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Lawsuit settlement nullifies new HOA law

PHOENIX -- An election law passed by the Legislature and signed by Gov. Jan Brewer in June will have key provisions targeting homeowners associations stripped out under terms of a lawsuit settlement.

All but one provision of SB 1454 that affect HOAs will be nullified under the settlement agreed to Friday by the Arizona Attorney General and plaintiffs who sued. Plaintiffs lawyer Tim Hogan says the law violated a constitutional provision requiring bills to address only one subject. The surviving provision deals with elections signs.

Rep. Michelle Ugenti of Scottsdale added provisions to an unrelated election law that included forbidding local governments from requiring developers to establish a homeowner association and banning associations from performing background checks on tenants.

A judge must still sign off on the settlement.

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