Arizona · A.R.S. §§33-1803, 33-1242Arizona HOA dues: the 20% cap, late charges and violation notices

Unless the community documents set a lower limit, an Arizona planned-community association may not impose a regular assessment more than 20% greater than the preceding fiscal year's without approval of a majority of the members (A.R.S. §33-1803(A)). The board may impose reasonable late charges unless that power is reserved to the members; a payment is late if unpaid 15 or more days after its due date unless the documents allow longer, and the late charge is limited to the greater of $15 or 10% of the unpaid assessment and may be imposed only after notice that the assessment is overdue; payments go first to principal, then to interest (§33-1803(A)). After notice and an opportunity to be heard, the board may impose reasonable monetary penalties for violations, with late charges on penalties capped the same way (§33-1803(B)). A member who receives a written notice that the property violates the community documents may respond by certified mail within 21 calendar days, and the association must answer within ten business days with the provision violated, the date, the observer's name and the process to contest (§33-1803(C)–(D)). For condominiums, A.R.S. §33-1242 lets the association charge late fees after an overdue notice and penalties after a hearing, with the same 21-day and ten-business-day violation-notice rule, but its text doesn't contain the 20% cap or the $15-or-10% limit written for planned communities.