Drive through the newer phases of North Peoria, Surprise, Goodyear, or Buckeye and you will see the same thing on every street: finished homes, a few lots still fenced, a sales trailer near the entrance, and a pool that opened last spring. What you cannot see from the street is who is running the homeowners association. In most West Valley communities still selling lots, it is the builder or developer, not the people who live there. That is normal and legal, and it changes a few things you should understand before you buy. Here is how builder control of an Arizona HOA works, when it has to end under a 2024 state law, and which documents to pull so the association you are joining is not a mystery.
What "declarant control" means in plain English
Every planned community in Arizona starts with a recorded document called the declaration, better known as the CC&Rs. The party who records it, usually the developer or master builder, is called the declarant. The declaration typically gives the declarant the right to appoint and remove the association's board of directors for a set period while the community is being built and sold. That period is called declarant control.
During declarant control, the board answers to the company still selling lots. Its priorities are keeping the community presentable, keeping assessments predictable, and getting amenities built. Those usually line up with what an early buyer wants; they are not always what an owner-elected board would prioritize five years later.
Under Arizona's Planned Communities Act, owners have a statutory right to remove board members they are unhappy with by petition and vote, but that right specifically excludes any director who was appointed by the declarant (A.R.S. § 33-1813). In other words, during declarant control, the owners cannot vote the builder's directors off the board. That is the single most important thing to understand about buying in a community that is still being built.
When builder control has to end: the 2024 change
For years, the answer to "when does the builder hand over the HOA" was simply "whatever the CC&Rs say." Some declarations tied it to a percentage of lots sold. Some tied it to a date. Some were vague. In 2024 the Arizona Legislature passed House Bill 2698, which added a new section to the Planned Communities Act, A.R.S. § 33-1820, effective September 14, 2024. It sets three rules that apply regardless of what the community documents say:
- The declaration must state an end date or a method to calculate one. Any declaration that provides for declarant control now has to include a date, or a formula for the date, when that control terminates.
- Hard stop at the second-to-last lot. No matter what the documents say, declarant control ends no later than the date the second-to-last lot in the planned community is conveyed to a buyer.
- The builder keeps working rights after turnover. Once control ends but the declarant still owns lots, the association must keep common-area maintenance at least at the level the declarant provided, and may not impede the declarant's ability to build and sell its remaining lots or use the common areas like any other member.
Two honest notes. First, "second-to-last lot" is a ceiling, not a target; many declarations set an earlier trigger. Second, in a master plan with several villages and a master association on top, the last lot in the whole plan may be years away. Read the specific declaration for each association you are joining, not just the master.
If you are shopping a condominium rather than a single-family lot, the rules are different. The Arizona Condominium Act caps declarant control at the earlier of 90 days after 75 percent of the units are conveyed to non-declarant owners, or four years after the declarant stops offering units for sale in the ordinary course of business (A.R.S. § 33-1243). Do not assume the condo timeline applies to a single-family community or the other way around.
What actually changes the day the owners take over
Turnover is not just new names on the board. Several protections in the Planned Communities Act switch on specifically "after the termination of declarant control."
Meeting notice and agendas
After declarant control ends, the board must give members at least 48 hours notice of board meetings, plus an agenda, by newsletter, conspicuous posting, or another reasonable method (A.R.S. § 33-1804(D) and (E)). Even an informal workshop of a board quorum must follow the open-meeting rules. Before turnover, board-meeting notice rules come from the community documents, which is one reason early owners sometimes feel decisions happen without them.
What does not change
Some rights apply from day one. Member and board meetings are open to all members, who must be allowed to speak on an agenda item before the board votes (A.R.S. § 33-1804(A)). Financial and other records must be made available within ten business days of a request, at no more than 15 cents a page for copies (A.R.S. § 33-1805). Owners in builder-controlled communities can use both rights today.
The questions to ask before you write the offer
You do not need to become an HOA expert. You need answers to five questions, all of them answerable from documents you can get.
- Who controls the board right now, and what is the trigger for turnover? Look for the declarant-control section of the CC&Rs. After September 2024 it must state a date or a method. If the declaration is older and vague, the statutory second-to-last-lot ceiling still applies.
- How many lots are platted, and how many have closed? The sales office knows the lot count; Maricopa County Assessor parcel records show which lots have transferred to individual owners. Together they show how close a percentage-based trigger is.
- Is there a master association on top of the neighborhood association? In the larger West Valley master plans, you may be joining two associations with two sets of assessments and two declarant-control clocks. Get both declarations.
- What are the reserves, and is there a reserve study? A three-year-old community may hold small reserves simply because nothing has worn out yet. That is not a red flag by itself, but no reserve plan at all for a pool, clubhouse, or private streets is worth a direct question.
- Are the amenities finished, and who pays if they are not? Assurances for completion of improvements are part of the Arizona Department of Real Estate Public Report. Read that section, not the rendering in the sales office.
New from the builder vs. resale in the same community: two different document paths
This catches move-up buyers who have bought resale before and assume the paperwork will look the same. It will not.
Buying directly from the builder
In a new subdivision, Arizona requires the builder to give you the Department of Real Estate's Disclosure Report, the Public Report, before you sign the purchase contract, and you sign a receipt for it. It covers flooding and drainage, adjacent land uses, utility providers, common facilities, assurances for completion of improvements, taxes and assessments, and property owners association details. Read the cover-page disclaimer: the Department states that not all of the information has been verified and that some was accepted on the subdivider's attestation. You are expected to verify facts yourself.
Because a Public Report is issued in that sale, the statutory HOA resale packet described below is not required (A.R.S. § 33-1806(F)). Still ask the builder or association manager for the current declaration, bylaws, rules, budget, and assessment schedule, and read them before the contract is signed.
Buying a resale in a community that is still under builder control
Buying a two-year-old home from its first owner while the builder is still selling the last phases down the street is a resale, and the resale disclosure statute applies. In a community with 50 or more lots, the association must deliver, within ten days of written notice of the pending sale: the declaration, bylaws and rules, a dated assessment statement, the total reserves held, insurance status, pending litigation with the seller, the current operating budget, the most recent annual financial report, the most recent reserve study if any, and a summary of lawsuits naming the association (A.R.S. § 33-1806). The fee to the seller is capped at $400, collected at close of escrow.
The reserve balance and the budget are the two numbers that tell you whether early assessments were set realistically or set low to help sales. Compare the common-area maintenance line against what the community actually has to maintain.
Checklist: reading a builder-controlled community before you commit
- Pull the recorded declaration from the Maricopa County Recorder and read the declarant-control, amendment, and assessment sections. The recorded version governs, not a summary.
- Confirm the turnover trigger in writing. Date, percentage of lots, or the statutory second-to-last-lot ceiling. Note which one applies to each association you are joining.
- Get the current budget and the reserve balance from the resale packet or the association manager, and ask whether a reserve study has been done.
- Ask for the assessment history and what the budget assumes once amenities and landscaping come off the builder's warranty.
- Check the Public Report (new build) for assurances of completion on amenities, roads, and landscaping, and for the taxes-and-assessments section.
- Verify special districts separately. Some West Valley master plans sit inside a community facilities district that is not the HOA and does not turn over with it. Look up the parcel on the Maricopa County Treasurer site and read every line of the tax bill.
- Attend one meeting if you can. Meetings are open to members from day one; ask your seller or the manager for the next date.
- Read the current rules on what people actually argue about: parking, landscaping, exterior changes, short-term rentals. An owner-run board can amend them after turnover, in either direction.
A realistic North Peoria example
Picture a couple selling the 2,400-square-foot home they have owned for nine years and moving up to a new 3,600-square-foot single-level in a North Peoria master plan that opened three years ago. Their village has 410 platted lots, about 290 closed. The village declaration ends declarant control at 75 percent of lots conveyed; the master association ties its turnover to the whole master plan, which still has two future villages on the map. So the village board could turn over within a year or two while the master stays under developer control much longer. Not a problem, but worth knowing when they read the budgets: village dues cover the pocket park and entry landscaping, master dues cover the pool, trails, and boulevards, and the two boards will answer to different people for a while. They ask for both budgets, both reserve balances, and the Public Report section on amenity completion, and go in with clear expectations. The numbers here are illustrative; verify lot counts, triggers, and assessments for the community you are considering.
If something goes wrong after you own
Arizona has no agency that regulates homeowners associations; the Department of Real Estate says directly that it does not investigate or discipline HOAs, managers, or boards. It does administer the HOA Dispute Process, an alternative to civil court in which an owner or association files a petition heard by an Administrative Law Judge at the Office of Administrative Hearings. The Department's own guidance is to try the board, meetings, voting, and mediation first. Knowing the path exists is useful. Not needing it because you read the documents up front is better.
Because HOA documents, assessments, reserve balances, lot counts, and turnover triggers can change, you should verify the details for the specific property and association you are considering. This post is general information about Arizona law and is not legal advice; for questions about a specific declaration, talk with an Arizona attorney.
Ready to compare your options? Schedule a friendly consultation with Stephanie White so you can build a simple, step-by-step plan for your next move.
Stephanie White, REALTOR® · Howe Realty · License SA699273000 · 602-309-1255 · [email protected]
Frequently asked questions
How do I find out if a West Valley community is still under builder control?
Read the declarant-control section of the recorded declaration (Maricopa County Recorder) and ask the association manager or sales office who currently appoints the board. Under A.R.S. § 33-1820, a declaration providing for declarant control must state a termination date or a method to calculate it.
Can homeowners vote out builder-appointed board members in Arizona?
No. The Planned Communities Act's removal-by-petition process applies to directors other than those appointed by the declarant (A.R.S. § 33-1813). Owner-elected directors can be removed by a majority of those voting at a properly called special meeting; declarant-appointed directors cannot.
What is the latest date a builder can keep control of an Arizona HOA?
For a planned community, declarant control ends no later than the date the second-to-last lot is conveyed to a buyer, regardless of what the community documents say (A.R.S. § 33-1820). Many declarations set an earlier trigger. Condominiums follow a separate rule under A.R.S. § 33-1243.
Do I get the HOA resale disclosure packet when I buy a new build from the builder?
Not under the resale statute. A sale for which an Arizona Department of Real Estate Public Report is issued is exempt from A.R.S. § 33-1806. You receive the Public Report instead, which includes property owners association details, and you should separately request the current declaration, bylaws, rules, and budget before signing.
What does the HOA have to give me when I buy a resale in a community that is still being built?
In a community with 50 or more lots, within ten days of written notice: the declaration, bylaws and rules, assessment statement, reserve total, insurance status, pending litigation, current budget, latest annual financial report, latest reserve study if any, and a lawsuit summary (A.R.S. § 33-1806). The seller's fee is capped at $400.
Are there two HOAs in a West Valley master-planned community?
Often, yes. Many larger master plans in Peoria, Surprise, Goodyear, and Buckeye have a master association plus village or neighborhood associations, each with its own declaration, assessments, and declarant-control terms. Ask for every declaration that applies to the lot and read each one's turnover language.
Who do I contact if I have a dispute with a builder-controlled HOA?
Start with the board and manager, use your rights to attend open meetings and inspect records, and consider mediation. If that fails, an owner may petition through the Arizona Department of Real Estate's HOA Dispute Process, heard at the Office of Administrative Hearings. The Department itself does not regulate HOAs.
