SB 1659

Overview

SB 1659 would put parameters around condominium association and planned community association rule-making authority by establishing specific categories of rules, such as rules to protect owners from unreasonable interference in the enjoyment of their homes by their neighbors and compliance with the Americans with Disabilities Act, and by prohibiting certain categories of rules, such as those that unreasonably burden or restrict fundamental constitutional rights.

Key Changes

• Amending A.R.S. 33-1242 and A.R.S. 1817 for condominium and planned community associations as follows:
  • To require associations to “enforce the specific covenants, conditions and restrictions in the declaration with reasonable discretion as necessary to protect property values in the community;”
  • To require associations to “reasonably provide for the protection, preservation and upkeep” of the common property “to provide for and promote safety” in the use of the common property and “to manage the availability” of the common property;
  • Where a declaration grants an association the general power to adopt rules, the association has the authority to adopt rules or policies to:
    • Protect owners from unreasonable interference in the enjoyment, privacy and use of their homes and the common property caused by the use or behaviors of other owners, residents or guests;
    • For condominium associations, to protect the structural integrity or the safety of adjacent units or their occupants or the condominium as a whole;
    • Protect owners, residents and guests from discrimination or the creation of hostile environment harassment;
    • Allow for the application of reasonable accommodations to address accessibility needs raised by disabled owners as required by the ADA;
    • Satisfy valid underwriting requirements of institutional lenders under federal law;
    • Maintain reasonable decorum and civility in the conduct of all association meetings or interactions with the board of directors, owners, and any contractors or agents of the association, if the rules apply to and are enforced equally on all parties;
    • Establish policies for business conduct and expectations of the association, its agents and contrctors;
    • Limit the enforcement of restrictions that the association reasonably believes will not have an adverse impact on adjacent property values for specific situations based on extenuating circumstances, without waiving its right to enforce those restrictions without the extenuating circumstances;
  • To define “reasonable” with respect to rules as those that are not arbitrary or capricious and that are enforced fairly and consistently;
  • To prohibit associations from the following:
    • Adopting rules that restrict any physical characteristic, the use or occupancy of homes, or the rights or behaviors of owners;
    • Creating a rule or policy or taking any action that unreasonably burdens or restricts a fundamental constitutional right of the owners, including freedom of speech, freedom of religion, freedom to assemble peacefully; freedom to petition their governing body to redress grievances, due process of law, right to privacy, freedom from unreasonable and excessive penalties, or as protected by the Consumer Review Fairness Act of 2016;
    • Adopting rules that change the basis for the allocated interest or common expense liabilty
  • Placing the burden on the association to prove that any rule challenged by an owner via a complaint filed with the Arizona Department of Real estate complies with this section

Legislative Timeline

• February 9, 2026 – Senate Second Reading
• February 5, 2026 – Introduced; Senate First Reading; Assigned to Senate Government and Rules Committees

Impact

Overall, SB 1659 will require Arizona’s planned community and condominium associations to significantly modify their approach to rule adoption and enforcement, ensuring all regulations are justified, reasonable, and consistently applied. Associations must document and prove the necessity and fairness of their rules during disputes, likely increasing administrative diligence and transparency.