What are your rights as an Arizona HOA homeowner?

A lot of Phoenix area homes are in a Home Owners Association. If you've bought one, you already know the HOA collects dues, keeps up the common areas and enforces the Covenants, Conditions and Restrictions, or CC&Rs. What many owners don't know is that Arizona law gives you real rights in that relationship too. The association isn't the only one with rules on its side.

Here's a plain overview of the rights I think every owner should know, and what to do when something goes wrong. This isn't legal advice. If you're in a serious dispute, talk with an attorney who handles HOA matters.

Which law applies to your HOA

Most single family HOAs in Arizona fall under the Planned Communities Act, which is Title 33, Chapter 16 of the Arizona Revised Statutes. Condominiums fall under the Arizona Condominium Act, Title 33, Chapter 9. The two laws are similar on most of the points below. The Arizona Department of Real Estate posts a copy of the Planned Communities Act you can read for yourself.

Your own community documents matter too. The CC&Rs, bylaws and rules set the specifics for your neighborhood, and state law sets the limits those documents have to live within.

Your right to see the records

Under A.R.S. 33-1805, you can ask to review the association's financial and other records. The association has ten business days to make them available, and it can't charge you just to look at them. If you want copies, it can charge a small per page fee set by the statute.

Some records can be withheld, like privileged legal advice, pending litigation, and personal or financial information about other individual owners or employees. But budgets, financial statements, meeting minutes and contracts are generally fair game. Put your request in writing and keep a copy with the date you sent it.

Limits on late fees and dues increases

Under A.R.S. 33-1803, a payment is late if it's unpaid 15 or more days after the due date. The late charge is capped at the greater of $15 or 10% of the unpaid assessment. The same section limits how much regular assessments can go up from one year to the next without a vote of the members, so a surprise increase is worth checking against the statute and your documents.

Your right to be heard before a fine

Before a board can impose a monetary penalty for a violation, you're entitled to notice and an opportunity to be heard. If you get a violation notice, you can respond in writing by certified mail within the time the statute allows. The association then has to tell you, in writing, which provision you're accused of violating, when it was observed and who observed it, along with the process to contest it.

My advice is simple. Don't ignore a violation letter. Read it, take a photo of whatever it's about, and respond in writing. Small issues stay small when you deal with them early.

Open meetings

Under A.R.S. 33-1804, meetings of the members and of the board are generally open to all members, and members get a chance to speak before the board takes formal action on an item. The board can meet in a closed session only for specific reasons, like legal advice or personnel matters. If you want to influence a decision, show up and speak. Boards are your neighbors, and most of them are volunteers doing their best.

Solar, flags and other protected items

Arizona law limits what an HOA can ban outright. An association can't prohibit solar energy devices, though it can adopt reasonable rules about how they're installed. State law also protects your right to display the American flag and certain other flags within reasonable rules. If an HOA tells you no on something like this, ask which provision it's relying on and compare it to the statute. More on solar in Solar panels and selling your home.

When you buy into an HOA

Your rights start before you close. In a sale, the association provides disclosure documents, and the standard Arizona purchase contract gives you a window to review the CC&Rs and other HOA documents after you receive them. That's your chance to read the rules on rentals, parking, paint colors and pets, and to look at the budget and reserves. I walk through it in Understanding your HOA before you buy.

If you can't work it out

Start with the least expensive route. Talk to the management company, write to the board, and attend a meeting. Many problems end there.

If they don't, Arizona has a state process. An owner or an association can file a petition with the Arizona Department of Real Estate's HOA Dispute Process for a hearing before an administrative law judge at the Office of Administrative Hearings. The filing fee has been $500 per issue, with a limit on how many issues one petition can include, so check the Department's page for the current fee before you file. If you win, the judge can order the association to follow the law or its documents and can order your filing fee refunded. The Department also notes that hearings can take months, so this is a tool for real problems, not small irritations.

What to keep on hand

1 - A copy of your CC&Rs, bylaws and current rules

2 - Every letter you've received from the HOA, and every response you sent

3 - Photos with dates for anything in dispute

4 - Proof of payment for your dues

5 - Notes from any board meeting you attend

The bottom line

An HOA has rules, but so does the law that governs the HOA. Knowing your rights helps you handle a violation letter, a dues question or a records request calmly and in writing, which is how these things get resolved.

Send me a message if you have an HOA question, whether you already own or you're thinking about buying in a community with one.