SB1480: Applies to both Planned Communities and Condominiums
• This bill has proposed changes to ARS §33-1227 and ARS §33-1817, which apply to the ways that an association can amend its Declaration (CC&Rs).
• Proposed changes to ARS §33-1227 for condominiums:
o The Association could propose an amendment to the Declaration that applies to fewer than all of the Units if:
-The amendment is deemed to conform to the general design and plan of the community; and
-The number of unit owners or eligible voters specified in the Declaration or at least 67% of the votes allocated in the association, whichever is greater, vote for or give the written consent to the amendment; and
-All of the unit owners of units to which the amendment applies vote for or give written consent to the amendment.
o An action to challenge the validity of an amendment is extended from one to four years, unless the amendment involves the creation or collection of a debt pursuant to Section 12-548.
o The following proposed amendments would need unanimous consent of unit owners:
- An amendment that would change the basis for allocating voting rights or assessments among unit owners.
–An amendment that would change or restrict the uses or occupancy of or the behaviors in any unit.
o An amendment would not need unanimous consent if the amendment was prohibiting or materially restricting the use of an individually owned unit that threatens to harm or unreasonably interfere with the reasonable use and enjoyment of other property in the community.
o Any proposed amendments after the date of this bill would need to also include updates to the Declaration to make the Declaration consistent with the new proposed changes in this bill.
o Adds the requirement that an amendment to the Declaration receive the affirmative vote of at least 67% of the number of owners or eligible votes or any higher percentage that is specified in the Declaration.
o If an amendment is going to do any of the following, the association will need unanimous consent:
-Create or increase special declarant rights; and
-Change the basis for allocating voting rights or assessments among community members; and
-Prohibit or restrict the uses or occupancy of or behaviors in any property.
–However, an amendment can prohibit or materially restrict the use of individually owned property that threatens to harm or unreasonable interfere with the reasonable use and enjoyment of other property in the community, without unanimous consent.
o An action to challenge the validity of an amendment needs to be brought within four years, unless the amendment involves the creation or collection of a debt pursuant to section 12-548.