2026 LEGISLATIVE UPDATE

2026 Arizona Legislative Report
by:

Daniel Stasi
Member Government Affairs Committee

HB2172  OPPOSE

https://www.azleg.gov/legtext/57leg/2R/bills/HB2172P.pdf

Rep Neal Carter
HOA Expires after 100 years

Summary: The proposed legislation amends Arizona statutes to mandate that community declarations and homeowner associations automatically expire and dissolve on January 1, 2127, or 100 years after their original recording date, whichever is later. Amendments to declarations or creation of new associations from portions of existing communities will not reset the 100-year expiration period. Once dissolved, associations are required to wind up and liquidate their affairs according to existing legal provisions. Property owners have the option to voluntarily reestablish a planned community after dissolution, following the applicable laws.

This law is aiming to eliminate all HOA’s and creates chaos when an affected HOA reaches its’ 100 year anniversary.

HB2277 OPPOSE
proposed by Rep Keshel (D17)

https://www.azleg.gov/legtext/57leg/2R/bills/HB2277P.pdf

Dues increases, special assessments

Focusing on the fiscal responsibilities and governance of Homeowners Associations (HOAs). It outlines detailed procedures for budget ratification, emphasizing the duty of the board of directors to act prudently in financial matters, including the solicitation and management of contracts, oversight of fiscal responsibilities, and ensuring transparency. The proposed measures impose limitations on budget increases and mandate member ratification for significant financial decisions, such as assessment increases or special financial commitments. Additionally, it addresses protocols for managing surplus funds, the establishment of reserve accounts.

1.     Requires Board-approved annual budget that results in an assessment increase of 5% or more over the prior year's initial annual assessment must be ratified by unit owners before the application of that assessment. Simple majority of those voting. Many expenses, employee health care, wages, equipment, food costs increase more than 5%

2.     Expenditures or withdrawals from declaration-authorized reserve accounts must be reasonably related to the declaration's authorized purpose for that account and the unit owners' reasonable expectations for the use of those monies.
NOTE: This would discourage Asset Reserve Accounts

3.     Special assessment or financing must be first ratified by the affirmative vote of 55% of all allocated votes, before the application of the assessment.|
NOTE: 55% of 2488=1,368 Yes votes. 55% is a very tough threshold. Parking on streets vote got 60%. Nothing else has come close. Few politicians are elected by those percentages.

175,483 Dist 17 Registered voters     Rep Keshel got 71,620 votes. 41% of possible votes