In 2019, the Arizona Legislature passed a bill requiring community associations to mail monthly (or whatever frequency required by governing documents) statements to all residents – regardless of whether the resident owes a payment.
The intent of the legislation was to increase financial transparency by HOAs and ensure that homeowners who are past due in their assessment payment are aware of the amount they owe. CAI supports the intent of the legislation and supports transparency.
Unfortunately, the legislation that passed in 2019 didn’t plan for a process for community associations to forego mailing statements to residents with a zero balance.
This unintended consequence of mailing zero-balance statements to residents has resulted in tens of thousands of dollars in wasted money spent by communities to mail monthly statements to residents with zero balance.
HB 2059 will fix this problem, but still preserve the important transparency (monthly statements) provided to residents who have outstanding assessments owed to the community association.
Contact your member of the Arizona House Government Committee today urging them to SUPPORT HB 2059.
CAI Arizona Legislative Action Committee
- HB 2059 adds only this language to the process:
IF THERE IS NO AMOUNT DUE OR IF THE UNIT OWNER PROVIDES WRITTEN NOTICE TO THE ASSOCIATION THAT THE UNIT OWNER WAIVES THE RIGHT TO RECEIVE STATEMENTS OF ACCOUNT, THE ASSOCIATION IS NOT REQUIRED TO PROVIDE STATEMENTS OF ACCOUNT. A UNIT OWNER MAY REINSTATE THE RIGHT TO RECEIVE STATEMENTS OF ACCOUNT BY PROVIDING WRITTEN NOTICE TO THE ASSOCIATION.
- The majority of homeowners pay on time. HB 2059 penalizes the homeowners who pay on time, by requiring the community spend financial and other resources to mail a zero-balance statement.
- HB 2059 maintains the same transparency in current law that all homeowners who are delinquent will receive statements.
- Only a small number or homeowners in an association are delinquent. The cost to mail statements to them is minimal compared to sending them to the majority of 1.9 million homeowners.
- HB 2059 will allow HOAs to cut the huge expenses they now face by only requiring them to send statements to the small percentage of homeowners who are delinquent.