The Overview

If you're buying a home in Arizona, especially one in an HOA, a new state law could change what you learn about its rules and dues before closing. Arizona's governor signed House Bill 2397 on June 22, and the law is titled "homeowners' associations; property covenants; disclosures." The change comes after years of concern about HOA enforcement practices, including foreclosure actions over relatively small unpaid assessments, that can put homeownership at risk. The bill cleared both chambers and was signed into law June 22. ​

What the Law Does

Arizona's House Bill 2397, signed into law June 22, deals with disclosures tied to homeowners' associations and property covenants. The bill record identifies the subject as property covenants and disclosures, meaning buyers would receive details about the rules and financial obligations tied to a home before a sale closes. Those obligations can include monthly or annual dues, special assessments, fines for rule violations, and restrictions on how a property can be used or modified.

A 2017 Arizona Republic investigation found that homeowners' associations could pursue foreclosure over as little as $1,200 in unpaid assessments. Disclosure requirements are designed to ensure buyers understand those risks before they sign. The chaptered version of the law is available from the Arizona Legislature.

By the Numbers

Arizona has about 7.4 million residents and nearly 3.2 million housing units statewide, according to 2024 American Community Survey five-year estimates. About 67 percent of housing units are owner-occupied, and the median home value is $394,500. These figures cover all ages and all residents; the data does not break out how many homes fall under HOA governance.

Legislative Status

The bill was sponsored by Rep. Leo Biasiucci (R-AZ-30), the sole lead sponsor. The House passed it 52 to three on March 3. The Senate passed it 29 to zero on June 12. The lower chamber passed the bill 47 to five on June 13. Gov. Katie Hobbs (D) signed the bill June 22, making it Chapter 249 of the session.

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