2026 ARIZONA LEGISLATIVE UPDATE

In the 2026 legislative session, the Arizona Legislature passed seven (7) bills, which Governor Hobbs then signed, that have a direct impact on the community association industry.

Senate Bill 1246, Senate Bill 1184, Senate Bill 1808, Senate Bill 1290, House Bill 2397, House Bill 2342, and House Bill 4011 will become law 90 days after the adjournment of the Legislature. That date is September 12, 2025. Below is an overview of these new laws.

Senate Bill 1246: Association Common Expense Lien; Special Assessment

SB1246 amends A.R.S. §33-1256 increasing the threshold before a condominium may file a lawsuit to foreclose its lien to either 18 months delinquent in the payment of assessments or owe more than $10,000 in assessments. This threshold now aligns with the Planned Community Act. SB1246 also amends the Condominium Act and Planned Community Act to state that, when the special assessment has an initial amount of $10,000 or more, then the association must wait until the account is 18 months delinquent before initiating foreclosure.

SB1290: Open Meetings

SB1290 amends A.R.S. §33-1804 to specify that the board must vote in an open meeting on closed meeting topics. The board can hold a close meeting to discuss one of the five topics under A.R.S. §33-1804(A)(1)-(5), which are: (1) legal advice, (2) pending or contemplated litigation, (3) personal, health or financial information about an individual member of the association, an individual employee of the association, or an individual employee of a contractor of an association, (4) matters related to the job performance, compensation, health records or specific complaints against an individual employee of the association or an individual employee of a contractor of an association, and (5) discussion of a member appeal of any violation cited or penalty imposed. The board then votes in the open meeting on any decisions involving the five closed meeting topics.

On April 28, 2026, the Arizona Court of Appeals issued an decision in AZNH Revocable Trust v. Sunland Springs Village Association which held that a board is not

permitted to vote in a closed meeting. While SB1290 applies only to planned communities, Sunland Springs applies to both planned communities and condominiums. Thus, condominiums must continue to hold all board votes in open sessions.

HB2397: Disclosures

HB2397 amends A.R.S. §33-1260 / §33-1806 to require associations to provide additional information upon a resale disclosure request. The information must be electronically transmitted or delivered rather than mail as previously stated. The information must be sent within 10 days after notice of acceptance of the purchaser’s offer to purchase that contains the name, email and mailing address. There is a new statement acknowledging the existence of an association to be signed by purchaser. The association must provide the following information:

  1. Current Bylaws
  2. Current Rules
  3. Current CC&Rs
  4. Final plat
  5. Board approved minutes for last 3 open meetings
  6. Phone number and address for association contact person
  7. Amount and frequency of assessment payments
  8. Amount and purpose of any special assessment, along with the payment schedule
  9. Any special assessment proposed to the members in the last 4 months
  10. Current amount of unpaid common regular assessment lien or judgment lien on the property due to the association and any lis pendens recorded
  11. Amount and purpose of a transfer or similar fee
  12. Most recent income and expenses financial statement for operating and reserve accounts
  13. Outstanding and unresolved violations for the property
  14. Current operating budget
  15. Most recent audit, review or compilation report and if more than 10 pages the association may provide a summary rather than the entire report
  16. Reserve study or a summary if the reserve study is more than 10 pages
  1. Statement of pending lawsuit where the association is the party except for collections unless the collection lawsuit involves the seller
  2. Whether the association is under declarant control and the approximate percentage of lots owned by declarant
  3. A statement that, if any report is a summary, the purchaser can request to review entire report and the association must provide the entire report within 10 days of purchaser’s written request
  4. If there are multiple associations, the name of each association and corresponding resale fee for each.

HB2342: Shade Structures

HB2342 adds A.R.S. §33-1816.01 providing that a community association cannot prohibit the backyard installation or use of a “shade structure.” A “shade structure” is defined as “a commercially produced or professionally manufactured moveable or permanent structure that is designed to protect an area from sunlight, including an umbrella, awning, shade sail, gazebo, pergola or canopy.” An association may adopt reasonable rules regarding the size, placement or appearance of a shade structure. Those rules must not prevent the installation of a shade structure, impair its functionality, restrict the use of, or unreasonably affect the cost of the shade structure. The rules cannot be more restrictive than the zoning ordinances.

Senate Bill 1184: Uniformed Service Division Flags

SB1184 amends A.R.S. §33-1261/ §33-1808 to requires associations to allow the display of division flags of the Army, Navy, Marine Corps, Air Force, Space Force or Coast Guard. A “division flag” means a flag that is officially authorized by the United States Army, Navy, Marine Corps, Air Force, Space Force or Coast Guard to represent a division level unit, that bears the unit’s approved insignia, designation or nickname, and that is used for ceremonial, identification or representational purpose.”

SB1808: Allied Country Flags

SB1808 amends A.R.S. §33-1261/ §33-1808 to require that associations allow residents to display the nation of Israel flag.

HB4011: Association Duties

HB4011 amends A.R.S. §33-1242 and adds A.R.S. §33-1821 to place into the statutes the long standing case law that an association has a duty to act reasonably in the exercise of its discretionary power. “Duty to act reasonably includes the duty to exercise discretionary powers neutrally, fairly without favoritism and in a nonarbitrary fashion.”

The information provided herein is for reference purposes only, is general in nature, and is not intended as legal advice. For specific questions or legal issues regarding your association, please contact us at 480-219-3633.