HB 2865 Arizona House · 57th Legislature - First Regular Session

homeowners' associations; attorney fees

HB 2865 prevents homeowners' associations (HOAs) and condominium associations in Arizona from charging unit owners or members for the association's attorney fees and related costs in disputes. The bill requires each party in litigation, arbitration, mediation, or other claims to pay their own legal costs, unless the association's governing documents specifically allow a resident to recover fees from the association. It directly affects homeowners in Arizona who are part of HOAs or condominiums by changing how legal costs are handled in conflicts with their associations. The law does not alter existing rules about when residents might recover fees if their association's documents explicitly permit it.
Bill status passed 3 of 5 stages cleared
Introduction
Feb 2025
Committee Review
House Passage
Feb 2025
Senate Passage
Governor
Introduced Feb 12, 2025 Last action Mar 13, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version House Engrossed Version · 4 edits · Feb 27, 2025
MODERATE
This bill adds new provisions to Arizona law that prohibit homeowners' and condominium associations from charging members' attorney fees and costs to the association, except when the member wins the legal action. The law also clarifies that these fee-shifting rules do not apply to claims against third-party vendors or developers.
Scope change
The bill applies to both condominiums (Title 33, Chapter 9) and planned communities (Title 33, Chapter 16), expanding the protection to members of planned communities as well as unit owners in condominiums.
REQUIREMENT

Associations are prohibited from assessing attorney fees and costs onto unit owners or members, regardless of what the association's governing documents say.

The new law includes exceptions for claims against third-party vendors, developers, and other non-member entities.

The law does not apply to actions brought under section 12-552, which relates to certain consumer protection matters.

ELIGIBILITY

Unit owners or members may recover attorney fees from the association only if they win the legal action and the governing documents allow it.

Floor votes · House Feb 27, 2025

How they voted

4215
Passed · 3 other
Total votes 60
Feb 27, 2025
D Democratic27
11 Yea 15 Nay 1
55% Nay
R Republican33
31 Yea 2
93% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
8
Key actions
3
Committee
0
Amendments
2
Feb 27, 2025
Lower · Passed
PASSED
lower
Feb 26, 2025
Lower · Passed
DPA
lower
Feb 18, 2025
Lower · Passed
DPA
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Neal Carter
Neal Carter
RRepublican
AZ
15