Arizona HOA fine rules

Ariz. Rev. Stat. § 33-1803(B): "After notice and an opportunity to be heard, the board of directors may impose reasonable monetary penalties on members for violations of the declaration, bylaws and rules of the association." The same subsection closes: "Notice pursuant to this subsection shall include information pertaining to the manner in which the penalty shall be enforced." § 33-1803(C): "A member who receives a written notice that the condition of the property owned by the member is in violation of the community documents without regard to whether a monetary penalty is imposed by the notice may provide the association with a written response by sending the response by certified mail within twenty-one calendar days after the date of the notice. The response shall be sent to the address identified in the notice." The statute prescribes certified mail for the member's response and requires the notice to identify the address to which that response is sent; it prescribes no delivery method for the association's own notice of violation.

Arizona sets no fixed cure period. The statute instead requires an exchange of information. Ariz. Rev. Stat. § 33-1803(C) gives the member "twenty-one calendar days after the date of the notice" to respond by certified mail. § 33-1803(D): "Within ten business days after receipt of the certified mail containing the response from the member, the association shall respond to the member with a written explanation regarding the notice that shall provide at least the following information unless previously provided in the notice of violation: 1. The provision of the community documents that has allegedly been violated. 2. The date of the violation or the date the violation was observed. 3. The first and last name of the person or persons who observed the violation. 4. The process the member must follow to contest the notice." § 33-1803(E): "Unless the information required in subsection D, paragraph 4 of this section is provided in the notice of violation, the association shall not proceed with any action to enforce the community documents, including the collection of attorney fees, before or during the time prescribed by subsection D of this section regarding the exchange of information between the association and the member and shall give the member written notice of the member's option to petition for an administrative hearing on the matter in the state real estate department pursuant to section 32-2199.01."

Ariz. Rev. Stat. § 33-1803(B) — monetary penalties may be imposed only "After notice and an opportunity to be heard"; the statute fixes no number of days within which the member must request that hearing. § 33-1803(C) — the member has "twenty-one calendar days after the date of the notice" to send a written response by certified mail, and § 33-1803(D) gives the association ten business days after receipt of that certified mail to reply in writing with, among other items, "The process the member must follow to contest the notice." § 33-1803(E) — unless the information required by subsection D, paragraph 4 was provided in the notice of violation, the association must "give the member written notice of the member's option to petition for an administrative hearing on the matter in the state real estate department pursuant to section 32-2199.01," and "At any time before or after completion of the exchange of information pursuant to this section, the member may petition for a hearing pursuant to section 32-2199.01 if the dispute is within the jurisdiction of the state real estate department as prescribed in section 32-2199.01."

Arizona fixes no dollar cap on the penalty itself; the only limit on its amount is the reasonableness standard in Ariz. Rev. Stat. § 33-1803(B): "After notice and an opportunity to be heard, the board of directors may impose reasonable monetary penalties on members for violations of the declaration, bylaws and rules of the association." The same subsection does cap the late charge on an unpaid penalty: "Notwithstanding any provision in the community documents, the board of directors shall not impose a charge for a late payment of a penalty that exceeds the greater of fifteen dollars or ten percent of the amount of the unpaid penalty. A payment is deemed late if it is unpaid fifteen or more days after its due date, unless the declaration, bylaws or rules of the association provide for a longer period. Any monies paid by a member for an unpaid penalty shall be applied first to the principal amount unpaid and then to the interest accrued." A separate and differently worded limit governs late payment of assessments rather than penalties, in § 33-1803(A): "Charges for the late payment of assessments are limited to the greater of fifteen dollars or ten percent of the amount of the unpaid assessment and may be imposed only after the association has provided notice that the assessment is overdue or provided notice that the assessment is considered overdue after a certain date."

Ariz. Rev. Stat. § 33-1805(A): "Except as provided in subsection B of this section, all financial and other records of the association shall be made reasonably available for examination by any member or any person designated by the member in writing as the member's representative. The association shall not charge a member or any person designated by the member in writing for making material available for review. The association shall have ten business days to fulfill a request for examination. On request for purchase of copies of records by any member or any person designated by the member in writing as the member's representative, the association shall have ten business days to provide copies of the requested records. An association may charge a fee for making copies of not more than fifteen cents per page." § 33-1805(B) permits records to be withheld "to the extent that the portion withheld relates to" privileged attorney-association communication; pending litigation; "Meeting minutes or other records of a session of a board meeting that is not required to be open to all members pursuant to section 33-1804"; "Personal, health or financial records of an individual member of the association, an individual employee of the association or an individual employee of a contractor for the association"; and "Records relating to the job performance of, compensation of, health records of or specific complaints against an individual employee of the association or an individual employee of a contractor of the association who works under the direction of the association." § 33-1805(C): "The association shall not be required to disclose financial and other records of the association if disclosure would violate any state or federal law."