HOA Board Member Liability: Parking Enforcement Dos and Don'ts

Serving on an HOA board is a volunteer position, but that does not mean it comes without risk. When it comes to parking enforcement and vehicle towing, board members can face personal liability if programs are implemented incorrectly. This guide explains how Arizona law protects board members who follow best practices — and where the most common liability pitfalls lie.

Understanding Board Member Liability in Arizona

Arizona law provides significant protections for HOA board members who act in good faith and within the scope of their authority. The business judgment rule, codified in Arizona's Nonprofit Corporation Act (ARS 10-3830), shields board members from personal liability when they make informed decisions in the best interest of the association, even if those decisions later prove to be imperfect.

However, these protections have limits. Board members can lose this shield if they act outside their authority, fail to follow governing documents, engage in selective or discriminatory enforcement, or make decisions without adequate information. Parking enforcement is one of the areas where these boundaries are most frequently tested.

The Dos: Protecting Yourself and Your Board

• Do adopt a written parking policy before any enforcement begins. A formal, board-adopted policy establishes the rules and demonstrates that the board acted deliberately. Distribute the policy to all homeowners and keep proof of distribution on file.
• Do enforce rules uniformly across all homeowners. The single biggest liability risk for board members is selective enforcement. If you tow one homeowner's illegally parked RV but ignore another's, you expose the board to discrimination claims. Apply rules equally, including to board members and their families.
• Do provide proper notice before enforcement actions. Arizona's Planned Communities Act requires that homeowners receive notice and an opportunity to be heard before enforcement actions are taken. Document all notices sent, including dates and methods of delivery.
• Do maintain comprehensive documentation. Every enforcement action should be documented with photos, timestamps, violation descriptions, and records of prior warnings. This documentation is your defense if a homeowner challenges the action.
• Do work with a professional towing company experienced with HOAs. A professional partner handles the operational and legal complexities of towing, reducing the board's direct exposure. They handle ARS 28-3511 compliance, signage, documentation, and proper towing procedures.
• Do carry adequate Directors & Officers (D&O) insurance. D&O insurance provides an additional layer of protection for board members. Ensure your policy covers enforcement-related claims and review coverage limits annually.

The Don'ts: Common Liability Traps

• Don't enforce parking rules selectively or based on personal relationships. This is the number one source of HOA parking lawsuits. If you give your neighbor a pass on an RV in the driveway while citing someone else, you are creating a discrimination claim.
• Don't authorize towing without proper signage in place. Under ARS 28-3511, towing from private property requires compliant signage at every entrance. Towing without proper signs can result in the HOA being liable for the tow costs and potentially additional damages.
• Don't skip the graduated enforcement process. Jumping straight to towing without warnings creates hostility and legal exposure. A graduated approach (courtesy notice, formal warning, final notice, then towing) demonstrates reasonableness and good faith.
• Don't make individual board members the enforcement decision-makers. Enforcement decisions should be made according to written policy, not by individual board members. This protects individual members from personal liability claims.
• Don't ignore the appeals process. Arizona law (ARS 33-1803) gives homeowners the right to a hearing before the board for any enforcement action. Denying this right or failing to hold timely hearings can expose the board to legal liability.

ADA Compliance: A Special Liability Concern

One area where HOA boards face heightened liability risk is ADA (Americans with Disabilities Act) compliance. Your parking enforcement policy must never interfere with ADA-accessible parking. Never tow a vehicle with a valid disability placard from an ADA space. Ensure the correct number of ADA spaces are maintained and properly marked. Make reasonable accommodations for residents with disabilities who may need modified parking arrangements. Consult with your HOA attorney if you receive a disability-related parking accommodation request.

How a Professional Towing Partner Reduces Liability

Working with a professional towing company that specializes in HOA enforcement significantly reduces board liability. The towing company handles operational decisions, maintains proper insurance, ensures ARS 28-3511 compliance, and provides the documentation that protects both the association and the board. They also serve as a buffer between the board and angry homeowners, reducing the emotional conflicts that can escalate into legal disputes.

At Axle Towing & Impound, we carry comprehensive liability insurance and handle all compliance requirements. Our drivers are trained specifically for residential community enforcement, and we provide detailed documentation of every enforcement action — giving your board the records they need if any action is ever challenged.