**Case Summary: Randall C. and Lori M. Hack Family Trust v. The Ranch at Prescott HOA**
**Case No.** 13F-H1313002-BFS
**Venue:** Arizona Office of Administrative Hearings
**Date of Hearing:** June 17, 2013

**Overview**
This case involved a dispute between property owners (Petitioners) and their homeowners’ association (Respondent or "The Ranch") regarding the regulation of real estate sign frames. The Administrative Law Judge (ALJ) ruled in favor of the Petitioners, determining that the HOA’s strict requirement for specific sign frames violated Arizona state law.

**Key Facts and Proceedings**
The Petitioners listed their property for sale using a standard white wooden "L" type sign frame installed by their realtor. In January 2013, the Ranch issued a violation letter to the Petitioners, citing a 2012 rule that required the use of metal "H" sign frames provided by the HOA. The Petitioners refused to change the frame and filed a petition with the Department of Fire, Building and Life Safety, alleging the HOA was violating A.R.S. § 33-1808(F).

**Main Arguments**
* **Petitioners’ Position:** The Petitioners argued that A.R.S. § 33-1808(F) broadly prohibits HOAs from regulating for-sale signs, except for requiring they be commercially produced and of industry standard size. They contended their "L" frame was an industry standard and that the HOA’s attempt to regulate the *frame* itself was an illegal restriction. They also noted the HOA applied the rule inconsistently, waiving requirements for a developer-owned section ("Unit 8").
* **Respondent’s Position:** The HOA argued the rule was implemented for aesthetics and safety, specifically to prevent neglected or fallen signs. They asserted that because the statute did not explicitly mention "sign frames," the HOA retained the authority to regulate them. The HOA claimed they had received legal counsel supporting this interpretation.

**Legal Analysis and Decision**
ALJ M. Douglas rejected the HOA’s arguments, establishing the following legal conclusions:
1. **Burden of Proof:** The Petitioners met the burden of proof by a preponderance of the evidence.
2. **Statutory Interpretation:** The ALJ ruled that A.R.S. § 33-1808(F) allows HOAs to impose *only* two restrictions on real estate signs: they must be (1) standard size and (2) commercially produced. The statute provides that an association "shall not prohibit in any way other than as is specifically authorized… or otherwise regulate" such signs.
3. **Preclusion of Additional Rules:** Consequently, the HOA’s requirement to use a specific, HOA-furnished "H" frame constituted an unauthorized regulation that is precluded by state law. The "L" frame used by Petitioners was deemed an industry standard type.

**Final Outcome**
* **Prevailing Party:** The Petitioners.
* **Orders:** The HOA was ordered to comply with A.R.S. § 33-1808(F), pay the Petitioners' filing fee of $550.00, and pay a civil penalty of $200.00 to the Department.
* **Finality:** The decision was certified as the final administrative decision on August 5, 2013, after the Department of Fire, Building and Life Safety took no action to modify or reject it within the statutory timeframe.