AZ HB2731

Requires homeowner associations to provide written notice by certified mail to members regarding alleged violations, and prohibits enforcement action or penalties until proper notice is delivered; establishes liability for associations failing to comply with notice requirements and allows members to recover attorney fees.

Establishes that penalty fees cannot be enforced as assessment liens unless a judgment is entered in civil court; penalties may only become liens after judgment entry, distinguishing them from regular assessments.

Modifies quorum requirements for membership meetings to determine ownership status no earlier than 30 days before the meeting date; declares any actions taken at meetings without a quorum invalid and unenforceable.

Revises language regarding audio and video recording of open board and membership meetings from "tape recording" to "audiotaping and videotaping" to reflect current recording technology.

Establishes personal liability for individual board members who take action against members in bad faith, prohibiting the association from indemnifying board members for such actions.