On April 28, 2026, the Arizona Court of Appeals issued an Opinion in the case of AZNH Revocable Trust v. Sunland Springs Village Homeowners Association. This Opinion stems from a lawsuit filed by an owner in the Sunland Springs community challenging the actions of the Association’s board of directors in conducting business during the executive session meeting and in preparing the board meeting notices and agendas.
The Court’s decision establishes new legal requirements and reiterates existing statutory obligations applicable to board meetings conducted in all planned community and condominium associations in Arizona.
Executive Board Meetings
- Boards are still authorized to conduct a closed executive meeting to consider only the specific topics set forth in A.R.S. § 33-1804(A)(1-5) and § 33-1248(A)(1-5).
- Boards are no longer allowed to vote or take formal action on these topics during the meeting. Voting on any topic discussed during the executive meeting will have to be done during the open meeting.
- The board is tasked with determining which topics will be discussed during the executive meeting unless that authority has been delegated to an individual board member or managing agent through a board resolution.
Board Meeting Notices
- The Court reaffirmed the established requirement that board meeting notices include the date, time, and location of the meeting while also referring to the specific statutory basis for holding an executive meeting.
Board Meeting Agendas
- To fully comply with the Arizona open meeting laws, board meeting agendas (both open and executive) are required to include sufficient information to reasonably inform members of the topics that will be discussed.
- Boards will have to refer to more than just the statutory references on the executive meeting agendas to comply with the Court’s ruling.
- Associations are not required to disclose privileged or confidential information on an agenda in describing the executive meeting topics to be voted on during the open meeting.
Recommendations:
- We strongly recommend associations adopt a board resolution delegating to a board member and/or a community manager the necessary authority to select executive meeting topics and to set board meeting agendas. This will allow boards to avoid having to conduct a formal meeting to make these decisions.
- Formal executive session minutes are no longer necessary since no formal actions or decisions will be conducted. Taking minutes or notes during the meeting, however, may still be advisable as a source of reference during the open meeting before the vote.
- We recommend boards use files numbers established by the association’s management team when referencing executive meeting items on the agendas.
Please do not hesitate to contact our firm for assistance in complying with this change in the law or with any questions you may have about adjusting your board meeting policies and procedures.