AZ HB2126

Requires unit owners to approve annual budgets by majority vote rather than allowing boards to adopt budgets unilaterally, with continued use of the last approved budget if a proposed budget is rejected.

Mandates approval by majority of all unit owners before the board can impose special assessments or secure financing lasting more than one year.

Establishes baseline assessment amounts based on member-approved increases, so future assessment caps are calculated from approved amounts rather than previous years' amounts.

Modifies the assessment increase limitation to allow increases of no more than 20 percent above the aggregate of the two immediately preceding fiscal years' assessments, subject to member approval rights.

Applies these financial approval requirements to both condominium associations under Chapter 33-1200 and planned communities under Chapter 33-1800.