Overview
As introduced (significant amendments adopted—see below): A proposal to amend A.R.S. § 33-1807 to increase the foreclosure threshold from $1,200 to $10,000, or from 12 months delinquent in the payment of assessments to 18 months delinquent, whichever occurs first. In other words, a planned community association cannot initiate a foreclosure lawsuit unless an owner has at least $10,000 in unpaid assessments or has been and remains delinquent in the payment of assessments for 18 months, whichever occurs first.
Note that this bill would only apply to planned community associations.
Key Changes
Current Law
Under existing A.R.S. § 33-1807, planned community associations could initiate foreclosure proceedings when an owner was $1,200 delinquent or 12 months behind in assessment payments.
Proposed Amendment (Passed Into Law)
- Increased Foreclosure Thresholds Associations must wait until homeowners are either 18 months delinquent in the payment of any assessment or portion of an assessment, or have accumulated at least $10,000 in past due assessments, whichever occurs first, before filing foreclosure lawsuits.
- Scope of Application These requirements apply exclusively to planned community associations and do not affect condominium associations.
Legislative Timeline
- April 18, 2025 – Signed by Governor
- April 15, 2025 – Senate Concur Motion for Amendment passed; Approved by Senate as Amended 27-3-1; Transmitted to Governor
- April 10, 2025 – House Third Read, Approved by House 57-2-1
- April 2, 2025 – Floor amendment proposed by Rep. Jeff Weninger:
- Changed the period of delinquency from 2 years to 18 months for any assessment or portion of an assessment.
- Passed out of Committee of the Whole with “Do Pass Amended” recommendation
- March 31, 2025 – Deemed constitutional and in proper form by House Committee on Rules; On consent calendar for Committee of the Whole
- March 25, 2025 – Amendment proposed by Rep. Jeff Weninger:
- Replaced “assessments” with “any assessment or portion of the assessment” for foreclosure delinquency purposes
- March 25, 2025 – Passed out of House Committee on Commerce with “Do Pass Amended” recommendation
- March 19, 2025 – On the 3/25/2025 agenda for the House Committee on Commerce
- March 13, 2025 – House Second Read
- March 12, 2025 – House First Read; Assigned to House Committee on Commerce and House Committee on Rules
- March 5, 2025 – Senate Third Read, Approved by Senate 24-5-1; Transmitted to the House
- March 3, 2025 – On Senate Committee of the Whole Calendar; “Do Pass as Amended” recommendation
- February 24, 2025 – Deemed Proper for Consideration by Senate Committee on Rules; Recommended for Consent Calendar
- February 19, 2025 – Passed out of committee with a “Do Pass as Amended” recommendation
- February 13, 2025 – On the 2/19/2025 agenda for the Senate Committee on Government
- February 13, 2025 – Amendment proposed by Senator Jake Hoffman:
- Changed delinquency requirement from one year to two years, and increased past due balance requirement from $1,200 to $10,000
- February 5, 2025 – Senate Second Read
- February 4, 2025 – Senate First Read; Assigned to Senate Committee on Government and Senate Committee on Rules
Impact
This legislation significantly restricts when planned community associations can pursue foreclosure remedies for delinquent assessments. Associations must now allow substantially longer delinquency periods or higher outstanding balances before initiating foreclosure proceedings, which may affect cash flow and collection strategies.
The law provides homeowners with additional time to address assessment delinquencies before facing foreclosure. Board policies and collection procedures will need updating to reflect the new thresholds.
The clarification that delinquency of “any assessment or portion of an assessment” qualifies toward the 18-month threshold prevents disputes about partial payments affecting foreclosure eligibility.