SB 1246

Foreclosure

Overview

As amended in the Senate and transmitted to the House, SB 1246 amends Arizona law to significantly increase the delinquency thresholds for foreclosure by condominium associations from 1 year/$1,200 to 18 months/$10,000, to match last year’s increase for planned community associations. For condominium associations and planned community associations alike, the amended bill specifies that with respect to large special assessments ($10,000 or more), only the 18-month threshold applies.

Key Changes

  • Amending A.R.S. 33-1256 and A.R.S. 33-1807 to:
    • For condominiums only, increase the delinquency thresholds for foreclosure from 1 year/$1,200 to 18 months/$10,000;
    • Specify that for special assessments with an initial value of $10,000 or more, that only the 18 month delinquency threshold applies for foreclosure.

Legislative Timeline

  • March 30, 2026 – On the agenda of the House Rules Committee, 1:00 p.m.; passed out of committee; On the House Consent Calendar (objections due by April 1st)
  • March 25, 2026 – On the agenda of the House Government Committee, 9:00 a.m.; passed out of committee
  • March 10, 2026 – House Second Reading
  • March 9, 2026 – House First Reading; Assigned to House Government and Rules Committees
  • February 26, 2026 – Passed the Senate with zero ‘no’ votes
  • February 26, 2026 – On the Senate Committee of the Whole (COW) Calendar, 9:00 a.m.; passed out of COW; On the Senate Third Reading Calendar
  • February 23, 2026 – On the agenda for the Senate Committee on Rules, 8:45 a.m.; passed out of committee
  • February 18, 2026 – On the agenda for the Senate Committee on Government, 7:00 a.m.; passed out of committee as amended by the Senator Rogers amendment
  • February 16, 2026 – Senator Rogers posted an amendment to the bill for consideration by the committee that would make significant changes to the bill as introduced
  • January 22, 2026 – Senate Second Reading
  • January 21, 2026 – Introduced; Senate First Reading; Assigned to Senate Government and Rules Committees

Impact

Overall, SB 1246 limits the ability to foreclose on properties, potentially impacting the financial operations of associations.

We help planned communities, homeowner associations, and condo associations.

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