DorisW1 (Arizona)
Posts: 2
Posts: 2
Posted:
Does any one know of a AZ state law that limits the increase in association dues by the board? Thank you for assistance.
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Increase In Condo Association Dues
Started by DorisW1 • 6 replies • 557 views
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SheliaH (Indiana)
Posts: 6,964
Posts: 6,964
Posted:
See my response to your question on special assessments (it would have been fine if you put both questions in one post, by the way.)
And read your documents - a special assessment is different from the routine one you pay every month (or quarter or annually). In many communities, the maximum increase is a certain percentage over the current year's fee - anything higher requires homeowner approval. Keep reading your documents for any instructions regarding special assessments as well - generally, those always require homeowner approval
And read your documents - a special assessment is different from the routine one you pay every month (or quarter or annually). In many communities, the maximum increase is a certain percentage over the current year's fee - anything higher requires homeowner approval. Keep reading your documents for any instructions regarding special assessments as well - generally, those always require homeowner approval
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
AugustinD
Posts: 5,144
Posts: 5,144
Posted:
This section of the Arizona Condominium Act seems relevant:
33-1243
"D. Except as provided in the declaration, within thirty days after adoption of any proposed budget for the condominium, the board of directors shall provide a summary of the budget to all the unit owners. Unless the board of directors is expressly authorized in the declaration to adopt and amend budgets from time to time, any budget or amendment shall be ratified by the unit owners in accordance with the procedures set forth in this subsection. If ratification is required, the board of directors shall set a date for a meeting of the
unit owners to consider ratification of the budget not fewer than fourteen nor more than thirty days after mailing of the summary. Unless at that meeting a majority of all the unit owners or any larger vote specified in the declaration rejects the budget, the budget is ratified, whether or not a quorum is present. If the proposed budget is rejected, the periodic budget last ratified by the unit owners shall be continued until such time as the unit owners ratify a subsequent budget proposed by the board of directors."
See https://www.azre.gov/hoa/documents/Condominium_Act.pdf .
Assuming your condominium falls under the Arizona Condo Act, then you will have to read the Condo's Declaration to see whether the Board must hold a meeting for members to ratify a budget.
33-1243
"D. Except as provided in the declaration, within thirty days after adoption of any proposed budget for the condominium, the board of directors shall provide a summary of the budget to all the unit owners. Unless the board of directors is expressly authorized in the declaration to adopt and amend budgets from time to time, any budget or amendment shall be ratified by the unit owners in accordance with the procedures set forth in this subsection. If ratification is required, the board of directors shall set a date for a meeting of the
unit owners to consider ratification of the budget not fewer than fourteen nor more than thirty days after mailing of the summary. Unless at that meeting a majority of all the unit owners or any larger vote specified in the declaration rejects the budget, the budget is ratified, whether or not a quorum is present. If the proposed budget is rejected, the periodic budget last ratified by the unit owners shall be continued until such time as the unit owners ratify a subsequent budget proposed by the board of directors."
See https://www.azre.gov/hoa/documents/Condominium_Act.pdf .
Assuming your condominium falls under the Arizona Condo Act, then you will have to read the Condo's Declaration to see whether the Board must hold a meeting for members to ratify a budget.
GeorgeS21 (Florida)
Posts: 3,808
Posts: 3,808
Posted:
But, to the OP’s question - AZ apparently, if what Augustin provided is about all there is, does not limit the “increase” in dues.
AugustinD
Posts: 5,144
Posts: 5,144
Posted:
By my reading, and depending on the governing documents, an increase may be limited via a members' vote not to ratify the budget.
LetA (Nevada)
Posts: 2,679
Posts: 2,679
Posted:
I googled the question on cap on assessments in AZ HOA's Top google response states the maximum an AZ HOA can raise yearly assessments is 20%.
AugustinD
Posts: 5,144
Posts: 5,144
Posted:
Quote:
Posted By LetA on 01/09/2020 5:02 PM
I googled the question on cap on assessments in AZ HOA's Top google response states the maximum an AZ HOA can raise yearly assessments is 20%.
I googled the question on cap on assessments in AZ HOA's Top google response states the maximum an AZ HOA can raise yearly assessments is 20%.
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