Kelly Broaddus  |  eXp Realty  |  888.446.5602  | Contact Kelly

Here’s how the recent Kalway case ruling will affect homeowners.


Today I wanted to discuss a new court ruling that is going to affect wide swaths of Arizona homeowners. The Arizona Supreme Court just ruled on the recent Kalway case, and it will impact those of us living in neighborhoods with HOAs and CC&Rs. 


This ruling will affect short-term rentals, but it will also affect any new amendments to HOAs that have come up since their inceptions. 


A few years back, Governor Ducey passed a law that says HOAs can only pass ordinances that affect the health and safety of their residents. Somehow, the HOAs went crazy with that and started banning or heavily restricting short-term rentals by amending their CC&Rs. 


The Arizona Supreme Court decision invalidates many of these short-term rental regulations. First, any amendment that was created after the HOA was originally created to restrict anything is invalid unless there is a 100% vote by the HOA members, which is very unlikely to ever happen. 


"Get a copy of your CC&Rs by reaching out to your agent."


Let’s say that in your neighborhood, your HOA passed a regulation to restrict fences after its inception. If fences weren’t addressed in the original CC&Rs, your HOA must have a 100% vote to enforce it, otherwise, the amendment is invalid.


There are tons of restrictions out there in many HOAs that were added after their inception. That’s why this is such a big deal. Any amendment is now unenforceable if it’s not on the neighborhood's original CC&Rs. 


To get a copy of your CC&Rs, you can either call your Realtor or your title company. Then you’ll know what you can and can’t do based on the original rules.


If you have any questions for me about the Kalway case, its repercussions, or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you.