Condo and planned-community boards owe legal duties to the owners they govern. This bill addresses those directors' duties — the standards a board member must meet and what happens when they don't.
In short: Addresses the duties of condominium and planned-community board directors.
Introduced — no action Pro-homeowner
This bill spells out the fiduciary duties condo and planned-community board directors owe owners after the developer's control ends, and gives directors liability protection when they meet those standards. It requires directors to act in good faith and with ordinary prudence, but makes it harder to sue them by requiring challengers to prove a breach by clear and convincing evidence.
For homeowners: It writes enforceable director duties into statute — good faith, ordinary care, acting in the best interests of all owners, and disclosing and recusing on conflicts — and makes a director who breaches them personally liable for damages and the owner's legal fees. That gives owners a real, usable remedy against a self-dealing board. It also creates a rebuttable presumption that directors acted properly, which tempers the effect, but the added owner recourse makes it a net positive.
What the bill actually does, point by point — from the Arizona Legislature’s official fact sheet.
- After declarant (developer) control ends, directors must act in good faith, exercise the care an ordinarily prudent person in a like position would use, and act in a manner they reasonably believe is in the owners' best interests.
- Directors who comply with these duty standards are indemnified (protected) against liability.
- In litigation, a director is presumed to have complied, and a challenger must prove a breach by clear and convincing evidence (a heightened standard).
- Keeps existing conflict-of-interest rules: directors must declare conflicts in open meetings and abstain from voting on matters that benefit themselves.
- Preserves existing thresholds without change (75% unit conveyance, 4-year declarant-control period, 25% petition to remove a board member).
- Amends A.R.S. §§ 33-1202, 33-1215, 33-1243, 33-1245, 33-1811.
The A.R.S. sections this bill amends, adds, or repeals — taken from the bill text. Click one to read the current law.
Organizations and industry insiders who registered a position on this bill through the Legislature’s public Request to Speak system — simply where each stood: For, Against, or Neutral. Individual homeowners are not listed. Whether this bill helps or hurts homeowners is our own read, shown by its label above — a group’s position doesn’t set our call. Each row links to that entity’s report card and to the source at azleg.gov.