Overview
SB 1500 sets stricter limitations on how much associations can increase regular assessments without extensive member approval, requiring at least 67% approval for increases beyond 3% for both condominiums and planned communities, unless governing documents establish stricter limits. It also mandates comprehensive financial disclosures before approving regular assessment or vendor contract increases, disallowing vague justifications.
Key Changes
- Amending A.R.S. 33-1242 and A.R.S. 33-1803 as follows:
- Prohibiting an association or its board of directors from increasing regular assessments by more than 3% of the immediately preceding year’s regular assessment amount without the approval of at least 67% of the association’s members;
- Requiring boards of directors to provide to the members, before approving any increase in the regular assessment or any vendor contract, detailed information and a detailed explanation, and make available to all members “a detailed financial justification for the increase, to include line-by-line budget detail,” “a comparison of expenses, year over year,” and “a detailed breakdown of costs;”
- Specifying that statements such as “potential increase” or “projects to be determined” do not constitute sufficiently detailed information or explanation.
Legislative Timeline
- January 29, 2026 – Introduced; Senate First Reading; Assigned to Senate Government and Rules Committees
Impact
Overall, SB 1500 will require boards of directors and managers to adopt more detailed processes for communicating with members and obtaining approval for significant financial changes, which may require additional administrative effort and planning.