How do HOAs work, and what can they require of homeowners?

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Most newer Phoenix-area communities have a homeowners association. When you buy, you automatically agree to its recorded rules (the CC&Rs) and to pay its assessments; in return it maintains shared areas and enforces standards on exteriors, landscaping, parking and sometimes rentals. It can fine you and place a lien for unpaid dues. Read the documents before you buy, and know that disputes can be taken to the Department of Real Estate. Arizona regulates planned communities and condominiums in Title 33 of its statutes, which set what an association may and may not do: hold open meetings, give notice before fines, follow its own rules on architectural approval, and provide a resale disclosure package to buyers within set deadlines and fee caps. The covenants, conditions and restrictions that bind every owner are recorded with the county, so you can read them for any property before making an offer. Day to day, an HOA collects monthly or quarterly assessments for landscaping, common areas, pools and reserves, and it can levy special assessments for big repairs; it approves exterior paint, additions and sometimes landscaping; many limit short-term rentals or require tenants to be registered. Unpaid assessments become a lien on the home and, in extreme cases, foreclosure, so pay them like a mortgage. The Arizona purchase contract gives buyers time to review the HOA package and cancel if they dislike what they read. If a dispute cannot be resolved with the board, the Department of Real Estate runs a low-cost HOA dispute process, decided by an administrative law judge.

How do HOAs work, and what can they require of homeowners?

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