REALTORS® Protect Arizona Privacy Rights

This article originally appeared on the National Association of REALTORS® website and can be found here.

Thanks to a new Arizona law co-sponsored by State Representative Michelle Ugenti and State Senator Gail Griffin—both REALTORS®—condominium and townhouse associations can no longer restrict individual unit owners from renting their units based on a criminal background check.

The new law, which took effect in July 2014, prohibits criminal background checks for condo rentals. It also limits the amount of information the association can legally obtain about renters.

Passed in an omnibus bill signed in April by Arizona Governor Jan Brewer, the law also provides protections for tenants and allowances for unit investors.

REALTORS® in Arizona supported legislation to limit homeowners associations (HOAs) from requiring renters’ private information like Social Security numbers and credit reports—and charging steep processing fees, up to $250 in some cases.

Before the law, Arizona homeowner associations were allowed to require every owner to sign a “crime-free addendum” and make criminal background checks mandatory. It restricted those with criminal backgrounds from moving into some condo communities.

The new law strips homeowner associations of that power.

Here is a list of some of the new homeowner association statutes:

  • No required disclosure of any information regarding a tenant other than the name and contact information of all adults occupying the unit, term of lease, and the license plate number of the tenant
  • Limits the amount a homeowner’s association can charge to no more than $25 for administrative fees for each new tenant
  • Allows non-occupant owners to serve on the board of directors
  • Prohibits associations from requiring a copy of the tenant’s credit report, rental application, lease agreement, rental contract or any other personal information about the tenant
  • Directs a unit owner to abate criminal activity
  • Allows email and fax votes to count towards a quorum for non-present owners
  • Allows unit owners to display political signs on their property
  • Allows unit owners to use a crime-free addendum as part of their lease

The new law does allow homeowner associations to restrict occupancy in the case of a convicted sex offender, however.

Homeowners—and renters—in Arizona can thank REALTORS® for their efforts in securing privacy rights.

Chrystal Caruthers contributed to this article.

Update March 12, 2015

After noting reports from REALTORS® that it was becoming increasingly common for parties to be surprised at close of escrow by previously undisclosed HOA fees, AAR introduced a new form that promotes a greater level of disclosure of the various fees that are payable upon close of escrow. The new HOA Addendum to the Residential Purchase Contract requires full disclosure of all fees which would be charged by the homeowners association at close of escrow.  By introducing this new form, AAR increases transparency for fees and encourages greater fairness for both buyers and sellers.

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