Ariz. Rev. Stat. § 33-1255 – Assessments for common expenses; commercial structures; applicability; definitions

A. Until the association makes a common expense assessment, the declarant shall pay all common expenses. After any assessment has been made by the association, assessments shall be made at least annually, based on a budget adopted at least annually by the association.
B. Except for assessments under subsections C, D, E, F and H of this section, all common expenses shall be assessed against all the units in accordance with the allocations set forth in the declaration pursuant to section 33-1217, subsection A. Any past due common expense assessment or installment bears interest at the rate established by the board subject to the condominium documents.
C. Unless otherwise provided for in the declaration, all of the following apply:
1. 1. Any common expense associated with the maintenance, repair or replacement of a limited common element shall be equally assessed against the units to which the limited common element is assigned.
2. 2. Any common expense or portion of a common expense benefitting fewer than all of the units shall be assessed exclusively against the units benefitted.
D. Assessments to pay a judgment against the association may be made only against the units in the condominium at the time the judgment was entered, in proportion to their common expense liabilities.
E. If any common expense is caused by the misconduct of any unit owner, the association may assess that expense exclusively against that unit.
F. If the declaration so provides, the common expense assessment for any unit on which construction has not been substantially completed may be an amount that is at least twenty-five percent of the common expense assessment for units that have been substantially completed. However, this reduced common expense assessment shall not be allowed unless the declarant is obligated under the declaration to pay to the association any deficiency in monies due to the declarant having paid a reduced common assessment and necessary for the association to be able to timely pay all common expenses.
G. If common expense liabilities are reallocated, common expense assessments and any installment on the assessments not yet due shall be recalculated in accordance with the reallocated common expense liabilities.
H. Notwithstanding any provision in the condominium documents, if a condominium includes one or more commercial structures that are separate from one or more residential structures, all of the following apply:
1. 1. Any common expense or portion of a common expense that exclusively benefits the commercial structures shall be assessed exclusively against the units in the commercial structures, whether assessed in a general assessment or special assessment or otherwise.
2. 2. Any common expense or portion of a common expense that exclusively benefits the residential structures shall be assessed exclusively against the units in the residential structures, whether assessed in a general assessment or special assessment or otherwise.
3. 3. Any common expense or portion of a common expense that benefits both the commercial structures and the residential structures shall be assessed in proportion to the category of the structures benefitted, whether assessed in a general assessment or special assessment or otherwise. The proportional share of the common expenses that benefit the commercial structures shall thereafter be assessed against the units in the commercial structures on a pro rata basis, and the proportional share of the common expenses that benefit the residential structures shall thereafter be assessed against the units in the residential structures on a pro rata basis.
4. 4. In any dispute over the allocation of a common expense or portion of a common expense, the association shall make available as prescribed by section 33-1258 all records relating to the association's allocation of a common expense or portion of a common expense. The association may not withhold a record based on the pendency of litigation relating to the allocation of a common expense or portion of a common expense if the record would otherwise be available to a unit owner under section 33-1258.
5. 5. After any period of declarant control ends, the unit owners may approve only by a unanimous vote a different allocation of a common expense or portion of a common expense than is prescribed by this subsection.
I. This section does not apply to timeshare plans or associations that are subject to chapter 20 of this title.
J. For the purposes of this section:
1. 1. "Commercial structure" means a structure in which a majority of the units are designated for commercial or work purposes and is separate from a residential structure if no residential units are located on top of or below the commercial structure.
2. 2. "Common expenses" has the same meaning prescribed in section 33-1202.
3. 3. "Residential structure" means a structure in which a majority of the units are designated for residential purposes.