations act reasonably in the exercise of their discretionary powers. If adopted, boards of directors and managers may need to review and revise their architectural approval, violation enforcement, and other policies to ensure compliance with HB 4011.