Assigned to COM                                                                                                                                         AS ENACTED

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FINAL REVISED

FACT SHEET FOR S.B. 1034

 

homeowner’s associations; applicability; charter schools

 

 

Purpose

 

Exempts schools receiving monies from this state from regulation or enforcement action  by homeowners’ associations (HOAs) of planned communities.  Prohibits schools from being established in the living units or common areas of an HOA, with the exception of home schools, but allows schools to enter into contractual agreements with an HOA for use of the HOA's common areas.

 

Background

 

Regulations pertaining to the formation and operation of master planned communities’ HOAs were established in 1994 (Laws 1994, Chapter 310).  These statutes define master planned community, allow for penalties on a past due assessment and for a violation of the declaration, bylaws or rules, specify the conditions for closed meetings, specify conditions for disclosure and examination of financial records and require specified information to be furnished upon the resale of a unit.

 

Oftentimes, an HOA's codes, covenants and restrictions (CC&R’s) will govern the use of property for residential and/or commercial purposes in planned community HOAs.  If a school is located in a planned community HOA, the CC&R’s may conflict with what the school is willing to do and financially capable of doing with regards to its property.  S.B. 1034 specifies that planned community statutes do not apply to public schools, including charter schools.  The legislation also prohibits the establishment of schools within the living units or common areas of HOAs, with the exception of home schools.  Finally, S.B. 1034 allows HOAs to enter into contractual agreements with a school district or charter school for use of their common areas.

 

There is no anticipated fiscal impact to the state general fund associated with this bill.

 

Provisions

 

1.      Specifies that planned community statutes do not apply to schools that receives monies from this state, including charter schools.

 

2.      Exempts schools from regulation or any enforcement action by HOAs of planned communities.

 

3.      Prohibits schools from being established within the living units or common areas of an HOA, with the exception of home schools.

 

 

4.      Allows an HOA to enter into a contractual agreement with a school district or charter school to allow the use of the common areas by the school district or charter school.

 

5.      Provides for a general effective date.

 

Amendments Adopted by Committee

 

·        Prohibits schools from being established within the living units or common areas of an HOA, except for home schools.

 

Amendments Adopted by the House of Representatives

 

1.      Clarifies that laws governing HOAs do not apply to schools that receive monies from this state.

 

2.      Exempts schools from enforcement action by the HOA.

 

3.      Allows an HOA to enter into a contractual agreement with a school district or charter school to allow the use of the common areas of the HOA by the school district or charter school.

 

Senate Action                                                               House Action

 

COM          1/30/02     DPA      5-0-1                         ED            4/15/02     DPA     8-1-0-1

3rd Read      2/11/02                   25-1-4-0                    3rd Read    4/29/02                  55-1-4-0

Final Read  5/07/02                   28-0-2-0          

 

 

Signed by the Governor 5/8/02

Chapter 184

 

Prepared by Senate Staff

May 10, 2002