By: Cameron Artigue
On March 22nd, 2022, the Arizona Supreme Court issued an opinion on Kalway v. Calabria Ranch HOA LLC et al. regarding the scope of permissible amendments to Covenants, Conditions and Restrictions (CC&Rs). The Court affirmed that principles of “notice” and “foreseeability” limit the scope of potential amendments to CC&Rs. A general provision for amendments (such as “these restrictions may be amended in whole or in part’) does not open the door to all possible amendments. Rather, amendments to CC&Rs are permitted only if they are foreseeable refinements to existing obligations.
The Court’s ruling only applies to amendments that impose “affirmative obligations” that create restrictions on use. The ruling probably does not extend to amendments that remove or loosen restrictions on use.
Because this ruling is retroactive, there is now doubt cast on the eligibility of amendments that seek to ban short term rentals in communities with CC&Rs. Other changes that may be difficult or impossible to enact include the addition of accessory dwelling units, garage enclosures, satellite dishes, and landscaping alterations.
To read the opinion in its entirety, please click here.
Have questions about how this ruling may affect you or your business? Contact Cameron Artigue with our Land Use team at 602-256-4418.