Gallery Community Ass'n v. K. Hovnanian At Gallery, LLC, No. CV-24-0252-PR (July 29, 2026) (J. Montgomery) https://www.azcourts.gov/Portals/0/OpinionFiles/Supreme/2026/CV240252PR%20Filed.pdf?ver=rgenY5L0I5q0nq5fXlCFPA%3d%3d

HOA AUTHORIZED TO BRING IMPLIED WARRANTY OF WORKMANSHIP CONSTRUCTION DEFECT CASE AGAINST DEVELOPER BY A.R.S. § 33-2002

Defendant developed and built a residential community where units were sold to individual homebuyers.  Defendant also created the plaintiff homeowner's association [HOA] to manage the community.

Subsequently homeowners and the HOA discovered alleged defects in the common areas and some unit exteriors. The HOA sued defendant alleging a breach of the implied warranty of workmanship which resulted in construction defects. 

Based upon recognized common law the Maricopa County Superior Court granted defendant's motion for summary judgment finding implied warranty claims belonged only to individual homeowners and not their HOA. The Arizona Court of Appeals reversed the trial court. The Arizona Supreme Court accepted review and reversed and remanded the trial court's decision while vacating the court of appeals decision.

Under Arizona's common law, only a homeowner—either the

original homebuyer or a subsequent purchaser—can sue for a breach of the

           implied warranty of workmanship and habitability concerning latent

defects in the construction of a home.  In this case, we must determine

whether, by enacting A.R.S. § 33-2002, the Legislature has authorized a

homeowners' association to bring such a suit regarding both common areas

it owns and properties owned by individual homeowners.  We hold that,

because § 33-2002 and related statutes encompass a cause of action for

construction defects arising out of a failure to adhere to community

workmanship standards, the Legislature has modified the common law to

authorize homeowners' associations to bring what constitutes an implied

warranty suit.