Bill Text: AZ HB2322 | 2025 | Fifty-seventh Legislature 1st Regular | Introduced
Bill Title: Condominiums; commercial structures; residential structures
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-02-04 - House COM Committee action: Do Pass Amended, voting: (10-0-0-0-0-0) [HB2322 Detail]
Download: Arizona-2025-HB2322-Introduced.html
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REFERENCE TITLE: condominiums; commercial structures; residential structures |
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State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
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HB 2322 |
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Introduced by Representative Weninger
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AN ACT
amending section 33-1255, Arizona Revised Statutes; relating to condominiums.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 33-1255, Arizona Revised Statutes, is amended to read:
33-1255. Assessments for common expenses; commercial structures; applicability; definitions
A. Until the association makes a common expense assessment, the declarant shall pay all common expenses. After any assessment has been made by the association, assessments shall be made at least annually, based on a budget adopted at least annually by the association.
B. Except for assessments under subsections C, D, E, and F AND h of this section, all common expenses shall be assessed against all the units in accordance with the allocations set forth in the declaration pursuant to section 33-1217, subsection A. Any past due common expense assessment or installment bears interest at the rate established by the board subject to the condominium documents.
C. Unless otherwise provided for in the declaration, all of the following apply:
1. Any common expense associated with the maintenance, repair or replacement of a limited common element shall be equally assessed against the units to which the limited common element is assigned.
2. Any common expense or portion of a common expense benefitting fewer than all of the units shall be assessed exclusively against the units benefitted.
D. Assessments to pay a judgment against the association may be made only against the units in the condominium at the time the judgment was entered, in proportion to their common expense liabilities.
E. If any common expense is caused by the misconduct of any unit owner, the association may assess that expense exclusively against that unit.
F. If the declaration so provides, the common expense assessment for any unit on which construction has not been substantially completed may be an amount which that is not less than at least twenty-five per cent percent of the common expense assessment for units which that have been substantially completed. However, this reduced common expense assessment shall not be permitted, allowed unless the declarant is obligated under the declaration to pay to the association any deficiency in monies due to the declarant having paid a reduced common assessment and necessary for the association to be able to timely pay all common expenses.
G. If common expense liabilities are reallocated, common expense assessments and any installment on the assessments not yet due shall be recalculated in accordance with the reallocated common expense liabilities.
H. NOTWITHSTANDING ANY PROVISION IN THE CONDOMINIUM DOCUMENTS, IF A CONDOMINIUM INCLUDES A COMMERCIAL STRUCTURE THAT IS SEPARATE FROM A RESIDENTIAL STRUCTURE, ALL OF THE FOLLOWING APPLY:
1. ANY COMMON EXPENSE OR PORTION OF A COMMON EXPENSE that EXCLUSIVELY BENEFITs the COMMERCIAL STRUCTURE SHALL BE ASSESSED EXCLUSIVELY AGAINST THE UNITS IN THE COMMERCIAL STRUCTURE, WHETHER ASSESSED IN A GENERAL ASSESSMENT or SPECIAL ASSESSMENT OR OTHERWISE.
2. ANY COMMON EXPENSE OR PORTION OF A COMMON EXPENSE that EXCLUSIVELY BENEFITs THE RESIDENTIAL STRUCTURE SHALL BE ASSESSED EXCLUSIVELY AGAINST THE UNITS IN THE RESIDENTIAL STRUCTURE, WHETHER ASSESSED IN A GENERAL ASSESSMENT or SPECIAL ASSESSMENT OR OTHERWISE.
3. ANY COMMON EXPENSE OR PORTION OF A COMMON EXPENSE that BENEFITs BOTH THE COMMERCIAL STRUCTURE AND THE RESIDENTIAL STRUCTURE SHALL BE ASSESSED IN PROPORTION TO THE STRUCTUREs BENEFITTED, WHETHER ASSESSED IN A GENERAL ASSESSMENT or SPECIAL ASSESSMENT OR OTHERWISE. THE PROPORTIONAL SHARE OF THE COMMON EXPENSES that BENEFIT THE COMMERCIAL STRUCTURE SHALL THEREAFTER BE ASSESSED AGAINST THE UNITS IN THE COMMERCIAL STRUCTURE ON A PRO RATA BASIS, AND THE PROPORTIONAL SHARE OF THE COMMON EXPENSES that BENEFIT THE RESIDENTIAL STRUCTURE SHALL THEREAFTER BE ASSESSED AGAINST THE UNITS IN THE RESIDENTIAL STRUCTURE ON A PRO RATA BASIS.
4. IN ANY DISPUTE OVER THE ALLOCATION OF A COMMON EXPENSE OR PORTION OF A COMMON EXPENSE, THE ASSOCIATION BEARS THE BURDEN OF PROVING BY CLEAR AND CONVINCING EVIDENCE THAT IT HAS ALLOCATED THE COMMON EXPENSE OR PORTION OF A COMMON EXPENSE in compliance with THIS SECTION.
H. I. This section does not apply to timeshare plans or associations that are subject to chapter 20 of this title.
J. FOR PURPOSES OF THIS SECTION:
1. "COMMERCIAL STRUCTURE" means A STRUCTURE in which A MAJORITY OF the UNITS ARE DESIGNATED FOR COMMERCIAL or WORK PURPOSES and is SEPARATE FROM A RESIDENTIAL STRUCTURE IF NO RESIDENTIAL UNITS ARE LOCATED ON TOP OF OR BELOW THE COMMERCIAL STRUCTURE.
2. "Common expenses" has the same MEANING prescribed in section 33-1202.
3. "RESIDENTIAL STRUCTURE" means A STRUCTURE in which A MAJORITY OF the UNITS ARE DESIGNATED FOR RESIDENTIAL PURPOSES.
Sec. 2. Applicability
Section 33-1255, Arizona Revised Statutes, as amended by this act, applies to any condominium existing on or after the effective date of this act.
