AZ SB1659

Limits HOA rulemaking authority to specific purposes including protecting property values, preventing discrimination, ensuring ADA compliance, maintaining meeting decorum, and addressing safety concerns—prohibiting rules that restrict property use or constitutional rights unless explicitly authorized in the declaration.

Requires HOAs to bear the burden of proof in administrative hearings to demonstrate that any rule or design guideline complies with statutory requirements when challenged by homeowners.

Restricts design review committees to establishing only "high order general restrictions" necessary to maintain community character and property values, and prohibits limiting homeowner options to only specifically approved colors, materials, or plantings unless explicitly authorized in the declaration.

Mandates that design review committees include at least one board member as chairperson and establishes detailed procedures for construction project deposits, including trust account requirements and formal review timelines.

Prohibits HOAs from adopting rules that unreasonably burden constitutional rights including freedom of speech, religion, assembly, privacy, and protections under the Consumer Review Fairness Act of 2016.