Overview
A proposal to cap Arizona Department of Real Estate (ADRE) filing fees at superior court levels and to limit each petition to no more than four distinct complaints. The clarification that civil penalties apply on a per-complaint basis increases exposure in multi-issue disputes, incentivizing boards and managers to address compliance issues promptly while also encouraging narrower, more focused claims. The bill further reinforces the authority and finality of administrative law judge decisions, including enforceability through contempt proceedings. Overall, SB 1158 shifts the administrative process toward more consequential proceedings.
Note that SB 1158 is identical to HB 2909.
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. To limit the number of complaint issues to not more than four 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 20, 2026 – Senate Second Reading
- January 15, 2026 – Introduced; Senate First Reading; Assigned to Senate Government and Rules Committees
Impact
Overall, this bill aims to streamline and formalize the process for resolving disputes between property owners and community associations, providing a structured mechanism for addressing violations of and ensuring compliance with the community association’s governing documents and applicable statutes. It also introduces financial and procedural guidelines for filing complaints and seeking resolutions.