By Brent Ruffner | Daily Independent
A new Arizona Supreme Court opinion could limit homeowners association restrictions on such things as short-term rentals in different areas, according to some local legal experts.
The opinion, filed March 22, was issued by Superior Court Judge Janet C. Bostick of Pima County, who wrote that the tools used to amend rules of covenants, conditions and restrictions — or CC&Rs — of an HOA could be limited depending on the circumstances.
The opinion was part of an Arizona Supreme Court case Maarten Kalway v. Calabria Ranch HOA and several others.
“Simply stated, the gist of paragraph 17 (from Judge Bostick’s opinion) is that the scope of the topics that can be used to amend CC&Rs may be limited in some circumstances depending on what is contained and foreseeable from the original (rules),” said Julie Pace, a Paradise Valley councilor and attorney.
That means an HOA may or may not be able to amend its CC&Rs to prohibit short-term rentals or any other item, depending on how the documents originally were written and presented to homeowners.
“There could be more legal challenges to prohibiting short-term rentals and it will depend on the original CC&Rs whether a short term rental restriction or prohibition will be upheld since the new Supreme Court case potentially narrows amendments to CC&Rs,” Pace said.
CC&Rs are an agreement between homeowners and the association as to various community aspect. As originally written, those agreements can regulate everything from paint colors for a home and holiday decorations to landscaping and upkeep.
Around the Valley, many groups are looking for ways to curb short-term rentals because of fears involving parties and general nuisances. It has led some HOAs, particularly in the West Valley, to look at how they may be addressed within CC&Rs.
Pace has said the Town of Paradise Valley is working to cut down on nuisance behavior at short-term rentals. She said some residents in the upscale town have complained because people have rented Airbnb homes to host loud parties.
In 2020, residents of the Town of Paradise Valley and surrounding communities said they dealt with nuisance issues that included parties with scantily-clad women, beer bottles and general unsafe conditions from short-term rental units in residential neighborhoods.
Pace said she expects the new opinion to be used to give advice to property owners who want to amend CC&Rs. She said attorneys could use the new case law in court to challenge amended CC&Rs.
Amendments now are permitted “only if” they are foreseeable, Pace said. “This opinion cast doubts on amendments that ban short-term rentals,” she said. “It will also affect the language used in writing new deed restrictions.”
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