Greetings, homeowners of Arizona! Prepare to delve into the latest developments in community management as we unpack the implications of Senate Engrossed House Bill 2298 recently passed during the Fifty-sixth Legislature's First Regular Session in 2023.

This legislation, now enshrined in law, brings significant amendments to Section 33-1818 of the Arizona Revised Statutes, particularly impacting the jurisdiction of Homeowners Associations (HOAs) over public roadways within planned communities.

Understanding the Changes Brought by House Bill 2298

Previously, HOAs in Arizona possessed authority to regulate public roadways within their communities under certain conditions. However, with the enactment of this new law, several critical changes have been implemented:

  1. For New Planned Communities (Post-2014 Declarations): If your community's declaration was recorded after December 31, 2014, the HOA's jurisdiction no longer extends to roadways owned by or dedicated to governmental entities. This modification aims to simplify governance and mitigate overlapping authority concerns between local government bodies and HOAs.
  2. For Established Planned Communities (Pre-2015 Declarations): In communities with declarations recorded before January 1, 2015, where HOAs currently regulate public roadways, existing regulations may remain intact until specific conditions necessitate a change. By June 30, 2025, a vote must be conducted to determine whether the HOA will persist in regulating public roadways. If a majority of the membership vote in favor, the HOA can retain its authority. Conversely, if the vote fails to garner support or is not conducted, the HOA must cede control over these roadways.

Implications for Arizona's Planned Communities

The ramifications of House Bill 2298 extend to both existing and future planned communities in Arizona:

  1. Governance and Authority: The new legislation provides clarity regarding the division of authority between HOAs and governmental entities, potentially reducing conflicts and facilitating more efficient management of public spaces within communities.
  2. Community Engagement and Decision-Making: For older communities, the mandatory vote encourages greater community involvement and ensures that decisions regarding public roadway regulations align with the current preferences of community members.
  3. Paperwork Party: HOAs affected by these changes must take proactive measures to organize the requisite vote, document outcomes, and update records to maintain compliance with state laws.

Preparing HOAs for the Future

To navigate these legislative changes effectively, HOAs should undertake the following steps:

  1. Review and Comprehend the New Legislation: HOAs, particularly those with declarations predating 2015, should familiarize themselves with the specifics of House Bill 2298 to grasp its implications for their community.
  2. Plan for Community Voting: Communities mandated to vote on the continuation of public roadway regulation should initiate preparations well in advance of the 2025 deadline. This entails establishing clear voting procedures, ensuring comprehensive member engagement, and understanding documentation requirements for recording voting outcomes.
  3. Seek Legal Counsel: Given the legal intricacies and novelty of this legislation, consulting with legal professionals well-versed in Arizona HOA laws is advisable to ensure full compliance and navigate potential challenges effectively.
  4. Communicate Effectively with Residents: Transparent communication with community members is essential. HOAs should inform residents about the legislative changes, their potential impact, and avenues for participation in the decision-making process.

In Conclusion

The enactment of House Bill 2298 heralds a new chapter in HOA governance in Arizona, particularly concerning the regulation of public roadways within planned communities. By comprehending the revised legal framework, preparing for community-wide decision-making processes, and fostering transparent communication, HOAs can navigate these changes adeptly and continue fostering safe, well-managed, and harmonious communities.

Sources


  1. LegiScan. (n.d.). HB2298 Arizona House Bill: Planned community; authority; public roadways. Retrieved from https://legiscan.com/AZ/text/HB2298/id/2879944
  2. LegiScan. (n.d.). Arizona HB2298 | 2023 | Fifty-fifth Legislature 1st Regular. Retrieved from https://legiscan.com/AZ/bill/HB2298/2023
  3. TrackBill. (n.d.). Arizona House Bill 2298 - Planned community authority public roadways. Retrieved from https://trackbill.com/bill/arizona-house-bill-2298-planned-community-authority-public-roadways/2310716/
  4. Arizona State Legislature. (n.d.). HB 2298 - 55th Legislature (2021). Retrieved from https://www.azleg.gov/legtext/55leg/1r/bills/hb2298h.pdf
  5. Arizona State Legislature. (n.d.). HB 2298 - 56th Legislature (2023). Retrieved from https://www.azleg.gov/legtext/56leg/1R/bills/HB2298P.htm

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