PHOENIX — In Arizona’s housing market, lawmakers want to make sure condo owners get a fair deal if they’re ever forced to sell to investors.
Under the Arizona Condominium Termination Act, if an investor reaches 80% ownership of a condominium complex, they can dissolve the HOA and require the remaining homeowners to sell for fair market value.
The thought of it puts condo owner Eric Buckeye on edge.
“It’s a scary situation not knowing if we were going to be able to be here long term,” Buckeye said.
Buckeye said a single investor has bought up more than half the units in his complex. However, there’s much more to go until that 80% threshold.
“We have more retirees here that don’t have the ability to go anyplace else,” Buckeye said.
While the current law requires the forced sales to be at “fair market value,” previous ABC15 reporting found that appraisals often considered units already bought by investors in the complex, potentially lowering home values compared to outside properties.
“If you want something as nice and you don’t have the money and you’re on a fixed income like us, what are we going to do?” Buckeye said.
HB 2861, introduced by Democrat Judy Schwiebert and co-sponsored by Republican Justin Wilmeth, aims to make sure condo owners can afford to move somewhere comparable if they’re forced out.
“There are a number of complexes that are being taken over across the state of Arizona,” Schwiebert said. “Senior citizens are the fastest growing segment of the homeless population so I thought the least I can do is try and make sure the people can stay in their homes and if not, at least make sure that they can get a fair market value.”
The amendments would increase required relocation costs and ensure assessment values take similar, nearby condos outside the complex into consideration, rather than relying on previous condo sales to the same investor.
“Only one of them will be from inside that complex because those prices have already been suppressed by this whole process,” Schwiebert said.
The bill is scheduled to be considered in the House Commerce Committee on Tuesday.
