AZ HB2643

Requires municipalities to limit new residential construction in planned communities to no more than 50% of new housing units beginning in 2014.

Mandates homeowners' associations conduct a termination election at least once every eight years; majority vote to terminate ends the association and voids community documents.

Restricts penalty frequency to no more than twice per calendar quarter and caps penalties at the monthly regular assessment amount; prohibits attorney fees for late assessment payments unless arrears exceed 60 days.

Establishes member rights to dispute violation notices with written response procedures and requires associations to provide detailed explanation of alleged violations within 10 business days.

Allows Arizona income tax subtraction for dues, assessments, and special assessments paid to planned community associations.