Arizona • Special assessment notice
Special assessment from your Arizona HOA — who decides, and is there a cap?
Arizona runs two separate rulebooks — one for condominiums, one for planned communities — and they diverge on exactly the things that matter for an assessment. The first question is always which one governs your property.
The short answer
In Arizona it depends on whether you're in a condominium or a planned community, and on your declaration. Planned-community regular assessments are capped at +20%/year without a vote (A.R.S. § 33-1803); condos have no statutory cap. Arizona mandates no reserves, so heat- and storm-driven specials are common. CondoSignal checks which act applies and what your documents require. Free.Arizona at a glance
Which act applies
Condo vs. HOA
Chapter 9 (condos) and Chapter 16 (planned communities) differ.
Regular-dues cap
+20% / yr (HOAs)
Planned communities only (§ 33-1803); condos have none.
Special-assessment vote
Per declaration
No statutory default.
Reserves required
No
Heat-driven specials fill the gap.
Resale fee cap
$400
Plus $100 rush / $50 update (§ 33-1260 / § 33-1806).
Condo vs. planned community
Arizona condos fall under A.R.S. Title 33, Chapter 9; planned communities (most HOAs) fall under Chapter 16. Planned-community boards can't raise regular assessments more than 20% in a year without a member vote (§ 33-1803) — but that cap is on regular dues, not special assessments, and condos have no equivalent. For special assessments specifically, the authority comes from your declaration, which may require a vote above a threshold or may let the board act alone.
No reserves, hot climate
Arizona mandates no reserve study and no reserve funding. Combined with extreme heat that accelerates roof, HVAC, and sealant wear, that makes special assessments the usual way major systems get replaced. The resale packet must disclose current and approved special assessments and whether a reserve study even exists (§ 33-1260 for condos, § 33-1806 for HOAs), with the disclosure fee capped at $400.
Delinquency and foreclosure
Arizona is not a super-lien state, so the first mortgage and tax liens outrank the association — meaning unpaid assessments can leave the association under-recovered. Foreclosure thresholds differ by act and were adjusted for planned communities in 2025, and both acts require the board to offer a reasonable payment plan before filing. If a large assessment triggers a wave of delinquencies, that shortfall tends to circle back to the remaining owners.
Your rights in Arizona
As an Arizona owner you're entitled to a resale disclosure packet — capped at $400 — showing current and approved special assessments and whether a reserve study exists (§ 33-1260 condos / § 33-1806 HOAs), and to a reasonable payment plan before the association forecloses. Planned-community owners also have the 20% cap on regular-dues increases. None of this is legal advice — confirm which act applies and check the current statute and Arizona counsel.
What to check
- Confirm whether your property is a condominium or a planned community.
- Read the declaration for any owner-vote threshold on special assessments.
- Pull the resale packet for current and approved specials and the reserve study.
- Ask whether the association funds reserves for heat-stressed systems.
- Check the master-policy deductible against the 5% financing cap.
- Confirm a payment plan was offered before any foreclosure step.
Sources
- A.R.S. § 33-1803 — planned-community assessment cap(High)
- A.R.S. § 33-1260 — condo resale disclosure & fee cap(High)
- A.R.S. § 33-1253 — condominium insurance requirement(High)
Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Arizona-licensed professional.
Related guide
Arizona special assessments — the full guide →This page answers what to do right now. For how special assessments works in Arizona — the law, the process, and what to check before you buy or sell — read the full state guide.
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