I asked Google Gemini, "How do you know that your HOA is being transparent in Arizona?"

Here's the answer: 

You know your Arizona HOA is transparent when they provide open access to financial records (budgets, audits), hold regular, well-noticed meetings with clear minutes, consistently enforce rules fairly, have clear communication about decisions and contracts (like competitive bidding), and allow homeowner review of finances and governing documents, adhering to Arizona Revised Statutes (ARS) like ARS §33-1803. Red flags for a lack of transparency include vague financial statements, secret meetings, sudden fee increases, or withheld records. 

Key Indicators of Transparency

• Financial Openness:

  1. Accessible Records: Easy access to budgets, bank statements, audits (ideally by an independent CPA), and reserve fund details.

  2. Clear Reporting: Detailed, timely financial statements with no unexplained discrepancies.

  3. No Hidden Spending: No unapproved expenditures or checks written to unclear vendors/individuals.

• Meeting & Decision-Making:

1. 1. Regular Meetings: Consistent, scheduled board meetings with proper notice.

   2. Public Minutes: Clear, detailed minutes of all meetings available to members.

   3. Open Discussion: Decisions aren't made behind closed doors; competitive bidding on contracts is common.

• Communication & Enforcement:

  1. Clear Communication: Open channels for questions and concerns; consistent updates.

  2. Fair Enforcement: Rules applied equally to all residents, with proper notice for fines/suspensions (as per ARS §33-1803).

  3. Governing Documents: Easy access to Covenants, Conditions, & Restrictions (CC&Rs) and Bylaws.

• Legal Compliance: Adherence to Arizona's Planned Community and Condominium Acts (ARS Title 33, Chapter 16 & 17). 

Signs of Lack of Transparency (Red Flags)

• Refusal to show financial records or vague statements.

• Sudden, unexplained increases in dues or fees.

• Irregular vendor contracts (no bidding) or sudden price hikes.

• Consistently delayed or canceled meetings.

• No one knows where money is going, or bookkeeping mistakes are common. 

How to Verify Transparency

• Request Documents: Ask the board (in writing) for budgets, meeting minutes, vendor contracts, and reserve studies.

• Attend Meetings: Go to board meetings to observe discussions and decisions firsthand.

• Review Statutes: Familiarize yourself with relevant Arizona HOA laws.

• Look for Audits: An annual audit by a CPA is a strong sign of financial diligence.  

We agree!

Receiving and Following Bad Advice From Management Companies In 

Arizona, "bad" advice from HOA management companies often conflicts explicitly with the state’s stringent open-meeting laws and rapidly changing legislative landscape. Following such advice can lead to costly administrative hearings before the Arizona Department of Real Estate (ADRE) or significant civil penalties. 

Common examples of bad advice specific to Arizona HOAs include. 

Governance and Open-Meeting Violations

• 1. "Secret" or Executive Voting: Advising boards that they can vote on non-sensitive issues via email or in executive sessions. Under A.R.S. § 33-1804 (Planned Communities) and § 33-1248 (Condominiums), almost all board business and all voting must occur in a meeting open to homeowners.

  2. Restricting Homeowner Speech: Suggesting the board can "shut down" vocal critics during meetings. Arizona law requires that homeowners be allowed to speak on any item on the agenda before the board takes action.

  3. Improper Use of Executive Sessions: Advising boards to use executive sessions for general business topics (like vendor contracts or budget discussions) to avoid public scrutiny. Arizona law strictly limits executive sessions to matters involving legal advice, the personal health/financial information of members, and ongoing litigation. 

  4. Improper Use of Emergency Sessions or Non-agendized Actions (especially for essential issues): Advising boards to use executive sessions or non-agendized actions for general business topics can cause unnecessary litigation. Please don't do it. 

Financial and Collection Missteps

1. Ignorance of New Foreclosure Thresholds: Failing to alert the board to the 2025 legislative changes that increased the threshold for foreclosure. As of late 2025, an Arizona HOA can initiate foreclosure only if an owner is delinquent for 18 months or owes at least $10,000 in assessments, a significant increase from previous limits.

2. Incorrect Assessment Maximums: Neglecting to check the community's CC&Rs for specific caps on annual assessment increases, which can lead to illegal dues hikes and potential lawsuits.

3. Mishandling "Bad Debt": Advising boards not to raise assessments to cover unpaid dues from delinquent neighbors, which can eventually lead to a "special assessment" crisis. 

Rule Enforcement and Landscaping Issues

• 1. Overzealous "Aesthetic" Enforcement: Encouraging the board to act as "the taste police" on items like specific rock shades or minor plant variations without apparent authority in the governing documents.

  2. Ignoring Protection for Native or Efficient Landscaping: Failing to advise the board that they cannot prohibit certain types of water-saving landscaping or artificial turf in ways that violate specific Arizona homeowner protections.

  3. Selective Fine Application: Recommending the board target vocal residents for minor violations while ignoring the same issues on other properties, which are a prime target for ADRE complaints. 

Record-Keeping and Transparency

1. Withholding Non-Confidential Records: Suggesting the board can refuse homeowner requests to see non-confidential records, such as vendor contracts or unedited meeting recordings. Arizona law (A.R.S. § 33-1805) requires associations to provide access to most records within 10 business days.

2. Destroying Meeting Recordings: Advising boards that they can delete recordings of open meetings immediately. New 2025 laws require HOAs to retain unedited recordings of open meetings for at least 6 months and make them available to members.