HOAs, Condos, Townhomes, and Community Living in Arizona
A large share of homes in the North Valley and across the Phoenix metro sit inside HOA-governed communities. The rules and fees vary dramatically. I walk every buyer through HOA documents before they commit to a purchase because what you do not read before closing can cost you money or restrict how you use your own home.
What an HOA Does and Does Not Do
An HOA enforces community rules (CC&Rs), maintains common areas, and collects dues to fund operations and reserves. In a single-family community, the HOA typically manages landscaping in common areas, community pools, entry features, and exterior standards. It does not manage what happens inside your home.
In a condo or townhome, the HOA scope is broader. It often covers exterior maintenance, roof, and sometimes utilities depending on the structure. Monthly fees in attached communities are typically higher because the HOA is responsible for more.
Fees, Assessments, and Reserves
Monthly dues fund day-to-day operations. Reserve funds cover future capital expenses like roof replacement or pool resurfacing. If an HOA is underfunded on reserves, it may issue a special assessment -- a one-time charge to all owners to cover a major expense. Ask to see the reserve study as part of your due diligence.
Arizona law requires HOAs to provide a resale certificate (also called a disclosure package) to buyers. This document includes the CC&Rs, current financials, pending litigation, and any known upcoming assessments. Review it during your inspection period. It is dense but important.
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CC&Rs: What They Actually Restrict
CC&Rs are the rulebook. They govern everything from paint colors and fence heights to parking, rentals, and pets. Some communities prohibit short-term rentals entirely. Others limit the number of vehicles per property. Read them before you buy, not after.
Violations come with fines, and some HOAs are aggressive about enforcement. If you have specific plans -- parking an RV, running a home-based business, adding a casita, getting a large dog -- verify those plans are allowed before you close.
Condo Financing Quirks
FHA and VA loans have approval requirements for condo communities, not just individual buyers. If the condo project is not on the approved list, buyers using those loan types cannot purchase in that community. Conventional loans have their own warrantability requirements. Before you fall in love with a condo, confirm the financing options available to you actually work there.
I verify community financing eligibility early in the process for any condo purchase. Finding out at the appraisal stage that a community is not FHA-approved costs time and can cost you the deal if your financing depends on it.
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Written by
Jon Hegreness
REALTOR / Associate Broker, Howe Realty. AZ License BR540940000. 24 years in Phoenix Valley residential real estate.
I am a full-time Valley associate broker, not a call center. If anything here raised a question about your own move, ask me and you get a straight answer from the person who wrote this, every time.
Common questions
- Are HOA fees negotiable?
- No. HOA fees are set by the association and apply to every owner equally. What you can sometimes negotiate is who pays the resale certificate fee or transfer fee at closing -- that is a transaction negotiation, not a fee negotiation.
- What is a resale certificate and when do I get it?
- In Arizona, sellers are required to provide an HOA resale certificate (disclosure package) to buyers. It includes the CC&Rs, financials, pending litigation, and assessment information. You receive it during the inspection period and should read it carefully.
- Can an HOA prevent me from renting my home?
- Yes. Many Arizona HOA communities restrict or prohibit short-term rentals and some limit long-term rentals. Read the CC&Rs before closing if rental use is part of your plan.
- How do I know if a condo is FHA-approved?
- Check the HUD condo approval database at hud.gov or ask your lender to verify. This should happen before you are deep into the transaction. If you need FHA financing and the project is not approved, you may not be able to close.
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