Senate Government and Environment Passes HOA Omnibus

Hello readers,I thought I would pass on some very interesting information that I received from the Arizona Association of Realtors, The Capitol Insider, regarding the most recent legislative updates for HOAs. Informative reading!

Senate Government and Environment Passes HOA Omnibus

This past Monday, the Senate Government and Environment Committee listened to testimony and voted on SB 1482: homeowners' association’s amendments; omnibus. The bill reintroduces the protections for homeowners and tenants against homeowners associations that was passed by the legislature in 2013 and signed by the governor, but ultimately challenged in court based on the “single subject rule” of the constitution. 
In committee, the Arizona Association of REALTORS® and a representative from the Arizona Association of Community Managers spoke in favor of the legislation. Additionally, as a result of the numerous stakeholder meetings that took place during the interim, all stakeholders involved in the process signed in support of the legislation and no one signed in opposition of the bill. The bill did not receive any questions from the senators on the committee and resulted in the positive vote of six ayes, zero nays, and one not voting. The next step for SB 1482 will be the Senate Rules Committee where it will be determined to be constitutional.
Provisions of the bill as it relates to rental properties:

• Permits an owner of a condominium unit and planned community’s owners to rent their property, unless prohibited in the declaration, and requires the owner to comply with the declaration’s rental time-period restrictions.
• Allows an owner to make a written designation to the HOA, of a third party to act as the person’s agent with respect to all HOA matters relating to the rental property except voting in HOA elections and serving on the board of directors.
• Specifies that a HOA notice to an agent regarding the property constitutes notice to the owner.
• Prohibits a HOA from requiring any tenant information other than: the name and contact information for the adult tenants, the lease’s beginning and ending dates, a description and the license plate number of the tenants’ vehicles, and a government-issued ID that confirms the tenant meets the communities’ age restrictions, if any.
• Permits a HOA to charge a maximum fee of $25 for the permitted disclosures to be paid within 15-days after the postmarked request.
• Authorizes the fee to be charged for each new tenancy, but not for a lease renewal.
• Prohibits a HOA or managing agent from assessing, levying or charging any other fee or fine or otherwise imposing a requirement on a rental unit or property any differently than on an owner-occupied property.
• Prohibits a HOA from:
  • requiring an owner to provide the HOA with a copy of the tenants rental application, credit report, lease agreement, rental contract or other personal information;
  • requiring the tenant to sign a waiver or other document limiting the tenant’s due process rights as a condition of occupancy;
  • restricting or prohibiting an owner from serving on the board of directors based on the owner not being an occupant of the property; or
  • imposing on an owner or managing agent any fee, assessment, penalty or other charge that is greater than $15 for incomplete or late information regarding the information the HOA is permitted to request.   
• Stipulates that any attempt by an HOA to exceed either fee, voids the fee.
• Specifies that a HOA can acquire a credit report on a person in an attempt to collect a debt.
• Establishes that the requirements and restrictions within the bill, do not prevent a HOA from:
  • complying with the Housing for Older Persons Act of 1995;
  • restricting, in the community documents, the residency of class two or three registered sex offenders; or
  • the enforcement of such residency restrictions.
• Permits an owner to use a crime-free addendum as part of a lease agreement.
• Requires owners to abate the criminal activity of the nuisance property.

As an agent, I make it a point to ensure my Buyers are well aware of the HOA rules prior to purchasing a home because it all figures in to their happiness and respect for me as an agent. And isn't that the way it should be?

To Your Home Buying Success!

Mai
maicalev.com