HB 2861 Summary

• Increases the vote requirement to terminate a condominium created on or after September 24, 2022 from 80% to 95% of unit owner votes, with exceptions for eminent domain takings and nonresidential condominiums.

• Requires unit owners receive fair market value compensation determined by independent appraisal using comparable sales, and owner-occupied units receive an additional 10% for relocation costs plus all closing costs.

• Mandates associations provide annual notices to all unit owners stating the condominium may be terminated by 80% or more owners' vote and disclosing the total number of units, number owned by each owner, and each owner's name.

• Adds disclosure requirements for unit resale that inform purchasers about potential condominium termination rights and the property's covenant, condition and restriction regulations.

• Applies all amendments retroactively to all condominiums in Arizona, whether established before or after the effective date, to protect owner compensation rights in forced termination situations.