Last year, the Arizona State Legislature passed HB2298, now A.R.S. Section 33-1818, which applies to planned communities with public roadways. Now planned communities are faced with figuring out whether they need to worry about this new law. Mulcahy Law Firm, P.C. is here to assist at every step of the way.
The first step is determining whether this law applies to your planned community. A.R.S. 33-1818 only applies to planned communities that meet all of the following criteria:
- The planned community is no longer under Declarant control;
- CC&Rs were originally recorded before January 01, 2015;
- CC&Rs include on-street parking regulations; and
- The roadways within the community are public.
If the planned community meets all four requirements, the existing on-street regulations remain in effect until either of the following occurs:
- No later than June 30, 2025, the planned community shall call a meeting of the membership on the question of whether to continue to regulate public roadways. If a quorum of the membership is met and a majority of the owners voting at that meeting votes to continue regulating public roadways in the planned community, the planned community retains its authority to regulate those public roadways. The board of directors shall record in the office of the county recorder of the county in which the planned community is located a document confirming that the planned community continues to regulate the public roadways.
- If the vote fails or if the planned community does not hold a vote by June 30, 2025, the planned community no longer has authority to regulate the public roadways in the planned community and any existing regulations expire.
If such planned community’s CC&Rs were recorded on or after January 1, 2015, the community has no authority over public roadways.
Here at Mulcahy Law Firm, P.C. we’ve heard a variety of questions and responses to this new legislation. We’ve heard some communities comment that they are hesitant to go through the process of holding the vote because they don’t actively enforce their CC&Rs parking restrictions right now, while others are eager to do so in order to preserve the right to enforce parking restrictions if it becomes an issue in the community down the line. If your association qualifies, it is our recommendation to hold the vote regardless of current enforcement efforts.
We have already started helping planned communities navigate compliance with A.R.S. Section 33-1818, from the beginning with reviewing governing documents to see if the law applies, all the way through drafting the ballot and preparing for the vote. Our firm can also handle the ballots and recording the results of the vote with the County.
Contact Mulcahy Law Firm, P.C. today to inquire about our services in assisting planned communities with compliance with this new law. June 30, 2025 will be here before we know it, so it’s best for Boards to start thinking about this now.
