Ending a condominium (termination) can force owners to sell, so the process is high-stakes. This bill addresses how a condominium is terminated and the protections owners get in that process.
In short: Addresses the process for terminating a condominium.
Introduced — no action Pro-homeowner
HB2817 tightens the rules for terminating a condominium and forcing owners to sell (A.R.S. 33-1228, 33-1260, and new 33-1262). It raises the vote needed to terminate newer condominiums, strengthens the payout and appraisal protections for owner-occupants, and adds annual and resale disclosures warning buyers that termination is possible.
For homeowners: Pro-homeowner: it raises the termination vote for newer condos to 95%, boosts owner-occupant relocation pay to 10%, and adds appraisal/arbitration safeguards. The annual ownership roster and resale disclosures directly target investor buy-up-and-terminate schemes by giving owners early warning.
What the bill actually does, point by point — from the Arizona Legislature’s official fact sheet.
- Condominiums created after September 24, 2022 require a 95% vote of the association to terminate, up from 80%.
- Owner-occupants receive an additional 10% of their unit's value for relocation costs (increased from 5%).
- Fair market value is set by a state-licensed real estate appraiser using comparable sales; an owner may obtain a second appraisal at their own expense.
- If the two appraisals are within 5% of each other, the higher amount applies; if they differ by more than 5%, binding arbitration is required at the association's expense.
- Special assessments imposed during the three months immediately before termination cannot be used to reduce an owner's fair-market-value payout.
- Associations must give buyers a resale disclosure that the condominium may be terminated and owners may be forced to sell, and must send an annual notice with the termination voting threshold and a full unit-ownership roster (number of units, units per owner, and each owner's name).
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.