In Arizona, a developer (declarant) controls a new HOA until the date set in the declaration, but no later than when the second-to-last lot is conveyed to a buyer (A.R.S. § 33-1820). Turnover then shifts control to an owner-elected board. Transcend Community Management guides developer-to-owner transitions in fast-growing Maricopa and Pinal County communities.
What is declarant control?
When a new subdivision is built, from Buckeye and Surprise to San Tan Valley and Maricopa, the developer usually controls the association: it appoints the board, sets the first budget and often runs architectural review. A.R.S. § 33-1820 requires any declaration with declarant control to state when it ends or how to calculate that date, and ends it in any case no later than the conveyance of the second-to-last lot to a buyer.
After control ends but while the declarant still owns a lot, the association must maintain common areas at least to the level the declarant did, must not interfere with the declarant’s building and sales, and must give the declarant the same common-area access as other members.
Other rules that change at turnover
- Voting: once declarant control ends, proxies are no longer allowed; absentee ballots are used (A.R.S. § 33-1812).
- Amendments: during declarant control, the declaration generally can’t be amended without the declarant’s written consent (A.R.S. § 33-1817).
- Board notice: the 48-hour board meeting notice rule in A.R.S. § 33-1804 applies after declarant control.
- Artificial turf protections in A.R.S. § 33-1819 begin after declarant control.
- Resale disclosures must state whether the community is still under declarant control.
- Condominiums: see A.R.S. § 33-1243 and A.R.S. § 33-1245 for condominium board and declarant contract rules.
What this means for incoming owner boards
Turnover is the best chance to start right. A practical checklist:
- Collect records: governing documents, plats, financial statements, bank accounts, contracts, insurance policies, warranties, plans and as-builts.
- Get an independent financial review and confirm reserves and developer subsidies.
- Commission or update a reserve study.
- Walk common areas, retention basins, walls, gates and irrigation with an expert, and document defects promptly.
- Review vendor contracts and management agreements, and bid as needed. See vendor bidding and contracts.
- Adopt policies for collections, enforcement and records.
Our new board member guide helps first-time directors.
What this means for homeowners
Turnover is when owners gain a real voice. Attend the turnover meeting, consider serving, and expect some changes as the new board reviews contracts and budgets.
How Transcend applies this
Our developer turnover and transition service works with developers and incoming owner boards to organize records, transfer accounts, set up portals and the Community Link app, and train new directors. For large new communities, see master-planned community management. Start with a free proposal.
Common turnover pitfalls in new Arizona communities
The Valley’s growth corridors, from the far West Valley to the Pinal County communities south of Queen Creek, see turnovers every year. Common issues include:
- Under-funded budgets. Early budgets are sometimes set low to help sales, then rise sharply after turnover. Review the true cost of landscaping, utilities and insurance.
- Missing reserves. If no reserve study exists, the new board starts from zero on long-term planning.
- Incomplete common-area work. Retention basins, landscaping, walls or amenities may be unfinished or still under warranty. Document them before warranties expire.
- Long-term contracts. Review contracts the developer signed, including management, landscaping and amenity agreements, and understand termination rights.
- Records gaps. Get electronic copies of everything, including vendor lists and gate and access-control system credentials.
- Architectural control. Confirm who reviews owner requests after turnover; under A.R.S. § 33-1817, any design review committee must include a board member who chairs it.
Early, organized communication with owners is just as important: announce the turnover, introduce the new board, explain how to reach management, and share the budget. New owners in growing communities often don’t know the association exists until their first statement arrives, so a welcome packet and portal sign-up push in the first month pay off. See board communication with homeowners.
Quick checklist for the first 90 days after turnover
- Hold an organizational meeting to elect officers and set a meeting calendar.
- Move bank signature authority to the new board and review account access.
- Confirm insurance coverage, including directors and officers liability.
- Order or update the reserve study and walk the common areas with a professional.
- Adopt core policies for collections, enforcement, records and architectural review.
- Introduce the new board to owners and explain how to reach management.
Boards considering a new manager at turnover can review how to hire an HOA management company.
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
On the date or event set in the declaration, but no later than when the second-to-last lot is conveyed to a buyer under A.R.S. § 33-1820.
Generally not without the declarant’s written consent, under A.R.S. § 33-1817.
Governing documents, financial statements, bank records, contracts, insurance policies, warranties, plats and as-built plans for common areas.
No. After declarant control ends, Arizona planned communities must use absentee ballots instead of proxies.
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.
