Any examples of conversion to Improvement District?
I was wondering if there have been any successful conversions from a property owners association to an Improvement District in Arizona.
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To the best on my knowledge there has never been a conversion of an existing HOA to an Improvement District. First the municipality would have to allow improvement districts in their zoning ordinances, and to my knowledge Gilbert is the only municipality to do that. We tried to pass legislation to require municipalities to allow this option for developers in their zoning regulations for two years and were not successful at getting those bills passed. This coming session we will focus on other priorities and go after this in another year. To make this happen the community would have to take a vote to end the association, then ask for the municipality to accept their community as an improvement district. The association would have to vote to transfer title for all the common property to the municipality and to change the CC&R’s to eliminate the association and assessments to an improvement district and an advolurum tax to pay for the maintenance and upkeep of the common property. Not an easy process but in our perspective a worthwhile objective for many communities.
If you have any more question just let me know