Last updated: October 8, 2026

By Anjali Patel, Tyler Allen Law Firm

Anjali Patel is an attorney at Tyler Allen Law Firm in Phoenix who represents Arizona homeowners in disputes with their homeowners associations and condominium associations, from assessments, liens, and fines to architectural disputes, enforcement, and board overreach. She writes about Arizona homeowner law so owners can understand their options before a problem reaches their front door.

Arizona's 2026 legislative session produced several changes for homeowners who live in planned communities and condominiums. When this article was first published in June, some bills were still waiting for the Governor. That is no longer the case. Every measure discussed below was signed, and the general-effective-date laws took effect September 12, 2026.

Here is the current plain-language rundown of what changed and where the limits still matter.

Backyard shade structures now receive statutory protection (HB 2342)

HB 2342, Laws 2026, Chapter 90, added A.R.S. § 33-1816.01 for planned communities. An association may not prohibit a backyard shade structure such as an umbrella, awning, shade sail, gazebo, pergola, or canopy if it is commercially produced or professionally manufactured.

The association may still adopt reasonable rules about size, placement, and appearance. Those rules cannot prevent installation, impair the structure's function, restrict its use, or unreasonably increase its cost. They also cannot be more restrictive than the applicable city or town zoning rules for shade-structure height and setbacks.

The protection is narrower than it may sound. It applies to backyards in planned communities. It does not create the same protection for front yards, side yards, or condominium common elements.

Associations have a statutory duty to exercise discretion reasonably (HB 4011)

HB 4011, Laws 2026, Chapter 125, requires both planned-community and condominium associations to act reasonably when exercising discretionary powers. The statute describes reasonable action as neutral, fair, without favoritism, and nonarbitrary.

That language may matter when a board applies a discretionary standard differently to similar owners, approves one request but rejects another without a meaningful distinction, or makes an arbitrary enforcement decision. It does not erase recorded restrictions or guarantee that a homeowner will receive the result requested. The facts, governing documents, and treatment of comparable owners still matter.

For condominium owners, the law also strengthens the required response to a violation challenge. If the required information about contesting the notice was not already provided, the association must pause enforcement, including collection of attorney fees, during the statutory exchange of information and notify the owner about the option of an administrative hearing when the dispute falls within the Arizona Department of Real Estate's jurisdiction.

Resale disclosure packets now contain more information (HB 2397)

HB 2397, Laws 2026, Chapter 249, revised the disclosure requirements for the sale of property in planned communities and condominiums. The required packet now includes additional information about insurance, declarant control, ownership concentration, violations tied to the property, and other association matters that may affect a buyer's decision.

The details differ depending on the size and structure of the association, and the statute does not turn the association into a guarantor of every fact about the community. But the expanded disclosures should give buyers more information before closing and create remedies when materially false or misleading information is provided knowingly or recklessly.

Buyers should still read the declaration, bylaws, rules, financial materials, reserve information, and pending-litigation disclosures themselves. Receiving a packet is not the same as understanding the practical effect of what is in it.

Condominium foreclosure protections now match planned communities (SB 1246)

SB 1246, Laws 2026, Chapter 162, increased the condominium foreclosure threshold and made related changes to both A.R.S. §§ 33-1256 and 33-1807.

Under the current statutes, an association's assessment lien may be foreclosed only if the owner has remained delinquent in an assessment or portion of an assessment for eighteen months or the delinquent assessment reaches $10,000, whichever occurs first. For a special assessment initially valued at $10,000 or more, only the eighteen-month threshold applies. The planned-community version of the higher threshold took effect in 2025; SB 1246 extended the basic protection to condominium owners and added the special-assessment rule for both types of communities.

The statutes also require reasonable communication efforts and an offer of a reasonable payment plan before foreclosure. They distinguish assessments from certain owner-specific charges, and they preserve a homeowner's ability to contest charges in an enforcement action.

The thresholds do not make a smaller debt safe to ignore. An association may still sue to collect amounts before it is eligible to foreclose, and a balance below $10,000 may become foreclosure-eligible after eighteen months. Attorney fees and costs may also grow while the original assessment remains relatively small. The separate guide, Can an Arizona HOA Sue or Foreclose Over a Small Debt?, explains the distinction between a collection lawsuit and foreclosure.

Planned-community boards cannot take action in executive session (SB 1290)

SB 1290, Laws 2026, Chapter 222, amended A.R.S. § 33-1804 to state that a properly closed portion of a planned-community board meeting is limited to consideration without action. In other words, the board may discuss one of the narrow confidential subjects authorized by statute in executive session, but it may not vote or take formal action there.

The statutory amendment followed the Arizona Court of Appeals' 2026 decision addressing the same issue. The current rule is clearest for planned communities because it now appears directly in § 33-1804. The parallel condominium statute was not amended in the same way, so condominium disputes still require careful attention to the governing statute and case law. The full procedural history is covered in Can an Arizona HOA Vote in Executive Session?.

More flags are protected (SB 1184 and SB 1808)

SB 1184, Laws 2026, Chapter 154, added uniformed-services division flags to the flags that condominium and planned-community associations may not prohibit. SB 1808, Laws 2026, Chapter 243, added specified allied-country flags to the protected list.

These laws do not eliminate every rule about flag displays or flagpoles. Associations may retain reasonable time, place, and manner restrictions permitted by the statutes. The protected flag must also fall within the statute's definitions.

What the new laws do not change

None of these measures eliminates an association's authority to collect assessments, enforce valid restrictions, impose properly authorized penalties, or adopt reasonable rules. The changes create new limits and procedures, but they do not automatically invalidate an existing notice, lien, or enforcement decision.

The type of community matters. A planned community and a condominium are governed by different statutory chapters, and not every amendment applies to both. The effective date also matters. Conduct that occurred before September 12, 2026 may need to be analyzed under the law then in effect.

For owners dealing with collection issues, the foreclosure threshold is only one part of the analysis. The ledger should separate assessments from fines, fees, attorney charges, and owner-specific expenses. Notice, payment application, service of a lawsuit, court deadlines, and the governing documents can each change the available options.

Frequently asked questions

Are the 2026 Arizona HOA laws in effect now?

Yes. The seven measures discussed here were signed and are now effective. Arizona's general effective date for the 2026 regular session was September 12, 2026.

Can an HOA foreclose if the assessment debt is less than $10,000?

Potentially, yes. The current foreclosure test is eighteen months of assessment delinquency or $10,000 in delinquent assessments, whichever occurs first. A balance below $10,000 may therefore become eligible after eighteen months. The association may also pursue a collection lawsuit before the foreclosure threshold is met.

Does the duty to act reasonably mean an HOA cannot enforce an unpopular rule?

No. The statute regulates the exercise of discretionary powers. It does not automatically invalidate a recorded restriction or prevent an association from enforcing a valid rule through the required process.

Can a planned-community board vote in a closed executive session?

No. A closed portion of a planned-community meeting is limited to consideration without action. The vote or other formal action must occur in an open meeting.

What should I do if an HOA says one of these changes does not apply?

Confirm whether the property is in a planned community or condominium, identify the date of the relevant conduct, and compare the notice or decision with the current statute and governing documents. A general summary cannot resolve every timing, classification, or enforcement issue.

If you are facing an Arizona HOA lien, collection lawsuit, foreclosure, or enforcement dispute and need help understanding how the current law applies to the documents in your matter, you can schedule a paid HOA consultation.

This article provides general information about Arizona law and is current as of the date above. It is not legal advice and does not create an attorney-client relationship. Statutes and court decisions can change. Consult a licensed Arizona attorney about your specific situation before acting.