The Arizona Legislature passed six (6) bills, which Governor Hobbs then signed, that have a direct impact on the community association industry. The effective date of these bills is September 26, 2025. These bills are Senate Bill 1039, Senate Bill 1070, Senate Bill 1494, House Bill 2323, Senate Bill 1022, and Senate Bill 1378. Below is an overview of these new laws. NOTE: New laws take effect on 9/26/25
Senate Bill 1039 – Meetings and Recordings
SB1039 amends A.R.S. §33-1248 and A.R.S. §33-1804 to require condominium associations and planned communities that record a board meeting or an annual or special meeting of the members to keep a copy of the recording for at least six (6) months and make the unedited recording of the meeting available to any member upon the member’s request.
Practical Consideration: Adopt a Meeting Recording Policy.
Senate Bill 1070 – Sale of State Owned Property
SB1070 amends A.R.S. §42-18303 to allow a county board of supervisors to sell real property in a county owned by the State by a tax deed to the owner of contiguous real property to a homeowners association IF the real property is part of the common area maintained by the homeowners association as determined by the county assessor.
Senate Bill 1494 – Ability to Foreclose Common Expense Lien
SB1494 amends A.R.S. §33-1807(A) of the Planned Community Act. For a planned community to foreclose on its common expense lien (as defined in A.R.S. §33- 1802) an owner must be delinquent in the payment of “any assessment or portion of the assessment for a period of 18 months or in the amount of $10,000 or more, whichever occurs first, as determined on the date that the lawsuit is filed.”
This new law increases the amount of the delinquency for the association to file a lien foreclosure suit from $1,200 to $10,000 and increases the delinquency period from 12 months to 18 months.
“Common Expense Lien” includes assessments, late charges for assessments IF authorized in the declaration, collection fees and costs incurred or applied by the association, and Court awarded attorneys’ fees and court costs.
“Member Expenses” includes “fees, charges, late charges and monetary penalties or interest.” Also, attorneys’ fees and court costs not yet awarded by a Court would be Member Expenses.
Practical Consideration: Most associations will use the 18 month delinquent in assessments to file a lien foreclosure suit. New law only applies to planned communities, not condominiums.
House Bill 2322 – Condominiums With Separate Commercial Structures
HB2648 amends A.R.S. §33-1202, 33-1217 and 33-1255 of the Condominium Act. For a condominium that includes one or more commercial structures that are separate from one or more residential structures, the new law provides a list of examples and instructions on how the common expenses or a portion of the common expenses are to be divided between the residential units and the commercial unit(s). Defines “Commercial structure” to be “a structure in which majority of the units are designated for commercial or work purposes and is separate from a residential structure if no residential units are located on top of or below the commercial structure.”
Practical Consideration: Only applies to condominiums where the commercial structures is separate from a residential structure. Legislation specifically drafted for Landmark Towers in Phoenix.
Senate Bill 1022 – Jurisdictional Limit of Small Claims Court
SB1022 amends A.R.S. §22-503 to increase the jurisdictional limit for the small claims division of justice court from $3,500 to $5,000.
Practical Consideration: Small claims court and justice court can only award money damages for “debt, damage, tort, injury or value of personal property.” Attorneys cannot appear in small claims court.
Senate Bill 1378 – Flag as a Political Sign
SB1378 amends A.R.S. §33-1261 and A.R.S. §33-1808 to define the term “political sign” to mean “a sign or flag that attempts to influence the outcome of an election, including supporting or opposing the recall of a public officer or supporting or opposing the circulation of a petition for a ballot measure, question or proposition or the recall of a public officer.
Practical Consideration: Some flags are now political signs and an association shall not prohibit the display of such flag from 71 days before an election to 15 days after the election.
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.