Section: Planned Community Statutes

In applying and construing this article, a court shall consider the promotion of uniformity of the law among jurisdictions that enact it.

1. Notwithstanding any provision in the community documents, an association shall not prohibit the installation or use of a solar energy device as defined in section 44-1761.
2. An association may adopt reasonable rules regarding the placement of a solar energy device if those rules do not prevent the installation, impair the functioning of the device or restrict its use or adversely affect the cost or efficiency of the device.
3. Notwithstanding any provision of the community documents, the court shall award reasonable attorney fees and costs to any party who substantially prevails in an action against the board of directors of the association for a violation of this section.

For any residential rental units that have been declared a slum property by the city or town pursuant to section 33-1905 and that are in the planned community, the association is responsible for enforcing any requirement for a licensed property management firm that is imposed by a city or town pursuant to section 33-1906.

This article may be cited as the uniform unlawful restrictions in land records act.

1. For planned communities with fewer than fifty units, a member shall mail or deliver to a purchaser or a purchaser’s authorized agent within ten days after receipt of a written notice of a pending sale of the unit, and for planned communities with fifty or more units, the association shall mail or deliver to a purchaser or a purchaser’s authorized agent within ten days after receipt of a written notice of a pending sale that contains the name and address of the purchaser all of the following in either paper or electronic format:
   1. A copy of the bylaws and the rules of the association.
   2. A copy of the declaration.
   3. A dated statement containing:
      1. The telephone number and address of a principal contact for the association, which may be an association manager, an association management company, an officer of the association or any other person designated by the board of directors.
      2. The amount of the common regular assessment and the unpaid common regular assessment, special assessment or other assessment, fee or charge currently due and payable from the selling member. If the request is made by a lienholder, escrow agent, member or person designated by a member pursuant to section 33-1807, failure to provide the information pursuant to this subdivision within the time provided for in this subsection shall extinguish any lien for any unpaid assessment then due against that property.
      3. A statement as to whether a portion of the unit is covered by insurance maintained by the association.
      4. The total amount of money held by the association as reserves.
      5. If the statement is being furnished by the association, a statement as to whether the records of the association reflect any alterations or improvements to the unit that violate the declaration. The association is not obligated to provide information regarding alterations or improvements that occurred more than six years before the proposed sale. Nothing in this subdivision relieves the seller of a unit from the obligation to disclose alterations or improvements to the unit that violate the declaration, nor precludes the association from taking action against the purchaser of a unit for violations that are apparent at the time of purchase and that are not reflected in the association’s records.
      6. If the statement is being furnished by the member, a statement as to whether the member has any knowledge of any alterations or improvements to the unit that violate the declaration.
      7. A statement of case names and case numbers for pending litigation with respect to the unit filed by the association against the member or filed by the member against the association. The member shall not be required to disclose information concerning such pending litigation that would violate any applicable rule of attorney-client privilege under Arizona law.
      8. A statement that provides “I hereby acknowledge that the declaration, bylaws and rules of the association constitute a contract between the association and me (the purchaser). By signing this statement, I acknowledge that I have read and understand the association’s contract with me (the purchaser).  I also understand that as a matter of Arizona law, if I fail to pay my association assessments, the association may foreclose on my property.” The statement shall also include a signature line for the purchaser and shall be returned to the association within fourteen calendar days.
   4. A copy of the current operating budget of the association.
   5. A copy of the most recent annual financial report of the association.  If the report is more than ten pages, the association may provide a summary of the report in lieu of the entire report.
   6. A copy of the most recent reserve study of the association, if any.
   7. A statement summarizing any pending lawsuits, except those relating to the collection of assessments owed by members other than the selling member, in which the association is a named party, including the amount of any money claimed.
2. A purchaser or seller who is damaged by the failure of the member or the association to disclose the information required by subsection A of this section may pursue all remedies at law or in equity against the member or the association, whichever failed to comply with subsection A of this section, including the recovery of reasonable attorney fees.
3. The association may charge the member a fee of not more than an aggregate of four hundred dollars to compensate the association for the costs incurred in the preparation and delivery of a statement or other documents furnished by the association pursuant to this section for purposes of resale disclosure, lien estoppel and any other services related to the transfer or use of the property. In addition, the association may charge a rush fee of not more than one hundred dollars if the rush services are required to be performed within seventy-two hours after the request for rush services, and may charge a statement or other documents update fee of not more than fifty dollars if thirty days or more have passed since the date of the original disclosure statement or the date the documents were delivered. The association shall make available to any interested party the amount of any fee established from time to time by the association.  If the aggregate fee for purposes of resale disclosure, lien estoppel and any other services related to the transfer or use of a property is less than four hundred dollars on January 1, 2010, the fee may increase at a rate of not more than twenty percent per year based on the immediately preceding fiscal year’s amount not to exceed the four hundred dollar aggregate fee. The association may charge the same fee without regard to whether the association is furnishing the statement or other documents in paper or electronic format.
4. The fees prescribed by this section shall be collected no earlier than at the close of escrow and may only be charged once to a member for that transaction between the parties specified in the notice required pursuant to subsection A of this section.  An association shall not charge or collect a fee relating to services for resale disclosure, lien estoppel and any other services related to the transfer or use of a property except as specifically authorized in this section. An association that charges or collects a fee in violation of this section is subject to a civil penalty of not more than one thousand two hundred dollars.
5. This section applies to a managing agent for an association that is acting on behalf of the association.
6. The following are exempt from this section:
   1. A sale in which a public report is issued pursuant to section 32-2183 or 32-2197.02.
   2. A sale pursuant to section 32-2181.02.
   3. A conveyance by recorded deed that bears an exemption listed in section 11-1134, subsection B, paragraph 3 or 7.  On recordation of the deed and for no additional charge, the member shall provide the association with the changes in ownership including the member’s name, billing address and phone number. Failure to provide the information shall not prevent the member from qualifying for the exemption pursuant to this section.
7. For the purposes of this section, unless the context otherwise requires, “member” means the seller of the unit title and excludes any real estate salesperson or real estate broker who is licensed under title 32, chapter 20 and who is acting as a salesperson or broker, any escrow agent who is licensed under title 6, chapter 7 and who is acting as an escrow agent and also excludes a trustee of a deed of trust who is selling the property in a trustee’s sale pursuant to chapter 6.1 of this title.

1. An amendment by an owner under section 33-533 must identify the owner, the real property affected and the document containing the unlawful restriction. An amendment by an association of owners under section 33-534 must identify only the document containing the unlawful restriction. The amendment must include a conspicuous statement in substantially the following form:
   • This amendment removes from this deed or other document affecting title to real property an unlawful restriction as defined in section 33-532, Arizona Revised Statutes. This amendment does not affect the validity or enforceability of a restriction that is not an unlawful restriction.
2. The amendment must be executed and acknowledged in the manner required for recordation of a document in the land records. The amendment must be recorded in the land records of each county in which the document containing the unlawful restriction is recorded.
3. The amendment does not affect the validity or enforceability of any restriction that is not an unlawful restriction.
4. The amendment or a future conveyance of the affected real property is not a republication of a restriction that otherwise would expire by passage of time under any other law.

1. A member may use the member’s property as a rental property unless prohibited in the declaration and shall use it in accordance with the declaration’s rental time period restrictions.
2. A member may designate in writing a third party to act as the member’s agent with respect to all association matters relating to the rental property, except for voting in association elections and serving on the board of directors. The member shall sign the written designation and shall provide a copy of the written designation to the association. On delivery of the written designation, the association is authorized to conduct all association business relating to the member’s rental property through the designated agent. Any notice given by the association to a member’s designated agent on any matter relating to the member’s rental property constitutes notice to the member.
3. Notwithstanding any provision in the community documents, on rental of a member’s property an association shall not require a member or a member’s agent to disclose any information regarding a tenant other than the name and contact information for any adults occupying the property, the time period of the lease, including the beginning and ending dates of the tenancy, and a description and the license plate numbers of the tenants’ vehicles. If the planned community is an age restricted community, the member, the member’s agent or the tenant shall show a government issued identification that bears a photograph and that confirms that the tenant meets the community’s age restrictions or requirements.
4. On request of an association or its managing agent for the disclosures prescribed in subsection C of this section, the managing agent or, if there is no managing agent, the association may charge a fee of not more than twenty-five dollars, which shall be paid within fifteen days after the postmarked request.  The fee may be charged for each new tenancy for that property but may not be charged for a renewal of a lease. Except for the fee permitted by this subsection and fees related to the use of recreational facilities, the association or its managing agent shall not assess, levy or charge a fee or fine or otherwise impose a requirement on a member’s rental property any differently than on an owner-occupied property in the association.
5. Notwithstanding any provision in the community documents, the association is prohibited from doing any of the following:
   1. Requiring a member to provide the association with a copy of the tenant’s rental application, credit report, lease agreement or rental contract or other personal information except as prescribed by this section. This paragraph does not prohibit the association from acquiring a credit report on a person in an attempt to collect a debt.
   2. Requiring the tenant to sign a waiver or other document limiting the tenant’s due process rights as a condition of the tenant’s occupancy of the rental property.
   3. Prohibiting or otherwise restricting a member from serving on the board of directors based on the member’s not being an occupant of the property.
   4. Imposing on a member or managing agent any fee, assessment, penalty or other charge in an amount greater than fifteen dollars for incomplete or late information regarding the information requested pursuant to subsection C of this section. 
6. Any attempt by an association to exceed the fee, assessment, penalty or other charge authorized by subsection D or E of this section voids the fee, assessment, penalty or other charge authorized by subsection D or E of this section.  This section does not prevent an association from complying with the housing for older persons act of 1995 (P.L. 104–76; 109 Stat. 787).
7. An owner may use a crime free addendum as part of a lease agreement.  This section does not prohibit the owner’s use of a crime free addendum.
8. This section does not prohibit and an association may lawfully enforce a provision in the community documents that restricts the residency of persons who are required to be registered pursuant to section 13-3821 and who are classified as level two or level three offenders.
9. An owner of rental property shall abate criminal activity as authorized in section 12-991.

1. Notwithstanding any provision of the declaration or bylaws to the contrary, all of the following apply to a meeting at which a member of the board of directors, other than a member appointed by the declarant, is proposed to be removed from the board of directors:
   1. The members of the association who are eligible to vote at the time of the meeting may remove any member of the board of directors, other than a member appointed by the declarant, by a majority vote of those voting on the matter at a meeting of the members.
   2. The meeting of the members shall be called pursuant to this section and action may be taken only if a quorum is present.
   3. The members of the association may remove any member of the board of directors with or without cause, other than a member appointed by the declarant.
   4. For purposes of calling for removal of a member of the board of directors, other than a member appointed by the declarant, the following apply:
      1. In an association with one thousand or fewer members, on receipt of a petition that calls for removal of a member of the board of directors and that is signed by the number of persons who are eligible to vote in the association at the time the person signs the petition equal to at least twenty-five percent of the votes in the association or by the number of persons who are eligible to vote in the association at the time the person signs the petition equal to at least one hundred votes in the association, whichever is less, the board shall call and provide written notice of a special meeting of the association as prescribed by section 33-1804, subsection B.
      2. Notwithstanding section 33-1804, subsection B, in an association with more than one thousand members, on receipt of a petition that calls for removal of a member of the board of directors and that is signed by the number of persons who are eligible to vote in the association at the time the person signs the petition equal to at least ten percent of the votes in the association or by the number of persons who are eligible to vote in the association at the time the person signs the petition equal to at least one thousand votes in the association, whichever is less, the board shall call and provide written notice of a special meeting of the association.  The board shall provide written notice of a special meeting as prescribed by section 33-1804, subsection B.
      3. The special meeting shall be called, noticed and held within thirty days after receipt of the petition.
      4. If all of the requirements of this subsection for calling a special meeting are met and the board of directors fails to call, notice and hold a special meeting within thirty days after receipt of the petition, the members of the board of directors are deemed removed from office effective at midnight of the thirty-first day.
      5. For purposes of a special meeting called pursuant to this subsection, a quorum is present if the number of owners who are eligible to vote in the association at the time the person attends the meeting equal to at least twenty percent of the votes of the association or the number of persons who are eligible to vote in the association at the time the person attends the meeting equal to at least one thousand votes, whichever is less, is present at the meeting in person or as otherwise allowed by law.
      6. If a civil action is filed regarding the removal of a board member, the prevailing party in the civil action shall be awarded its reasonable attorney fees and costs.
      7. The board of directors shall retain all documents and other records relating to the proposed removal of the member of the board of directors and any election or other action taken for that director’s replacement for at least one year after the date of the special meeting and shall allow members to inspect those documents and records pursuant to section 33-1805.
      8. A petition that calls for the removal of the same member of the board of directors shall not be submitted more than once during each term of office for that member.
   5. On removal of at least one but fewer than a majority of the members of the board of directors at a special meeting of the membership called pursuant to this subsection, the vacancies shall be filled as provided in the community documents.
   6. On removal of a majority of the members of the board of directors at a special meeting of the membership called pursuant to this subsection, or if the community documents do not provide a method for filling board vacancies, the association shall hold an election for the replacement of the removed directors at a separate meeting of the members of the association that is held not later than thirty days after the meeting at which the members of the board of directors were removed.
   7. A member of the board of directors who is removed pursuant to this subsection is not eligible to serve on the board of directors again until after the expiration of the removed board member’s term of office, unless the community documents specifically provide for a longer period of ineligibility.
2. For an association in which board members are elected from separately designated voting districts, a member of the board of directors, other than a member appointed by the declarant, may be removed only by a vote of the members from that voting district, and only the members from that voting district are eligible to vote on the matter or be counted for purposes of determining a quorum.

This article modifies, limits or supersedes the electronic signatures in global and national commerce act, 15 United States Code 7001 through 7031 but does not modify, limit or supersede 15 United States Code section 7001(c), or authorize electronic delivery of any of the notices described in 15 United States Code section 7003(b).

1. Notwithstanding any provision in the community documents, after termination of the period of declarant control, votes allocated to a unit may not be cast pursuant to a proxy.  The association shall provide for votes to be cast in person and by absentee ballot and, in addition, the association may provide for voting by some other form of delivery, including the use of e-mail and fax delivery.  Notwithstanding section 10-3708 or the provisions of the community documents, any action taken at an annual, regular or special meeting of the members shall comply with all of the following if absentee ballots or ballots provided by some other form of delivery are used:
   1. The ballot shall set forth each proposed action.
   2. The ballot shall provide an opportunity to vote for or against each proposed action.
   3. The ballot is valid for only one specified election or meeting of the members and expires automatically after the completion of the election or meeting.
   4. The ballot specifies the time and date by which the ballot must be delivered to the board of directors in order to be counted, which shall be at least seven days after the date that the board delivers the unvoted ballot to the member.
   5. The ballot does not authorize another person to cast votes on behalf of the member.
   6. The completed ballot shall contain the name, address and signature of the person voting, except that if the community documents permit secret ballots, only the envelope shall contain the name, address and signature of the voter.
   7. Ballots, envelopes and related materials, including sign-in sheets if used, shall be retained in electronic or paper format and made available for member inspection for at least one year after completion of the election.
2. Votes cast by absentee ballot or other form of delivery, including the use of e-mail and fax delivery, are valid for the purpose of establishing a quorum.
3. Notwithstanding subsection A of this section, an association for a timeshare plan as defined in section 32-2197 may permit votes by a proxy that is duly executed by a unit owner.
4. For the purposes of this section, “period of declarant control” means the time during which the declarant or persons designated by the declarant may elect or appoint the members of the board of directors pursuant to the community documents or by virtue of superior voting power.

1. Notwithstanding any provision in the community documents, an association shall not prohibit a resident from parking a motor vehicle on a street or driveway in the planned community if the vehicle is required to be available at designated periods at the person’s residence as a condition of the person’s employment and either of the following applies:
   1. The resident is employed by a public service corporation that is regulated by the corporation commission, an entity regulated by the federal energy regulatory commission or a municipal utility and the public service corporation or municipal utility is required to prepare for emergency deployments of personnel and equipment for repair or maintenance of natural gas, electrical, telecommunications or water infrastructure, the vehicle has a gross vehicle weight rating of twenty thousand pounds or less and is owned or operated by the public service corporation or municipal utility and the vehicle bears an official emblem or other visible designation of the public service corporation or municipal utility.
   2. The resident is employed by a public safety agency, including police or fire service for a federal, state, local or tribal agency or a private fire service provider or an ambulance service provider that is regulated pursuant to title 36, chapter 21.1, and the vehicle has a gross vehicle weight rating of ten thousand pounds or less and bears an official emblem or other visible designation of that agency.
2. For the purposes of this section, “telecommunications” means the transmission of information of the user’s choosing between or among points specified by the user without change in the form or content of the information as sent and received. Telecommunications does not include commercial mobile radio services.

The following form may be used by an owner to make an amendment under section 33-533:

Amendment By Owner To Remove An Unlawful Restriction

This amendment is recorded under title 33, chapter 4, article 7, Arizona Revised Statutes, by an owner of an interest in real property subject to an unlawful restriction as defined in section 33-532, Arizona Revised Statutes.

1. Name of owner: ____________________________________

2. Owner’s property that is subject to the unlawful restriction is described as follows:

Address: ______________________________________________

Legal description: ____________________________________

3. This amendment amends the following document:

Title of document being amended: ______________________

Recording date of document being amended: _____________

Recording information (book/page or instrument number): ___________________________________

This amendment removes from the document described in paragraph 3 all unlawful restrictions as defined in section 33-532, Arizona Revised Statutes. Removal of an unlawful restriction through this amendment does not affect the validity and enforceability of any other restriction that is not an unlawful restriction as defined under section 33-532, Arizona Revised Statutes, at the time of filing this amendment.  This amendment is not effective if the property is subject to a governing instrument as defined in section 33-532, Arizona Revised Statutes.

______________________              ____________________

Owner’s signature                   Date

Notary Acknowledgment