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Committee backs bill to require condominium associations to disclose records and clarify common expense allocations
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Summary
House Bill 2322, concerning allocation of common expenses in mixed commercial-residential condominium associations, was amended to require associations make allocation records available and to forbid withholding records because of pending litigation; the committee returned the bill with a due-pass recommendation.
The House Commerce Committee adopted a three-page Wenninger amendment and returned House Bill 2322 with a due-pass recommendation.
The measure addresses how condominium common expenses are allocated where commercial condo structures are separate from residential structures. The amendment removed language that would have placed the burden on associations to prove an allocation complied with statutory requirements and instead requires associations to make all records relating to common expense allocations available in a dispute. It also prohibits withholding records based on the pendency of litigation when those records would otherwise be available to a unit owner.
Sponsor Representative Wenninger explained the problem in plain terms: commercial owners in mixed-use condominium complexes were paying disproportionate shares of costs for residential building systems such as common air-handling equipment and facade repairs. Supporters including the Arizona Association of Homeowners and small-business representatives testified in favor of the amendment and the bill as amended.
Outcome: committee adopted the amendment and returned HB 2322 with a due-pass recommendation; the committee vote was recorded as 10 ayes, 0 nays.
Speakers quoted in this article are named in the committee transcript and represented at the hearing.
