HB 2865 — homeowners' associations; attorney fees

Fifty-seventhHouse LegislatureEngrossed Firsthomeowners' Regularassociations; Session COMMITTEE ON COMMERCE HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B.

attorney fees State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session HOUSE BILL 2865 (ReferenceAN toACT printedAMENDING bill)TITLE Amendment33, instructionCHAPTER key:9, ARTICLE 3, ARIZONA REVISED STATUTES, BY ADDING SECTION 33-1243.01;

[GREENAMENDING UNDERLININGTITLE IN33, BRACKETS]CHAPTER indicates16, textARTICLE added1, toARIZONA statuteREVISED orSTATUTES, previouslyBY enactedADDING sessionSECTION law.33-1803.01;

[GreenRELATING underliningTO inCONDOMINIUMS brackets]AND indicatesPLANNED textCOMMUNITIES. added to new session law or text restoring existing law.

[GREEN(TEXT STRIKEOUTOF INBILL BRACKETS]BEGINS indicatesON newNEXT textPAGE) removed- fromi statute- orH.B. previously enacted session law.

[Green2865 strikeoutBe init brackets]enacted indicatesby textthe removedLegislature fromof existingthe statute,State previouslyof enactedArizona: session law or new session law.

<<Green carets>> indicate a section added to the bill.

<<Green strikeout in carets>> indicates a section removed from the bill.

The bill as proposed to be amended is reprinted as follows:

costs [A.]A. NOTWITHSTANDING ANY PROVISION IN THE CONDOMINIUM DOCUMENTS OR ANY AGREEMENT BETWEEN THIRD PARTIES [AND NOTWITHSTANDING ANY OTHER PROVISION IN THIS CHAPTER], AN ASSOCIATION SHALL NOT CHARGE OR OTHERWISE ASSESS THE ASSOCIATION'S ATTORNEY FEES AND RELATED COSTS ONTO ONE OR MORE UNIT OWNERS OR FORMER UNIT OWNERS.

[ALLNOTWITHSTANDING PARTIES IN ANY LITIGATION,PROVISION ARBITRATION,IN MEDIATION,THE ADMINISTRATIVECONDOMINIUM ACTIONDOCUMENTS OR OTHERANY CLAIMAGREEMENT SHALLBETWEEN BEARTHIRD THEIRPARTIES OWNAND ATTORNEYNOTWITHSTANDING FEESANY ANDOTHER RELATEDPROVISION COSTS,IN EXCEPTTHIS THAT]CHAPTER, AAN UNITASSOCIATION OWNERSHALL ORNOT FORMERCHARGE UNITOR OWNEROTHERWISE MAYASSESS RECOVERTHE ASSOCIATION'S ATTORNEY FEES AND RELATED COSTS AGAINSTONTO THEONE ASSOCIATIONOR IFMORE [THE CONDOMINIUM DOCUMENTS SO PROVIDE] [THE UNIT OWNEROWNERS OR FORMER UNIT OWNEROWNERS. PREVAILS].

[B.A UNIT OWNER OR FORMER UNIT OWNER MAY RECOVER ATTORNEY FEES AND RELATED COSTS AGAINST THE ASSOCIATION IF THE UNIT OWNER OR FORMER UNIT OWNER PREVAILS.

SUBSECTION A OF THIS SECTIONSUBSECTION DOES NOT APPLY TO CLAIMS BY THE ASSOCIATION AGAINST THIRD-PARTY VENDORS, DECLARANTS, DEVELOPERS OR ANY ACTIONINDIVIDUAL BROUGHTOR PURSUANTENTITY TOOTHER SECTIONTHAN 12-552.]UNIT Sec.OWNERS OR FORMER UNIT OWNERS WHO ARE NOT DECLARANTS.

B.

SUBSECTION A OF THIS SECTION DOES NOT APPLY TO ANY ACTION BROUGHT PURSUANT TO SECTION 12-552.

Sec.

costs [A.]A. NOTWITHSTANDING ANY PROVISION IN THE COMMUNITY DOCUMENTS OR ANY AGREEMENT BETWEEN THIRD PARTIES [AND NOTWITHSTANDING ANY OTHER PROVISION IN THIS CHAPTER], AN ASSOCIATION SHALL NOT CHARGE OR OTHERWISE ASSESS THE ASSOCIATION'S ATTORNEY FEES AND RELATED COSTS ONTO ONE OR MORE MEMBERS OR FORMER MEMBERS.

[ALLNOTWITHSTANDING PARTIESANY PROVISION IN ANYTHE LITIGATION,COMMUNITY ARBITRATION,DOCUMENTS MEDIATION,OR ADMINISTRATIVEANY ACTIONAGREEMENT ORBETWEEN OTHERTHIRD CLAIMPARTIES SHALLAND BEARNOTWITHSTANDING THEIRANY OWNOTHER ATTORNEYPROVISION FEESIN ANDTHIS RELATEDCHAPTER, COSTS,AN EXCEPTASSOCIATION THAT]SHALL ANOT MEMBERCHARGE OR FORMEROTHERWISE MEMBERASSESS MAYTHE RECOVERASSOCIATION'S ATTORNEY FEES AND RELATED COSTS AGAINSTONTO THEONE ASSOCIATIONOR IFMORE HouseMEMBERS AmendmentsOR toFORMER H.B.MEMBERS.

2865A [THEMEMBER COMMUNITYOR DOCUMENTSFORMER SOMEMBER PROVIDE][THEMAY RECOVER ATTORNEY FEES AND RELATED COSTS AGAINST THE ASSOCIATION IF THE MEMBER OR FORMER MEMBER PREVAILS].PREVAILS.

[B.THIS SUBSECTION DOES NOT APPLY TO CLAIMS BY THE ASSOCIATION AGAINST THIRD-PARTY VENDORS, DECLARANTS, DEVELOPERS OR ANY INDIVIDUAL OR ENTITY OTHER THAN MEMBERS OR FORMER MEMBERS WHO ARE NOT DECLARANTS.

SUBSECTIONB. A OF THIS SECTION DOES NOT APPLY TO ANY ACTION BROUGHT PURSUANT TO SECTION 12-552.] Enroll and engross to conform Amend title to conform And, as so amended, it do pass JEFF WENINGER CHAIRMAN 2865WAY2.docx 02/14/2025 2:13 PM C:

MRSUBSECTION 2865COMMERCE.docxA 02/18/2025OF 06:03THIS PMSECTION H:DOES NOT APPLY TO ANY ACTION BROUGHT PURSUANT TO SECTION 12-552.

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