Arizona House Bill 2397 took effect September 12, 2026. Most coverage of it focuses on what got added to the resale disclosure packet: board minutes, reserve financials, a violation history, insurance certificates. That's the easy part to explain. The part that actually changes how a Scottsdale HOA transaction plays out is quieter. The bill moved when the disclosure clock starts, from a later notice deep in escrow to the moment an offer is accepted. In a city with more gated and guard-gated communities than anywhere else in the state, that single timing shift changes how much real reading time a buyer gets before the cancellation window closes.
Signed by Governor Katie Hobbs on June 22, 2026, HB 2397 amends A.R.S. §33-1260 for condominiums and §33-1806 for planned communities, which covers the single-family HOA developments that make up most of Scottsdale's master-planned inventory. The law reached every resale in the state on the same day, but it lands differently depending on how old the HOA is and how many layers of dues sit on top of the master assessment. Scottsdale has both in abundance.
What the Packet Has to Include Now
The core of the old resale packet is unchanged: the declaration, bylaws and rules, current operating budget, most recent annual financial report, reserve study, a dated statement of assessments, and a summary of pending litigation. HB 2397 adds four things sellers previously didn't have to hand over automatically: minutes from the association's last three meetings, a clearer view into operating and reserve financials, a summary of any open violations tied specifically to the property being sold, and, for condominiums, proof of the association's insurance coverage.
Those additions aren't cosmetic. Board minutes are where a special assessment shows up first, as a line item being debated, months before it becomes a formal vote. Reserve financials tell a buyer whether the association has actually saved enough to cover the roofs, roads, gates, and pools it's responsible for relative to how old that infrastructure is. Violation history tied to the specific unit tells a buyer whether they're inheriting a dispute that's already in progress. None of this is new information the association didn't have.
Why the Clock Matters More Than the Contents
As HOA Reviewer explains, the delivery clock used to start at a later "pending sale" notice, a trigger that could land close to closing depending on how the transaction was scheduled. Under HB 2397, the clock starts the moment the offer is accepted, and sellers have 10 days from that acceptance to get the packet into the buyer's hands.
That sounds like a bureaucratic footnote, but it changes how much real time a buyer has to sit with a reserve study before making a decision. A packet triggered by a floating pending sale notice could land with loan underwriting, inspection, and appraisal deadlines already compressed against it. A packet that has to arrive within 10 days of acceptance shows up while the rest of escrow is still in front of the buyer, not behind them.
The Fee Line Just Flipped
HB 2397 also touches who pays. The disclosure fee remains capped at $400 statewide, unchanged from before, but the law now allows that fee to be charged to the buyer rather than defaulting to seller-paid custom. In practice this has been a negotiated item on the Scottsdale purchase contract for years, split between resale packet costs and transfer fees depending on the deal. What changes is that associations now have clearer legal footing to bill the buyer directly for the disclosure fee itself, which is worth flagging early in a negotiation rather than discovering on the settlement statement.
Where This Bites Hardest: Scottsdale's Older Gated Communities
Scottsdale's HOA landscape isn't one tier. Master-planned communities from the 1980s and 1990s, DC Ranch, Grayhawk, McCormick Ranch, Gainey Ranch, Scottsdale Ranch, and the guard-gated developments further north around Troon and Desert Mountain, layer a master association fee on top of a neighborhood or enclave-level sub-association fee. The math varies enough within a single community that citywide averages don't tell a buyer much.
| Community | Published 2026 base or master due | What varies underneath |
|---|---|---|
| Grayhawk | $1,140/year master assessment | Enclave totals range from $1,881.60/year in Pinnacle to $6,295.20/year in Renaissance, with Villages at Grayhawk near $5,724/year and Avian near $4,980/year |
| McCormick Ranch | $265/year | Lowest published base master fee in the area, though individual condo and townhome HOAs within it vary widely |
| Scottsdale Ranch | $463/year master assessment | A separate $150 resale disclosure fee and $200 transfer fee also apply at close of escrow |
| Gainey Ranch (The Estates) | $661/month total | Split between a $361 GRCA portion and a $300 Estates association portion, funding 24-hour security and gated access |
This is exactly the terrain where the new disclosure requirements do the most work. Many of Scottsdale's guard-gated communities built in the 1980s and 90s are reaching the point where gatehouses, gate mechanisms, and camera systems need replacement, and golf communities are cycling through course renovations. Those are multi-hundred-thousand-dollar line items that show up in board minutes as discussion points before they show up as a special assessment on a homeowner's bill. A buyer who only sees the current budget and skips the minutes is looking at a snapshot. A buyer who reads three meetings of minutes is looking at a trend line.
If Your Closing Date Falls Anywhere Near September 12
Property managers across the Valley reportedly spent the summer updating their standard packet templates ahead of the effective date rather than waiting to be caught out, but not every association moves at the same pace. If your disclosure packet was produced under the old template and your closing lands in late September or October, ask directly whether an updated packet reflecting HB 2397's requirements is owed before you sign off on anything.
What to Actually Do With the Packet When It Lands
The extra pages only help if someone reads them. Three things are worth doing deliberately rather than skimming past:
- Read the minutes for any mention of a pending special assessment, vendor dispute, or reserve fund conversation, not just the headline budget number.
- Compare the reserve study's funded percentage against the age of the community's shared infrastructure. A community built in 1988 with a thinly funded reserve is a different risk than a 2015 build with the same dollar figure.
- Confirm whether any open violation tied to the specific property is still active.
Frequently Asked Questions
Does HB 2397 apply to condos as well as single-family HOA communities? Yes. The law amends both the condominium statute and the planned community statute, so it applies whether the property is a single-family home in a master-planned community or a unit in a condo association.
What if my HOA already sent me a packet under the old rules? Ask your title company directly whether your specific closing date requires an updated packet. The safest move is a direct conversation rather than an assumption in either direction.
Does the new law mean I automatically pay the disclosure fee as a buyer now? Not automatically. The fee remains capped at $400, but the law now permits it to be charged to the buyer where it may previously have defaulted to the seller. Who actually pays is still a term to negotiate in the purchase contract.
Reading a reserve study and three meetings of minutes on a deadline is not something most buyers want to do alone, and it's exactly the kind of document review Desert Luxe Team walks clients through on every Scottsdale HOA purchase or listing. If you're under contract now or preparing to list in one of Scottsdale's gated communities, reach out before the packet lands so nothing in it catches you by surprise.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
