**Case Summary: Stoltenberg v. Rancho Del Oro Homeowners Association**
**Case Number:** 19F-H1919068-REL
**Date of Decision:** September 4, 2019
**Administrative Law Judge:** Thomas Shedden

**Proceedings and Main Issue**
This matter was heard before the Arizona Department of Real Estate on August 21, 2019. Petitioner Michael J. Stoltenberg initially alleged multiple violations of the Association’s Covenants, Conditions, and Restrictions (CC&Rs). However, the proceedings were limited to a single issue: whether the Respondent, Rancho Del Oro Homeowners Association, violated CC&R section 4.3 by failing to deliver the 2019 budget to unit owners at least fifteen days prior to the annual meeting,.

**Key Facts**
* **The Requirement:** CC&R section 4.3 requires the Board to deliver a copy of the budget and assessment amounts to unit owners at least fifteen days before the meeting at which they are presented,.
* **The Meeting:** The Association conducted its annual meeting on January 17, 2019, at which time monthly dues were increased by 10%.
* **The Delivery:** Evidence showed the Association postmarked the budget on January 2, 2019. The Petitioner testified he did not receive the budget fifteen days prior to the meeting.
* **Petitioner's Request:** The Petitioner requested that the dues increase be rescinded and a civil penalty be issued against the Association.

**Legal Analysis**
The Administrative Law Judge emphasized that CC&Rs constitute a contract between the parties, and the tribunal must enforce clear and unambiguous terms,. The Judge found that CC&R section 4.3 explicitly requires the budget be "delivered"—not just mailed—at least fifteen days before the meeting. Although the Association mailed the document exactly fifteen days prior (January 2), the preponderance of the evidence established that it was not *delivered* to the Petitioner by the required deadline.

**Outcome and Order**
The Judge ruled in favor of the Petitioner, deeming him the prevailing party. The final order stipulated:
1. **Violation:** The Association violated CC&R section 4.3 regarding the timely delivery of the budget.
2. **Remedies:** The Petitioner’s requests to rescind the dues increase and impose civil penalties were denied, as he did not demonstrate these measures were appropriate.
3. **Fees:** The Association was ordered to reimburse the Petitioner’s $500.00 filing fee within thirty days.