homeowners' associations; unlawful provisions; damages

HB 2743 amends Arizona law governing homeowners' associations (HOAs) to clarify notice requirements and limit penalties. It requires HOAs to provide detailed written notices when alleging rule violations - including specific rule references, violation dates, and observers - and gives unit owners 21 days to respond via certified mail. The bill imposes $1,000 damages for HOAs failing to remove unlawful provisions after the first written notice, increasing to $2,500 for subsequent notices. It also caps annual assessment increases at 20% without member approval and limits late fees to $15 or 10% of the unpaid amount. These changes directly affect HOAs and their unit owners by standardizing dispute resolution and financial accountability.