**Case Overview**
In the matter of *Maxine Fairbanks v. Santa Bird Condominium Association* (Case No. 15F-H1516012-BFS), the Arizona Office of Administrative Hearings adjudicated a dispute regarding the mismanagement of condominium association funds and governance procedures.

**Key Issues and Allegations**
The Petitioner, Maxine Fairbanks, alleged that the Respondent (the Association) violated Arizona Revised Statutes (A.R.S.) and the Association's Covenants, Conditions and Restrictions (CC&Rs). The specific allegations included:
* **Surplus Monies:** Using surplus funds without an approved budget (violation of A.R.S. § 33-1254).
* **Budget Adherence:** Failing to adhere to the approved budget (violation of A.R.S. § 33-1243).
* **Financial Records:** Refusing to provide financial reports to members (violation of A.R.S. § 33-1258).
* **Governance:** Allowing individual board members to make decisions without a formal vote of the Board (violation of Declaration Paragraph 9E).

**Hearing Proceedings and Arguments**
During the hearing on March 17, 2016, the Respondent was represented by a newly elected Board of Directors.
* **Admissions:** The Respondent **admitted to all allegations**, attributing the violations to the conduct of the previous Board.
* **Mitigation:** Patricia Benner, the chairman of the new Board, testified that the Association’s records were in "disarray" when they took office. She detailed extensive steps taken to achieve compliance, including hiring a management company.
* **Petitioner’s Request:** The Petitioner requested an order ensuring future compliance with statutes and governing documents.

**Legal Findings and Decision**
Administrative Law Judge M. Douglas found the Petitioner to be the prevailing party.
* **Violations Confirmed:** Based on the Respondent's admissions, the judge concluded that the Association had violated A.R.S. §§ 33-1254, 33-1243, 33-1258, and Paragraph 9E of the CC&Rs.
* **Mitigation Accepted:** The judge found Ms. Benner’s testimony credible and accepted the new Board's corrective actions as mitigation.

**Outcome and Order**
The Administrative Law Judge issued the following orders on March 28, 2016:
1. **Compliance:** The Respondent must fully comply with the applicable statutes and CC&Rs.
2. **Reimbursement:** The Respondent was ordered to pay the Petitioner's **filing fee of $2,000.00** within 30 days.
3. **No Civil Penalty:** Due to the mitigating testimony regarding the new Board's efforts, no civil penalty was assessed.

**Final Status**
The decision was certified as the final administrative decision on May 9, 2016, after the Department of Fire, Building and Life Safety took no action to reject or modify the ALJ's decision within the statutory timeframe.