Understanding Common Interest Developments and How They Work in Arizona

Common interest development (CID) refers to a form of real estate where every owner has exclusive rights to certain parts of the property. These parts are referred to as units. They have shared rights to other parts of the property which are called common areas. If, for example, one would like to have a pool, but they cannot afford it, they would share the cost with others and share the usage. Common interest developments are commonly used for planned development and condominium in California but not as common in Arizona as these kinds of developments are typically under homeowner associations or condominium associations. For help with your HOA, call our Scottsdale HOA management company today.

Common Interest Developments in Arizona

Every state has unique laws that govern homeowners associations (HOA). In Arizona, the Arizona Revised Statuses (ARS) oversees common interest developments. A homeowner community is a group of landowners with common interests. They usually share common areas. According to Arizona law, the associations may be condominiums or planned communities. According to the ARS, a condo is a real estate portion that is made for individual ownership. The remainder, usually common areas like hallways, greenbelt and pools, are designated for common ownership solely by the owners of the separate portions. The common areas are meant to be enjoyed equally by every member of the association.

Planned communities are defined as real estate developments which include real estate that belongs to nonprofit corporations or incorporated association of owners which is created with the aim of managing and maintaining the property. These are homeowners associations (HOAs).

Governing Documents

The documents that govern homeowners associations may fall into two categories –  documents which control the use of the property or the conduct of the residents while living in the property, and documents that control the corporate entity embodying the association.

Documents Governing the Conduct of Residents

  • Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
  • Rules and Regulations
  • Architectural Guidelines

Documents that Govern the Corporate Entity

  • Bylaws
  • Resolution of the Board of Directors
  • Articles of Incorporation
  • Plat map

According to the Arizona Planned Communities Act and the Arizona Condominium Act, the state demands that all meetings be conducted openly. It is necessary to provide agendas and notices with the right information about the meetings. All members must be able to air their opinions after the discussion of agenda items in an open forum. The state has many legislations to implement the policies.

Board Meetings

There are three major forms of meetings that members of an association may attend; regular board meetings, emergency board meetings, and annual membership meetings. Regular board meetings are the most common ones. These are planned meetings usually held every month or on a regular basis. These meetings are a chance to discuss matters that affect the association.

Why Home Owner’s Associations Are the Best Choice When Considering Buying an Arizona Home
Understanding How HOA Fees Work With Taxes