I used to think that they only want you could lose your condo would be to eminent domain or if you fell into foreclosure and your financial institution foreclosed on your property, however there is a little known back door that all condo buyers should be aware of when purchasing a condo in Arizona.
The Arizona Condominium Act (ARS 33-1228), allows for an HOA to disband if 80 percent of the members agree to it. This has occurred a few times in the past couple of years in the greater Phoenix area, and it usually happens when one investor owns over 80 percent of a development. With the HOA disbanded, the remaining owners are forced to sell at “market value”, and that value just might be set by an appraiser hired by the investor that disbanded the HOA and is forcing you to sell.
The latest example of this is the Jamestown Condominiums in Phoenix, an investor group started purchasing units in the complex and by 2015 they were able to disband the HOA and force the remaining owners to sell at market value.