House passes HOA transparency bill after divided floor debate

House Bill 2442, which amends Arizona statutes governing condominiums and planned communities, passed third reading on March 18, 2025, after floor debate that featured both homeowners’ advocates and representatives of homeowners associations.

The bill, which amends several sections of the Arizona Revised Statutes related to condominiums and planned communities, requires greater transparency in annual operating budgets, advance availability of budgets for homeowner review, an informational meeting where homeowners can ask questions about the budget, and homeowner authorization for special assessments and for budget increases above a stated threshold.

Why it matters: Supporters said the measure will give homeowners more control and transparency over HOA spending. Representative Neil Carter, who explained his aye vote, called it “good governance” that helps homeowners control costs and requires ratification when budgets increase by more than 10 percent. Opponents including Representative Connolly and Representative Cruz said the protections were unnecessary or could impose burdens on functioning associations; several speakers said they received many constituent messages on both sides.

Vote: The clerk recorded 31 ayes, 27 nays and 2 not voting; the motion passed and the clerk was instructed to transmit the bill to the Senate.

What’s next: The bill will be conveyed to the Senate for their consideration. The House’s official record shows the bill was passed and the action transmitted to the Senate during this floor session.