Proposed legislation targets Arizona HOAs

Several bills are expected to be filed during this year’s state legislative session in an attempt to strengthen communities and address neighborhood concerns, but it appears the proposed changes are aimed more to address issues in the Phoenix area.

"I don't see the proposed rules making drastic changes here," said Diana Crites, who manages several Yuma-area homeowner associations.

One proposed measure would give homeowners associations the ability to regulate "for sale" signs in neighborhoods while another would protect community features such as golf courses from undergoing significant changes without a vote from nearby residents. A third would standardize how homeowners associations revise their rules.

Many homeowners associations, especially in Phoenix, are experiencing funding shortfalls as foreclosures and economic hardships cause residents to be remiss on dues, Crites said. "So the HOAs want to get rid of the amenities."

With the legislative session soon, those involved in crafting the bills say they will help keep communities strong.

In some cases, homeowners associations have distressed residents by seeking to change the makeup of a community.

Golf courses could be turned into town homes and a 55-and-older community could be open to all residents. One proposed bill would make it harder for those changes to be made.

Crites said she doesn't see those issues as a problem for Yuma-area HOAs and subdivisions here.

For one thing, she said, there aren't many big subdivisions in Yuma with golf courses and large common areas that might be converted to more lots in an effort to cut down on HOA maintenance costs.

And there aren't many subdivisions here that are restricted to senior citizens, she said. She speculated that some HOAs in the Phoenix area are trying to open up restricted neighborhoods to facilitate sales in central Arizona's more depressed housing market.

Many residents purposely buy in a community for the golf course or age restriction, said Clint Goodman with the Homeowner’s Institute. Residents in the Lakes at Ahwatukee expressed concerns in November about plans to replace their golf course with townhomes.

Another potential bill would ease the sometimes lengthy process for a community to change its rules. A rule change can require anywhere from half of the homeowners agreeing to the change to as much as 75 percent of homeowners giving their approval.

Crites said she thinks the measures are an effort to standardize HOA rules and protect the image of neighborhoods. However, she said, a vote by two-thirds to three-fourths of HOA members in the Yuma area already is usually required to make major changes.

Dr. Satish Kumar, president of the HOA for Barkley Estates, agreed. "I doubt if the changes would impact the HOA, at least for Barkley Etates," he said, explaining that the subdivision has no large common areas and a majority vote of residents already is required for major rule changes.

Frank Nechvatal, president of the Sunbird Homeowners Association in Chandler, thinks deciding on one percentage throughout the state would eliminate discrepancies.

Another proposed measure could limit the size of for sale signs in communities, said Ryan Anderson, lobbyist for Community Associations Institute.

Crites said she isn't surprised by that proposed rule, saying requiring standard-size, professional signs would help maintain a neighborhood's image.

"The state is trying to protect all owners," she said.