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AZ HB2277
Bill
Status
Introduced
1/15/2026
Primary Sponsor
Rachel Keshel
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AI Summary
- Requires HOA/condominium boards to develop annual operating budgets based on prudent estimates of common expenses, and mandates member ratification for any annual assessment increase of 5% or more in communities with 50+ units
- Requires 55% member approval before the board can impose special assessments or secure financing that assigns future revenues or creates security interests in common property
- Establishes board fiduciary duties including reviewing competitive bids, overseeing contractors, maintaining association control over financial accounts with at least one board member having signature authority, and reviewing financial reports for unauthorized expenditures
- Requires surplus operating account monies to be refunded to unit owners or credited toward future assessments, unless members vote to apply surplus funds to long-term reserve accounts
- Declares any assessment imposed in violation of the budget ratification or special assessment approval requirements to be invalid and unenforceable as a matter of law
Legislative Description
HOAs; fiscal duties
Last Action
House read second time
1/20/2026
Committee Referrals
Rules1/15/2026
Government1/15/2026
Full Bill Text
No bill text available