# Arizona HOA Assessment Increase Cap: The 20 Percent Rule (2026)

> In an Arizona planned community, Revised Statutes 33-1803 caps how fast regular dues can rise: the board cannot impose a regular assessment more than 20 percent above the immediately preceding fiscal year's assessment without the approval of a majority of the members. The community's own documents can set a stricter limit, and that stricter limit controls. This cap applies to planned communities; condominium associations in Arizona have no equivalent statutory percentage cap. For a buyer, the budget and the assessment history show whether the board is near the ceiling and whether a member vote, and a larger increase, may be coming.

_Source: https://hoanotes.com/hoa/arizona/assessment-increase-cap/ | Last reviewed 2026-06-03_

## What the law requires

Arizona Revised Statutes 33-1803 puts a number on dues increases in a planned community. The board may not impose a regular assessment that is more than 20 percent greater than the immediately preceding fiscal year's assessment unless a majority of the members approve it. If the community documents set a lower limit, that lower limit applies instead.

Two boundaries matter. This is a planned-community rule; Arizona condominium associations have no statutory percentage cap, so a condo board can set assessments at the level it determines necessary. And the cap is on the regular assessment, not on special assessments, which follow their own rules in the governing documents.

## Why a buyer should care

Dues are a monthly cost you take on at closing, and their trend is part of the deal. The 20 percent cap tells you the most a planned-community board can raise regular dues on its own, but it does not stop a bigger increase if the members vote for it. Reading the budget and the recent assessment history tells you whether the association is keeping up with its costs or heading for a jump.

## What to check in the disclosure packet

Read these together before you make an offer:

- Whether the community is a planned community (where the cap applies) or a condominium (where there is no statutory cap).
- The recent assessment history, for how fast dues have risen year over year.
- The budget and reserve funding, since underfunded reserves push dues and special assessments up.
- Any member vote on the record approving an increase above 20 percent.

## Why this matters to your offer

A planned community pressing against the 20 percent cap, or a condo with no cap at all and thin reserves, is a budget risk that follows you after closing.

An HOA Notes brief reads the budget, the reserve study, and the assessment history together, flags the dues trend and any looming increase, and cites the page behind every finding.

## What the statute says

**Arizona Revised Statutes section 33-1803(A)** (Annual assessment increase cap (planned communities only)). For planned community associations only, the annual assessment increase is capped at 20% above the prior fiscal year's assessment without a member vote; any increase above 20% requires approval by a majority of members present at a properly noticed meeting at which a quorum is present; this cap DOES NOT apply to condominium associations, which have no statutory percentage cap. The association may raise assessments up to 20% above the prior year's assessment by board action alone; it may raise above 20% with required member approval; condominium associations may set assessments at any level the board determines necessary.

## Arizona HOA assessment increases: common questions

### How much can an Arizona HOA raise dues?

In a planned community, Revised Statutes 33-1803 caps a regular assessment increase at 20 percent above the prior fiscal year without a majority member vote. The documents can set a stricter limit.

### Does the 20 percent cap apply to condos?

No. The cap is a planned-community rule. Arizona condominium associations have no statutory percentage cap on assessment increases.

### Can the HOA raise dues more than 20 percent?

Yes, in a planned community, but only with the approval of a majority of the members at a properly noticed meeting.

### Does the cap cover special assessments?

No. The 20 percent cap is on the regular assessment. Special assessments follow the rules in the community's governing documents.

## Sources (verified 2026-06-03)

1. Arizona Revised Statutes section 33-1803 (assessment limitation), Arizona State Legislature. Verified 2026-06-03. https://www.azleg.gov/ars/33/01803.htm
2. Arizona Revised Statutes Title 33 section 33-1803, FindLaw. Verified 2026-06-03. https://codes.findlaw.com/az/title-33-property/az-rev-st-sect-33-1803/
3. HOA Assessment Increase Limitations in Arizona, Associated Asset Management (AAM). Verified 2026-06-03. https://www.hoamanagement.com/ask-an-hoa-manager/hoa-assessment-increase-limitations-in-arizona/

HOA Notes is not a law firm and this is not legal advice.