ARIZONA STATE SENATE
Phoenix, Arizona
covenants
dissolved; residential property
Purpose
Dissolves the codes, covenants and restrictions (CC&Rs) in a recorded declaration against a subdivision without an established homeowner association (HOA) 30 years after the recording date of the declaration unless a majority of the owners agree to continue the CC&Rs and meet recording requirements with the appropriate county recorder’s office.
Background
Current city, county and subdivision laws require a landowner who intends to subdivide the land to prepare a subdivision plat or map and obtain approval from the city, town or county in which the subdivision is located. In addition to filing the plat of the subdivision in the office of the county recorder in the county in which the subdivision is located, the owner must also file a copy of any restrictive covenants affecting the subdivision, including the CC&Rs that govern the subdivision, with the county recorder.
Currently, in some older neighborhoods where an HOA was not established in a subdivision, often due to the lack of common areas, some property owners believe that the CC&Rs that govern the use of their property in the subdivision are either outdated and cease to serve a purpose or are not being consistently applied over time. Further, some property owners simply are unaware of the CC&Rs that govern their property and may be unknowingly violating the terms, conditions and restrictions governing the use of their property in the subdivision. S.B. 1262 dissolves the CC&Rs in a recorded declaration against subdivision without an established HOA 30 years after the recording date of the declaration unless a majority of the owners agree to continue the CC&Rs and meet certain recording requirements.
There is no anticipated fiscal impact to the state general fund associated with this bill.
Provisions
1. Stipulates that the CC&Rs in a recorded declaration against a subdivision are dissolved 30 years after the recording date of the declaration that established the subdivision and contains the CC&Rs, unless the following occur:
a) a majority of the owners in the subdivision execute a written agreement to continue the CC&Rs contained in the recorded documents that established the subdivision.
b) the written agreement is recorded in the office of the county recorder in the county in which the subdivision is located. The document must include certain required information and a sworn statement with notarized signatures of the requisite number of owners declaring that the CC&Rs contained in the declaration are continuing and enforceable.
2. Stipulates the dissolution provisions apply only if the property is located in an incorporated city or town that has a municipal ordinance that provides for zoning on real property and the declaration does not require formation of an HOA.
3. Exempts HOAs from the dissolution provisions.
4. Provides for a general effective date.
Prepared by Senate Staff
February 8, 2002