Case Summary
| Case ID | 24F-H037-REL |
|---|---|
| Agency | ADRE |
| Tribunal | OAH |
| Decision Date | 2024-08-23 |
| Administrative Law Judge | Adam D. Stone |
| Outcome | total |
| Filing Fees Refunded | $1,000.00 |
| Civil Penalties | $0.00 |
Parties & Counsel
| Petitioner | Taylor Kidd | Counsel | Patrick T. Nackley |
|---|---|---|---|
| Respondent | Heritage Village III Homeowners Association | Counsel | Tessa Knueppel |
Alleged Violations
Association CC&R's Article VII, Section 1; McCormick Ranch CC&R's Article III, Section 4
Association CC&R's Article VII, Section 1; McCormick Ranch CC&R's Article III, Section 4
Outcome Summary
The ALJ granted both consolidated petitions, finding the Association violated its own CC&Rs and the McCormick Ranch master CC&Rs by approving a $1.5 million landscape improvement project and corresponding special assessment without obtaining the required two-thirds vote of homeowners. The Association was ordered to reimburse the filing fees for both petitioners.
Key Issues & Findings
Capital Improvement Project Approval without Vote
Petitioner Kidd alleged the Association violated the CC&Rs by approving a landscape improvement project and special assessment without obtaining the required membership vote.
Orders: Petition granted. Respondent ordered to reimburse Petitioner's filing fee.
Filing fee: $500.00, Fee refunded: Yes
Disposition: petitioner_win
Capital Improvement Project Approval without Vote
Petitioner Glazer alleged the Association violated the CC&Rs by approving a landscape improvement project and special assessment without obtaining the required membership vote.
Orders: Petition granted. Respondent ordered to reimburse Petitioner's filing fee.
Filing fee: $500.00, Fee refunded: Yes
Disposition: petitioner_win
Decision Documents
24F-H039-REL Decision – 1182719.pdf
24F-H039-REL Decision – 1182767.pdf
24F-H039-REL Decision – 1182769.pdf
24F-H039-REL Decision – 1203525.pdf
24F-H039-REL Decision – 1215299.pdf
24F-H039-REL Decision – 1226570.pdf
**Case Title:** 24F-H039-REL (Consolidated with 24F-H037-REL)
**Hearing Proceedings**
The cases filed by Petitioners Jerome L. Glazer and Taylor Kidd against the Heritage Village III Homeowners Association (the "Association") were consolidated into a single proceeding because they involved substantially similar legal and factual objections to the same action taken by the Association. Following a continuance due to a computer outage and the denial of a pre-hearing Cease and Desist Order, the evidentiary hearing convened on August 9, 2024, before Administrative Law Judge (ALJ) Adam D. Stone.
**Key Facts**
On December 19, 2023, the Association's Board of Directors notified homeowners of an approved Landscape Improvement Project designed to replace a 40-year-old failing irrigation system and address dead or dying landscaping. The project was estimated to cost $1,557,950.00, which would require a special assessment of $9,385.24 for each of the 166 homeowners. While the Board claimed a community survey showed 72% homeowner approval for the project, they did not conduct a formal membership vote prior to approving the project and the resulting assessment.
**Key Arguments & Main Issues**
The central legal issue was whether the Association's Board violated governing documents by approving a capital improvement project and special assessment without a formal homeowner vote.
* **Petitioners' Argument:** The Petitioners argued that the Association was legally bound by the overarching McCormick Ranch Covenants, Conditions, and Restrictions (CC&Rs). Specifically, Article III, Section 4 of the McCormick Ranch CC&Rs requires the assent of two-thirds (2/3) of voting owners for any special assessment related to capital improvements.
* **Respondent's Argument:** The Association argued that its own specific CC&Rs were silent on the requirement for a homeowner vote. Therefore, the Board asserted it was acting within its authority and its duty to maintain the community's property without needing a formal ballot.
**Final Decision and Outcome**
The Administrative Law Judge ruled in favor of the Petitioners, determining that they met their burden of proof. The ALJ
Case Participants
Petitioner Side
- Taylor Kidd (petitioner)
Homeowner who filed the petition regarding a landscaping project - Jerome L. Glazer (petitioner)
Homeowner who filed the petition; appeared on his own behalf - Patrick T. Nackley (attorney)
MEDALIST LEGAL PLC
Represented Petitioner Taylor Kidd - Brandon P. Bodea (attorney)
MEDALIST LEGAL PLC
Listed on the docket for Medalist Legal PLC
Respondent Side
- Tessa Knueppel (attorney)
CHDB Law LLP
Represented Respondent Heritage Village III Homeowners Association - Mark K. Sahl (attorney)
CHDB Law LLP
Represented Respondent Heritage Village III Homeowners Association - Charles H. Oldham (attorney)
CHDB Law LLP
Listed on the docket for CHDB Law LLP - Josh Bolen (attorney)
CHDB Law LLP
Listed on the docket for CHDB Law LLP - Jennifer Hutsko (board member)
Heritage Village III Homeowners Association
Testified as a witness; serves on the Community Planning Committee
Neutral Parties
- Adam D. Stone (ALJ)
Office of Administrative Hearings
Administrative Law Judge who issued the final decision - Tammy L. Eigenheer (ALJ)
Office of Administrative Hearings
Administrative Law Judge who issued pre-hearing orders - Susan Nicolson (commissioner)
Arizona Department of Real Estate
Commissioner receiving the order/decision
