They may also dictate the process HOAs must follow before raising the monthly dues. For example, Arizona's Revised Statutes Section 33-1803 states that HOAs cannot raise fees by over 20% per year without a majority vote from the membership.
The absence of an HOA board can result in significant risks, including financial mismanagement, where bills go unpaid and dues are uncollected, leading to financial instability. Residents and city officials can also bring about legal actions against the HOA, resulting in expensive court actions.
In Arizona, forming an HOA requires drafting and filing the Articles of Incorporation under the Arizona Nonprofit Corporation Act, which legally establishes the HOA as an entity.
In Arizona, CC&Rs are usually enforced by homeowners associations (HOAs). In many cases, however, they may also be enforced by individual homeowners.
Many aspects of HOAs are directly governed by Arizona statutes, such as the Planned Communities statutes, the Arizona inium Act and the Nonprofit Corporations Act. scope and detail than the Planned Community statutes.
The ARS grants the board specific powers such as the ability to foreclose on a house for unpaid liens and establish rules concerning the exterior appearance of homes and other community-related restrictions. HOAs in Arizona are also bound by rules set forth in their own governing documents.
Once you buy a home that's part of an HOA, you automatically become a member of the HOA. HOA rules are legally binding, and you must adhere to all rules and regulations in the governing document. Yes, there are bylaws that you may not like, but there are no HOA loopholes.
Under Arizona law, an HOA may not issue a fine until it first offers you a hearing before the board of directors. If the HOA fails to provide you an opportunity for a hearing before the fine is imposed, the fine is illegal and not enforceable. Arizona law also requires that fines be reasonable.
The Supreme Court held that an HOA may not rely on a general amendment power provision in its covenants, conditions, and restrictions to place restrictions on landowners' use of their land only as to those restrictions for which the HOA's original declaration has provided sufficient notice.