In Arizona planned communities, the board cannot raise regular assessments more than 20% above the prior fiscal year without approval of a majority of the members, unless the CC&Rs set a lower limit (A.R.S. § 33-1803). Late charges are capped too. Transcend Community Management helps Maricopa and Pinal County boards plan steady increases that protect reserves.
The 20% rule
A.R.S. § 33-1803 provides that, unless the community documents set a lower limit, the association may not impose a regular assessment that is more than 20% greater than the immediately preceding fiscal year’s assessment without approval by a majority of the members. Many declarations set their own, sometimes tighter, caps, so read your CC&Rs alongside the statute.
The 20% limit is in the Planned Communities Act. Condominium assessments are governed by A.R.S. § 33-1255 and the condominium’s declaration and bylaws, so condo boards should confirm their limits with counsel.
Late payments and late charges
An assessment is not considered late until 15 or more days after its due date, unless the documents allow longer. Late charges may not exceed the greater of $15 or 10% of the unpaid assessment, and may be imposed only after the association gives notice that the assessment is overdue. Payments go first to unpaid principal and then to accrued interest.
Special assessments
Special assessments are authorized and limited by your declaration, not by the 20% rule. Some documents require a member vote above a set amount. Arizona’s resale disclosure law requires sellers to disclose approved special assessments, so they affect home sales too. Read more in our special assessments guide.
What this means for HOA boards
Skipping increases for several years and then needing a large jump is a common trap, especially with Arizona’s rising costs for landscaping, water, pool chemicals, insurance and repairs after monsoon storms. A modest annual increase backed by a current reserve study is easier to explain than a sudden special assessment. Our guides on raising HOA assessments and the HOA budget show how to present an increase to owners.
What this means for homeowners
If your dues rise, ask to see the budget and reserve study. They’re association records you’re entitled to review. Increases above the statutory or document limit need member approval. Our HOA dues explained guide shows where the money typically goes.
How Transcend applies assessment law
Transcend’s budget and reserve planning service builds the annual budget with your board, checks proposed increases against the statutory and document caps, and prepares owner-friendly explanations. On the management side, our Lifetime Guarantee keeps your base management fee from increasing as long as the association auto-renews and stays on our Remote Management option; see Fee Lock.
Why Arizona HOA costs keep rising
Boards across Maricopa and Pinal County are seeing the same pressures:
- Landscaping and water. Contract rates, irrigation repairs and water costs climb, and water conservation in the Phoenix and Pinal Active Management Areas pushes many communities toward converting turf to desert landscaping, which costs money up front.
- Insurance. Property and liability premiums for associations have risen, and deductibles are larger.
- Utilities. SRP or APS bills for streetlights, pool pumps and gates add up, especially in long summers.
- Storm damage. Monsoon wind, haboobs and flooding damage trees, walls and retention basins.
- Aging components. Block walls, paint, asphalt, pool equipment and gate operators wear out on a schedule the reserve study predicts.
How to present an increase to owners
Owners accept increases better when they understand them. Share the draft budget early, show the line items driving the change, compare reserves to the study’s recommendation, and explain what happens if nothing changes. Hold the discussion in an open meeting and take questions. A one-page summary in plain language, sent with the annual budget notice, does more than a long spreadsheet.
Use the 20% cap as a ceiling, not a target. Communities that raise dues modestly and consistently rarely need a large special assessment later. Keep in mind that the cap measures the regular assessment against the immediately preceding fiscal year, so a year with no increase doesn’t “bank” room for a bigger jump the next year.
Quick checklist for budget season
- Start the draft budget early, using actual year-to-date spending.
- Update vendor pricing for landscaping, pool, utilities and insurance.
- Compare reserve contributions to the most recent reserve study.
- Calculate the proposed increase against the 20% statutory cap and any lower limit in your documents.
- Adopt the budget in an open meeting and send owners a clear explanation.
Comparing options for management costs too? See HOA management cost in Arizona.
Disclaimer
This is general information, not legal advice. Arizona statutes are amended often, and how a law applies to your community depends on your declaration (CC&Rs), bylaws, rules and the specific facts. Your governing documents and an Arizona HOA attorney control. Before acting on a legal question, confirm the current statute text on azleg.gov and talk with your association’s counsel.
Frequently asked questions
Not in a planned community without approval of a majority of the members, under A.R.S. § 33-1803, and your documents may set a lower limit.
Generally 15 or more days after the due date, unless your documents allow longer.
The greater of $15 or 10% of the unpaid assessment, after notice that the assessment is overdue.
The statutory cap applies to regular assessments; special assessments are governed by your declaration’s terms.
This page is general information about Arizona community association practice, not legal advice. Your governing documents and an Arizona HOA attorney control how the law applies to your community. Statutes change; verify current text at azleg.gov.
