HB 2455 Summary

• Adds indemnification restrictions to condominium and planned community boards: if a unit owner/member successfully compels board compliance with governing documents or Arizona law through attorney action, individual board members are jointly and severally liable for the owner's attorney fees and cannot be indemnified by the association unless two-thirds of the membership votes to approve such indemnification.

• Requires boards of directors in condominiums to provide a copy of the ratified budget to all unit owners after the unit owners approve it.

• Clarifies conflict of interest procedures for board members whose relatives or spouses would benefit from board contracts or decisions, requiring declaration of conflicts in open meetings before voting.

• Applies the same audit and indemnification provisions to both condominium associations and planned community associations.