Case Summary
| Case ID | 22F-H2222033-REL |
|---|---|
| Agency | ADRE |
| Tribunal | OAH |
| Decision Date | 2022-07-08 |
| Administrative Law Judge | Adam D. Stone |
| Outcome | The petition was denied because the Petitioner failed to meet her burden of proving a violation of A.R.S. § 33-1258, as she had not made a proper written request for the documents since 2019, as required by the statute. |
| Filing Fees Refunded | $500.00 |
| Civil Penalties | $0.00 |
Parties & Counsel
| Petitioner | Roberta J Stevenson-McDermott | Counsel | — |
|---|---|---|---|
| Respondent | Four Palms Homeowners | Counsel | Araceli Rodriguez |
Alleged Violations
A.R.S. § 33-1258
Outcome Summary
The petition was denied because the Petitioner failed to meet her burden of proving a violation of A.R.S. § 33-1258, as she had not made a proper written request for the documents since 2019, as required by the statute.
Why this result: Petitioner failed to make a request for records in writing as required by A.R.S. § 33-1258.
Key Issues & Findings
Access to Association Financial and Other Records
Petitioner alleged the HOA violated A.R.S. § 33-1258 by denying her access and copies of various financial records dating back to 2016. The HOA argued they provided financial summaries and offered in-person review, noting Petitioner failed to make a proper written request.
Orders: Petition denied. Respondent is directed to comply with A.R.S. § 33-1258 going forward upon a proper written request from Petitioner.
Filing fee: $500.00, Fee refunded: No
Disposition: respondent_win
- A.R.S. § 33-1258
- A.R.S. § 33-1248
- A.A.C. R2-19-119
- A.R.S. § 32-2199 et seq.
Analytics Highlights
- A.R.S. § 33-1258
- A.R.S. § 33-1248
- A.R.S. § 32-2199 et seq.
- A.A.C. R2-19-119
Video Overview
Audio Overview
Decision Documents
22F-H2222033-REL Decision – 967350.pdf
22F-H2222033-REL Decision – 982397.pdf
22F-H2222033-REL Decision – 967350.pdf
22F-H2222033-REL Decision – 982397.pdf
The hearing for the case of Roberta J. Stevenson-McDermott vs. Four Palms Homeowners (No. 22F-H2222033-REL) took place on June 27, 2022, before Administrative Law Judge (ALJ) Adam D. Stone of the Office of Administrative Hearings.
Key Facts and Main Issues
The dispute arose from the Petitioner’s allegation that the Respondent, Four Palms Homeowners Association (HOA), violated A.R.S. § 33-1258 concerning the disclosure of association financial and other records. Petitioner, a condominium unit owner, sought various financial documents from 2016 to the present, including yearly audit reports, budgets, 1099s, and bank statements, alleging increasing lack of transparency. The Petitioner testified that she had been denied the ability to review official records and that the Treasurer frequently made excuses as to why she could not view them.
Hearing Proceedings and Key Arguments
Petitioner Roberta J. Stevenson-McDermott appeared on her own behalf. She argued that as an owner, she was entitled to copies of these documents, and bank statements should be provided unless HOA and personal funds were co-mingled.
Respondent Four Palms Homeowners, represented by Araceli Rodriguez, Esq., maintained that the HOA had complied with its statutory duties. The Treasurer, Mario Selinas, testified that financial summaries (such as cash flow and income statements generated by the HOA software "Buildium") were provided to Petitioner upon request. Respondent argued that the full bank statements were withheld from distribution due to privacy concerns, specifically the potential for harassment of delinquent unit owners or the accidental disclosure of personal financial records, which is an exception carved out in A.R.S. § 33-1258(B).
Most Important Legal Points
The most critical legal point revolved around the interpretation and application of A.R.S. § 33-1258, which requires that financial records be made available for examination upon a request made in writing. Respondent contended that although the Petitioner had made verbal requests during meetings, she had never submitted a request in writing for the bank statements to the Treasurer. Respondent further noted that the HOA had offered Petitioner the opportunity to *examine* the bank statements in person, as permitted by the statute, but she failed to follow through.
Final Decision and Outcome
The ALJ issued a decision on July 8, 2022, finding that the Petitioner bore the burden of proving a violation by a preponderance of the evidence. The ALJ concluded that the Petitioner failed to establish that she was denied access to the financial records because she had not made the proper written request required by A.R.S. § 33-1258.
The Petitioner’s petition was therefore denied. The ALJ, however, issued a directive that the Respondent is ordered to comply with the requirements of A.R.S. § 33-1258 going forward, contingent upon receiving a proper written request from the Petitioner.
Questions
Question
Must I submit my request for HOA financial records in writing?
Short Answer
Yes, the statute explicitly requires that requests for examination of records be made in writing.
Detailed Answer
The Administrative Law Judge ruled against the homeowner partly because she failed to provide evidence of a written request. The decision emphasizes that the governing statute requires requests for examination to be in writing to be valid and enforceable.
Alj Quote
A.R.S. § 33-1258 requires that association documents, with certain identified exceptions, 'shall be made reasonably available for examination by any member…in writing'.
Legal Basis
A.R.S. § 33-1258(A)
Topic Tags
- records request
- procedural requirements
Question
Do I have the right to look through all HOA documents whenever I want?
Short Answer
No, homeowners do not have an unlimited right to peruse all association documents at will.
Detailed Answer
While the law requires records to be reasonably available, it does not grant an unfettered right to browse all documents. Specific procedures must be followed, and certain documents may be withheld.
Alj Quote
Nothing in the statute however, grants a condominium unit owner the right to peruse all of the association’s documents at will as some documents may properly be withheld.
Legal Basis
A.R.S. § 33-1258
Topic Tags
- homeowner rights
- limitations
Question
What happens if I cannot prove I sent a written request for records?
Short Answer
Your petition may be denied for failing to meet the burden of proof.
Detailed Answer
In this case, the homeowner claimed she was denied access, but the judge found she failed to establish a denial because the preponderance of the evidence showed she had not made the required written request.
Alj Quote
Further, the preponderance of the evidence showed that she has failed to make any such request in writing as the statute requires. … Therefore, at this time, Petitioner failed to establish that she was denied access to the financial records.
Legal Basis
A.A.C. R2-19-119
Topic Tags
- burden of proof
- evidence
Question
Can the HOA charge me for copies of records?
Short Answer
Yes, the HOA is allowed to charge a fee for copies.
Detailed Answer
The statute permits the association to charge a fee per page for making copies of requested records, provided the request is for the purchase of copies.
Alj Quote
An association may charge a fee for making copies of not more than fifteen cents per page.
Legal Basis
A.R.S. § 33-1258(A)
Topic Tags
- fees
- copies
Question
Is the HOA allowed to withhold certain records from me?
Short Answer
Yes, specific categories of records, such as personal or privileged information, may be withheld.
Detailed Answer
The decision outlines statutory exceptions where books and records can be withheld, including privileged attorney communications, pending litigation, and personal financial or health records of individual members or employees.
Alj Quote
Books and records kept by or on behalf of the association and the board may be withheld from disclosure to the extent that the portion withheld relates to any of the following: … Personal, health or financial records of an individual member of the association…
Legal Basis
A.R.S. § 33-1258(B)
Topic Tags
- privacy
- exemptions
Question
How long does the HOA have to fulfill my request for records?
Short Answer
The HOA has ten business days to fulfill a request for examination or to provide copies.
Detailed Answer
The statute mandates a ten-business-day timeframe for the association to comply with a written request for either examining records or purchasing copies.
Alj Quote
The association shall have ten business days to fulfill a request for examination. … On request for purchase of copies … the association shall have ten business days to provide copies of the requested records.
Legal Basis
A.R.S. § 33-1258(A)
Topic Tags
- timelines
- deadlines
Question
Who is responsible for proving that the HOA violated the law?
Short Answer
The homeowner (Petitioner) bears the burden of proof.
Detailed Answer
In an administrative hearing, it is the petitioner's responsibility to prove by a preponderance of the evidence that the HOA violated the specific statute.
Alj Quote
In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated A.R.S. § 33-1258.
Legal Basis
A.A.C. R2-19-119
Topic Tags
- burden of proof
- legal standards
Case
- Docket No
- 22F-H2222033-REL
- Case Title
- Roberta J Stevenson-McDermott vs. Four Palms Homeowners
- Decision Date
- 2022-07-08
- Alj Name
- Adam D. Stone
- Tribunal
- OAH
- Agency
- ADRE
Questions
Question
Must I submit my request for HOA financial records in writing?
Short Answer
Yes, the statute explicitly requires that requests for examination of records be made in writing.
Detailed Answer
The Administrative Law Judge ruled against the homeowner partly because she failed to provide evidence of a written request. The decision emphasizes that the governing statute requires requests for examination to be in writing to be valid and enforceable.
Alj Quote
A.R.S. § 33-1258 requires that association documents, with certain identified exceptions, 'shall be made reasonably available for examination by any member…in writing'.
Legal Basis
A.R.S. § 33-1258(A)
Topic Tags
- records request
- procedural requirements
Question
Do I have the right to look through all HOA documents whenever I want?
Short Answer
No, homeowners do not have an unlimited right to peruse all association documents at will.
Detailed Answer
While the law requires records to be reasonably available, it does not grant an unfettered right to browse all documents. Specific procedures must be followed, and certain documents may be withheld.
Alj Quote
Nothing in the statute however, grants a condominium unit owner the right to peruse all of the association’s documents at will as some documents may properly be withheld.
Legal Basis
A.R.S. § 33-1258
Topic Tags
- homeowner rights
- limitations
Question
What happens if I cannot prove I sent a written request for records?
Short Answer
Your petition may be denied for failing to meet the burden of proof.
Detailed Answer
In this case, the homeowner claimed she was denied access, but the judge found she failed to establish a denial because the preponderance of the evidence showed she had not made the required written request.
Alj Quote
Further, the preponderance of the evidence showed that she has failed to make any such request in writing as the statute requires. … Therefore, at this time, Petitioner failed to establish that she was denied access to the financial records.
Legal Basis
A.A.C. R2-19-119
Topic Tags
- burden of proof
- evidence
Question
Can the HOA charge me for copies of records?
Short Answer
Yes, the HOA is allowed to charge a fee for copies.
Detailed Answer
The statute permits the association to charge a fee per page for making copies of requested records, provided the request is for the purchase of copies.
Alj Quote
An association may charge a fee for making copies of not more than fifteen cents per page.
Legal Basis
A.R.S. § 33-1258(A)
Topic Tags
- fees
- copies
Question
Is the HOA allowed to withhold certain records from me?
Short Answer
Yes, specific categories of records, such as personal or privileged information, may be withheld.
Detailed Answer
The decision outlines statutory exceptions where books and records can be withheld, including privileged attorney communications, pending litigation, and personal financial or health records of individual members or employees.
Alj Quote
Books and records kept by or on behalf of the association and the board may be withheld from disclosure to the extent that the portion withheld relates to any of the following: … Personal, health or financial records of an individual member of the association…
Legal Basis
A.R.S. § 33-1258(B)
Topic Tags
- privacy
- exemptions
Question
How long does the HOA have to fulfill my request for records?
Short Answer
The HOA has ten business days to fulfill a request for examination or to provide copies.
Detailed Answer
The statute mandates a ten-business-day timeframe for the association to comply with a written request for either examining records or purchasing copies.
Alj Quote
The association shall have ten business days to fulfill a request for examination. … On request for purchase of copies … the association shall have ten business days to provide copies of the requested records.
Legal Basis
A.R.S. § 33-1258(A)
Topic Tags
- timelines
- deadlines
Question
Who is responsible for proving that the HOA violated the law?
Short Answer
The homeowner (Petitioner) bears the burden of proof.
Detailed Answer
In an administrative hearing, it is the petitioner's responsibility to prove by a preponderance of the evidence that the HOA violated the specific statute.
Alj Quote
In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated A.R.S. § 33-1258.
Legal Basis
A.A.C. R2-19-119
Topic Tags
- burden of proof
- legal standards
Case
- Docket No
- 22F-H2222033-REL
- Case Title
- Roberta J Stevenson-McDermott vs. Four Palms Homeowners
- Decision Date
- 2022-07-08
- Alj Name
- Adam D. Stone
- Tribunal
- OAH
- Agency
- ADRE
Case Participants
Petitioner Side
- Roberta J Stevenson-McDermott (petitioner)
- Sean Embry (owner/witness)
Provided letter of support (not admitted as evidence) - Lenor Embry (owner/witness)
Provided letter of support (not admitted as evidence) - Philip Smith (owner/witness)
Provided letter of support (not admitted as evidence) - c. serrano (clerical staff)
Transmitted document for Petitioner
Respondent Side
- Araceli Rodriguez (HOA attorney)
Yuma Law Firm (inferred)
Represented Four Palms Homeowners Association - Faye Burson (board member)
Four Palms Homeowners HOA
Vice President and witness (also listed as FA Buren) - Mario Salinas (board member)
Four Palms Homeowners HOA
Treasurer and witness (also listed as Mario Selenus) - Gilbert Sto (board member)
Four Palms Homeowners HOA
President - Lesie Blessing (board member)
Four Palms Homeowners HOA
Vice President (2016 board) and Secretary (current board) - Gail Hall (board member)
Four Palms Homeowners HOA
Fifth member - Linia Ohn (former board member)
Four Palms Homeowners HOA
Received payments in 2018 (also listed as Lenia own) - Scott Hoser (former board member)
Four Palms Homeowners HOA
Fifth member (2016 board)
Neutral Parties
- Adam D. Stone (ALJ)
OAH - Louis Dettorre (ADRE Commissioner)
ADRE - Miranda Alvarez (Legal Secretary)
ADRE
Transmitted decision
Other Participants
- Lisa Bon (former board member/owner)
Secretary (2016 board); provided letter of support to Petitioner