Laura R. Braglia V. Palo Verde Estates Homeowners Association, INC.

Case Summary

Case ID 24F-H032-REL
Agency ADRE
Tribunal OAH
Decision Date 2024-04-17
Administrative Law Judge Jenna Clark
Outcome The ALJ granted the petition after finding that the Respondent HOA violated ARIZ. REV. STAT. § 33-1258 by failing to fulfill a records request within the statutory ten business days. The HOA was ordered to reimburse the Petitioner's $500 filing fee and comply with the statute, but was not assessed a civil penalty.
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Laura R. Braglia Counsel
Respondent Palo Verde Estates Homeowners Association, Inc. Counsel Jacqueline Zipprich

Alleged Violations

ARIZ. REV. STAT. § 33-1258

Outcome Summary

The ALJ granted the petition after finding that the Respondent HOA violated ARIZ. REV. STAT. § 33-1258 by failing to fulfill a records request within the statutory ten business days. The HOA was ordered to reimburse the Petitioner's $500 filing fee and comply with the statute, but was not assessed a civil penalty.

Key Issues & Findings

Whether Respondent violated ARIZ. REV. STAT. § 33-1258 because the “HOA has not complied witha [sic] formal records request … regarding damage to homeowner's unit.”

Respondent received Petitioner's records request on November 28, 2023, but did not comply until February 13, 2024, nearly two months later. The Tribunal found no viable justification for the delay, establishing a violation of the statute.

Orders: Petitioner's petition is granted. Respondent must reimburse the $500 filing fee in certified funds and must henceforth comply with ARIZ. REV. STAT. § 33-1258. No civil penalty was assessed.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • ARIZ. REV. STAT. § 33-1258

Analytics Highlights

Topics: records request, statutory violation, HOA transparency, filing fee reimbursement
Additional Citations:

  • ARIZ. REV. STAT. § 33-1258
  • ARIZ. REV. STAT. § 32-2102
  • ARIZ. REV. STAT. § 32-2199 et seq.

Video Overview

Audio Overview

Decision Documents

24F-H032-REL Decision – 1162594.pdf

Uploaded 2026-04-24T12:19:41 (51.3 KB)

24F-H032-REL Decision – 1167907.pdf

Uploaded 2026-04-24T12:19:45 (184.7 KB)

24F-H032-REL Decision – 1162594.pdf

Uploaded 2026-01-23T18:05:42 (51.3 KB)

24F-H032-REL Decision – 1167907.pdf

Uploaded 2026-01-23T18:05:48 (184.7 KB)

The hearing summarized below concerns the administrative law matter of Laura R. Braglia, Petitioner, versus Palo Verde Estates Homeowners Association, Inc., Respondent (No. 24F-H032-REL), held before Administrative Law Judge (ALJ) Jenna Clark of the Office of Administrative Hearings (OAH).

Concise Summary of Legal Case Hearing

Key Facts and Underlying Dispute

The Petitioner, Laura R. Braglia, is a homeowner within the Palo Verde Estates Homeowners Association (HOA). The dispute arose after she discovered severe termite damage to interior beams of a common wall in her unit in October 2023. To determine whether the repairs were the HOA's responsibility under the CC&Rs (covenants and restrictions), Petitioner, advised by an attorney, sought records from the Respondent.

Main Issue and Applicable Statute

The sole issue for the hearing was to determine whether the Respondent violated Arizona Revised Statute (ARIZ. REV. STAT.) § 33-1258 by failing to comply with a formal records request. This statute requires associations to provide records within ten business days of a request.

Hearing Proceedings and Key Arguments

  1. Petitioner’s Case: Petitioner Braglia testified that she submitted a formal written records request to the HOA and its management (Desert Realty Association Management, represented by Jacqueline Zipprich) on November 28, 2023. The request sought termite service records, the HOA termite warranty, and HOA Insurance Policy Information. The statutory deadline for compliance was December 12, 2023. Petitioner filed a complaint with the Arizona Department of Real Estate (DRE) around January 10, 2024, because she had not received the records. Partial records were finally provided on February 13, 2024, nearly two months late. Petitioner requested the remaining documents—the full insurance policy and termite warranty—on February 23, 2024, but received no reply.
  2. Respondent’s Case: Respondent, represented by Community Property Manager Jacqueline Zipprich, conceded providing the documents late. Ms. Zipprich explained that the Association does not have a "termite warranty," but rather a pest control treatment plan, which was explained to Petitioner. She also contended that the request for "HOA Insurance Policy Information" was ambiguous, leading them to provide only the Certificate of Insurance and exclusion pages. Ms. Zipprich cited communication issues and claimed DRE staff advised her against direct communication with the Petitioner after providing the initial response.
  3. Waiver: Both parties declined to provide closing arguments.

Legal Points and Outcome

The Administrative Law Judge determined that the Petitioner sustained her burden of proof by a preponderance of the evidence. The ALJ concluded that the Respondent violated ARIZ. REV. STAT. § 33-1258.

The violation was based on the fact that the Respondent delayed compliance for nearly two months after the deadline (December 12, 2023, to February 13, 2024). The ALJ noted that while the HOA could not provide a termite warranty because one did not exist, and the insurance policy request was vague, these facts did not establish a viable justification or excuse for the HOA's overall inaction during the applicable statutory period.

The petition was granted. The OAH issued an ORDER requiring the Respondent to:

  1. Reimburse Petitioner’s filing fee of $500.00 in certified funds.
  2. Henceforth comply with ARIZ. REV. STAT. § 33-1258.

Crucially, the ALJ did not assess a civil penalty against the Respondent. The recommended decision was issued on April 17, 2024.

Questions

Question

How long does my HOA have to respond to a formal records request?

Short Answer

The HOA has 10 business days to fulfill a request for examination or to provide copies.

Detailed Answer

Under Arizona law, an association is strictly required to fulfill a request for examination or provide copies of requested records within ten business days. Failure to meet this deadline without a viable justification constitutes a violation of the statute.

Alj Quote

The association shall have ten business days to fulfill a request for examination. On request for purchase of copies of records by any member or any person designated by the member in writing as the member's representative, the association shall have ten business days to provide copies of the requested records.

Legal Basis

ARIZ. REV. STAT. § 33-1258(A)

Topic Tags

  • records request
  • deadlines
  • HOA obligations

Question

Can my HOA charge me a fee to simply review or inspect records?

Short Answer

No, the HOA cannot charge a fee for making material available for review.

Detailed Answer

The statute explicitly prohibits the association from charging a member for the act of making materials available for review. However, they may charge a specific fee for making actual copies.

Alj Quote

The association shall not charge a member or any person designated by the member in writing for making material available for review.

Legal Basis

ARIZ. REV. STAT. § 33-1258(A)

Topic Tags

  • fees
  • records request
  • homeowner rights

Question

How much can the HOA charge if I ask for copies of records?

Short Answer

The HOA may charge a fee for copies, but it cannot exceed fifteen cents per page.

Detailed Answer

While review is free, if a homeowner requests physical copies of the records, the association is permitted by statute to charge a fee, capped at fifteen cents per page.

Alj Quote

An association may charge a fee for making copies of not more than fifteen cents per page.

Legal Basis

ARIZ. REV. STAT. § 33-1258(A)

Topic Tags

  • fees
  • records request
  • copies

Question

What happens if my HOA responds to my records request weeks or months late?

Short Answer

Responding late without a valid excuse is a violation of the statute.

Detailed Answer

If the HOA fails to provide the records within the statutory 10-business-day window without a viable justification, they are in violation of A.R.S. § 33-1258. In this case, a response provided nearly two months late was deemed a violation.

Alj Quote

The record also reflects that although Petitioner follow-up with Respondent on December 12, 2023, regarding her request, Respondent did not comply until February 13, 2024, nearly two (2) months late… Nothing in the record establishes a viable justification or excuse for Respondent’s inaction and/or lack of performance on Petitioner’s records request during the applicable time period.

Legal Basis

ARIZ. REV. STAT. § 33-1258

Topic Tags

  • violations
  • delays
  • enforcement

Question

Can the HOA be penalized for failing to provide a document that doesn't exist?

Short Answer

No, an HOA cannot be held liable for failing to provide a record that simply does not exist.

Detailed Answer

If a homeowner requests a specific document (like a warranty) and the association does not possess such a document because it never existed, the association is not in violation for failing to provide it.

Alj Quote

Additionally, because the Association never had a “termite warranty,” Respondent was unable to provide Petitioner with something that did not exist.

Legal Basis

ARIZ. REV. STAT. § 33-1258

Topic Tags

  • records request
  • defense
  • HOA obligations

Question

Does it matter if my wording in a records request is vague?

Short Answer

Yes, vague requests may lead to incomplete information, and the HOA might not be faulted for misinterpreting ambiguous terms.

Detailed Answer

Homeowners should be specific. In this case, requesting 'Policy Information' rather than the 'entire policy' was considered vague and ambiguous, which explained why the HOA only provided declarations and exclusion pages rather than the full policy.

Alj Quote

While Petitioner contends that she only received some of the documents she requested, the record further reflects that she never asked for the Association’s entire insurance policy, only “HOA Insurance Policy Information,” which was vague and ambiguous.

Legal Basis

Findings of Fact

Topic Tags

  • records request
  • best practices
  • homeowner responsibilities

Question

If I win my case against the HOA at a hearing, will I get my filing fee back?

Short Answer

Yes, the Administrative Law Judge can order the HOA to reimburse your filing fee.

Detailed Answer

If the petition is granted and a violation is found, the ALJ has the authority to order the Respondent (HOA) to reimburse the Petitioner's filing fee in certified funds.

Alj Quote

IT IS FURTHER ORDERED that Respondent shall reimburse Petitioners’ filing fee (e.g. $500.00) in certified funds.

Legal Basis

Order

Topic Tags

  • remedies
  • fees
  • reimbursement

Question

Will the HOA automatically have to pay a civil penalty if they are found in violation?

Short Answer

Not necessarily. The judge may decide not to assess a civil penalty even if a violation is found.

Detailed Answer

Finding a violation does not automatically result in a fine. The ALJ has discretion regarding civil penalties. In this instance, despite finding a violation regarding records, the judge ordered compliance and fee reimbursement but explicitly chose not to assess a civil penalty.

Alj Quote

IT IS FURTHER ORDERED that a civil penalty shall not be assessed against Respondent in this matter.

Legal Basis

Order

Topic Tags

  • penalties
  • civil penalty
  • enforcement

Question

Who has the burden of proof in an administrative hearing against an HOA?

Short Answer

The Petitioner (homeowner) bears the burden of proof.

Detailed Answer

The homeowner filing the complaint must prove by a 'preponderance of the evidence' that the HOA violated the statute. This means they must show it is more probable than not that the violation occurred.

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated ARIZ. REV. STAT. § 33-1258.

Legal Basis

ARIZ. ADMIN. CODE R2-19-119(B)(2)

Topic Tags

  • procedure
  • burden of proof
  • evidence

Question

Can I designate someone else to inspect the HOA records for me?

Short Answer

Yes, a member can designate a representative in writing.

Detailed Answer

The statute allows records to be examined by the member or any person designated by the member in writing as their representative.

Alj Quote

[A]ll financial and other records of the association shall be made reasonably available for examination by any member or any person designated by the member in writing as the member's representative.

Legal Basis

ARIZ. REV. STAT. § 33-1258(A)

Topic Tags

  • representation
  • records request
  • access

Case

Docket No
24F-H032-REL
Case Title
Laura R. Braglia v. Palo Verde Estates Homeowners Association, Inc.
Decision Date
2024-04-17
Alj Name
Jenna Clark
Tribunal
OAH
Agency
ADRE

Questions

Question

How long does my HOA have to respond to a formal records request?

Short Answer

The HOA has 10 business days to fulfill a request for examination or to provide copies.

Detailed Answer

Under Arizona law, an association is strictly required to fulfill a request for examination or provide copies of requested records within ten business days. Failure to meet this deadline without a viable justification constitutes a violation of the statute.

Alj Quote

The association shall have ten business days to fulfill a request for examination. On request for purchase of copies of records by any member or any person designated by the member in writing as the member's representative, the association shall have ten business days to provide copies of the requested records.

Legal Basis

ARIZ. REV. STAT. § 33-1258(A)

Topic Tags

  • records request
  • deadlines
  • HOA obligations

Question

Can my HOA charge me a fee to simply review or inspect records?

Short Answer

No, the HOA cannot charge a fee for making material available for review.

Detailed Answer

The statute explicitly prohibits the association from charging a member for the act of making materials available for review. However, they may charge a specific fee for making actual copies.

Alj Quote

The association shall not charge a member or any person designated by the member in writing for making material available for review.

Legal Basis

ARIZ. REV. STAT. § 33-1258(A)

Topic Tags

  • fees
  • records request
  • homeowner rights

Question

How much can the HOA charge if I ask for copies of records?

Short Answer

The HOA may charge a fee for copies, but it cannot exceed fifteen cents per page.

Detailed Answer

While review is free, if a homeowner requests physical copies of the records, the association is permitted by statute to charge a fee, capped at fifteen cents per page.

Alj Quote

An association may charge a fee for making copies of not more than fifteen cents per page.

Legal Basis

ARIZ. REV. STAT. § 33-1258(A)

Topic Tags

  • fees
  • records request
  • copies

Question

What happens if my HOA responds to my records request weeks or months late?

Short Answer

Responding late without a valid excuse is a violation of the statute.

Detailed Answer

If the HOA fails to provide the records within the statutory 10-business-day window without a viable justification, they are in violation of A.R.S. § 33-1258. In this case, a response provided nearly two months late was deemed a violation.

Alj Quote

The record also reflects that although Petitioner follow-up with Respondent on December 12, 2023, regarding her request, Respondent did not comply until February 13, 2024, nearly two (2) months late… Nothing in the record establishes a viable justification or excuse for Respondent’s inaction and/or lack of performance on Petitioner’s records request during the applicable time period.

Legal Basis

ARIZ. REV. STAT. § 33-1258

Topic Tags

  • violations
  • delays
  • enforcement

Question

Can the HOA be penalized for failing to provide a document that doesn't exist?

Short Answer

No, an HOA cannot be held liable for failing to provide a record that simply does not exist.

Detailed Answer

If a homeowner requests a specific document (like a warranty) and the association does not possess such a document because it never existed, the association is not in violation for failing to provide it.

Alj Quote

Additionally, because the Association never had a “termite warranty,” Respondent was unable to provide Petitioner with something that did not exist.

Legal Basis

ARIZ. REV. STAT. § 33-1258

Topic Tags

  • records request
  • defense
  • HOA obligations

Question

Does it matter if my wording in a records request is vague?

Short Answer

Yes, vague requests may lead to incomplete information, and the HOA might not be faulted for misinterpreting ambiguous terms.

Detailed Answer

Homeowners should be specific. In this case, requesting 'Policy Information' rather than the 'entire policy' was considered vague and ambiguous, which explained why the HOA only provided declarations and exclusion pages rather than the full policy.

Alj Quote

While Petitioner contends that she only received some of the documents she requested, the record further reflects that she never asked for the Association’s entire insurance policy, only “HOA Insurance Policy Information,” which was vague and ambiguous.

Legal Basis

Findings of Fact

Topic Tags

  • records request
  • best practices
  • homeowner responsibilities

Question

If I win my case against the HOA at a hearing, will I get my filing fee back?

Short Answer

Yes, the Administrative Law Judge can order the HOA to reimburse your filing fee.

Detailed Answer

If the petition is granted and a violation is found, the ALJ has the authority to order the Respondent (HOA) to reimburse the Petitioner's filing fee in certified funds.

Alj Quote

IT IS FURTHER ORDERED that Respondent shall reimburse Petitioners’ filing fee (e.g. $500.00) in certified funds.

Legal Basis

Order

Topic Tags

  • remedies
  • fees
  • reimbursement

Question

Will the HOA automatically have to pay a civil penalty if they are found in violation?

Short Answer

Not necessarily. The judge may decide not to assess a civil penalty even if a violation is found.

Detailed Answer

Finding a violation does not automatically result in a fine. The ALJ has discretion regarding civil penalties. In this instance, despite finding a violation regarding records, the judge ordered compliance and fee reimbursement but explicitly chose not to assess a civil penalty.

Alj Quote

IT IS FURTHER ORDERED that a civil penalty shall not be assessed against Respondent in this matter.

Legal Basis

Order

Topic Tags

  • penalties
  • civil penalty
  • enforcement

Question

Who has the burden of proof in an administrative hearing against an HOA?

Short Answer

The Petitioner (homeowner) bears the burden of proof.

Detailed Answer

The homeowner filing the complaint must prove by a 'preponderance of the evidence' that the HOA violated the statute. This means they must show it is more probable than not that the violation occurred.

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated ARIZ. REV. STAT. § 33-1258.

Legal Basis

ARIZ. ADMIN. CODE R2-19-119(B)(2)

Topic Tags

  • procedure
  • burden of proof
  • evidence

Question

Can I designate someone else to inspect the HOA records for me?

Short Answer

Yes, a member can designate a representative in writing.

Detailed Answer

The statute allows records to be examined by the member or any person designated by the member in writing as their representative.

Alj Quote

[A]ll financial and other records of the association shall be made reasonably available for examination by any member or any person designated by the member in writing as the member's representative.

Legal Basis

ARIZ. REV. STAT. § 33-1258(A)

Topic Tags

  • representation
  • records request
  • access

Case

Docket No
24F-H032-REL
Case Title
Laura R. Braglia v. Palo Verde Estates Homeowners Association, Inc.
Decision Date
2024-04-17
Alj Name
Jenna Clark
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • Laura R. Braglia (petitioner)
    Appeared on her own behalf; testified as witness.

Respondent Side

  • Jacqueline Zipprich (property manager)
    Desert Realty Association Management
    Appeared on behalf of Respondent; testified as witness; also served as Statutory Agent for Respondent.
  • Joe Wolf (HOA president)
    Palo Verde Estates Homeowners Association, Inc.
    HOA Board President.

Neutral Parties

  • Jenna Clark (ALJ)
    Office of Administrative Hearings
    Presiding Administrative Law Judge.
  • Susan Nicolson (commissioner)
    Arizona Department of Real Estate
    Recipient of the recommended order.
  • Vivian Nunes (ADRE staff)
    Arizona Department of Real Estate
    Recipient of the recommended order ([email protected]).
  • D. Jones (ADRE staff)
    Arizona Department of Real Estate
    Listed as recipient of the recommended order ([email protected]).
  • L. Abril (ADRE staff)
    Arizona Department of Real Estate
    Listed as recipient of the recommended order ([email protected]).
  • M. Neat (ADRE staff)
    Arizona Department of Real Estate
    Listed as recipient of the recommended order ([email protected]).
  • A. Kowaleski (ADRE staff)
    Arizona Department of Real Estate
    Listed as recipient of the recommended order ([email protected]).
  • G. Osborn (ADRE staff)
    Arizona Department of Real Estate
    Listed as recipient of the recommended order ([email protected]).

VVE-Casa Grande Home Owners Association v. Duane S & Mary L Eitel

Case Summary

Case ID 24F-H003-REL
Agency ADRE
Tribunal OAH
Decision Date 2024-02-22
Administrative Law Judge Jenna Clark
Outcome Petitioner sustained its burden of proof establishing that Respondents violated CC&Rs sections 7.2, 7.3, 7.25, 7.26, 7.28, and 7.31 by operating a cat rescue business (VKNR) from their residence, which involved unauthorized commercial activity, excessive non-pet animals, and creating a nuisance. Violation of 7.29 was not established. The petition was granted.
Filing Fees Refunded $1,000.00
Civil Penalties $0.00

Parties & Counsel

Petitioner VVE-Casa Grande Home Owners Association Counsel Anthony Rossetti, Esq.
Respondent Duane Eitel & Mary Eitel Counsel Kevin Harper, Esq.

Alleged Violations

CC&Rs Article VII, sections 7.2, 7.3, 7.25, 7.26, 7.28, 7.29, and 7.31

Outcome Summary

Petitioner sustained its burden of proof establishing that Respondents violated CC&Rs sections 7.2, 7.3, 7.25, 7.26, 7.28, and 7.31 by operating a cat rescue business (VKNR) from their residence, which involved unauthorized commercial activity, excessive non-pet animals, and creating a nuisance. Violation of 7.29 was not established. The petition was granted.

Key Issues & Findings

Violation of CC&Rs by operating an unauthorized business out of their home and housing dozens of cats in excess of a reasonable number of household pets, creating a nuisance.

Respondents operated a nonprofit cat rescue (VKNR) from their single-family residence, housing 50+ cats in a 3-car garage, which constituted an unauthorized commercial use, exceeded a reasonable number of pets, and created traffic and waste nuisances.

Orders: Petitioner's petition is granted. Respondents must henceforth abide by CC&Rs sections 7.2, 7.3, 7.25, 7.26, 7.28, and 7.31.

Filing fee: $1,000.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • CC&Rs section 7.2
  • CC&Rs section 7.3
  • CC&Rs section 7.25
  • CC&Rs section 7.26
  • CC&Rs section 7.28
  • CC&Rs section 7.31

Analytics Highlights

Topics: Home Business, Pets/Animals, Nuisance, CC&Rs, Enforcement, HOA
Additional Citations:

  • ARIZ. REV. STAT. §§ 32-2102
  • ARIZ. REV. STAT. §§ 32-2199 et seq.
  • ARIZ. REV. STAT. § 32-2199.05
  • ARIZ. REV. STAT. § 32-2199(2)
  • ARIZ. REV. STAT. § 32-2199.01(A)
  • ARIZ. REV. STAT. § 32-2199.01(D)
  • ARIZ. REV. STAT. § 32-2199.02
  • ARIZ. REV. STAT. §§ 41-1092 et seq.
  • ARIZ. REV. STAT. § 32-2199.04
  • ARIZ. REV. STAT. § 41-1092.09
  • ARIZ. ADMIN. CODE R2-19-119
  • Tierra Ranchos Homeowners Ass'n v. Kitchukov, 216 Ariz. 195, 165 P.3d 173 (App. 2007)

Video Overview

Audio Overview

Decision Documents

24F-H003-REL Decision – 1094853.pdf

Uploaded 2026-04-24T12:13:45 (51.0 KB)

24F-H003-REL Decision – 1113338.pdf

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24F-H003-REL Decision – 1125372.pdf

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24F-H003-REL Decision – 1147484.pdf

Uploaded 2026-04-24T12:13:55 (184.8 KB)

24F-H003-REL Decision – 1094853.pdf

Uploaded 2026-01-23T18:00:39 (51.0 KB)

24F-H003-REL Decision – 1113338.pdf

Uploaded 2026-01-23T18:00:44 (49.4 KB)

24F-H003-REL Decision – 1125372.pdf

Uploaded 2026-01-23T18:00:48 (65.5 KB)

24F-H003-REL Decision – 1147484.pdf

Uploaded 2026-01-23T18:00:51 (184.8 KB)

This case, *VVE-Casa Grande Home Owners Association v. Duane S & Mary L Eitel* (No. 24F-H003-REL), was heard before Administrative Law Judge (ALJ) Jenna Clark at the Office of Administrative Hearings (OAH).

Key Facts and Issues

The Petitioner, VVE-Casa Grande Home Owners Association (the Association), filed a petition alleging that the Respondents, Duane S. Eitel and Mary L. Eitel, violated several Covenants, Conditions, and Restrictions (CC&Rs) by operating an unauthorized business out of their home and housing cats far in excess of a "reasonable number of household pets".

The primary CC&R sections alleged to be violated were:

  1. 7.2 (Residential Use) & 7.3 (No Commercial Use): Prohibiting commercial use, manufacturing, storing, or vending on the lot.
  2. 7.25 (Animals): Limiting animals to a reasonable number of generally recognized household pets, and stating that state and county laws govern pet numbers, noise, and nuisance.
  3. 7.26, 7.28, 7.29, and 7.31: Related to nuisance, garbage, debris, diseases, and maintaining a safe and orderly condition.

The core factual dispute centered on the operation of Valley Kitten Nursery & Rescue Inc. (VKNR), a 501(c)(3) nonprofit. Respondents historically stored over fifty (50) cats/kittens in their three-car garage pending private adoption. Pinal County had previously determined the operation was an unauthorized use subject to a zoning violation in 2017.

Hearing Proceedings and Arguments

The evidentiary hearing took place on November 14, 2023.

Petitioner's Argument: The Association argued that Respondents were unequivocally running a business. This assertion was supported by evidence that VKNR has an Employer Identification Number (EIN), charges adoption fees ($125 for kittens, $95 for adult cats), and handles cats as "a product," not pets. Furthermore, housing 50+ non-pet animals in the garage was unreasonable and violated residential use restrictions. Petitioner’s witness testified to observing cars, deliveries, and volunteers cleaning cages in the driveway, creating concerns about debris, waste runoff, and biohazardous materials.

Respondent's Argument: Respondents argued that VKNR is a volunteer nonprofit and therefore not a "commercial business" prohibited by CC&R 7.3. They asserted they were fostering animals and that adoption fees merely covered costs. Respondent Duane Eitel (DE) testified that the operation was run so that adopters did not pick up cats at the residence (with limited exceptions), and that the cleaning processes had been moved to the rear yard in response to earlier complaints. They noted that Pinal County had never issued a final violation regarding the number of cats.

Procedural Outcome and Final Decision

Following the presentation of evidence, the ALJ recessed the hearing to encourage settlement, placing the matter in "Status". The status period was extended until February 2, 2024. As the parties were unable to settle, they requested the ALJ issue a decision based on the hearing record.

The ALJ issued the Administrative Law Judge Decision on February 22, 2024, finding that the Petitioner sustained its burden of proof by a preponderance of the evidence.

Key Legal Findings:

  • The ALJ concluded that Respondents' operation of VKNR constituted a "clear business model". The assertion that VKNR is not a "business" because it is a nonprofit was deemed "both technically and legally inaccurate".
  • Respondent DE admitted that the 50+ animals housed in the garage were not pets.
  • The continued operation, including visible debris and the scope of the operation, created a nuisance and traffic issues.
  • The ALJ found violations of CC&R sections 7.2, 7.3, 7.25, 7.26, 7.28, and 7.31 were established. (A violation of 7.29 was not established).

Final Order: The Association's petition was granted. Respondents were ordered to **henceforth abide by CC&R sections 7.2,

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24F-H003-REL

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In a legal dispute before the Arizona Department of Real Estate, the VVE-Casa Grande Home Owners Association alleged that residents Duane and Mary Eitel violated community CC&Rs by operating an unauthorized cat rescue from their garage. The association contended that housing dozens of animals constituted an illegal business and a nuisance that impacted the neighborhood’s residential character. While the homeowners argued their nonprofit fostering was a charitable endeavor rather than a commercial enterprise, the Administrative Law Judge ruled that the large-scale operation exceeded the “reasonable number of pets” allowed. Evidence from Pinal County inspections and neighbor testimony confirmed that the garage held over 50 cats, leading to concerns over traffic, sanitation, and debris. Ultimately, the judge found the homeowners in violation of multiple governing documents and ordered them to cease operations.

What were the main legal arguments regarding the cat rescue?
How did the court define a home-based business versus a nonprofit?
What specific HOA rules were the homeowners found to have violated?

Thursday, February 12

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24F-H003-REL

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In a legal dispute before the Arizona Department of Real Estate, the VVE-Casa Grande Home Owners Association alleged that residents Duane and Mary Eitel violated community CC&Rs by operating an unauthorized cat rescue from their garage. The association contended that housing dozens of animals constituted an illegal business and a nuisance that impacted the neighborhood’s residential character. While the homeowners argued their nonprofit fostering was a charitable endeavor rather than a commercial enterprise, the Administrative Law Judge ruled that the large-scale operation exceeded the “reasonable number of pets” allowed. Evidence from Pinal County inspections and neighbor testimony confirmed that the garage held over 50 cats, leading to concerns over traffic, sanitation, and debris. Ultimately, the judge found the homeowners in violation of multiple governing documents and ordered them to cease operations.

What were the main legal arguments regarding the cat rescue?
How did the court define a home-based business versus a nonprofit?
What specific HOA rules were the homeowners found to have violated?

Thursday, February 12

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7 sources

Video Overview

Mind Map

Reports

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Quiz

Infographic

Slide Deck

Data Table

NotebookLM can be inaccurate; please double check its responses.

Case Participants

Petitioner Side

  • Anthony Rossetti (petitioner attorney, property manager)
    Rossetti Management & Realty Services
    Represented Petitioner and owned the newly hired management company.
  • Douglas Karolak (witness, homeowner)
    VVE-Casa Grande HOA Member
    Testified on behalf of Petitioner.
  • Nicole Elliot (property manager)
    Norris Management
    Former HOA management committee/manager who issued warning letters.
  • CD Mai (homeowner/neighbor)
    VVE-Casa Grande HOA Member
    Mentioned by Karolak as a vocal opponent/adjacent neighbor to the Eitels.

Respondent Side

  • Duane Eitel (respondent, witness)
    VVE-Casa Grande HOA Member
    Referred to as Duane S Eitel in earlier documents; DE in the decision.
  • Mary Eitel (respondent)
    VVE-Casa Grande HOA Member, CEO/Director of Valley Kitten Nursery & Rescue Inc.
    Referred to as Mary L Eitel in earlier documents.
  • Kevin Harper (respondent attorney)
    Harper Law, PLC

Neutral Parties

  • Jenna Clark (ALJ)
    Office of Administrative Hearings
  • Susan Nicolson (commissioner)
    Arizona Department of Real Estate
  • AHansen (ADRE staff)
    Arizona Department of Real Estate
  • vnunez (ADRE staff)
    Arizona Department of Real Estate
  • djones (ADRE staff)
    Arizona Department of Real Estate
  • labril (ADRE staff)
    Arizona Department of Real Estate
  • Christopher Sinco (code compliance officer)
    Pinal County Animal Control
    Involved in the 2017/2018 county inspection.

Other Participants

  • Scott Lenderman (property manager)
    HOA management administrator (prior to Rossetti)
    Mentioned as the first HOA management administrator.

George Holub v. 3 Canyons Ranch Master

Case Summary

Case ID 24F-H021-REL
Agency ADRE
Tribunal OAH
Decision Date 2024-02-12
Administrative Law Judge Adam D. Stone
Outcome Petitioner's petition alleging violations of ARIZ. REV. STAT. § 33-1803 regarding assessment increase and fine imposition was denied in its entirety. The Administrative Law Judge found Petitioner failed to meet the burden of proof, concluding the HOA did not violate the statute.
Filing Fees Refunded $1,000.00
Civil Penalties $0.00

Parties & Counsel

Petitioner George Holub Counsel
Respondent 3 Canyons Ranch Master Homeowners’ Association Counsel Marcus Martinez, Esq.

Alleged Violations

ARIZ. REV. STAT. § 33-1803(A)
ARIZ. REV. STAT. § 33-1803(B), (C), (D), (E)

Outcome Summary

Petitioner's petition alleging violations of ARIZ. REV. STAT. § 33-1803 regarding assessment increase and fine imposition was denied in its entirety. The Administrative Law Judge found Petitioner failed to meet the burden of proof, concluding the HOA did not violate the statute.

Why this result: Petitioner did not meet the burden of proving by a preponderance of the evidence that the Association violated ARIZ. REV. STAT. § 33-1803, as the assessment error was corrected and the notice requirements for the fine were met.

Key Issues & Findings

Assessment Increase

Petitioner alleged the yearly assessment increased from $525.00 to $1,010.00, violating ARS § 33-1803(A). The HOA claimed this was a clerical error that was promptly corrected to $525.00.

Orders: Petitioner failed to meet the burden of proof, as the evidence showed the assessment error was immediately corrected, resulting in no statutory violation.

Filing fee: $1,000.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • ARIZ. REV. STAT. § 33-1803(A)
  • ARIZ. REV. STAT. § 33-1803

Imposition of fine without proper notice

Petitioner challenged a $500 fine for commencing construction of a courtyard wall without prior approval. Petitioner claimed insufficient notice, while the HOA asserted notice was provided via email, satisfying statutory requirements.

Orders: Petitioner failed to meet the burden of proof. The email notice complied with statutory requirements. The Association was ordered not to reimburse the filing fee.

Filing fee: $1,000.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • ARIZ. REV. STAT. § 33-1803(B)
  • ARIZ. REV. STAT. § 33-1803(C)
  • ARIZ. REV. STAT. § 33-1803(D)
  • ARIZ. REV. STAT. § 33-1803(E)
  • ARIZ. REV. STAT. § 33-1803

Video Overview

Audio Overview

Decision Documents

24F-H021-REL Decision – 1114406.pdf

Uploaded 2026-04-24T12:16:19 (48.9 KB)

24F-H021-REL Decision – 1114407.pdf

Uploaded 2026-04-24T12:16:22 (6.6 KB)

24F-H021-REL Decision – 1135788.pdf

Uploaded 2026-04-24T12:16:25 (57.8 KB)

24F-H021-REL Decision – 1143255.pdf

Uploaded 2026-04-24T12:16:29 (124.1 KB)

24F-H021-REL Decision – 1114406.pdf

Uploaded 2026-01-23T18:03:08 (48.9 KB)

24F-H021-REL Decision – 1114407.pdf

Uploaded 2026-01-23T18:03:11 (6.6 KB)

24F-H021-REL Decision – 1135788.pdf

Uploaded 2026-01-23T18:03:15 (57.8 KB)

24F-H021-REL Decision – 1143255.pdf

Uploaded 2026-01-23T18:03:18 (124.1 KB)

The hearing summary for *George Holub v. 3 Canyons Ranch Master Homeowners’ Association* (No. 24F-H021-REL) addresses allegations that the Homeowners’ Association (HOA) violated the Arizona Planned Communities Act regarding assessments and fines.

Case Overview and Key Issues

The case was heard by Administrative Law Judge (ALJ) Adam D. Stone at the Office of Administrative Hearings (OAH) on January 26, 2024. Petitioner George Holub filed a two-issue petition, alleging the Respondent HOA violated ARIZ. REV. STAT. § 33-1803.

The main issues were:

  1. Assessment Increase: The HOA allegedly "nearly doubled the assessment amount from previous year," violating the statutory limit that prevents increases over twenty percent without a majority member vote (ARS 33-1803(A)).
  2. Improper Fine: The HOA allegedly "imposed violation fee without first discussing the violation with [Petitioner] in front of the board members". This concerned a $500 fine levied for unapproved construction.

Key Arguments and Proceedings

Petitioner's Argument (George Holub):

Petitioner testified that in July 2023, he received a statement showing his annual assessment increased from $525.00 (or $540.00) to $1,010.00 (or $1,495.00 in one statement). He argued this substantial increase was illegal. Regarding the violation, Holub admitted commencing construction of a courtyard and a 5.5-foot wall without prior HOA approval. He asserted he never received the initial Notice of Violation (NOV) via certified mail. He confirmed the certified mail NOV was returned as undeliverable. Holub also argued the subsequent fine letter (January 2023) was sent to a wrong, outdated address for his property-owning entity, Jolly Acres LLC.

Respondent's Argument (Marcus Martinez, Esq. and Mike Needham, Board President):

Respondent argued that there was no assessment increase. Board President Mike Needham testified that the high assessment amount was a clerical error made by the managing agent. This error was immediately corrected after Petitioner inquired, and a new ledger reflecting the correct $525.00 annual assessment was generated on July 7, 2023.

Concerning the fine, Respondent acknowledged the initial certified NOV (September 15, 2022) was returned undeliverable. However, the Board re-sent the NOV via e-mail on October 24, 2022, which Petitioner acknowledged receiving. The $500 fine was subsequently approved at the January 2023 board meeting for failure to seek approval for the construction. Respondent maintained that its procedures strictly adhered to Arizona law.

Final Decision and Legal Points

The ALJ issued a decision on February 12, 2024, denying the petition. The ALJ found that Petitioner failed to meet the burden of proof.

Assessment Ruling:

The ALJ concluded that the assessment issue was merely a clerical error that was promptly corrected. The evidence showed the annual assessment remained $525.00, meaning the Respondent did not violate ARS § 33-1803(A) by illegally increasing dues.

Fine Ruling:

The ALJ held that nothing in the relevant statute requires the association to send the Notice of Violation via certified mail. Although the mail was returned, Petitioner did receive the NOV via email on October 24, 2022. Since the fine was not imposed until the January 2023 board meeting (two and a half months later), Petitioner was given ample time to respond. Furthermore, the ALJ found Petitioner’s claim regarding failure to receive the fine letter to be "disingenuous," as Petitioner had failed to update a corrected address for the property-owning LLC with the Association after being notified of the requirement.

The Petitioner’s petition was denied in its entirety, and the HOA was not required to reimburse the filing fee.

Questions

Question

Is an HOA required to send a Notice of Violation via certified mail?

Short Answer

No, Arizona statute does not require the initial Notice of Violation to be sent via certified mail.

Detailed Answer

The ALJ determined that while homeowners often expect certified mail, the relevant statute (A.R.S. § 33-1803) does not mandate it for the initial notice. As long as the homeowner actually receives the notice (even via email) and it contains the required statutory information, it is considered valid.

Alj Quote

As to the fine, nothing in the statute requires the Association to send the notice via certified mail.

Legal Basis

A.R.S. § 33-1803

Topic Tags

  • violations
  • notices
  • procedural requirements

Question

Does a clerical error on a ledger count as an illegal assessment increase?

Short Answer

No, if the error is corrected and the homeowner is not actually forced to pay the incorrect amount, it is not a violation.

Detailed Answer

In this case, the HOA's management company sent a ledger showing an incorrect assessment amount that appeared to double the fees. However, because the HOA acknowledged the mistake, corrected the ledger to the proper amount, and communicated the correction to the homeowner, the ALJ ruled that the HOA did not violate the statute regarding assessment increases.

Alj Quote

The testimony provided, demonstrated that there was an error in the ledger Petitioner received initially, but that was corrected as evidenced by the July 7, 2023 ledger… Petitioner has not met its burden to prove that the Association violated the statute.

Legal Basis

A.R.S. § 33-1803(A)

Topic Tags

  • assessments
  • billing errors
  • fees

Question

Whose responsibility is it to ensure the HOA has the correct mailing address?

Short Answer

It is the homeowner's responsibility to update their address with the HOA.

Detailed Answer

The ALJ ruled that a homeowner cannot claim they didn't receive notice if they failed to provide the HOA with their current address. Even if the homeowner informs a board member verbally or via email of a change in ownership entity, they must explicitly provide the correct mailing address to the Association.

Alj Quote

While Petitioner informed Mr. Needham that Jolly Acres was now the owner and to mail all community documents to them, he did not provide an address nor update a corrected address with the Association. Thus, this was not the Association’s fault that he did not receive notice of the fine.

Legal Basis

N/A

Topic Tags

  • homeowner obligations
  • notices
  • mailing address

Question

Can an HOA send a Notice of Violation via email?

Short Answer

Yes, if the homeowner receives it.

Detailed Answer

The decision validated a Notice of Violation sent via email because the homeowner acknowledged receiving it. Since the homeowner received actual notice and the content of the email met statutory requirements, the notice was deemed valid despite not being mailed initially.

Alj Quote

Therefore, although Petitioner never received the Notice of Violation via mail, he did receive the same on October 24, 2022. From the evidence provided, the Notice complied with all of the statutory requirements

Legal Basis

A.R.S. § 33-1803

Topic Tags

  • violations
  • email
  • notices

Question

Who has the burden of proof in an administrative hearing against an HOA?

Short Answer

The homeowner (Petitioner) bears the burden of proof.

Detailed Answer

The homeowner filing the petition must prove that the HOA violated the law by a 'preponderance of the evidence,' which means showing that their claims are more likely true than not.

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated ARIZ. REV. STAT. § 33-1803.

Legal Basis

A.R.S. § 41-1092

Topic Tags

  • hearings
  • legal standards
  • burden of proof

Question

Can a homeowner respond to a violation notice to contest it?

Short Answer

Yes, a homeowner has 21 days to respond via certified mail.

Detailed Answer

Statute allows a member to provide a written response to a violation notice. This response must be sent by certified mail within 21 calendar days of the notice date.

Alj Quote

A member who receives a written notice that the condition of the property owned by the member is in violation of the community documents… may provide the association with a written response by sending the response by certified mail within twenty-one calendar days after the date of the notice.

Legal Basis

A.R.S. § 33-1803(C)

Topic Tags

  • violations
  • due process
  • homeowner rights

Question

If a homeowner makes a partial payment on a debt, how must the HOA apply the money?

Short Answer

Payments must be applied to the principal debt first, then to accrued interest.

Detailed Answer

Arizona law mandates that any monies paid by a member for an unpaid penalty or assessment must be applied first to the principal amount unpaid and then to the interest accrued.

Alj Quote

Any monies paid by a member for an unpaid penalty shall be applied first to the principal amount unpaid and then to the interest accrued.

Legal Basis

A.R.S. § 33-1803(B)

Topic Tags

  • payments
  • accounting
  • penalties

Question

Will the filing fee for the hearing be refunded if the homeowner loses?

Short Answer

No, the filing fee is not reimbursed if the petition is denied.

Detailed Answer

The ALJ ordered that because the petition was denied, the Respondent (HOA) was not required to reimburse the Petitioner's filing fee.

Alj Quote

IT IS FURTHER ORDERED pursuant to ARIZ. REV. STAT. § 32-2199.02(A), Respondent shall not reimburse Petitioner’s filing fee as required by ARIZ. REV. STAT. § 32-2199.01.

Legal Basis

A.R.S. § 32-2199.02(A)

Topic Tags

  • hearings
  • fees
  • costs

Case

Docket No
24F-H021-REL
Case Title
George Holub v 3 Canyons Ranch Master Homeowners’ Association
Decision Date
2024-02-12
Alj Name
Adam D. Stone
Tribunal
OAH
Agency
ADRE

Questions

Question

Is an HOA required to send a Notice of Violation via certified mail?

Short Answer

No, Arizona statute does not require the initial Notice of Violation to be sent via certified mail.

Detailed Answer

The ALJ determined that while homeowners often expect certified mail, the relevant statute (A.R.S. § 33-1803) does not mandate it for the initial notice. As long as the homeowner actually receives the notice (even via email) and it contains the required statutory information, it is considered valid.

Alj Quote

As to the fine, nothing in the statute requires the Association to send the notice via certified mail.

Legal Basis

A.R.S. § 33-1803

Topic Tags

  • violations
  • notices
  • procedural requirements

Question

Does a clerical error on a ledger count as an illegal assessment increase?

Short Answer

No, if the error is corrected and the homeowner is not actually forced to pay the incorrect amount, it is not a violation.

Detailed Answer

In this case, the HOA's management company sent a ledger showing an incorrect assessment amount that appeared to double the fees. However, because the HOA acknowledged the mistake, corrected the ledger to the proper amount, and communicated the correction to the homeowner, the ALJ ruled that the HOA did not violate the statute regarding assessment increases.

Alj Quote

The testimony provided, demonstrated that there was an error in the ledger Petitioner received initially, but that was corrected as evidenced by the July 7, 2023 ledger… Petitioner has not met its burden to prove that the Association violated the statute.

Legal Basis

A.R.S. § 33-1803(A)

Topic Tags

  • assessments
  • billing errors
  • fees

Question

Whose responsibility is it to ensure the HOA has the correct mailing address?

Short Answer

It is the homeowner's responsibility to update their address with the HOA.

Detailed Answer

The ALJ ruled that a homeowner cannot claim they didn't receive notice if they failed to provide the HOA with their current address. Even if the homeowner informs a board member verbally or via email of a change in ownership entity, they must explicitly provide the correct mailing address to the Association.

Alj Quote

While Petitioner informed Mr. Needham that Jolly Acres was now the owner and to mail all community documents to them, he did not provide an address nor update a corrected address with the Association. Thus, this was not the Association’s fault that he did not receive notice of the fine.

Legal Basis

N/A

Topic Tags

  • homeowner obligations
  • notices
  • mailing address

Question

Can an HOA send a Notice of Violation via email?

Short Answer

Yes, if the homeowner receives it.

Detailed Answer

The decision validated a Notice of Violation sent via email because the homeowner acknowledged receiving it. Since the homeowner received actual notice and the content of the email met statutory requirements, the notice was deemed valid despite not being mailed initially.

Alj Quote

Therefore, although Petitioner never received the Notice of Violation via mail, he did receive the same on October 24, 2022. From the evidence provided, the Notice complied with all of the statutory requirements

Legal Basis

A.R.S. § 33-1803

Topic Tags

  • violations
  • email
  • notices

Question

Who has the burden of proof in an administrative hearing against an HOA?

Short Answer

The homeowner (Petitioner) bears the burden of proof.

Detailed Answer

The homeowner filing the petition must prove that the HOA violated the law by a 'preponderance of the evidence,' which means showing that their claims are more likely true than not.

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated ARIZ. REV. STAT. § 33-1803.

Legal Basis

A.R.S. § 41-1092

Topic Tags

  • hearings
  • legal standards
  • burden of proof

Question

Can a homeowner respond to a violation notice to contest it?

Short Answer

Yes, a homeowner has 21 days to respond via certified mail.

Detailed Answer

Statute allows a member to provide a written response to a violation notice. This response must be sent by certified mail within 21 calendar days of the notice date.

Alj Quote

A member who receives a written notice that the condition of the property owned by the member is in violation of the community documents… may provide the association with a written response by sending the response by certified mail within twenty-one calendar days after the date of the notice.

Legal Basis

A.R.S. § 33-1803(C)

Topic Tags

  • violations
  • due process
  • homeowner rights

Question

If a homeowner makes a partial payment on a debt, how must the HOA apply the money?

Short Answer

Payments must be applied to the principal debt first, then to accrued interest.

Detailed Answer

Arizona law mandates that any monies paid by a member for an unpaid penalty or assessment must be applied first to the principal amount unpaid and then to the interest accrued.

Alj Quote

Any monies paid by a member for an unpaid penalty shall be applied first to the principal amount unpaid and then to the interest accrued.

Legal Basis

A.R.S. § 33-1803(B)

Topic Tags

  • payments
  • accounting
  • penalties

Question

Will the filing fee for the hearing be refunded if the homeowner loses?

Short Answer

No, the filing fee is not reimbursed if the petition is denied.

Detailed Answer

The ALJ ordered that because the petition was denied, the Respondent (HOA) was not required to reimburse the Petitioner's filing fee.

Alj Quote

IT IS FURTHER ORDERED pursuant to ARIZ. REV. STAT. § 32-2199.02(A), Respondent shall not reimburse Petitioner’s filing fee as required by ARIZ. REV. STAT. § 32-2199.01.

Legal Basis

A.R.S. § 32-2199.02(A)

Topic Tags

  • hearings
  • fees
  • costs

Case

Docket No
24F-H021-REL
Case Title
George Holub v 3 Canyons Ranch Master Homeowners’ Association
Decision Date
2024-02-12
Alj Name
Adam D. Stone
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • George Holub (petitioner)
    Jolly Acres LLC (Owner Entity)
    Appeared on his own behalf
  • Emily Holub (Petitioner's Wife)
    Involved in communications with the HOA regarding assessment

Respondent Side

  • Marcus Martinez (HOA attorney)
    3 Canyons Ranch Master Homeowners’ Association
    Represented Respondent
  • Mike Needham (Board President)
    3 Canyons Ranch Master Homeowners’ Association
    President of the Board of Directors, testified as a witness
  • Nicholas Nogami (Attorney)
    Carpenter Hazlewood
    Listed in service transmission
  • Sarah Malovich (HOA Agent)
  • David Roberts (HOA Agent)
    Provided statement
  • Mrs. Turka (HOA contact)
    Gate person contact
  • Mr. Plat (MDC Chairman)
    3 Canyons Ranch Master Homeowners’ Association
    Chairman of the Master Design Committee
  • Donna (HOA Agent)
    Platinum Management
    HOA/Accounting contact
  • Stacy Smith (board member)
    3 Canyons Ranch Master Homeowners’ Association
    Board member who made a motion regarding the fine

Neutral Parties

  • Adam D. Stone (ALJ)
    OAH
  • Susan Nicolson (Commissioner)
    ADRE
  • AHansen (ADRE Staff)
    ADRE
    Listed in service transmission email list
  • vnunez (ADRE Staff)
    ADRE
    Listed in service transmission email list
  • djones (ADRE Staff)
    ADRE
    Listed in service transmission email list
  • labril (ADRE Staff)
    ADRE
    Listed in service transmission email list

Other Participants

  • Dimitry Wilker (Neighbor)

Keith W. Cunningham v. The Residences at 2211 Camelback Condominium

Case Summary

Case ID 24F-H008-REL
Agency ADRE
Tribunal OAH
Decision Date 2024-01-11
Administrative Law Judge Tammy L. Eigenheer
Outcome Petitioner's petition is granted. Respondent violated A.R.S. § 33-1258 by failing to provide requested records within 10 business days. Respondent violated CC&Rs Section 8.1.1 by failing to maintain insurance coverage equal to 100% of the replacement cost and failing to meet specific liability limits. Respondent is ordered to reimburse Petitioner's $1,000.00 filing fee and comply with the statute and CC&Rs going forward.
Filing Fees Refunded $1,000.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Keith W. Cunningham Counsel
Respondent The Residences at 2211 Camelback Condominium Association, INC Counsel Allison Preston

Alleged Violations

A.R.S. § 33-1258
CC&Rs Section 8.1.1

Outcome Summary

Petitioner's petition is granted. Respondent violated A.R.S. § 33-1258 by failing to provide requested records within 10 business days. Respondent violated CC&Rs Section 8.1.1 by failing to maintain insurance coverage equal to 100% of the replacement cost and failing to meet specific liability limits. Respondent is ordered to reimburse Petitioner's $1,000.00 filing fee and comply with the statute and CC&Rs going forward.

Key Issues & Findings

Records Request

Petitioner alleged Respondent failed to provide financial records and vendor contracts (Epic Valet, FirstService Residential, landscaping) within the statutory timeframe. The ALJ found Respondent failed to provide the documents within 10 business days of the July 10, 2023 request and subsequent July 24, 2023 request.

Orders: Respondent shall comply with A.R.S. § 33-1258 going forward.

Filing fee: $1,000.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • A.R.S. § 33-1258

Insurance Coverage

Petitioner alleged Respondent failed to maintain required insurance coverage. The ALJ found Respondent's property insurance coverage ($59M) was below the appraised replacement cost ($73M) and the general liability limits did not strictly comply with CC&Rs requirements despite an umbrella policy.

Orders: Respondent shall comply with Section 8.1.1 of the CC&Rs going forward.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_win

Cited:

  • CC&Rs Section 8.1.1

Analytics Highlights

Topics: Records Request, Insurance Coverage, Condominium, Contracts, Vendor Contracts, Replacement Cost
Additional Citations:

  • A.R.S. § 33-1258
  • CC&Rs Section 8.1.1

Video Overview

Audio Overview

Decision Documents

24F-H008-REL Decision – 1099767.pdf

Uploaded 2026-04-24T12:14:44 (46.1 KB)

24F-H008-REL Decision – 1101587.pdf

Uploaded 2026-04-24T12:14:47 (49.0 KB)

24F-H008-REL Decision – 1119643.pdf

Uploaded 2026-04-24T12:14:51 (47.5 KB)

24F-H008-REL Decision – 1121917.pdf

Uploaded 2026-04-24T12:14:55 (39.3 KB)

24F-H008-REL Decision – 1132963.pdf

Uploaded 2026-04-24T12:14:58 (188.5 KB)

24F-H008-REL Decision – 1149691.pdf

Uploaded 2026-04-24T12:15:04 (39.1 KB)

24F-H008-REL Decision – 1099767.pdf

Uploaded 2026-02-12T19:18:01 (46.1 KB)

24F-H008-REL Decision – 1101587.pdf

Uploaded 2026-02-12T19:18:03 (49.0 KB)

24F-H008-REL Decision – 1119643.pdf

Uploaded 2026-02-12T19:18:04 (47.5 KB)

24F-H008-REL Decision – 1121917.pdf

Uploaded 2026-02-12T19:18:06 (39.3 KB)

24F-H008-REL Decision – 1132963.pdf

Uploaded 2026-02-12T19:18:07 (188.5 KB)

24F-H008-REL Decision – 1149691.pdf

Uploaded 2026-02-12T19:18:08 (39.1 KB)

{
“case”: {
“docket_no”: “24F-H008-REL”,
“case_title”: “In the Matter of Keith W. Cunningham v The Residences at 2211 Camelback Condominium Association, INC”,
“decision_date”: “2024-01-11”,
“tribunal”: “OAH”,
“agency”: “ADRE”
},
“individuals”: [
{
“name”: “Keith W. Cunningham”,
“role”: “petitioner”,
“side”: “petitioner”,
“affiliation”: null,
“notes”: null
},
{
“name”: “Allison Preston”,
“role”: “HOA attorney”,
“side”: “respondent”,
“affiliation”: “Carpenter Hazlewood Delgado & Bolen LLP”,
“notes”: “Represented The Residences at 2211 Camelback Condominium Association, INC”
},
{
“name”: “Kyle von Johnson”,
“role”: “HOA attorney”,
“side”: “respondent”,
“affiliation”: null,
“notes”: “Represented The Residences at 2211 Camelback Condominium Association, INC”
},
{
“name”: “Mark Teman”,
“role”: “board member”,
“side”: “respondent”,
“affiliation”: null,
“notes”: “Association President, witness”
},
{
“name”: “Allison Renow”,
“role”: “property manager”,
“side”: “respondent”,
“affiliation”: “First Service Residential”,
“notes”: “General Manager (GM) on site”
},
{
“name”: “Frank Durso”,
“role”: “regional manager”,
“side”: “respondent”,
“affiliation”: “First Service Residential”,
“notes”: null
},
{
“name”: “Jamie George”,
“role”: “VP of Insurance”,
“side”: “respondent”,
“affiliation”: “First Service Financial”,
“notes”: “Assists with association insurance policies”
},
{
“name”: “Holly McNelte”,
“role”: “management staff”,
“side”: “respondent”,
“affiliation”: “First Service Residential”,
“notes”: “FSR team member who managed documents/files”
},
{
“name”: “Jonathan Henley”,
“role”: “insurance broker”,
“side”: “neutral”,
“affiliation”: “Gallagher”,
“notes”: null
},
{
“name”: “Brian Del Vecchio”,
“role”: “ALJ”,
“side”: “neutral”,
“affiliation”: “OAH”,
“notes”: “Administrative Law Judge who conducted the hearing (12/8/23)”
},
{
“name”: “Tammy L. Eigenheer”,
“role”: “ALJ”,
“side”: “neutral”,
“affiliation”: “OAH”,
“notes”: “Administrative Law Judge who wrote the decision”
},
{
“name”: “Susan Nicolson”,
“role”: “Commissioner”,
“side”: “neutral”,
“affiliation”: “Arizona Department of Real Estate”,
“notes”: null
},
{
“name”: “AHansen”,
“role”: “ADRE staff”,
“side”: “unknown”,
“affiliation”: “Arizona Department of Real Estate”,
“notes”: “Transmission recipient”
},
{
“name”: “vnunez”,
“role”: “ADRE staff”,
“side”: “unknown”,
“affiliation”: “Arizona Department of Real Estate”,
“notes”: “Transmission recipient”
},
{
“name”: “djones”,
“role”: “ADRE staff”,
“side”: “unknown”,
“affiliation”: “Arizona Department of Real Estate”,
“notes”: “Transmission recipient”
},
{
“name”: “labril”,
“role”: “ADRE staff”,
“side”: “unknown”,
“affiliation”: “Arizona Department of Real Estate”,
“notes”: “Transmission recipient”
},
{
“name”: “mneat”,
“role”: “ADRE staff”,
“side”: “unknown”,
“affiliation”: “Arizona Department of Real Estate”,
“notes”: “Transmission recipient”
},
{
“name”: “akowaleski”,
“role”: “ADRE staff”,
“side”: “unknown”,
“affiliation”: “Arizona Department of Real Estate”,
“notes”: “Transmission recipient”
},
{
“name”: “gosborn”,
“role”: “ADRE staff”,
“side”: “unknown”,
“affiliation”: “Arizona Department of Real Estate”,
“notes”: “Transmission recipient”
}
]
}

{ “case”: { “agency”: “ADRE”, “tribunal”: “OAH”, “docket_no”: “24F-H008-REL”, “case_title”: “In the Matter of Keith W. Cunningham v The Residences at 2211 Camelback Condominium Association, INC”, “decision_date”: “2024-01-11”, “alj_name”: “Tammy L. Eigenheer” }, “parties”: [ { “party_id”: “P1”, “role”: “petitioner”, “name”: “Keith W. Cunningham”, “party_type”: “homeowner”, “email”: “[email protected]”, “phone”: null, “attorney_name”: null, “attorney_firm”: null, “attorney_email”: null, “attorney_phone”: null }, { “party_id”: “R1”, “role”: “respondent”, “name”: “The Residences at 2211 Camelback Condominium Association, INC”, “party_type”: “HOA”, “email”: null, “phone”: null, “attorney_name”: “Allison Preston”, “attorney_firm”: “Carpenter Hazlewood Delgado & Bolen LLP”, “attorney_email”: “[email protected]”, “attorney_phone”: null } ], “issues”: [ { “issue_id”: “ISS-001”, “type”: “statute”, “citation”: “A.R.S. § 33-1258”, “caption”: “Records Request”, “violation(s)”: “Failure to provide requested financial records and contracts within 10 business days”, “summary”: “Petitioner alleged Respondent failed to provide financial records and vendor contracts (Epic Valet, FirstService Residential, landscaping) within the statutory timeframe. The ALJ found Respondent failed to provide the documents within 10 business days of the July 10, 2023 request and subsequent July 24, 2023 request.”, “outcome”: “petitioner_win”, “filing_fee_paid”: 1000.0, “filing_fee_refunded”: true, “civil_penalty_amount”: 0.0, “orders_summary”: “Respondent shall comply with A.R.S. § 33-1258 going forward.”, “why_the_loss”: null, “cited”: [“A.R.S. § 33-1258”] }, { “issue_id”: “ISS-002”, “type”: “governing_documents”, “citation”: “CC&Rs Section 8.1.1”, “caption”: “Insurance Coverage”, “violation(s)”: “Failure to maintain property insurance equal to 100% of replacement cost and general liability insurance limits as required”, “summary”: “Petitioner alleged Respondent failed to maintain required insurance coverage. The ALJ found Respondent’s property insurance coverage (59M)wasbelowtheappraisedreplacementcost(73M) and the general liability limits did not strictly comply with CC&Rs requirements despite an umbrella policy.”, “outcome”: “petitioner_win”, “filing_fee_paid”: 0.0, “filing_fee_refunded”: false, “civil_penalty_amount”: 0.0, “orders_summary”: “Respondent shall comply with Section 8.1.1 of the CC&Rs going forward.”, “why_the_loss”: null, “cited”: [“CC&Rs Section 8.1.1”] } ], “money_summary”: { “issues_count”: 2, “total_filing_fees_paid”: 1000.0, “total_filing_fees_refunded”: 1000.0, “total_civil_penalties”: 0.0 }, “outcomes”: { “petitioner_is_hoa”: false, “petitioner_win”: “yes”, “summarize_judgement”: “Petitioner’s petition is granted. Respondent violated A.R.S. § 33-1258 by failing to provide requested records within 10 business days. Respondent violated CC&Rs Section 8.1.1 by failing to maintain insurance coverage equal to 100% of the replacement cost and failing to meet specific liability limits. Respondent is ordered to reimburse Petitioner’s $1,000.00 filing fee and comply with the statute and CC&Rs going forward.”, “why_the_loss”: null }, “analytics”: { “cited”: [“A.R.S. § 33-1258”, “CC&Rs Section 8.1.1”], “tags”: [“Records Request”, “Insurance Coverage”, “Condominium”, “Contracts”, “Vendor Contracts”, “Replacement Cost”] } }

{ “case”: { “docket_no”: “24F-H008-REL”, “case_title”: “Keith W. Cunningham v The Residences at 2211 Camelback Condominium Association, INC”, “decision_date”: “2024-01-11”, “alj_name”: “Tammy L. Eigenheer”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “How many days does my HOA have to provide records after I request them?”, “short_answer”: “The HOA has 10 business days to fulfill a request for examination of records.”, “detailed_answer”: “According to Arizona law cited in the decision, an association must make financial and other records reasonably available for examination within ten business days of a member’s request.”, “alj_quote”: “The association shall have ten business days to fulfill a request for examination.”, “legal_basis”: “A.R.S. § 33-1258(A)”, “topic_tags”: [ “records request”, “deadlines”, “A.R.S. § 33-1258” ] }, { “question”: “Can my HOA claim they don’t have to provide specific contracts if they are not uploaded to the web portal?”, “short_answer”: “No. If the records exist and aren’t privileged, the HOA must make them available for examination, regardless of whether they are on a portal.”, “detailed_answer”: “In this case, the HOA failed to provide signed vendor contracts that existed, claiming they provided what was on the portal. The ALJ found that failing to provide these specific requested documents constituted a violation.”, “alj_quote”: “Respondent did not assert or establish that any of the requested documents were subject to any of the exceptions provided for in statute. Accordingly, Petitioner was entitled to examine those documents.”, “legal_basis”: “A.R.S. § 33-1258”, “topic_tags”: [ “records request”, “contracts”, “online portal” ] }, { “question”: “If my CC&Rs require specific insurance liability limits, does an umbrella policy count towards meeting them?”, “short_answer”: “Not necessarily. The ALJ ruled that a base policy lower than the CC&R requirement was non-compliant, even with a large umbrella policy.”, “detailed_answer”: “The CC&Rs required $3,000,000 per occurrence. The HOA had $1,000,000 coverage plus a $50,000,000 umbrella. The ALJ ruled the general liability insurance was not in compliance because the specific base limit was not met.”, “alj_quote”: “While Respondent had an umbrella policy in addition to the general liability insurance, Respondent’s general liability insurance was not in compliance with the applicable CC&Rs.”, “legal_basis”: “CC&Rs Section 8.1.1”, “topic_tags”: [ “insurance”, “compliance”, “CC&Rs” ] }, { “question”: “Must the HOA insure the building for its full replacement cost?”, “short_answer”: “Yes, if the CC&Rs state the insurance must equal 100% of the current replacement cost.”, “detailed_answer”: “The HOA obtained an appraisal showing a replacement cost of $73 million but maintained coverage of only $59 million. The ALJ found this violated the CC&Rs requirement for 100% replacement cost coverage.”, “alj_quote”: “Accordingly, Respondent’s property insurance was not in compliance with the applicable CC&Rs at the time the petition was filed.”, “legal_basis”: “CC&Rs Section 8.1.1”, “topic_tags”: [ “insurance”, “property value”, “CC&Rs” ] }, { “question”: “Will I get my filing fee back if I win the hearing?”, “short_answer”: “The ALJ has the authority to order the HOA to reimburse the filing fee if the petition is granted.”, “detailed_answer”: “After granting the petition and finding the HOA in violation, the judge specifically ordered the respondent to pay back the petitioner’s filing fee.”, “alj_quote”: “IT IS FURTHER ORDERED that Respondent reimburse Petitioner his $1,000.00 filing fee.”, “legal_basis”: “Order”, “topic_tags”: [ “remedies”, “filing fees”, “costs” ] }, { “question”: “What happens if I accidentally cite the wrong statute number in my complaint?”, “short_answer”: “It may not be dismissed if the context of your complaint makes it clear what you are disputing.”, “detailed_answer”: “The HOA tried to dismiss the case because the homeowner cited the Planned Community statute instead of the Condominium statute. The judge denied this because the checkboxes and narrative provided sufficient notice of the claim.”, “alj_quote”: “While it may be true Petitioner hand wrote A.R.S. §33-1805… the context surrounding Petitioner’s hand written statute provides adequate notice.”, “legal_basis”: “Due Process / Notice”, “topic_tags”: [ “procedure”, “complaint forms”, “legal error” ] }, { “question”: “What is the standard of proof I need to meet to win against my HOA?”, “short_answer”: “You must prove your case by a “preponderance of the evidence.””, “detailed_answer”: “The homeowner bears the burden of proof. This standard means showing that the fact sought to be proved is more probable than not.”, “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 and the Association’s governing documents.”, “legal_basis”: “A.A.C. R2-19-119”, “topic_tags”: [ “burden of proof”, “legal standard”, “evidence” ] }, { “question”: “Will the HOA be fined a civil penalty if I prove they violated the law?”, “short_answer”: “Not automatically. The ALJ decides if a penalty is appropriate based on the facts.”, “detailed_answer”: “Even though the HOA was found to have violated record laws and insurance requirements, the judge decided not to assess a civil penalty in this specific instance.”, “alj_quote”: “Based on the facts presented, the Administrative Law Judge finds no civil penalty is appropriate in this matter.”, “legal_basis”: “Judicial Discretion”, “topic_tags”: [ “penalties”, “fines”, “enforcement” ] } ] }

{ “case”: { “docket_no”: “24F-H008-REL”, “case_title”: “Keith W. Cunningham v The Residences at 2211 Camelback Condominium Association, INC”, “decision_date”: “2024-01-11”, “alj_name”: “Tammy L. Eigenheer”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “How many days does my HOA have to provide records after I request them?”, “short_answer”: “The HOA has 10 business days to fulfill a request for examination of records.”, “detailed_answer”: “According to Arizona law cited in the decision, an association must make financial and other records reasonably available for examination within ten business days of a member’s request.”, “alj_quote”: “The association shall have ten business days to fulfill a request for examination.”, “legal_basis”: “A.R.S. § 33-1258(A)”, “topic_tags”: [ “records request”, “deadlines”, “A.R.S. § 33-1258” ] }, { “question”: “Can my HOA claim they don’t have to provide specific contracts if they are not uploaded to the web portal?”, “short_answer”: “No. If the records exist and aren’t privileged, the HOA must make them available for examination, regardless of whether they are on a portal.”, “detailed_answer”: “In this case, the HOA failed to provide signed vendor contracts that existed, claiming they provided what was on the portal. The ALJ found that failing to provide these specific requested documents constituted a violation.”, “alj_quote”: “Respondent did not assert or establish that any of the requested documents were subject to any of the exceptions provided for in statute. Accordingly, Petitioner was entitled to examine those documents.”, “legal_basis”: “A.R.S. § 33-1258”, “topic_tags”: [ “records request”, “contracts”, “online portal” ] }, { “question”: “If my CC&Rs require specific insurance liability limits, does an umbrella policy count towards meeting them?”, “short_answer”: “Not necessarily. The ALJ ruled that a base policy lower than the CC&R requirement was non-compliant, even with a large umbrella policy.”, “detailed_answer”: “The CC&Rs required $3,000,000 per occurrence. The HOA had $1,000,000 coverage plus a $50,000,000 umbrella. The ALJ ruled the general liability insurance was not in compliance because the specific base limit was not met.”, “alj_quote”: “While Respondent had an umbrella policy in addition to the general liability insurance, Respondent’s general liability insurance was not in compliance with the applicable CC&Rs.”, “legal_basis”: “CC&Rs Section 8.1.1”, “topic_tags”: [ “insurance”, “compliance”, “CC&Rs” ] }, { “question”: “Must the HOA insure the building for its full replacement cost?”, “short_answer”: “Yes, if the CC&Rs state the insurance must equal 100% of the current replacement cost.”, “detailed_answer”: “The HOA obtained an appraisal showing a replacement cost of $73 million but maintained coverage of only $59 million. The ALJ found this violated the CC&Rs requirement for 100% replacement cost coverage.”, “alj_quote”: “Accordingly, Respondent’s property insurance was not in compliance with the applicable CC&Rs at the time the petition was filed.”, “legal_basis”: “CC&Rs Section 8.1.1”, “topic_tags”: [ “insurance”, “property value”, “CC&Rs” ] }, { “question”: “Will I get my filing fee back if I win the hearing?”, “short_answer”: “The ALJ has the authority to order the HOA to reimburse the filing fee if the petition is granted.”, “detailed_answer”: “After granting the petition and finding the HOA in violation, the judge specifically ordered the respondent to pay back the petitioner’s filing fee.”, “alj_quote”: “IT IS FURTHER ORDERED that Respondent reimburse Petitioner his $1,000.00 filing fee.”, “legal_basis”: “Order”, “topic_tags”: [ “remedies”, “filing fees”, “costs” ] }, { “question”: “What happens if I accidentally cite the wrong statute number in my complaint?”, “short_answer”: “It may not be dismissed if the context of your complaint makes it clear what you are disputing.”, “detailed_answer”: “The HOA tried to dismiss the case because the homeowner cited the Planned Community statute instead of the Condominium statute. The judge denied this because the checkboxes and narrative provided sufficient notice of the claim.”, “alj_quote”: “While it may be true Petitioner hand wrote A.R.S. §33-1805… the context surrounding Petitioner’s hand written statute provides adequate notice.”, “legal_basis”: “Due Process / Notice”, “topic_tags”: [ “procedure”, “complaint forms”, “legal error” ] }, { “question”: “What is the standard of proof I need to meet to win against my HOA?”, “short_answer”: “You must prove your case by a “preponderance of the evidence.””, “detailed_answer”: “The homeowner bears the burden of proof. This standard means showing that the fact sought to be proved is more probable than not.”, “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 and the Association’s governing documents.”, “legal_basis”: “A.A.C. R2-19-119”, “topic_tags”: [ “burden of proof”, “legal standard”, “evidence” ] }, { “question”: “Will the HOA be fined a civil penalty if I prove they violated the law?”, “short_answer”: “Not automatically. The ALJ decides if a penalty is appropriate based on the facts.”, “detailed_answer”: “Even though the HOA was found to have violated record laws and insurance requirements, the judge decided not to assess a civil penalty in this specific instance.”, “alj_quote”: “Based on the facts presented, the Administrative Law Judge finds no civil penalty is appropriate in this matter.”, “legal_basis”: “Judicial Discretion”, “topic_tags”: [ “penalties”, “fines”, “enforcement” ] } ] }

Case Participants

Petitioner Side

  • Keith W. Cunningham (petitioner)

Respondent Side

  • Allison Preston (HOA attorney)
    Carpenter Hazlewood Delgado & Bolen LLP
    Represented The Residences at 2211 Camelback Condominium Association, INC
  • Kyle von Johnson (HOA attorney)
    Represented The Residences at 2211 Camelback Condominium Association, INC
  • Mark Teman (board member)
    Association President, witness
  • Allison Renow (property manager)
    First Service Residential
    General Manager (GM) on site
  • Frank Durso (regional manager)
    First Service Residential
  • Jamie George (VP of Insurance)
    First Service Financial
    Assists with association insurance policies
  • Holly McNelte (management staff)
    First Service Residential
    FSR team member who managed documents/files

Neutral Parties

  • Jonathan Henley (insurance broker)
    Gallagher
  • Brian Del Vecchio (ALJ)
    OAH
    Administrative Law Judge who conducted the hearing (12/8/23)
  • Tammy L. Eigenheer (ALJ)
    OAH
    Administrative Law Judge who wrote the decision
  • Susan Nicolson (Commissioner)
    Arizona Department of Real Estate

Other Participants

  • AHansen (ADRE staff)
    Arizona Department of Real Estate
    Transmission recipient
  • vnunez (ADRE staff)
    Arizona Department of Real Estate
    Transmission recipient
  • djones (ADRE staff)
    Arizona Department of Real Estate
    Transmission recipient
  • labril (ADRE staff)
    Arizona Department of Real Estate
    Transmission recipient
  • mneat (ADRE staff)
    Arizona Department of Real Estate
    Transmission recipient
  • akowaleski (ADRE staff)
    Arizona Department of Real Estate
    Transmission recipient
  • gosborn (ADRE staff)
    Arizona Department of Real Estate
    Transmission recipient

Teri S. Morcomb & J. Ted Morcomb v. Sierra Tortuga Homeowner’s

Case Summary

Case ID 24F-H015-REL
Agency ADRE
Tribunal OAH
Decision Date 2024-01-03
Administrative Law Judge Adam D. Stone
Outcome Petitioner met the burden of proof for both alleged violations: violation of the Declaration (not enforcing the 25ft setback) and violation of A.R.S. § 33-1805 (failing to provide documents). The petition was granted, and Respondent was ordered to reimburse the $1,000.00 filing fee.
Filing Fees Refunded $1,000.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Teri S. Morcomb & J. Ted Morcomb Counsel Jeffrey Brie, Esq.
Respondent Sierra Tortuga Homeowner’s Association Counsel Phillip Brown, Esq. and Kelly Oetinger, Esq.

Alleged Violations

ARIZ. REV. STAT. § 33-1805

Outcome Summary

Petitioner met the burden of proof for both alleged violations: violation of the Declaration (not enforcing the 25ft setback) and violation of A.R.S. § 33-1805 (failing to provide documents). The petition was granted, and Respondent was ordered to reimburse the $1,000.00 filing fee.

Key Issues & Findings

Failure to provide documents

Respondent failed to produce documents requested by Petitioner, specifically meeting minutes discussing the investigative report, within the statutory timeframe, violating A.R.S. § 33-1805.

Orders: Respondent was found in violation of A.R.S. § 33-1805 and Declaration Section F. Respondent shall reimburse Petitioner’s filing fee of $1,000.00.

Filing fee: $1,000.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • ARIZ. REV. STAT. § 33-1805
  • Declaration Section F

Analytics Highlights

Topics: setback enforcement, document request, HOA governance, filing fee refund, A.R.S. 33-1805
Additional Citations:

  • ARIZ. REV. STAT. § 32-2102
  • ARIZ. REV. STAT. § 32-2199 et al.
  • ARIZ. REV. STAT. § 32-2199.05
  • ARIZ. REV. STAT. § 32-2199(2)
  • ARIZ. REV. STAT. § 32-2199.01(D)
  • ARIZ. REV. STAT. § 32-2199.02
  • ARIZ. REV. STAT. § 33-1805
  • ARIZ. ADMIN. CODE R2-19-119
  • ARIZ. REV. STAT. § 41-1092
  • ARIZ. REV. STAT. § 41-1092.09
  • ARIZ. REV. STAT. § 32-2199.02(A)
  • ARIZ. REV. STAT. § 32-2199.04
  • ARIZ. REV. STAT. § 33-1804
  • Declaration Section F

Video Overview

Audio Overview

Decision Documents

24F-H015-REL Decision – 1102948.pdf

Uploaded 2026-01-23T18:02:19 (53.9 KB)

24F-H015-REL Decision – 1116083.pdf

Uploaded 2026-01-23T18:02:23 (50.5 KB)

24F-H015-REL Decision – 1129495.pdf

Uploaded 2026-01-23T18:02:26 (148.2 KB)

This summary addresses the administrative hearing (No. 24F-H015-REL) involving Petitioners Teri S. Morcomb & J. Ted Morcomb and Respondent Sierra Tortuga Homeowner’s Association (HOA). The hearing was conducted by Administrative Law Judge (ALJ) Adam D. Stone on November 22 and December 20, 2023, concerning alleged violations of the community's governing documents and Arizona statutes.

Key Facts and Main Issues

The Petitioners filed a two-issue petition with the Arizona Department of Real Estate:

  1. Setback Enforcement: Violation of the Declaration of Restrictions (specifically Item F of the Second Declaration) by the HOA "not enforcing the 25ft setback provision".
  2. Document Disclosure: Violation of A.R.S. § 33-1805 by failing "to provide documents" requested by the Petitioners.

The central factual dispute revolved around Lot 9 (owned by Marcella Aguilar and Abel Sodto), which shares a property line with the Petitioners' Lot 8. Petitioners alleged that the Lot 9 owners made unapproved improvements—including grading, removal of native vegetation, and placement of large boulders—within the mandatory 25-foot setback. The Declaration requires Architectural Committee (ARC) approval for all improvements and any removal of native growth. An HOA investigation in September 2020 concluded that the Lot 9 improvements were neither submitted nor approved by the ARC, and Lot 9 was directed to submit plans within 30 days. Petitioners testified that Lot 9 failed to comply.

Key Arguments

  • Petitioner's Argument: The Association failed its mandatory duty to enforce the CC&Rs for over three years, particularly since the Lot 9 owner (Mr. Sodto) held influential positions (Director, President, ARC member) during the relevant period. Petitioners sought an order requiring the HOA to remedy the violation (remove boulders, revegetate). Petitioners' civil engineer, Tracy Bogardus, testified that Lot 8 did not cause Lot 9's drainage issues, invalidating the Lot 9 owners’ justification for the grading.
  • Respondent's Argument (HOA): The HOA denied the claims, arguing that Lot 9’s modification (referred to as a "driveway turnaround") was necessary for safety due to the steep lot configuration. The HOA asserted that the board has discretion to grant variances. The HOA also argued that selective enforcement against Lot 9 was inconsistent, as six of the seven built-out lots had similar unapproved turnarounds or improvements in setbacks. The HOA later approved the Lot 9 turnaround retroactively during the hearing proceedings.
  • Document Disclosure: HOA President Robert Lewin testified he did not provide the specific documents (Lot 9 submissions) because they did not exist. However, he admitted he failed to provide the meeting minutes discussing the investigative report.

Final Decision and Outcome

The ALJ found that the Petitioners met the burden of proof by a preponderance of the evidence.

The ALJ issued the following key conclusions:

  • Setback Violation: Lot 9 failed to submit the required improvement request, violating the Declaration. However, the ALJ emphasized that the relevant section of the Declaration (Section H) states the ARC "shall have the right to clear such lot," meaning the ultimate action to remedy the lot remains within the HOA’s discretion, not an obligation.
  • Document Disclosure Violation (A.R.S. § 33-1805): The Respondent violated the statute by failing to produce a copy of the meeting minutes discussing the investigative report. Although no Lot 9 application documents existed, the minutes did.

Order: Petitioner's petition was granted. Pursuant to A.R.S. § 32-2199.02(A), the Respondent HOA was ordered to reimburse Petitioner’s filing fee of $1,000.00.

{ “case”: { “docket_no”: “24F-H015-REL”, “case_title”: “Teri S. Morcomb & J. Ted Morcomb v. Sierra Tortuga Homeowner’s Association”, “decision_date”: “2024-01-03”, “alj_name”: “Adam D. Stone”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “If I win my case against the HOA, can I get my filing fee reimbursed?”, “short_answer”: “Yes, the ALJ can order the HOA to reimburse the filing fee if the petition is granted.”, “detailed_answer”: “Under Arizona law, if a homeowner prevails in their petition against the association, the Administrative Law Judge has the authority to order the respondent (HOA) to reimburse the petitioner’s filing fee.”, “alj_quote”: “IT IS FURTHER ORDERED pursuant to ARIZ. REV. STAT. § 32-2199.02(A), Respondent shall reimburse Petitioner’s filing fee of $1,000.00 as required by ARIZ. REV. STAT. § 32-2199.01.”, “legal_basis”: “A.R.S. § 32-2199.02(A)”, “topic_tags”: [ “filing fees”, “reimbursement”, “penalties” ] }, { “question”: “What is the timeline for an HOA to provide records after a homeowner requests them?”, “short_answer”: “The HOA has ten business days to fulfill a request for examination or provide copies of records.”, “detailed_answer”: “Arizona statute requires that an association make financial and other records reasonably available for examination. When a member requests to examine or purchase copies of records, the association must comply within ten business days.”, “alj_quote”: “The association shall have ten business days to fulfill a request for examination. … On request for purchase of copies of records … the association shall have ten business days to provide copies of the requested records.”, “legal_basis”: “A.R.S. § 33-1805(A)”, “topic_tags”: [ “records request”, “deadlines”, “homeowner rights” ] }, { “question”: “Can an HOA refuse to provide meeting minutes by claiming other documents regarding a specific issue don’t exist?”, “short_answer”: “No, even if specific architectural files don’t exist, the HOA must still provide related meeting minutes if requested.”, “detailed_answer”: “In this case, while the HOA claimed no documents existed regarding a specific architectural submission (because none was made), they were still found in violation for failing to produce the meeting minutes where the issue and an investigative report were discussed.”, “alj_quote”: “From the evidence presented, and Mr. Lewin admitted, that Respondent failed to produce a copy of the meeting minutes discussing the investigative report.”, “legal_basis”: “A.R.S. § 33-1805”, “topic_tags”: [ “meeting minutes”, “records access”, “HOA obligations” ] }, { “question”: “Does the ALJ have the authority to order the HOA to physically clear a violation from a neighbor’s lot?”, “short_answer”: “Not necessarily, if the CC&Rs grant the HOA the ‘right’ rather than the ‘duty’ to clear the lot, it remains a discretionary action.”, “detailed_answer”: “Although the ALJ found the HOA in violation of the CC&Rs for the setback issue, the judge disagreed that the HOA must clear the lot. The specific language of the governing documents gave the Architectural Committee the ‘right’ to clear the lot, which the judge interpreted as discretionary.”, “alj_quote”: “However, the tribunal disagrees with Petitioner that Respondent must clear the lot. Section H of the Declaration merely states that the Architectural Committee ‘shall have the right to clear such lot’. Thus, it is still within the Architectural Committee’s discretion to act on that right.”, “legal_basis”: “CC&Rs Interpretation”, “topic_tags”: [ “enforcement”, “remedies”, “CC&Rs” ] }, { “question”: “What is the burden of proof in an HOA administrative hearing?”, “short_answer”: “The petitioner must prove their case by a ‘preponderance of the evidence’.”, “detailed_answer”: “The homeowner bringing the complaint bears the burden of proving that the HOA violated the community documents or statutes. The standard is a ‘preponderance of the evidence,’ meaning the contention is more probably true than not.”, “alj_quote”: “In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated the item F of the Declarations and ARIZ. REV. STAT. § 33-1805.”, “legal_basis”: “A.A.C. R2-19-119”, “topic_tags”: [ “burden of proof”, “legal standards”, “procedure” ] }, { “question”: “Can the HOA be found in violation for a neighbor’s unapproved improvements?”, “short_answer”: “Yes, if the HOA fails to enforce setback requirements against unapproved improvements.”, “detailed_answer”: “The ALJ found the Board in violation of the Declaration (setback rules) because the neighbor never submitted a request for the improvements, the improvements did not comply with setbacks, and the Board failed to enforce the requirement.”, “alj_quote”: “Petitioner has met the burden of proof in demonstrating that the Board was in violation of Section F of the Declaration and ARIZ. REV. STAT. § 33-1805.”, “legal_basis”: “CC&Rs (Section F)”, “topic_tags”: [ “architectural control”, “setbacks”, “violations” ] }, { “question”: “Do HOA directors have the right to inspect association records?”, “short_answer”: “Yes, directors generally have an absolute right to inspect all books and records at any reasonable time.”, “detailed_answer”: “The decision cites the Association Bylaws which grant every Director the absolute right to inspect all books, records, documents, and physical properties of the Association.”, “alj_quote”: “Every Director shall have the absolute right at any reasonable time to inspect all books, records, and documents of the Association and the physical properties owned or controlled by the Association.”, “legal_basis”: “Association Bylaws Article 11.3”, “topic_tags”: [ “board members”, “records inspection”, “bylaws” ] } ] }

{ “case”: { “docket_no”: “24F-H015-REL”, “case_title”: “Teri S. Morcomb & J. Ted Morcomb v. Sierra Tortuga Homeowner’s Association”, “decision_date”: “2024-01-03”, “alj_name”: “Adam D. Stone”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “If I win my case against the HOA, can I get my filing fee reimbursed?”, “short_answer”: “Yes, the ALJ can order the HOA to reimburse the filing fee if the petition is granted.”, “detailed_answer”: “Under Arizona law, if a homeowner prevails in their petition against the association, the Administrative Law Judge has the authority to order the respondent (HOA) to reimburse the petitioner’s filing fee.”, “alj_quote”: “IT IS FURTHER ORDERED pursuant to ARIZ. REV. STAT. § 32-2199.02(A), Respondent shall reimburse Petitioner’s filing fee of $1,000.00 as required by ARIZ. REV. STAT. § 32-2199.01.”, “legal_basis”: “A.R.S. § 32-2199.02(A)”, “topic_tags”: [ “filing fees”, “reimbursement”, “penalties” ] }, { “question”: “What is the timeline for an HOA to provide records after a homeowner requests them?”, “short_answer”: “The HOA has ten business days to fulfill a request for examination or provide copies of records.”, “detailed_answer”: “Arizona statute requires that an association make financial and other records reasonably available for examination. When a member requests to examine or purchase copies of records, the association must comply within ten business days.”, “alj_quote”: “The association shall have ten business days to fulfill a request for examination. … On request for purchase of copies of records … the association shall have ten business days to provide copies of the requested records.”, “legal_basis”: “A.R.S. § 33-1805(A)”, “topic_tags”: [ “records request”, “deadlines”, “homeowner rights” ] }, { “question”: “Can an HOA refuse to provide meeting minutes by claiming other documents regarding a specific issue don’t exist?”, “short_answer”: “No, even if specific architectural files don’t exist, the HOA must still provide related meeting minutes if requested.”, “detailed_answer”: “In this case, while the HOA claimed no documents existed regarding a specific architectural submission (because none was made), they were still found in violation for failing to produce the meeting minutes where the issue and an investigative report were discussed.”, “alj_quote”: “From the evidence presented, and Mr. Lewin admitted, that Respondent failed to produce a copy of the meeting minutes discussing the investigative report.”, “legal_basis”: “A.R.S. § 33-1805”, “topic_tags”: [ “meeting minutes”, “records access”, “HOA obligations” ] }, { “question”: “Does the ALJ have the authority to order the HOA to physically clear a violation from a neighbor’s lot?”, “short_answer”: “Not necessarily, if the CC&Rs grant the HOA the ‘right’ rather than the ‘duty’ to clear the lot, it remains a discretionary action.”, “detailed_answer”: “Although the ALJ found the HOA in violation of the CC&Rs for the setback issue, the judge disagreed that the HOA must clear the lot. The specific language of the governing documents gave the Architectural Committee the ‘right’ to clear the lot, which the judge interpreted as discretionary.”, “alj_quote”: “However, the tribunal disagrees with Petitioner that Respondent must clear the lot. Section H of the Declaration merely states that the Architectural Committee ‘shall have the right to clear such lot’. Thus, it is still within the Architectural Committee’s discretion to act on that right.”, “legal_basis”: “CC&Rs Interpretation”, “topic_tags”: [ “enforcement”, “remedies”, “CC&Rs” ] }, { “question”: “What is the burden of proof in an HOA administrative hearing?”, “short_answer”: “The petitioner must prove their case by a ‘preponderance of the evidence’.”, “detailed_answer”: “The homeowner bringing the complaint bears the burden of proving that the HOA violated the community documents or statutes. The standard is a ‘preponderance of the evidence,’ meaning the contention is more probably true than not.”, “alj_quote”: “In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated the item F of the Declarations and ARIZ. REV. STAT. § 33-1805.”, “legal_basis”: “A.A.C. R2-19-119”, “topic_tags”: [ “burden of proof”, “legal standards”, “procedure” ] }, { “question”: “Can the HOA be found in violation for a neighbor’s unapproved improvements?”, “short_answer”: “Yes, if the HOA fails to enforce setback requirements against unapproved improvements.”, “detailed_answer”: “The ALJ found the Board in violation of the Declaration (setback rules) because the neighbor never submitted a request for the improvements, the improvements did not comply with setbacks, and the Board failed to enforce the requirement.”, “alj_quote”: “Petitioner has met the burden of proof in demonstrating that the Board was in violation of Section F of the Declaration and ARIZ. REV. STAT. § 33-1805.”, “legal_basis”: “CC&Rs (Section F)”, “topic_tags”: [ “architectural control”, “setbacks”, “violations” ] }, { “question”: “Do HOA directors have the right to inspect association records?”, “short_answer”: “Yes, directors generally have an absolute right to inspect all books and records at any reasonable time.”, “detailed_answer”: “The decision cites the Association Bylaws which grant every Director the absolute right to inspect all books, records, documents, and physical properties of the Association.”, “alj_quote”: “Every Director shall have the absolute right at any reasonable time to inspect all books, records, and documents of the Association and the physical properties owned or controlled by the Association.”, “legal_basis”: “Association Bylaws Article 11.3”, “topic_tags”: [ “board members”, “records inspection”, “bylaws” ] } ] }

Case Participants

Petitioner Side

  • Teri S. Morcomb (petitioner)
    Lot 8 owner, testified
  • J. Ted Morcomb (petitioner)
    Lot 8 owner
  • Jeffrey T. Brei (petitioner attorney)
  • Tracy Allen Bogardis (witness)
    Civil Engineer
    Testified regarding drainage/hydrology

Respondent Side

  • Phillip Brown (HOA attorney)
  • Kelly Oetinger (HOA attorney)
  • Robert Leuen (board president)
    Sierra Tortuga HOA
    Testified
  • Marcella Bernadette Aguilar (witness)
    Sierra Tortuga HOA
    Lot 9 owner, testified
  • Abel Sodto (lot owner)
    Sierra Tortuga HOA
    Lot 9 owner, former Board/ARC member, subject of violation
  • Clint Stoddard (board member)
    Sierra Tortuga HOA
    Investigator
  • Benny Medina (board member)
    Sierra Tortuga HOA
    Investigator, former president
  • Joseph D. Martino (ARC member)
    Sierra Tortuga HOA
    Former Architectural Committee Head
  • Chris Stler (board member)
    Sierra Tortuga HOA
    Vice President of HOA
  • Yvon Posche (board member)
    Sierra Tortuga HOA
    Secretary of HOA
  • Steve Brockam (board member)
    Sierra Tortuga HOA
    Board Director
  • Perry Terren (ARC chair)
    Sierra Tortuga HOA
    ARC Chairman and Board Director
  • Jeremy Thompson (law clerk)
    HOA Attorney's office
  • Mike Shupe (former HOA attorney)

Neutral Parties

  • Adam D. Stone (ALJ)
    OAH
  • Tim Ross (board member)
    Sierra Tortuga HOA
    Former board/investigator, criticized current board actions
  • Susan Nicolson (Commissioner)
    ADRE
  • A. Hansen (ADRE staff)
    ADRE
  • V. Nunez (ADRE staff)
    ADRE
  • D. Jones (ADRE staff)
    ADRE
  • L. Abril (ADRE staff)
    ADRE

Schafer, Kevin W. & Lawton, Patricia A. v. Sycamore Springs

Case Summary

Case ID 24F-H019-REL
Agency ADRE
Tribunal OAH
Decision Date 2024-01-01
Administrative Law Judge Brian Del Vecchio
Outcome Petitioners prevailed on both filed issues: the Respondent's conditional approval of the flagpole violated CC&Rs and statute, and the Violation Notice regarding the building envelope was improper as Petitioners were found to be in compliance (17,451 sq ft vs. 22,000 sq ft maximum). Respondent was ordered to reimburse the $1,000 filing fee. Request for civil penalties was denied.
Filing Fees Refunded $1,000.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Kevin W. Schafer & Patricia A. Lawton Counsel Craig L. Cline
Respondent Sycamore Springs Homeowners Association, INC. Counsel Edith I. Rudder & Eden G. Cohen

Alleged Violations

ARIZ. REV. STAT. § 33-1808(B) & CC&Rs Design Guidelines Section II(O)
CC&Rs Design Guidelines Section III(A)

Outcome Summary

Petitioners prevailed on both filed issues: the Respondent's conditional approval of the flagpole violated CC&Rs and statute, and the Violation Notice regarding the building envelope was improper as Petitioners were found to be in compliance (17,451 sq ft vs. 22,000 sq ft maximum). Respondent was ordered to reimburse the $1,000 filing fee. Request for civil penalties was denied.

Key Issues & Findings

Conditional approval of portable flagpole

Respondent conditionally approved Petitioners' DMR for a portable flagpole, but the conditions placed (limiting height, restricting mobility, and requiring placement on the side of the house) were outside the authority granted by the CC&Rs and violated ARIZ. REV. STAT. § 33-1808, which protects the display of the American flag in front or back yards. Petitioner sustained burden of proof.

Orders: Respondent must abide by the statute; civil penalty denied.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • ARIZ. REV. STAT. § 33-1808(B)
  • CC&Rs Design Guidelines Section II(O)

Violation Notice regarding Building Envelope compliance

Respondent sent a Violation Notice claiming Petitioners' building envelope was 38,000 square feet, exceeding the 22,000 square foot maximum limit defined in DG § III(A). The evidence established Petitioners' actual building envelope was 17,451 square feet, based on a superior 'boots on the ground' survey, proving no violation occurred. Petitioner sustained burden of proof.

Orders: Petitioners' building envelope did not violate the CC&Rs maximum limit; civil penalty denied.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • CC&Rs Design Guidelines Section III(A)

Analytics Highlights

Topics: homeowner dispute, flagpole, building envelope, selective enforcement allegation, CC&R violation, statute violation
Additional Citations:

  • ARIZ. REV. STAT. § 32-2199 et seq.
  • ARIZ. REV. STAT. § 33-1808
  • ARIZ. REV. STAT. § 32-2199.02(A)

Video Overview

Audio Overview

Decision Documents

24F-H019-REL Decision – 1117050.pdf

Uploaded 2026-04-30T10:19:44 (47.1 KB)

24F-H019-REL Decision – 1121577.pdf

Uploaded 2026-04-30T10:19:48 (52.0 KB)

24F-H019-REL Decision – 1122554.pdf

Uploaded 2026-04-30T10:19:52 (46.1 KB)

24F-H019-REL Decision – 1128513.pdf

Uploaded 2026-04-30T10:19:57 (40.1 KB)

24F-H019-REL Decision – 1128831.pdf

Uploaded 2026-04-30T10:20:04 (149.8 KB)

24F-H019-REL Decision – 1117050.pdf

Uploaded 2026-01-23T18:02:47 (47.1 KB)

24F-H019-REL Decision – 1121577.pdf

Uploaded 2026-01-23T18:02:50 (52.0 KB)

24F-H019-REL Decision – 1122554.pdf

Uploaded 2026-01-23T18:02:53 (46.1 KB)

24F-H019-REL Decision – 1128513.pdf

Uploaded 2026-01-23T18:02:57 (40.1 KB)

24F-H019-REL Decision – 1128831.pdf

Uploaded 2026-01-23T18:03:02 (149.8 KB)

This summary pertains to the administrative hearing in the matter of Schafer, Kevin W. & Lawton, Patricia A. v Sycamore Springs Homeowners Association, INC. (Case No. 24F-H019-REL), held before the Office of Administrative Hearings (OAH) on December 7 and December 12, 2023.

Key Facts and Main Issues

The Petitioners (Schafer and Lawton), who are property owners and members of the Association, challenged the Respondent HOA on two issues raised in a September 8, 2023, petition:

  1. Flagpole Conditional Approval: Petitioners challenged the conditional approval of their portable flagpole Design Modification Request (DMR), arguing the conditions violated the community documents (CC&Rs) and Arizona Revised Statutes (ARIZ. REV. STAT.) § 33-1808(B).
  2. Building Envelope Violation: Petitioners challenged the HOA's Notice of Violation, which alleged their building envelope exceeded the 22,000 square foot maximum limit by measuring approximately 38,000 square feet. Petitioners contended the enforcement action was retaliatory due to an ongoing Superior Court lawsuit they filed against the HOA.

Hearing Proceedings and Key Arguments

Building Envelope Dispute:

The core disagreement centered on the methodology and findings of two land surveyors regarding the 22,000 square foot building envelope maximum.

  • Petitioners' Evidence: Licensed land surveyor Stephen McLain, who conducted a "boots on the ground" survey in 2020, testified that the Petitioners' building envelope was 17,451 square feet, which is well below the maximum limit.
  • Respondent's Evidence: Licensed land surveyor J.O. Teague, hired by the HOA, calculated the area including the house and the "yard to the east" to be approximately 38,000 square feet, based primarily on aerial imagery.
  • Key Legal Point: During testimony, Mr. Teague admitted he did not make a determination as to whether the building envelope had been exceeded. He clarified his role was only to establish the area measurements, not to determine compliance, particularly given potential exemptions under the 4th Amendment to the Design Guidelines concerning maintenance (e.g., removing pack rat nests or excessive weeds). Both surveyors agreed that a "boots on the ground" assessment (like McLain’s) is superior to an aerial-only survey.

Flagpole Dispute:

Petitioners challenged conditional approval stipulations that limited the flag's height, restricted placement to the "side of the house," and prohibited moving it.

  • Key Legal Point: The HOA President, Kristen Rawlette, admitted that the Management Company erred in drafting the conditional approval letter. She conceded that the restrictions on height and mobility were inappropriate, as the CC&Rs did not grant the HOA authority for such limits. Crucially, she admitted that restricting the American flag's placement to the side yard violated ARIZ. REV. STAT. § 33-1808, which guarantees the right to display the flag in the outdoor front or back yard.

Final Decision and Outcome

The Administrative Law Judge (ALJ) decision, issued January 1, 2024, affirmed Petitioners’ petition.

  • Building Envelope Ruling: The ALJ found Petitioners sustained their burden of proof. Based on the consistent expert testimony that Petitioners’ building envelope (17,451 square feet) was below the 22,000 square foot maximum, the ALJ concluded that Petitioners did not violate the CC&Rs.
  • Flagpole Ruling: The ALJ found Petitioners sustained their burden of proof, concluding that the Respondent violated the CC&Rs and ARIZ. REV. STAT. § 33-1808.
  • Civil Penalties: Petitioners' request to levy civil penalties against the Respondent was denied. The ALJ determined the flag pole issue was a "miscommunication" and the building envelope letter was sent for the purpose of defense in the Superior Court lawsuit, not intentional retaliation.
  • Reimbursement: Respondent was ordered to **reimburse

Questions

Question

Can my HOA prohibit me from displaying the American flag in my front or back yard?

Short Answer

No. Arizona law prevents HOAs from prohibiting the outdoor display of the American flag in front or back yards, regardless of what community documents say.

Detailed Answer

The decision affirms that notwithstanding community documents, an association cannot prohibit the display of the American flag in the front or backyard. In this case, the HOA's attempt to restrict the flag to the side of the house was found to violate state statute.

Alj Quote

Notwithstanding any provision in the community documents, an association shall not prohibit the outdoor front yard or backyard display of . . . [t]he American flag.

Legal Basis

ARIZ. REV. STAT. § 33-1808(A)

Topic Tags

  • flags
  • federal/state rights
  • homeowner rights

Question

Can the HOA restrict the height or mobility of my flagpole if the CC&Rs don't specifically allow them to?

Short Answer

No. If the CC&Rs do not grant the authority to restrict flagpole height or mobility, the HOA cannot impose those conditions.

Detailed Answer

The ALJ found that the HOA violated the CC&Rs by placing conditions on a flagpole approval—specifically height limits and mobility restrictions—that were not authorized by the governing documents.

Alj Quote

Ms. Rawlette admitted the flag pole height and mobility restrictions were inappropriate because the CC&Rs do not grant Respondent authority to restrict flag poles in this manner.

Legal Basis

CC&Rs Interpretation

Topic Tags

  • architectural control
  • CC&Rs
  • flags

Question

If I win my hearing against the HOA, do I get my filing fee back?

Short Answer

Yes. If the petitioner prevails in the hearing, the judge is required to order the HOA to reimburse the filing fee.

Detailed Answer

The decision explicitly states that if a petitioner prevails, the administrative law judge shall order the respondent (HOA) to pay the petitioner the filing fee required by statute.

Alj Quote

If the petitioner prevails, the administrative law judge shall order the respondent to pay to the petitioner the filing fee required by section 32-2199.01.

Legal Basis

ARIZ. REV. STAT. § 32-2199.02(A)

Topic Tags

  • fees
  • reimbursement
  • prevailing party

Question

Will the judge automatically fine the HOA (civil penalties) if they are found to have violated the rules?

Short Answer

No. Civil penalties may be denied if the violation was due to miscommunication or lack of malicious intent rather than ongoing harassment.

Detailed Answer

Even though the HOA violated the statute regarding flags, the judge denied civil penalties because the violation resulted from a miscommunication by the management company rather than a malicious harassment campaign.

Alj Quote

Petitioner failed to provide sufficient evidence that Respondent’s actions warranted the issuance of civil penalties. The flag pole issue was not an ongoing repetitive harassment campaign, rather, it was miscommunication between the Management Company and Respondent.

Legal Basis

ARIZ. REV. STAT. § 32-2199.02(A)

Topic Tags

  • civil penalties
  • fines
  • harassment

Question

In a dispute over land measurements (like a building envelope), is an aerial survey or an in-person survey better?

Short Answer

An in-person ('boots on the ground') survey is considered superior to an aerial-only survey.

Detailed Answer

When determining if a homeowner exceeded a building envelope, the ALJ found that an in-person survey was more reliable than an analysis based solely on aerial imagery.

Alj Quote

Mr. McLain and Mr. Teague agreed Mr. McLain’s “boots on the ground” survey is superior to an aerial only survey.

Legal Basis

Evidentiary Standards

Topic Tags

  • evidence
  • property disputes
  • surveys

Question

Who has the burden of proof in an administrative hearing against an HOA?

Short Answer

The homeowner (Petitioner) has the burden to prove the HOA violated the statute or documents by a preponderance of the evidence.

Detailed Answer

The decision clarifies that the party bringing the case bears the burden of proof. This means the homeowner must show that their claims are more likely true than not.

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated ARIZ. REV. STAT. § 33-1805.

Legal Basis

ARIZ. ADMIN. CODE R2-19-119

Topic Tags

  • burden of proof
  • legal procedure

Question

What types of disputes can the Arizona Department of Real Estate hear?

Short Answer

Disputes between owners and associations concerning violations of community documents or statutes regulating planned communities.

Detailed Answer

The Department has jurisdiction to hear petitions from owners or associations regarding violations of CC&Rs or state statutes, provided the proper filing procedures are followed.

Alj Quote

The owner or association may petition the department for a hearing concerning violations of community documents or violations of the statutes that regulate planned communities

Legal Basis

ARIZ. REV. STAT. § 32-2199

Topic Tags

  • jurisdiction
  • ADRE authority

Case

Docket No
24F-H019-REL
Case Title
Schafer, Kevin W. & Lawton, Patricia A. v Sycamore Springs Homeowners Association, INC.
Decision Date
2024-01-01
Alj Name
Brian Del Vecchio
Tribunal
OAH
Agency
ADRE

Questions

Question

Can my HOA prohibit me from displaying the American flag in my front or back yard?

Short Answer

No. Arizona law prevents HOAs from prohibiting the outdoor display of the American flag in front or back yards, regardless of what community documents say.

Detailed Answer

The decision affirms that notwithstanding community documents, an association cannot prohibit the display of the American flag in the front or backyard. In this case, the HOA's attempt to restrict the flag to the side of the house was found to violate state statute.

Alj Quote

Notwithstanding any provision in the community documents, an association shall not prohibit the outdoor front yard or backyard display of . . . [t]he American flag.

Legal Basis

ARIZ. REV. STAT. § 33-1808(A)

Topic Tags

  • flags
  • federal/state rights
  • homeowner rights

Question

Can the HOA restrict the height or mobility of my flagpole if the CC&Rs don't specifically allow them to?

Short Answer

No. If the CC&Rs do not grant the authority to restrict flagpole height or mobility, the HOA cannot impose those conditions.

Detailed Answer

The ALJ found that the HOA violated the CC&Rs by placing conditions on a flagpole approval—specifically height limits and mobility restrictions—that were not authorized by the governing documents.

Alj Quote

Ms. Rawlette admitted the flag pole height and mobility restrictions were inappropriate because the CC&Rs do not grant Respondent authority to restrict flag poles in this manner.

Legal Basis

CC&Rs Interpretation

Topic Tags

  • architectural control
  • CC&Rs
  • flags

Question

If I win my hearing against the HOA, do I get my filing fee back?

Short Answer

Yes. If the petitioner prevails in the hearing, the judge is required to order the HOA to reimburse the filing fee.

Detailed Answer

The decision explicitly states that if a petitioner prevails, the administrative law judge shall order the respondent (HOA) to pay the petitioner the filing fee required by statute.

Alj Quote

If the petitioner prevails, the administrative law judge shall order the respondent to pay to the petitioner the filing fee required by section 32-2199.01.

Legal Basis

ARIZ. REV. STAT. § 32-2199.02(A)

Topic Tags

  • fees
  • reimbursement
  • prevailing party

Question

Will the judge automatically fine the HOA (civil penalties) if they are found to have violated the rules?

Short Answer

No. Civil penalties may be denied if the violation was due to miscommunication or lack of malicious intent rather than ongoing harassment.

Detailed Answer

Even though the HOA violated the statute regarding flags, the judge denied civil penalties because the violation resulted from a miscommunication by the management company rather than a malicious harassment campaign.

Alj Quote

Petitioner failed to provide sufficient evidence that Respondent’s actions warranted the issuance of civil penalties. The flag pole issue was not an ongoing repetitive harassment campaign, rather, it was miscommunication between the Management Company and Respondent.

Legal Basis

ARIZ. REV. STAT. § 32-2199.02(A)

Topic Tags

  • civil penalties
  • fines
  • harassment

Question

In a dispute over land measurements (like a building envelope), is an aerial survey or an in-person survey better?

Short Answer

An in-person ('boots on the ground') survey is considered superior to an aerial-only survey.

Detailed Answer

When determining if a homeowner exceeded a building envelope, the ALJ found that an in-person survey was more reliable than an analysis based solely on aerial imagery.

Alj Quote

Mr. McLain and Mr. Teague agreed Mr. McLain’s “boots on the ground” survey is superior to an aerial only survey.

Legal Basis

Evidentiary Standards

Topic Tags

  • evidence
  • property disputes
  • surveys

Question

Who has the burden of proof in an administrative hearing against an HOA?

Short Answer

The homeowner (Petitioner) has the burden to prove the HOA violated the statute or documents by a preponderance of the evidence.

Detailed Answer

The decision clarifies that the party bringing the case bears the burden of proof. This means the homeowner must show that their claims are more likely true than not.

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated ARIZ. REV. STAT. § 33-1805.

Legal Basis

ARIZ. ADMIN. CODE R2-19-119

Topic Tags

  • burden of proof
  • legal procedure

Question

What types of disputes can the Arizona Department of Real Estate hear?

Short Answer

Disputes between owners and associations concerning violations of community documents or statutes regulating planned communities.

Detailed Answer

The Department has jurisdiction to hear petitions from owners or associations regarding violations of CC&Rs or state statutes, provided the proper filing procedures are followed.

Alj Quote

The owner or association may petition the department for a hearing concerning violations of community documents or violations of the statutes that regulate planned communities

Legal Basis

ARIZ. REV. STAT. § 32-2199

Topic Tags

  • jurisdiction
  • ADRE authority

Case

Docket No
24F-H019-REL
Case Title
Schafer, Kevin W. & Lawton, Patricia A. v Sycamore Springs Homeowners Association, INC.
Decision Date
2024-01-01
Alj Name
Brian Del Vecchio
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • Schafer, Kevin W. (petitioner)
  • Lawton, Patricia A. (petitioner/witness)
  • Cline, Craig L. (petitioner attorney)
    Udall Law
  • Mlan, Steven Wallace (witness/surveyor)
    Tucson Surveying and Mapping
    Expert witness for Petitioners

Respondent Side

  • Rudder, Edith I. (HOA attorney)
    Carpenter, Hazelwood, Delgado & Bolen
  • Cohen, Eden G. (HOA attorney)
    Carpenter, Hazelwood, Delgado & Bolen
  • Rowlette, Kristen (board member/witness)
    Sycamore Springs Homeowners Association, INC.
    HOA President
  • Leech, Herbert (board member/witness)
    Sycamore Springs Homeowners Association, INC.
    HOA Vice President
  • Teague, J.O. (witness/surveyor)
    Southern Arizona Land Survey Associates
    Expert witness for Respondent
  • Jennifer (property manager)
    Mission Management
    Sent conditional flag approval letter

Neutral Parties

  • Del Vecchio, Brian (ALJ)
    OAH
    ALJ for December 7 & 12 hearings and final decision
  • Eigenheer, Tammy L. (ALJ)
    OAH
    Signed November 27, 2023 Order
  • Jacio (ALJ)
    OAH
    Identified as ALJ on December 7, 2023
  • Nicolson, Susan (ADRE commissioner)
    ADRE
  • Hansen, A. (ADRE official)
    ADRE
  • Nunez, V. (ADRE official)
    ADRE
  • Jones, D. (ADRE official)
    ADRE
  • Abril, L. (ADRE official)
    ADRE

Other Participants

  • Andrews, Tom (former board member)
    Mentioned in board minutes and testimony regarding past ACC actions
  • Tantis, Pam (former board member)
    Mentioned in board minutes
  • Bloodcot, GMA (resident)
    Recipient of email regarding flag rules

John R Krahn Living Trust & Janet Krahn Living Trust v. Tonto Forest

Case Summary

Case ID 24F-H013-REL
Agency ADRE
Tribunal OAH
Decision Date 2023-12-19
Administrative Law Judge Brian Del Vecchio
Outcome The Administrative Law Judge affirmed the Petitioner's petition, finding the Respondent violated ARIZ. REV. STAT. § 33-1805 by failing to provide requested financial records (check registers) within the mandated ten business days. The request for civil penalties was denied, but the Respondent was ordered to reimburse the $500.00 filing fee.
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner John R Krahn Living Trust & Janet Krahn Living Trust Counsel
Respondent Tonto Forest Estates Homeowners Association Counsel

Alleged Violations

ARIZ. REV. STAT. § 33-1805

Outcome Summary

The Administrative Law Judge affirmed the Petitioner's petition, finding the Respondent violated ARIZ. REV. STAT. § 33-1805 by failing to provide requested financial records (check registers) within the mandated ten business days. The request for civil penalties was denied, but the Respondent was ordered to reimburse the $500.00 filing fee.

Why this result: Petitioner failed to provide sufficient evidence that Respondent's actions warranted the issuance of civil penalties.

Key Issues & Findings

Failure to provide association financial records (check registers) within 10 business days

Respondent failed to provide the requested check registers within the ten business day statutory requirement for requests made on December 1, 2022, and July 26, 2023. The first request was fulfilled on April 6, 2023, and the second on November 21, 2023.

Orders: The Administrative Law Judge affirmed the petition, concluded Respondent violated ARS § 33-1805, and ordered Respondent to reimburse Petitioner the $500.00 filing fee.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • ARIZ. REV. STAT. § 33-1805
  • ARIZ. REV. STAT. § 32-2199.02(A)

Analytics Highlights

Topics: HOA Records Request, Financial Records, Check Register, Timeliness Violation, Civil Penalties Denied
Additional Citations:

  • ARIZ. REV. STAT. § 33-1805
  • ARIZ. REV. STAT. § 32-2199.02(A)
  • ARIZ. REV. STAT. § 32-2199.05
  • ARIZ. REV. STAT. § 41-1092 et seq.

Video Overview

Audio Overview

Decision Documents

24F-H013-REL Decision – 1115590.pdf

Uploaded 2026-04-26T10:04:33 (57.6 KB)

24F-H013-REL Decision – 1125702.pdf

Uploaded 2026-04-26T10:04:41 (127.1 KB)

24F-H013-REL Decision – 1115590.pdf

Uploaded 2026-01-23T18:02:05 (57.6 KB)

24F-H013-REL Decision – 1125702.pdf

Uploaded 2026-01-23T18:02:10 (127.1 KB)

This summary details the Administrative Law Judge (ALJ) hearing in the matter of John R Krahn Living Trust & Janet Krahn Living Trust v. Tonto Forest Estates Homeowners Association (HOA), Docket No. 24F-H013-REL, held on November 29, 2023.

Key Facts and Legal Issue

The case addressed whether the Tonto Forest Estates Homeowners Association (Respondent) violated Arizona Revised Statutes (ARIZ. REV. STAT.) § 33-1805 by failing to provide association financial records, specifically check registers, within the required ten business days. The Petitioner, represented by John Krahn, filed a petition alleging violations stemming from two requests:

  1. December 1, 2022, Request: For the November 2022 check register, which was not fulfilled until April 13, 2023.
  2. July 26, 2023, Request: For January through July 2023 check registers, which was not fulfilled until November 21, 2023.

The HOA initially denied the claim, asserting that "all documents are available on the portal".

Hearing Arguments

Petitioner (Krahn) argued:

  • The check register is a recognized financial record that must be provided upon request.
  • The Respondent repeatedly missed the 10-business-day statutory deadline.
  • The HOA made false claims regarding the documents' availability on the online portal and imposed unwarranted restrictions, such as requiring future requests to be sent solely via US mail, indicating bad faith and punitive action.
  • Petitioner presented evidence of prior rulings against the HOA to establish a pattern of recurrent misconduct, justifying a request for a civil penalty.

Respondent (Gauer) argued:

  • The HOA President, Steve Gauer, admitted under oath that the association was "remiss in responding in the ten days".
  • Mr. Gauer testified that the Board was now attempting to correct past mistakes and ensure compliance, noting that the check registers were uploaded to the portal on November 21, 2023 (eight days before the hearing).
  • The Respondent did not present evidence to counter the core accusation of statutory non-compliance.

Outcome and Legal Decision

The Administrative Law Judge (ALJ) Brian Del Vecchio issued a decision on December 19, 2023:

  1. Violation of Statute Affirmed: The ALJ concluded that the Petitioner sustained the burden of proof, finding that the Respondent violated ARIZ. REV. STAT. § 33-1805 because both document requests were fulfilled beyond the ten business day statutory requirement.
  2. Civil Penalty Denied: The Petitioner's request to levy a civil penalty was denied, as the ALJ found that the Petitioner failed to provide sufficient evidence that Respondent’s actions warranted the issuance of penalties.
  3. Filing Fee Reimbursement: The Respondent was ordered to reimburse the Petitioner’s filing fee of $500.00 pursuant to ARIZ. REV. STAT. § 32-2199.02(A).
  4. Compliance Order: The Petitioner's petition was affirmed. The ALJ may order a party to abide by the statute at issue.

{ “case”: { “docket_no”: “24F-H013-REL”, “case_title”: “John R Krahn Living Trust & Janet Krahn Living Trust v Tonto Forest Estates Homeowners Association”, “decision_date”: “2023-12-19”, “alj_name”: “Brian Del Vecchio”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “Is a check register considered an official financial record that an HOA must provide upon request?”, “short_answer”: “Yes. The decision confirms that check registers are undisputed financial records under Arizona law.”, “detailed_answer”: “The Administrative Law Judge ruled that a check register qualifies as a financial record. Consequently, homeowners are entitled to review these documents when requested under A.R.S. § 33-1805.”, “alj_quote”: “It was undisputed that a check register is a financial record within the meaning of ARIZ. REV. STAT. § 33-1805. Thus, Mr. Krahn was entitled to the requested financial record.”, “legal_basis”: “A.R.S. § 33-1805”, “topic_tags”: [ “records request”, “financial records”, “check register” ] }, { “question”: “How many days does the HOA have to fulfill my request to inspect records?”, “short_answer”: “The HOA has ten business days to fulfill a request for examination.”, “detailed_answer”: “Arizona statute mandates a specific timeframe for HOAs to comply with record requests. Failure to provide access within ten business days constitutes a violation of the statute.”, “alj_quote”: “The association shall have ten business days to fulfill a request for examination.”, “legal_basis”: “A.R.S. § 33-1805(A)”, “topic_tags”: [ “deadlines”, “records request”, “compliance” ] }, { “question”: “Can the HOA charge me a fee just to review the records?”, “short_answer”: “No. The HOA cannot charge a member for making material available for review.”, “detailed_answer”: “While the HOA can charge for copies (up to fifteen cents per page), they are explicitly prohibited from charging a fee for the act of making materials available for a member’s review.”, “alj_quote”: “The association shall not charge a member or any person designated by the member in writing for making material available for review… An association may charge a fee for making copies of not more than fifteen cents per page.”, “legal_basis”: “A.R.S. § 33-1805(A)”, “topic_tags”: [ “fees”, “records request”, “homeowner rights” ] }, { “question”: “If the HOA eventually provides the records months later, is it still a violation?”, “short_answer”: “Yes. Providing records after the ten-business-day deadline is considered a violation of the statute.”, “detailed_answer”: “Even if the HOA fulfills the request eventually, missing the ten-day statutory window establishes a violation. In this case, delays of several months were deemed violations despite the records ultimately being provided.”, “alj_quote”: “Both requests were fulfilled beyond the ten business day statutory requirement. Therefore, the Administrative Law Judge concludes that Respondent’s conduct… was in violation of the charged provision of ARIZ. REV. STAT. § 33-1805.”, “legal_basis”: “A.R.S. § 33-1805”, “topic_tags”: [ “compliance”, “deadlines”, “violations” ] }, { “question”: “If I win my case against the HOA, will I get my filing fee back?”, “short_answer”: “Yes. If the petitioner prevails, the judge must order the HOA to reimburse the filing fee.”, “detailed_answer”: “Reimbursement of the filing fee is mandatory under A.R.S. § 32-2199.02(A) when the homeowner prevails in the hearing.”, “alj_quote”: “If the petitioner prevails, the administrative law judge shall order the respondent to pay to the petitioner the filing fee required by section 32-2199.01.”, “legal_basis”: “A.R.S. § 32-2199.02(A)”, “topic_tags”: [ “filing fees”, “reimbursement”, “legal costs” ] }, { “question”: “Will the judge automatically fine the HOA (civil penalties) if they are found in violation?”, “short_answer”: “No. Civil penalties are not automatic; the homeowner must provide sufficient evidence that the HOA’s actions warrant them.”, “detailed_answer”: “While the judge has the authority to levy civil penalties for each violation, they may deny them if the petitioner fails to provide sufficient evidence justifying such penalties, even if a statutory violation is proven.”, “alj_quote”: “Petitioner failed to provide sufficient evidence that Respondent’s actions warranted the issuance of civil penalties… Thus, civil penalties ought to be denied.”, “legal_basis”: “A.R.S. § 32-2199.02(A)”, “topic_tags”: [ “civil penalties”, “fines”, “enforcement” ] }, { “question”: “Who has the burden of proof in an HOA dispute hearing?”, “short_answer”: “The homeowner (petitioner) bears the burden of proving the violation.”, “detailed_answer”: “The party bringing the complaint must prove their case by a ‘preponderance of the evidence,’ meaning they must show it is more likely than not that the HOA violated the statute.”, “alj_quote”: “In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated ARIZ. REV. STAT. § 33-1805.”, “legal_basis”: “Ariz. Admin. Code R2-19-119”, “topic_tags”: [ “burden of proof”, “procedure”, “evidence” ] }, { “question”: “Can the HOA simply tell me the records are on an online portal if they aren’t actually there?”, “short_answer”: “No. Incorrectly stating records are on a portal does not satisfy the requirement if the records are not actually available.”, “detailed_answer”: “In this case, the HOA claimed records were available online, but the homeowner proved they were not. The ALJ found the HOA in violation for failing to provide the records within the statutory time, regardless of the portal claims.”, “alj_quote”: “Respondent… stated he must submit a written request by certified mail and reiterated the financial documents were available through the online portal. At the time, the check registers were not available through the online portal… the Administrative Law Judge concludes that Respondent’s conduct… was in violation”, “legal_basis”: “A.R.S. § 33-1805”, “topic_tags”: [ “online portal”, “access to records”, “bad faith” ] } ] }

{ “case”: { “docket_no”: “24F-H013-REL”, “case_title”: “John R Krahn Living Trust & Janet Krahn Living Trust v Tonto Forest Estates Homeowners Association”, “decision_date”: “2023-12-19”, “alj_name”: “Brian Del Vecchio”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “Is a check register considered an official financial record that an HOA must provide upon request?”, “short_answer”: “Yes. The decision confirms that check registers are undisputed financial records under Arizona law.”, “detailed_answer”: “The Administrative Law Judge ruled that a check register qualifies as a financial record. Consequently, homeowners are entitled to review these documents when requested under A.R.S. § 33-1805.”, “alj_quote”: “It was undisputed that a check register is a financial record within the meaning of ARIZ. REV. STAT. § 33-1805. Thus, Mr. Krahn was entitled to the requested financial record.”, “legal_basis”: “A.R.S. § 33-1805”, “topic_tags”: [ “records request”, “financial records”, “check register” ] }, { “question”: “How many days does the HOA have to fulfill my request to inspect records?”, “short_answer”: “The HOA has ten business days to fulfill a request for examination.”, “detailed_answer”: “Arizona statute mandates a specific timeframe for HOAs to comply with record requests. Failure to provide access within ten business days constitutes a violation of the statute.”, “alj_quote”: “The association shall have ten business days to fulfill a request for examination.”, “legal_basis”: “A.R.S. § 33-1805(A)”, “topic_tags”: [ “deadlines”, “records request”, “compliance” ] }, { “question”: “Can the HOA charge me a fee just to review the records?”, “short_answer”: “No. The HOA cannot charge a member for making material available for review.”, “detailed_answer”: “While the HOA can charge for copies (up to fifteen cents per page), they are explicitly prohibited from charging a fee for the act of making materials available for a member’s review.”, “alj_quote”: “The association shall not charge a member or any person designated by the member in writing for making material available for review… An association may charge a fee for making copies of not more than fifteen cents per page.”, “legal_basis”: “A.R.S. § 33-1805(A)”, “topic_tags”: [ “fees”, “records request”, “homeowner rights” ] }, { “question”: “If the HOA eventually provides the records months later, is it still a violation?”, “short_answer”: “Yes. Providing records after the ten-business-day deadline is considered a violation of the statute.”, “detailed_answer”: “Even if the HOA fulfills the request eventually, missing the ten-day statutory window establishes a violation. In this case, delays of several months were deemed violations despite the records ultimately being provided.”, “alj_quote”: “Both requests were fulfilled beyond the ten business day statutory requirement. Therefore, the Administrative Law Judge concludes that Respondent’s conduct… was in violation of the charged provision of ARIZ. REV. STAT. § 33-1805.”, “legal_basis”: “A.R.S. § 33-1805”, “topic_tags”: [ “compliance”, “deadlines”, “violations” ] }, { “question”: “If I win my case against the HOA, will I get my filing fee back?”, “short_answer”: “Yes. If the petitioner prevails, the judge must order the HOA to reimburse the filing fee.”, “detailed_answer”: “Reimbursement of the filing fee is mandatory under A.R.S. § 32-2199.02(A) when the homeowner prevails in the hearing.”, “alj_quote”: “If the petitioner prevails, the administrative law judge shall order the respondent to pay to the petitioner the filing fee required by section 32-2199.01.”, “legal_basis”: “A.R.S. § 32-2199.02(A)”, “topic_tags”: [ “filing fees”, “reimbursement”, “legal costs” ] }, { “question”: “Will the judge automatically fine the HOA (civil penalties) if they are found in violation?”, “short_answer”: “No. Civil penalties are not automatic; the homeowner must provide sufficient evidence that the HOA’s actions warrant them.”, “detailed_answer”: “While the judge has the authority to levy civil penalties for each violation, they may deny them if the petitioner fails to provide sufficient evidence justifying such penalties, even if a statutory violation is proven.”, “alj_quote”: “Petitioner failed to provide sufficient evidence that Respondent’s actions warranted the issuance of civil penalties… Thus, civil penalties ought to be denied.”, “legal_basis”: “A.R.S. § 32-2199.02(A)”, “topic_tags”: [ “civil penalties”, “fines”, “enforcement” ] }, { “question”: “Who has the burden of proof in an HOA dispute hearing?”, “short_answer”: “The homeowner (petitioner) bears the burden of proving the violation.”, “detailed_answer”: “The party bringing the complaint must prove their case by a ‘preponderance of the evidence,’ meaning they must show it is more likely than not that the HOA violated the statute.”, “alj_quote”: “In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated ARIZ. REV. STAT. § 33-1805.”, “legal_basis”: “Ariz. Admin. Code R2-19-119”, “topic_tags”: [ “burden of proof”, “procedure”, “evidence” ] }, { “question”: “Can the HOA simply tell me the records are on an online portal if they aren’t actually there?”, “short_answer”: “No. Incorrectly stating records are on a portal does not satisfy the requirement if the records are not actually available.”, “detailed_answer”: “In this case, the HOA claimed records were available online, but the homeowner proved they were not. The ALJ found the HOA in violation for failing to provide the records within the statutory time, regardless of the portal claims.”, “alj_quote”: “Respondent… stated he must submit a written request by certified mail and reiterated the financial documents were available through the online portal. At the time, the check registers were not available through the online portal… the Administrative Law Judge concludes that Respondent’s conduct… was in violation”, “legal_basis”: “A.R.S. § 33-1805”, “topic_tags”: [ “online portal”, “access to records”, “bad faith” ] } ] }

Case Participants

Petitioner Side

  • John R Krahn (petitioner)
    John R Krahn Living Trust & Janet Krahn Living Trust
    Trustee and Hearing Representative for Petitioner
  • Janet Krahn (petitioner)
    John R Krahn Living Trust & Janet Krahn Living Trust

Respondent Side

  • Steve Gower (HOA president)
    Tonto Forest Estates Homeowners Association
    Respondent representative at hearing
  • Kurt Meister (board member)
    Tonto Forest Estates Homeowners Association
    Former Board President who filed initial response
  • Melissa Jordan (property manager)
    Ogden Community Management
    Former Community Manager who handled early communication (also referred to as 'Melissa')
  • Dan Francom (HOA attorney)
    Attorney for HOA (Tonto Forest Estates)
  • Barbara (property manager)
    Ogden Community Management
    Current Community Manager (referred to by first name only)
  • Ken (board member)
    Tonto Forest Estates Homeowners Association
    Board member (referred to by first name only)
  • Todd (board member)
    Tonto Forest Estates Homeowners Association
    Board member (referred to by first name only)
  • Jean (former board member)
    Tonto Forest Estates Homeowners Association
    Former board member (referred to by first name only)

Neutral Parties

  • Brian Del Vecchio (ALJ)
    OAH
    Administrative Law Judge for the hearing and decision
  • Velva Moses-Thompson (ALJ)
    OAH
    Administrative Law Judge who signed the initial Order
  • Susan Nicolson (Commissioner)
    ADRE
  • AHansen (ADRE staff)
    ADRE
    Recipient of official correspondence
  • vnunez (ADRE staff)
    ADRE
    Recipient of official correspondence
  • djones (ADRE staff)
    ADRE
    Recipient of official correspondence
  • labril (ADRE staff)
    ADRE
    Recipient of official correspondence
  • Diane Mahowski (ALJ)
    OAH
    Referenced in prior ALJ ruling cited as precedent
  • Lang (ALJ)
    OAH
    Referenced in prior ALJ ruling cited as precedent (last name only)

Other Participants

  • Michael Holland (party)
    Referenced as a party in a prior ADR dispute regarding records
  • Dennis Lair (HOA law advocate)
    Arizona Homeowners Coalition
    Referenced expert/advocate

SAMEUL T. PAPARAZZO v. CORONADO RANCH COMMUNITY ASSOCIATION

Case Summary

Case ID 24F-H011-REL
Agency ADRE
Tribunal OAH
Decision Date 2023-11-22
Administrative Law Judge Sondra J. Vanella
Outcome The Administrative Law Judge dismissed the Petition, finding that the Petitioner failed to sustain the burden of proof to show the Respondent violated the open meeting statute (A.R.S. § 33-1804(A)). The Board provided open meetings where the management contract discussions and votes occurred, including allowing the Petitioner and other homeowners to comment.
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Samuel T. Paparazzo Counsel
Respondent Coronado Ranch Community Association Counsel Ashley Turner

Alleged Violations

A.R.S. § 33-1804(A)

Outcome Summary

The Administrative Law Judge dismissed the Petition, finding that the Petitioner failed to sustain the burden of proof to show the Respondent violated the open meeting statute (A.R.S. § 33-1804(A)). The Board provided open meetings where the management contract discussions and votes occurred, including allowing the Petitioner and other homeowners to comment.

Why this result: Petitioner failed to sustain the burden of proof to establish a violation of A.R.S. § 33-1804(A) by a preponderance of the evidence.

Key Issues & Findings

Violation of the open meeting statute regarding entering into a contract with a new Community Association Management Company.

Petitioner alleged Respondent violated A.R.S. § 33-1804(A) by canceling the existing community management contract and entering a contract with a new company (Haywood Realty & Investment, Inc.) without allowing open discussion, member comment, motion, and a vote regarding the change and the acquisition of Requests for Proposals (RFPs).

Orders: Petitioner’s Petition is dismissed.

Filing fee: $500.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 33-1804(A)

Analytics Highlights

Topics: HOA Open Meetings, Management Contract, Request for Proposals, Burden of Proof
Additional Citations:

  • ARS 33-1804(A)

Related election workflow tool

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Video Overview

Audio Overview

Decision Documents

24F-H011-REL Decision – 1116173.pdf

Uploaded 2026-04-24T12:15:21 (111.6 KB)

24F-H011-REL Decision – 1116173.pdf

Uploaded 2026-01-23T18:01:52 (111.6 KB)

This summary pertains to the hearing in the matter of Samuel T. Paparazzo versus Coronado Ranch Community Association (Docket No. 24F-H011-REL), held on November 13, 2023.

Key Facts and Main Issue

The Petitioner, Samuel T. Paparazzo, alleged that the Coronado Ranch Community Association (Respondent) violated Arizona Revised Statute (ARS) § 33-1804(A)—the planned community open meetings statute—by "entering into a contract with a new Community Association Management Company". Specifically, the Petitioner argued that the Board failed to allow for open discussion and member comment, and did not properly put forth a motion and vote, both when obtaining requests for proposals (RFPs) and when entering into the new contract with Haywood Realty & Investment, Inc. on August 10, 2023. The Petitioner testified that the approved meeting minutes did not reflect a motion and vote for either action.

Hearing Proceedings and Key Arguments

The Administrative Law Judge (ALJ) noted that the burden of proof rested upon the Petitioner to establish the violation by a preponderance of the evidence.

Petitioner's Argument: The Petitioner, who attended all board meetings, asserted that there was no formal discussion, motion, or vote recorded for the key steps (RFPs and contract execution) required under ARS § 33-1804(A). He conceded that he was given an opportunity to speak at the crucial August 2023 meeting, but claimed that the only motion put forward and voted upon was to terminate the previous manager (RCP), not to hire Haywood.

Respondent's Argument: Ashley Turner, counsel for the Association, argued that the Association did not violate the statute. Kim Jackson, Board Treasurer, testified that management issues arose due to financial errors (including a $23,000 double payment). She testified that RFPs were obtained by individual board members, discussed, and made available to the community at the open November 2022 meeting and subsequent meetings.

Ms. Jackson credibly testified that the final decision occurred at the August 2023 open meeting after a "lengthy" discussion. At this meeting, both the termination of the old management company and the hiring of Haywood were discussed. The Petitioner was given 10 minutes to speak virtually. Ms. Jackson testified that a unanimous vote was taken to terminate the previous contract and hire Haywood, and that the termination notice detailing the new hiring was read aloud to attendees. She clarified that the lack of reference to the hiring motion in the August minutes was due to the secretary's inadvertent omission.

Legal Points and Outcome

The core legal contention revolved around whether the Association adhered to the requirement that formal action be taken only after discussion and member comment during an open meeting. The ALJ found the testimony of Ms. Jackson regarding the open discussion, member comments (including the Petitioner’s 10 minutes), and the unanimous vote at the August 2023 meeting to be credible.

The ALJ concluded that the credible evidence established that the issues regarding termination, RFPs, and entering into the new contract were discussed and voted on after a motion and member comment.

The Petitioner failed to prove by a preponderance of the evidence that Respondent violated ARS § 33-1804(A). Consequently, the Petition was dismissed.

Select all sources

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24F-H011-REL

2 sources

These sources document an administrative hearing regarding a dispute between Samuel T. Paparazzo and the Coronado Ranch Community Association over alleged open meeting violations. The petitioner contended that the board hired a new management company without proper public discussion, member input, or a formal vote as required by Arizona law. In response, the board treasurer testified that the transition was discussed across multiple open sessions and that the final decision was made during a meeting where the petitioner himself provided verbal testimony. Evidence showed that while the official meeting minutes were occasionally incomplete, the board had made significant efforts to inform homeowners through Facebook and email. Ultimately, the Administrative Law Judge dismissed the petition, ruling that the association provided sufficient opportunity for member participation before executing the new contract.

What was the final outcome of the HOA dispute hearing?
How did the treasurer defend the board’s decision-making process?
Explain the member’s specific complaints about the new contract.

Thursday, February 12

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24F-H011-REL

2 sources

These sources document an administrative hearing regarding a dispute between Samuel T. Paparazzo and the Coronado Ranch Community Association over alleged open meeting violations. The petitioner contended that the board hired a new management company without proper public discussion, member input, or a formal vote as required by Arizona law. In response, the board treasurer testified that the transition was discussed across multiple open sessions and that the final decision was made during a meeting where the petitioner himself provided verbal testimony. Evidence showed that while the official meeting minutes were occasionally incomplete, the board had made significant efforts to inform homeowners through Facebook and email. Ultimately, the Administrative Law Judge dismissed the petition, ruling that the association provided sufficient opportunity for member participation before executing the new contract.

What was the final outcome of the HOA dispute hearing?
How did the treasurer defend the board’s decision-making process?
Explain the member’s specific complaints about the new contract.

Thursday, February 12

Save to note

Today • 3:35 PM

2 sources

Video Overview

Mind Map

Reports

Flashcards

Quiz

Infographic

Slide Deck

Data Table

NotebookLM can be inaccurate; please double check its responses.

Case Participants

Petitioner Side

  • Samuel T. Paparazzo (petitioner)
    Also appeared as Samuel Gene Everzo; testified on his own behalf.

Respondent Side

  • Ashley Turner (HOA attorney)
    Goodman Law Group
    Counsel for Coronado Ranch Community Association.
  • Kimberly Jackson (board member/treasurer)
    Coronado Ranch Community Association Board
    Appeared as a witness; sometimes referred to as Jim Jackson.
  • Sheree (board member)
    Coronado Ranch Community Association Board
    Director who obtained RFPs.
  • Michelle (board member)
    Coronado Ranch Community Association Board
    Director who obtained RFPs.
  • Cathy / Cassie (board member/secretary)
    Coronado Ranch Community Association Board
    Board member who read documents aloud; secretary who inadvertently left information off minutes.

Neutral Parties

  • Sondra J. Vanella (ALJ)
    Office of Administrative Hearings
    Also identified as Sandra Vanella.
  • Susan Nicolson (Commissioner)
    Arizona Department of Real Estate
  • A. Hansen (ADRE staff)
    Arizona Department of Real Estate
    Recipient of decision transmission.
  • V. Nunez (ADRE staff)
    Arizona Department of Real Estate
    Recipient of decision transmission.
  • D. Jones (ADRE staff)
    Arizona Department of Real Estate
    Recipient of decision transmission.
  • L. Abril (ADRE staff)
    Arizona Department of Real Estate
    Recipient of decision transmission.

Other Participants

  • Erica Martinson (attorney)
    prison law
  • Tony Rosetti (lawist)
    Spelled R O SS KTI.
  • Miss Lee (potential witness)
    Did not testify.
  • Rob Bishop (community manager)
    Renaissance Community Partners
    Son of owner of previous management company; facilitated virtual mic for Petitioner.
  • Tamara Lens (community assistant)
    Renaissance Community Partners
    Sent official meeting notice email.
  • Linda Palmer (homeowner)
    Coronado Ranch Community Association member
    Commented at the meeting.

ROBERT J. GARING v. PRESCOTT LAKES COMMUNITY ASSOCIATION, INC.

Case Summary

Case ID 24F-H012-REL
Agency ADRE
Tribunal OAH
Decision Date 2023-11-20
Administrative Law Judge Jenna Clark
Outcome The ALJ denied the petition, concluding that the Association's voting system constituted permissible delegate voting, which is not prohibited by the Planned Community Act. The prohibition in ARS § 33-1812 against proxy voting applies only when votes are “allocated to a unit,” which is not the case for Director elections where votes are allocated to the Neighborhood Voting Members as delegates.
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Robert J. Garing Counsel
Respondent Prescott Lakes Community Association, Inc. Counsel Adrianne A. Speas, Esq.

Alleged Violations

ARIZ. REV. STAT. § 33-1812

Outcome Summary

The ALJ denied the petition, concluding that the Association's voting system constituted permissible delegate voting, which is not prohibited by the Planned Community Act. The prohibition in ARS § 33-1812 against proxy voting applies only when votes are “allocated to a unit,” which is not the case for Director elections where votes are allocated to the Neighborhood Voting Members as delegates.

Why this result: Petitioner did not sustain the burden of proving a violation of ARIZ. REV. STAT. § 33-1812.

Key Issues & Findings

Whether Respondent is in violation of ARIZ. REV. STAT. § 33-1812

Petitioner alleged that the Association's use of a voting delegate system, where Voting Members cast votes for unit owners who did not respond to neighborhood polls, constitutes proxy voting prohibited under ARS § 33-1812.

Orders: Petitioner's petition is denied.

Filing fee: $500.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • ARIZ. REV. STAT. § 33-1812
  • ARIZ. REV. STAT. § 10-3708
  • ARIZ. ADMIN. CODE R2-19-119(B)(2)

Analytics Highlights

Topics: HOA, Planned Community Act, Delegate Voting, Proxy Voting, Board Election, ARS 33-1812, Nonprofit Corporation Act
Additional Citations:

  • ARIZ. REV. STAT. § 33-1812
  • ARIZ. REV. STAT. § 32-2199.05
  • ARIZ. REV. STAT. § 32-2199.02
  • ARIZ. REV. STAT. § 41-1092 et seq.
  • ARIZ. REV. STAT. § 10-3708
  • ARIZ. REV. STAT. § 1-211(B)
  • ARIZ. ADMIN. CODE R2-19-119(B)(2)
  • Tierra Ranchos Homeowners Ass'n v. Kitchukov

Related election workflow tool

Many HOA election disputes start with preventable workflow problems: unclear ballot language, separate-vote issues, quorum tracking, paper/online reconciliation, proxy handling, or incomplete records. HOABallot is a separate platform built to document the voting workflow from notice through certification.

Preview HOABallot election workflows

Video Overview

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Decision Documents

24F-H012-REL Decision – 1115010.pdf

Uploaded 2026-04-24T12:15:30 (162.7 KB)

24F-H012-REL Decision – 1115010.pdf

Uploaded 2026-01-23T18:01:58 (162.7 KB)

This legal case summary details the hearing regarding the alleged violation of Arizona law concerning proxy voting within a planned community association.

Key Facts and Parties

The hearing was held on November 9, 2023, before Administrative Law Judge (ALJ) Jenna Clark. The matter involved Robert J. Garing (Petitioner), appearing on his own behalf, against Prescott Lakes Community Association, Inc. (Respondent), a nonprofit homeowners' association.

The Association utilizes a neighborhood delegate voting system. Unit owners elect a Voting Member (and an alternate) for their respective neighborhoods. The Voting Members then cast all votes for the election of the Association's Board of Directors. Prior to the election, unit owners are polled. The governing documents stipulate that the Voting Member "shall cast the votes attributable to any Units not responding to the poll in his or her discretion".

Main Issue

The underlying issue was whether the Respondent was in violation of Arizona Revised Statute (ARS) § 33-1812 of the Planned Communities Act. Petitioner alleged that when Voting Members vote on behalf of units whose owners did not return a poll, this practice is a form of proxy voting, which ARS § 33-1812 prohibits.

Key Arguments

  1. Petitioner's Argument: Petitioner argued that the delegate voting system is fundamentally a proxy system. He asserted that ARS § 33-1812 contains "clear, unambiguous" language prohibiting all proxies after the period of declarant control, and this special statute supersedes the general Nonprofit Corporations Act. Petitioner presented evidence showing that Voting Members exercised their discretion to cast zero votes for candidates who had received votes from polled unit owners, demonstrating a lack of correlation between member preference and the delegate’s vote.
  2. Respondent's Argument: Respondent argued that its system constitutes permissible delegate voting, which is distinct from the prohibited proxy voting. Testimony established that Voting Members are elected by the unit owners, not appointed like proxies, and cast votes by ballot, not proxy. Counsel for Respondent argued that the legislature chose only to prohibit proxy voting in the Planned Communities Act, and did not bar the use of delegate voting, which is allowed under the Nonprofit Corporation Act.

Legal Focus and Outcome

The ALJ focused on the language of ARS § 33-1812(A)(7), which prohibits casting "votes allocated to a unit… pursuant to a proxy".

The ALJ issued a decision denying the petition. The conclusion was that Petitioner failed to sustain the burden of proof. The key legal determination was that the legislature "made no such bar regarding delegate voting as a form of HOA governance" within the Planned Community Act.

The ALJ reasoned that for the election of Board Directors, there are no votes "allocated to a unit"; instead, "all votes are allocated to Neighborhood Voting Members as delegates" under the Association's governing documents. Since the statute prohibits proxy voting only when votes are allocated to a unit, the Association's delegate system for director elections did not violate ARS § 33-1812.

{ “case”: { “docket_no”: “24F-H012-REL”, “case_title”: “Robert J. Garing v. Prescott Lakes Community Association, Inc.”, “decision_date”: “2023-11-20”, “alj_name”: “Jenna Clark”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “Is a delegate voting system considered the same as illegal proxy voting in Arizona HOAs?”, “short_answer”: “No. The ALJ determined that a delegate voting system is distinct from proxy voting and is not prohibited by the Planned Communities Act.”, “detailed_answer”: “While Arizona law (A.R.S. § 33-1812) explicitly prohibits proxy voting in planned communities after the period of declarant control, the Administrative Law Judge found that the legislature did not prohibit ‘delegate voting.’ In a delegate system, votes are allocated to the elected Voting Member (delegate) rather than directly to the individual unit for that specific election, meaning the prohibition on casting unit votes via proxy does not apply.”, “alj_quote”: “Here, the relevant and credible evidence of record establishes that while proxy voting is explicitly prohibited under the Planned Community Act, the legislature made no such bar regarding delegate voting as a form of HOA governance.”, “legal_basis”: “A.R.S. § 33-1812”, “topic_tags”: [ “voting”, “proxies”, “delegates”, “elections” ] }, { “question”: “Can my HOA allow neighborhood representatives to vote on behalf of owners?”, “short_answer”: “Yes, if the governing documents establish a delegate system where votes are allocated to the representative rather than the unit.”, “detailed_answer”: “The decision upholds a system where neighborhoods elect ‘Voting Members’ who then cast votes for the Board of Directors. The ALJ reasoned that the Planned Communities Act prohibits proxy voting only when votes are ‘allocated to a unit.’ Under the delegate system described, the votes for directors were allocated to the Voting Members, not the individual units.”, “alj_quote”: “The Planned Community Act does not regulate who is authorized to vote in planned community elections. Instead, it prohibits proxy voting when votes have been ‘allocated to a unit.’ Regarding the election of Board Directors, there are no votes ‘allocated to a unit.’ Instead, all votes are allocated to Neighborhood Voting Members as delegates…”, “legal_basis”: “A.R.S. § 33-1812”, “topic_tags”: [ “voting”, “board of directors”, “governing documents” ] }, { “question”: “Can neighborhood delegates cast votes for homeowners who did not participate in the poll?”, “short_answer”: “Yes, provided the governing documents allow the delegate to cast unreceived votes at their discretion.”, “detailed_answer”: “The ALJ noted that Voting Members in this case had the discretion to cast votes for units that did not respond to the neighborhood poll. This practice was found not to violate the statutory prohibition on proxies because it was part of a valid delegate voting structure.”, “alj_quote”: “Voting Members do not have complete discretion when casting votes. They only have discretion to cast unreceived votes.”, “legal_basis”: “A.R.S. § 33-1812”, “topic_tags”: [ “voting”, “discretionary voting”, “absentee ballots” ] }, { “question”: “What is the burden of proof for a homeowner challenging their HOA in an administrative hearing?”, “short_answer”: “The homeowner must prove their case by a ‘preponderance of the evidence’.”, “detailed_answer”: “The homeowner (Petitioner) is responsible for proving that the HOA violated the statute. The standard used is ‘preponderance of the evidence,’ which means the homeowner must show that their contention is more likely true than not.”, “alj_quote”: “In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated ARIZ. REV. STAT. § 33-1812.”, “legal_basis”: “A.A.C. R2-19-119(B)(2)”, “topic_tags”: [ “burden of proof”, “administrative hearing”, “legal procedure” ] }, { “question”: “Does the Nonprofit Corporation Act apply to HOAs in Arizona?”, “short_answer”: “Yes, unless the Planned Communities Act specifically exempts the HOA from a provision.”, “detailed_answer”: “The ALJ reasoned that because the legislature specifically exempted planned communities from some parts of the Nonprofit Act but was silent on delegate voting, the Nonprofit Act’s allowance of such systems remains relevant context for HOA governance.”, “alj_quote”: “In fact, the legislature specifically exempted planned communities from certain enumerated provisions of the Nonprofit Act, but did not address delegate voting within the Planned Community Act in any capacity.”, “legal_basis”: “A.R.S. § 10-3101 et seq.”, “topic_tags”: [ “corporate law”, “statutory interpretation”, “nonprofit act” ] }, { “question”: “If I disagree with the Administrative Law Judge’s decision, what can I do?”, “short_answer”: “You can appeal to the Superior Court within 35 days of being served the order.”, “detailed_answer”: “The decision is binding, but parties have the right to seek judicial review. This appeal must be filed with the Superior Court within a strict 35-day window following the service of the order.”, “alj_quote”: “A party wishing to appeal this order must seek judicial review as prescribed by ARIZ. REV. STAT. § 41-1092.08(H) and title 12, chapter 7, article 6. Any such appeal must be filed with the superior court within thirty-five days from the date when a copy of this order was served upon the parties.”, “legal_basis”: “A.R.S. § 41-1092.08(H); A.R.S. § 12-904(A)”, “topic_tags”: [ “appeals”, “judicial review”, “superior court” ] } ] }

{ “case”: { “docket_no”: “24F-H012-REL”, “case_title”: “Robert J. Garing v. Prescott Lakes Community Association, Inc.”, “decision_date”: “2023-11-20”, “alj_name”: “Jenna Clark”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “Is a delegate voting system considered the same as illegal proxy voting in Arizona HOAs?”, “short_answer”: “No. The ALJ determined that a delegate voting system is distinct from proxy voting and is not prohibited by the Planned Communities Act.”, “detailed_answer”: “While Arizona law (A.R.S. § 33-1812) explicitly prohibits proxy voting in planned communities after the period of declarant control, the Administrative Law Judge found that the legislature did not prohibit ‘delegate voting.’ In a delegate system, votes are allocated to the elected Voting Member (delegate) rather than directly to the individual unit for that specific election, meaning the prohibition on casting unit votes via proxy does not apply.”, “alj_quote”: “Here, the relevant and credible evidence of record establishes that while proxy voting is explicitly prohibited under the Planned Community Act, the legislature made no such bar regarding delegate voting as a form of HOA governance.”, “legal_basis”: “A.R.S. § 33-1812”, “topic_tags”: [ “voting”, “proxies”, “delegates”, “elections” ] }, { “question”: “Can my HOA allow neighborhood representatives to vote on behalf of owners?”, “short_answer”: “Yes, if the governing documents establish a delegate system where votes are allocated to the representative rather than the unit.”, “detailed_answer”: “The decision upholds a system where neighborhoods elect ‘Voting Members’ who then cast votes for the Board of Directors. The ALJ reasoned that the Planned Communities Act prohibits proxy voting only when votes are ‘allocated to a unit.’ Under the delegate system described, the votes for directors were allocated to the Voting Members, not the individual units.”, “alj_quote”: “The Planned Community Act does not regulate who is authorized to vote in planned community elections. Instead, it prohibits proxy voting when votes have been ‘allocated to a unit.’ Regarding the election of Board Directors, there are no votes ‘allocated to a unit.’ Instead, all votes are allocated to Neighborhood Voting Members as delegates…”, “legal_basis”: “A.R.S. § 33-1812”, “topic_tags”: [ “voting”, “board of directors”, “governing documents” ] }, { “question”: “Can neighborhood delegates cast votes for homeowners who did not participate in the poll?”, “short_answer”: “Yes, provided the governing documents allow the delegate to cast unreceived votes at their discretion.”, “detailed_answer”: “The ALJ noted that Voting Members in this case had the discretion to cast votes for units that did not respond to the neighborhood poll. This practice was found not to violate the statutory prohibition on proxies because it was part of a valid delegate voting structure.”, “alj_quote”: “Voting Members do not have complete discretion when casting votes. They only have discretion to cast unreceived votes.”, “legal_basis”: “A.R.S. § 33-1812”, “topic_tags”: [ “voting”, “discretionary voting”, “absentee ballots” ] }, { “question”: “What is the burden of proof for a homeowner challenging their HOA in an administrative hearing?”, “short_answer”: “The homeowner must prove their case by a ‘preponderance of the evidence’.”, “detailed_answer”: “The homeowner (Petitioner) is responsible for proving that the HOA violated the statute. The standard used is ‘preponderance of the evidence,’ which means the homeowner must show that their contention is more likely true than not.”, “alj_quote”: “In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated ARIZ. REV. STAT. § 33-1812.”, “legal_basis”: “A.A.C. R2-19-119(B)(2)”, “topic_tags”: [ “burden of proof”, “administrative hearing”, “legal procedure” ] }, { “question”: “Does the Nonprofit Corporation Act apply to HOAs in Arizona?”, “short_answer”: “Yes, unless the Planned Communities Act specifically exempts the HOA from a provision.”, “detailed_answer”: “The ALJ reasoned that because the legislature specifically exempted planned communities from some parts of the Nonprofit Act but was silent on delegate voting, the Nonprofit Act’s allowance of such systems remains relevant context for HOA governance.”, “alj_quote”: “In fact, the legislature specifically exempted planned communities from certain enumerated provisions of the Nonprofit Act, but did not address delegate voting within the Planned Community Act in any capacity.”, “legal_basis”: “A.R.S. § 10-3101 et seq.”, “topic_tags”: [ “corporate law”, “statutory interpretation”, “nonprofit act” ] }, { “question”: “If I disagree with the Administrative Law Judge’s decision, what can I do?”, “short_answer”: “You can appeal to the Superior Court within 35 days of being served the order.”, “detailed_answer”: “The decision is binding, but parties have the right to seek judicial review. This appeal must be filed with the Superior Court within a strict 35-day window following the service of the order.”, “alj_quote”: “A party wishing to appeal this order must seek judicial review as prescribed by ARIZ. REV. STAT. § 41-1092.08(H) and title 12, chapter 7, article 6. Any such appeal must be filed with the superior court within thirty-five days from the date when a copy of this order was served upon the parties.”, “legal_basis”: “A.R.S. § 41-1092.08(H); A.R.S. § 12-904(A)”, “topic_tags”: [ “appeals”, “judicial review”, “superior court” ] } ] }

Case Participants

Petitioner Side

  • Robert J. Garing (petitioner)
    Prescott Lakes Community Association, Inc. member
    Also served as alternate Voting Member for 2 years
  • James Thomas Joan (witness)
    Also listed as Jimmy Yiannis

Respondent Side

  • Adrianne A. Speas (HOA attorney)
    Krupnik & Speas, LLC
    Appeared as counsel for Respondent
  • Robert Sisley (board president; witness)
    Prescott Lakes Community Association, Inc.
    Also Alternate Voting Member for Parkside; served as the association representative
  • Catherine Black (assistant community manager; witness)
    Homeco
    Homeco is the HOA management company for Respondent
  • Lynn M. Krupnik (HOA attorney)
    Krupnik & Speas, LLC
    Counsel listed for Respondent in distribution

Neutral Parties

  • Jenna Clark (ALJ)
    OAH
  • Susan Nicolson (ADRE Commissioner)
    Arizona Department of Real Estate
    Final decision authority/recipient of ALJ Decision