I recently worked with the members of my association to convince the Board to do a 180, regarding raising the Annual Assessment above a “maximum” amount defined in the governing documents. To do this, I referenced ARS statues to argue that the Governing Documents were the authority on the matter, in this case.

I had started the development of the argument assuming the the Planned Communities Statues applied, as the agent fir the Property Manager referenced, in a Board session, a 20% increase maximum which is present in the Planned Communities satutes, but is not present in the Condominium statutes. Following up on the issue with the Owner of the property management company, I was advised by him, that I was mistaken and that instead the Condominium Act (statutes) applied to our Association.

I developed the argument accordingly, and the Board responded with caution to reverse there action and advance an increase which is better aligned with the Governing Documents’ restrictions.

However, since then, as I was humbled by my lack of understanding of the Governing agreements I had entered into, and their complexities and internal contradiction/exceptions, I continue to read the documents, statues, and publicly available content on HOAs; and I find that I’m not sure that my Association is not a Planned Community.

How does one know for sure?

I’m understanding that the distinction relates to how the common property is owned: with a Planned Community having it owned by the Association for common use of the members; while Condominiums have it owned in equal undivided percentages by the members.

There was one bit of informal advice in given by a lawer in an educational series put on by the City of Scottsdale, that advised that if the definitions section of the CC&Rs states that the Association owns the Common Areas, then its a Planned Community, while if it states an equal undivided percentage of ownership, then its a Condo.

Looking at my CC&R, it clearly states the Common Area is “owned by the Association