CONDO & PLANNED COMMUNITY STATUTES IN ARIZONA

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CONDO &PLANNEDCOMMUNITYSTATUTESIN ARIZONA2018–2019Download an electronic copy at:www.carpenterhazlewood.com/1819Statute

ABOUT USCelebrating our 25th year, Carpenter, Hazlewood, Delgado & Bolen is a full-servicebusiness and community association focused law firm. With nearly 50 attorneys andten offices, we benefit our clients with depth of experience and proactive solutions.Our full-range of services include: contract review, enforcement of governingdocuments, assessment collections, insurance defense, construction defectlitigation, fair housing, employment law, and more.We are committed to excellence on all levels and appreciate our clients as well asyour referrals. We hope you find this book helpful, and welcome you to contact usif you have any questions!Contact us for more information:info@carpenterhazlewood.comToll FreePhoenix Metro(800) 743-9324(480) 427-2800TucsonPrescott(520) 744-9480(928) 433-0775These statutes are effective in 2018-2019 unless and until modified by the ArizonaLegislature. Because of the possibility of additional changes by the Arizona Legislature,these statutes should not be relied on after August 1, 2019. For updates to the statutesafter August 1, 2019, please contact us or visit our website. A downloadable copy ofthe book is available at: er**These statutes are provided as a courtesy by Carpenter, Hazlewood, Delgado & Bolen, LLP. Carpenter,Hazlewood, Delgado & Bolen, LLP cannot guarantee that the statutes set forth in the book will not befound to be defective by a court or other tribunal after the date the books are printed. There may be otherstatutes or applicable laws that have a bearing on a particular legal issue confronted by a communityassociation. These statutes are provided as a reference only. If a particular legal issue is confronted by acommunity association, the association should seek legal advice from competent attorneys.TABLE OF CONTENTS CARPENTERHAZLEWOOD.COMCHDB AZ Statutes Book - TOC-2018-19-NEW2.indd 1 I7/6/18 1:33 PM

PLANNED COMMUNITY STATUTES§ 33-1801Applicability; exemption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1§ 33-1802Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1§ 33-1803Assessment limitation; penalties; notice to member of violation. 2§ 33-1804Open meetings; exceptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3§ 33-1805Association financial and other records. . . . . . . . . . . . . . . . . . . . . 6§ 33-1806Resale of units; information required; fees; civilpenalty; definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7§ 33-1806.01 Rental property; member and agent information;fee; disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10§ 33-1807Lien for assessments; priority; mechanics’ andmaterialmen’s liens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12§ 33-1808Flag display; political signs; caution signs; for sale, rent orlease signs; political activities. . . . . . . . . . . . . . . . . . . . . . . . . . . 14§ 33-1809Parking; public service and public safety emergencyvehicles; definition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17§ 33-1810Board of directors; annual audit. . . . . . . . . . . . . . . . . . . . . . . . . 18§ 33-1811Board of directors; contracts; conflict . . . . . . . . . . . . . . . . . . . . . 18§ 33-1812Proxies; absentee ballots; definition. . . . . . . . . . . . . . . . . . . . . . 18§ 33-1813Removal of board member; special meeting . . . . . . . . . . . . . . . . 19§ 33-1814Slum property; professional management. . . . . . . . . . . . . . . . . . 21§ 33-1815Association authority; commercial signage . . . . . . . . . . . . . . . . . 21§ 33-1816Solar energy devices; reasonable restrictions; fees and costs . . . 22§ 33-1817Declaration amendment; design, architecturalcommittees; review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22§ 33-1818Community authority over public roadways; applicability . . . . . . 25II COPY PROVIDED BY CARPENTER, HAZLEWOOD, DELGADO & BOLENCHDB AZ Statutes Book - TOC-2018-19-NEW2.indd 27/6/18 1:33 PM

ARIZONA CONDOMINIUM ACT§ 33-1201Applicability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27§ 33-1202Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27§ 33-1203Variation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29§ 33-1204Separate titles and taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30§ 33-1205Applicability of local ordinances, rules and building codes . . . . . 30§ 33-1206Eminent domain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30§ 33-1207Severability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31§ 33-1211Creation of condominium. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31§ 33-1212Unit boundaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32§ 33-1213Construction and validity of declaration and bylaws . . . . . . . . . . 32§ 33-1214Description of units. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33§ 33-1215Contents of declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33§ 33-1216Leasehold condominiums. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34§ 33-1217Allocation of common element interests, votes and commonexpense liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35§ 33-1218Limited common elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36§ 33-1219Plat. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37§ 33-1220Exercise of development rights. . . . . . . . . . . . . . . . . . . . . . . . . . 38§ 33-1221Alterations of units. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39§ 33-1222Relocation of boundaries between adjoining units. . . . . . . . . . . . 39§ 33-1223Subdivision of units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40§ 33-1224Easement for encroachments . . . . . . . . . . . . . . . . . . . . . . . . . . . 40§ 33-1225Use for sale purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40§ 33-1226Easement to facilitate exercise of special declarant rights. . . . . . 41§ 33-1227Amendment of declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41§ 33-1228Termination of condominium . . . . . . . . . . . . . . . . . . . . . . . . . . . 42§ 33-1229Rights of secured lenders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44§ 33-1230Merger or consolidation of condominiums . . . . . . . . . . . . . . . . . 45TABLE OF CONTENTS CARPENTERHAZLEWOOD.COMCHDB AZ Statutes Book - TOC-2018-19-NEW2.indd 3 III7/6/18 1:33 PM

§ 33-1241Organization of unit owners’ association. . . . . . . . . . . . . . . . . . . 45§ 33-1242Powers of unit owners’ association; notice to unit ownerof violation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46§ 33-1243Board of directors and officers; conflict; powers; limitations;removal; annual audit; applicability. . . . . . . . . . . . . . . . . . . . . . . 48§ 33-1244Transfer of special declarant rights . . . . . . . . . . . . . . . . . . . . . . . 52§ 33-1245Termination of contracts and leases of declarant; applicability . . 53§ 33-1246Bylaws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54§ 33-1247Upkeep of the condominium . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54§ 33-1248Open meetings; exceptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55§ 33-1249Quorums; applicability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58§ 33-1250Voting; proxies; absentee ballots; applicability; definition . . . . . . 58§ 33-1251Tort and contract liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60§ 33-1252Conveyance or encumbrance of common elements . . . . . . . . . . 60§ 33-1252.01 Conveyance of certain real property. . . . . . . . . . . . . . . . . . . . . . 61§ 33-1253Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62§ 33-1254Surplus monies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64§ 33-1255Assessments for common expenses; applicability. . . . . . . . . . . . 65§ 33-1256Lien for assessments; priority; mechanics’ and materialmen’sliens; applicability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66§ 33-1257Other liens affecting the condominium. . . . . . . . . . . . . . . . . . . . 68§ 33-1258Association financial and other records; applicability . . . . . . . . . 68§ 33-1259Association as trustee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69§ 33-1260Resale of units; information required; fees; civil penalty;applicability; definition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70§ 33-1260.01 Rental property; unit owner and agent information;fee; disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73§ 33-1261Flag display; for sale, rent or lease signs; political signs andactivities; applicability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74§ 33-1270Department of real estate; enforcement. . . . . . . . . . . . . . . . . . . 77IV COPY PROVIDED BY CARPENTER, HAZLEWOOD, DELGADO & BOLENCHDB AZ Statutes Book - TOC-2018-19-NEW2.indd 47/6/18 1:34 PM

NONPROFIT CORPORATION ACT§ 10-3101Short title. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79§ 10-3102Reservation of power to amend or repeal. . . . . . . . . . . . . . . . . . 79§ 10-3130Powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79§ 10-3140Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79§ 10-3141Notice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84§ 10-3160Judicial relief. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86§ 10-3201Incorporators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87§ 10-3202Articles of incorporation; violation; classification . . . . . . . . . . . . . 87§ 10-3203Incorporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90§ 10-3204Liability for noncorporate transactions . . . . . . . . . . . . . . . . . . . . 91§ 10-3205Organization of corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91§ 10-3206Bylaws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91§ 10-3207Emergency bylaws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91§ 10-3301Purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92§ 10-3302General powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92§ 10-3303Emergency powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94§ 10-3304Validity of actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95§ 10-3501Known place of business and statutory agent . . . . . . . . . . . . . . . 95§ 10-3502Change of known place of business and statutory agent. . . . . . . 96§ 10-3503Resignation of statutory agent . . . . . . . . . . . . . . . . . . . . . . . . . . 95§ 10-3504Service on corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97§ 10-3601Admission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97§ 10-3602Consideration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98§ 10-3603No requirement of members . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98§ 10-3610Difference in rights and obligations of members . . . . . . . . . . . . . 98§ 10-3611Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98§ 10-3612Member’s liability to third parties. . . . . . . . . . . . . . . . . . . . . . . . 98§ 10-3613Member’s liability for dues, assessments and fees. . . . . . . . . . . 98TABLE OF CONTENTS CARPENTERHAZLEWOOD.COMCHDB AZ Statutes Book - TOC-2018-19-NEW2.indd 5 V7/6/18 1:34 PM

§ 10-3614Creditor’s action against member . . . . . . . . . . . . . . . . . . . . . . . . 99§ 10-3620Resignation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99§ 10-3621Termination, expulsion and suspension. . . . . . . . . . . . . . . . . . . 100§ 10-3701Annual and regular meetings; exceptions. . . . . . . . . . . . . . . . . 100§ 10-3702Special meeting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101§ 10-3703Court ordered meeting; costs; attorney fees. . . . . . . . . . . . . . . 102§ 10-3704Action by written consent; definition. . . . . . . . . . . . . . . . . . . . . 102§ 10-3705Notice of meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103§ 10-3706Waiver of notice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104§ 10-3707Record date; determining members entitled to noticeand vote . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104§ 10-3708Action by written ballot; online voting . . . . . . . . . . . . . . . . . . . . 105§ 10-3720Members’ list for meeting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106§ 10-3721Voting entitlement generally . . . . . . . . . . . . . . . . . . . . . . . . . . . 107§ 10-3722Quorum requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108§ 10-3723Voting requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108§ 10-3724Proxies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108§ 10-3725Cumulative voting for directors. . . . . . . . . . . . . . . . . . . . . . . . . 109§ 10-3726Other methods of electing directors . . . . . . . . . . . . . . . . . . . . . 110§ 10-3727Corporation’s acceptance of votes . . . . . . . . . . . . . . . . . . . . . . 110§ 10-3801Requirement for and duties of board. . . . . . . . . . . . . . . . . . . . . 111§ 10-3802Qualifications of directors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111§ 10-3803Number of directors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112§ 10-3804Election, designation and appointment of directors . . . . . . . . . . 112§ 10-3805Terms of directors generally. . . . . . . . . . . . . . . . . . . . . . . . . . . 112§ 10-3806Staggered terms for directors . . . . . . . . . . . . . . . . . . . . . . . . . . 113§ 10-3807Resignation of directors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113§ 10-3808Removal of directors elected by members or directors. . . . . . . 113§ 10-3809Removal of designated or appointed directors . . . . . . . . . . . . . 114§ 10-3810Removal of directors by judicial proceeding . . . . . . . . . . . . . . . 115VI COPY PROVIDED BY CARPENTER, HAZLEWOOD, DELGADO & BOLENCHDB AZ Statutes Book - TOC-2018-19-NEW2.indd 67/6/18 1:34 PM

§ 10-3811Vacancy on board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115§ 10-3812Compensation of directors. . . . . . . . . . . . . . . . . . . . . . . . . . . . 116§ 10-3820Regular and special meetings. . . . . . . . . . . . . . . . . . . . . . . . . . 116§ 10-3821Action without meeting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117§ 10-3822Call and notice of meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . 117§ 10-3823Waiver of notice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118§ 10-3824Quorum and voting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118§ 10-3825Committees of the board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119§ 10-3830General standards for directors. . . . . . . . . . . . . . . . . . . . . . . . . 120§ 10-3833Liability for unlawful distributions . . . . . . . . . . . . . . . . . . . . . . . 121§ 10-3840Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122§ 10-3841Duties and authority of officers. . . . . . . . . . . . . . . . . . . . . . . . . 122§ 10-3842Standards of conduct for officers . . . . . . . . . . . . . . . . . . . . . . . 123§ 10-3843Resignation and removal of officers . . . . . . . . . . . . . . . . . . . . . 124§ 10-3844Contract rights of officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124§ 10-3845Officers’ authority to execute documents . . . . . . . . . . . . . . . . . 124§ 10-3850Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125§ 10-3851Authority to indemnify. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126§ 10-3852Mandatory indemnification . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127§ 10-3853Advance for expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128§ 10-3854Court ordered indemnification. . . . . . . . . . . . . . . . . . . . . . . . . . 128§ 10-3855Determination and authorization of indemnification . . . . . . . . . 129§ 10-3856Indemnification of officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129§ 10-3857Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130§ 10-3858Application of article. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130§ 10-3860Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131§ 10-3861Judicial action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132§ 10-3862Directors’ action; definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133§ 10-3863Members’ action; definition . . . . . . . . . . . . . . . . . . . . . . . . . . . 134§ 10-3864Conflict of interest policy; exceptions. . . . . . . . . . . . . . . . . . . . 135TABLE OF CONTENTS CARPENTERHAZLEWOOD.COMCHDB AZ Statutes Book - TOC-2018-19-NEW2.indd 7 VII7/6/18 1:34 PM

§ 10-11001Authority to amend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136§ 10-11002Amendment by board of directors. . . . . . . . . . . . . . . . . . . . . . . 136§ 10-11003Amendment by board of directors and members. . . . . . . . . . . . 137§ 10-11004Class voting by members on amendments. . . . . . . . . . . . . . . . 139§ 10-11006Articles of amendment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139§ 10-11007Restated articles of incorporation. . . . . . . . . . . . . . . . . . . . . . . 139§ 10-11008Amendment pursuant to reorganization . . . . . . . . . . . . . . . . . . 140§ 10-11009Effect of amendment and restatement . . . . . . . . . . . . . . . . . . . 141§ 10-11020Amendment by board of directors. . . . . . . . . . . . . . . . . . . . . . . 141§ 10-11021Amendment by board of directors or members. . . . . . . . . . . . . 142§ 10-11022Class voting by members on amendments. . . . . . . . . . . . . . . . 142§ 10-11023Bylaw increasing quorum or voting requirementfor members. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142§ 10-11024Bylaw increasing quorum or voting requirementfor directors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142§ 10-11030Approval by third persons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143§ 10-11031Amendment terminati

Contact us for more information: info@carpenterhazlewood.com Toll Free (800) 743-9324 Tucson (520) 744-9480 Phoenix Metro (480) 427-2800 Prescott (928) 433-0775 These statutes are effective in 2018-2019 unless and until modified by the Arizona Legislature. Because of the poss

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ABOUT CARPENTER HAZLEWOOD Carpenter, Hazlewood, Delgado and Bolen is a full service law firm for our community association clients. We handle assessment collections services, enforcement of the governing documents, construction defect issues, complex litigation, fair housing and other routine and unusual issues.

Article 9: La Jolla Planned District ("La Jolla Planned District" added 3-27-2007 by O-19595 N.S.; effective 4-26-2007.) . Community Resource -Community resources are visual, cultural, archaeological, architectural, and historical focal points within a community

Basis for the industry’s worldwide operations Foundation of self-supporting programs including API Monogram More than 7000 active volunteers representing over 50 countries API Standards Program API publishes close to 700 technical standards