What Is the Maximum You Can Raise Homeowner's Association Dues in Arizona?

Laws have been created to protect homeowners with homeowner's association fees.

Homeowners who belong to a homeowner's association (HOA) live in constant fear of having their dues raised. Arizona has laws that protect homeowners living in a HOA. Unfortunately, most homeowners are not aware of these laws.

Types of Homeowner's Associations

There are two types of homeowner's associations, condominiums (where the homeowners share in the ownership of common areas) and planned communities (where common areas are owned by the HOA). The type of HOA determines which state laws apply to the homeowner.

CC&Rs

All homeowners with an HOA are bound by covenants, conditions and restrictions (CC&Rs) that give the HOA power to control the property. All homeowners should thoroughly understand the CC&Rs to make sure they can live with the conditions and restrictions.

Arizona Law

Arizona legislature states that a homeowner's association cannot raise the dues more than 20 percent greater than the last fiscal's year dues unless the majority of association members approve.

HOA Bylaws

Beyond the state law, the HOA is governed by bylaws. The HOA board can raise the HOA dues annually only based on the percentage stated in the bylaws.

References

• The Lynch Law Firm: Homeowner's Association Rights
• Arizona State Legislature: Penalties
• HOA Institute: CC&Rs