AZ looking at special taxing districts for certain HOAs

A number of legislators are behind HB2474, a bill that restricts planning boards and municipalities from mandating HOAs unless the development has one of the following: a pool, a clubhouse, a lake, a golf course, or one of a few other amenities.  If not, which pertains to those developments with just common areas or smaller amenities than those required, any proposed planned community must conform to Title 48, Special Taxing Districts, Chapter 4, Municipal Improvement Districts, or Chapter, County Improvement Districts, and be a government entity.

I have urged such an approach over the years as uses existing law and creates a government entity, subject to the 14^th Amendment.  The Representatives are Townsend, Orr, Stevens, Borrelli, Boyer and Petersen.

The short bill reads:

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 9, chapter 4, article 6, Arizona Revised Statutes, is amended by adding section 9-461.15, to read:

 9-461.15. Planned communities and homeowners’ associations; limitation; municipal improvement districts

 A.     The planning agency of a municipality in exercising its authority pursuant to this title shall not require as part of a subdivision regulation or approval or a zoning ordinance that a subdivider or developer construct or establish a planned community as defined in section 33-1802 unless the planned community association owns or is otherwise liable for any portion of the costs of any one or more of the following special features:

 1. A golf course.

2. One or more lakes.

3. A swimming pool with an area of more than one thousand two hundred square feet.

4. A clubhouse or other community building that is more than two thousand five hundred square feet in size.

5. An orchard or other agricultural feature that in aggregate covers two acres.

6. An equestrian area or facility.

7. A landing strip, runway or other similar feature designed to be used for aircraft.

8. A commercial property.

9. A public or private school.

10. One or more churches.

B. For any proposed planned community that does not contain one or more special features as prescribed by subsection A of this section, the municipal planning agency shall require the formation of a municipal improvement district pursuant to title 48, chapter 4.

 Sec. 2. Title 11, chapter 6, article 1, Arizona Revised Statutes, is amended by adding section 11-810, to read: [Reads as above, except a conformity to Chapter 6 of Title 48].

As a reference, please see my 2004 Commentary, A proposal for the “Muni-zation” of HOAs; Stop developers from granting private government charters.