Kay & William Long vs Villas at Desert Camp Association

Case Summary

Case ID 25F-H073-REL
Agency Arizona Department of Real Estate
Tribunal
Decision Date 2026-05-28
Administrative Law Judge NSK
Outcome
Filing Fees Refunded
Civil Penalties

Parties & Counsel

Petitioner Unknown Counsel Pro Se
Respondent Unknown Counsel Kyle von Johnson

Alleged Violations

No violations listed

Video Overview

Audio Overview

Decision Documents

25F-H073-REL Decision – 1364163.pdf

Uploaded 2026-06-11 01:19:01 (50.5 KB)

25F-H073-REL Decision – 1364282.pdf

Uploaded 2026-06-11 01:19:01 (6.1 KB)

25F-H073-REL Decision – 1374028.pdf

Uploaded 2026-06-11 01:19:02 (48.8 KB)

25F-H073-REL Decision – 1374708.pdf

Uploaded 2026-06-11 01:19:03 (51.4 KB)

25F-H073-REL Decision – 1376199.pdf

Uploaded 2026-06-11 01:19:04 (63.4 KB)

25F-H073-REL Decision – 1377595.pdf

Uploaded 2026-06-11 01:19:05 (49.1 KB)

25F-H073-REL Decision – 1388589.pdf

Uploaded 2026-06-11 01:19:06 (61.5 KB)

25F-H073-REL Decision – 1388590.pdf

Uploaded 2026-06-11 01:19:06 (62.8 KB)

25F-H073-REL Decision – 1395020.pdf

Uploaded 2026-06-11 01:19:07 (50.2 KB)

25F-H073-REL Decision – 1395021.pdf

Uploaded 2026-06-11 01:19:08 (6.2 KB)

25F-H073-REL Decision – 1426783.pdf

Uploaded 2026-06-11 01:19:09 (32.9 KB)

25F-H073-REL Decision – 1429819.pdf

Uploaded 2026-06-11 01:19:10 (149.6 KB)

Briefing Document: Long v. Villas at Desert Camp Association (No. 25F-H073-REL)

Executive Summary

The legal dispute between Kay & William Long (Petitioners) and the Villas at Desert Camp Association (Respondent) centered on whether the Association's Board of Directors violated community Covenants, Conditions, and Restrictions (CC&Rs) by converting turf areas to desert landscaping without a formal membership vote. Petitioners alleged that the removal of approximately 2,500 square feet of grass across three areas—including a private lot (Lot 21) and specific common areas—constituted a "change of use" under Section 4.6 of the CC&Rs, which requires approval by a majority of members.

Respondent argued that the conversions were performed as part of their maintenance obligations under Sections 4.9 and 8.2(c), driven by water conservation mandates and a $8,000 rebate incentive from the City of Scottsdale. Following an evidentiary hearing on March 13, 2026, the Administrative Law Judge (ALJ) ruled in favor of the Respondent. The ALJ determined that while "change of use" generally refers to the function or nature of a space, the CC&Rs specifically grant the Board the authority to "plant, replace, maintain and cultivate" landscaping without membership approval, designating the Board as the "sole judge" of such maintenance.


Detailed Analysis of Key Themes

1. Interpretation of "Change of Use" vs. "Maintenance"

The central legal conflict involved a terminological dispute over the scope of Section 4.6 (Change of Use) versus Article 8 (Maintenance).

  • Petitioners' Stance: They argued that "change of use" encompasses changes in appearance, character, and function. By replacing walkable turf with rocks and desert plants, the functional nature of the common area was altered from a recreational amenity where residents could gather, play, or walk dogs to a purely aesthetic "decorative" space.
  • Respondent's Stance: They contended that "change of use" refers to rezoning or physical obstructions (e.g., building a pickleball court or a clubhouse on open space). Because the land remained designated as "open space" in the plat, the use had not changed.
  • Judicial Resolution: The ALJ defined "use" as a "purpose, object, or end." However, the judge concluded that because Section 8.2 specifically addresses landscaping—permitting the Board to "replace… and cultivate landscaping, shrubs, trees, and plantings"—this specific authority overrules the general "change of use" provision regarding turf removal.
2. External Environmental and Financial Pressures

The Association justified its actions by citing external pressures and financial benefits related to water conservation in Arizona.

  • Conservation Mandates: Board President Ron Stacy testified that the City of Scottsdale and the Arizona Department of Water Resources (ADWR) were moving toward mandating water consumption reductions.
  • Financial Incentives: The Association secured an $8,000 rebate from the City of Scottsdale for the turf reduction.
  • Long-Term Strategy: The Board presented a five-year plan for turf reduction to achieve a 20% reduction in water usage, citing the aging "Bermuda grass" (15+ years old) and excessive shade from mature trees as factors making grass unsustainable in certain areas.
3. Procedural Transparency and Member Engagement

A significant portion of the hearing addressed whether the Board acted unilaterally or with member input.

  • The 2024 Survey: In February 2024, the Board conducted a survey of all 30 residents. Results showed:
  • 26 out of 30 residents supported moving from grass to desert landscaping.
  • 22 out of 30 residents believed a formal vote should not be required for every transition to desertscape.
  • Notice and Red-Flagging: The Board marked proposed conversion areas with red flags for member inspection and discussed the plans during annual meetings in 2023 and 2025.
  • Petitioners' Objection: Despite the survey, the Petitioners argued that a survey is not a substitute for the "binding vote" required by Section 4.6.
4. Jurisdiction Over Private Lots (Lot 21)

The case involved a unique overlap between private property and Association responsibility.

  • Infraction Cures: Lot 21 (9191 E. Hoverland Road) was cited by the Master Association (DC Ranch) for dead grass. Under the sub-association's rules, it was the Respondent’s responsibility to cure this violation.
  • Maintenance Authority: The Board used its authority to convert the lot's turf to desertscape to prevent future citations, noting that the area was heavily shaded and prone to water runoff, making grass growth impossible.

Important Quotes with Context

Speaker Quote Context
Kay Long (Petitioner) "The turf removal functioned as association directed landscaping conversions affecting common areas not routine maintenance." During her testimony, arguing that the scale of the project (2,500 sq ft) exceeded "routine" care.
Ron Stacy (Board President) "The board shall be the sole judge as to the appropriate maintenance, repair and replacement… this makes it really clear the association is the entity that is authorized." Citing Section 4.9 to justify the Board's unilateral decision-making regarding the landscape.
Kyle von Johnson (Counsel) "4.6 only applies when there's a change in use… All that changed was the look of the property." Opening statement defining the Association's narrow interpretation of "change of use."
Aaron Largo (Property Manager) "Leaving general maintenance things up to a community vote, it's not a realistic process… nor would it be conducive to any type of productivity." Testifying on the "debilitating" practical implications if every landscape change required a membership vote.
ALJ Kawasaki "Section 4.6 cannot be interpreted to mean that ‘change of use’ included landscaping." From the Conclusions of Law in the Final Decision, explaining why the maintenance sections take precedence.

Actionable Insights

For Homeowners Associations (HOAs)
  • Explicit CC&R References: When undertaking large-scale projects, Boards should explicitly cite the specific sections (e.g., Maintenance 8.2) that grant them authority to act without a vote to preempt "change of use" challenges.
  • Documenting External Necessity: The use of City mandates and expert landscape architect CAD drawings helped the Respondent prove "good cause" for their actions.
  • Utilizing Non-Binding Surveys: While the survey in this case was not legally binding, it provided significant evidence that the Board was acting in the "best interest of the members," which is a requirement for Board resolutions.
For Homeowners/Members
  • Distinguishing Use from Aesthetics: The ruling clarifies that in this jurisdiction, "use" refers to the legal or zoning designation (e.g., "open space"), not the physical material (grass vs. rock) or the aesthetic character of the land.
  • Focusing on Private vs. Common: Challenges to work done on private lots (like Lot 21) may be dismissed if the association has a documented responsibility to maintain or cure violations on those lots.
  • Electoral Remedy: The Respondent's counsel noted that if members disagree with maintenance choices, their primary remedy is to "exercise her vote in the next board election," rather than litigation, provided the Board stays within its maintenance authority.

Hearing Summary Data

Category Detail
Case Number 25F-H073-REL
Hearing Date March 13, 2026
Final Decision Date May 28, 2026
Prevailing Party Respondent (Villas at Desert Camp Association)
Total Area in Dispute Approximately 2,500 square feet
Key CC&R Sections 4.6 (Change of Use), 4.9 (Board as Sole Judge), 8.2(c) (Landscape Authority)
Filing Fee Paid $500.00

Legal Study Guide: Kay & William Long v. Villas at Desert Camp Association

This study guide provides a comprehensive overview of the administrative case No. 25F-H073-REL, heard before the Arizona Office of Administrative Hearings (OAH). It focuses on the interpretation of homeowners association (HOA) governing documents, specifically regarding the distinction between "change of use" and "routine maintenance."


Case Overview

  • Matter: Kay & William Long (Petitioners) v. Villas at Desert Camp Association (Respondent).
  • Central Issue: Whether the Association's Board violated Section 4.6 of the Covenants, Conditions, and Restrictions (CC&Rs) by removing turf and installing desert landscaping in common areas without a membership vote.
  • Outcome: The Administrative Law Judge (ALJ) ruled in favor of the Respondent, determining that the turf conversion fell under the Board’s maintenance authority rather than "change of use."

Key Legal Concepts and CC&R Provisions

1. Section 4.6: Procedure for Change of Use of Common Areas

This section requires a formal procedure for the Board to change the use of common areas:

  • Requirement: The Board must adopt a resolution stating the current use is no longer in the members' best interest.
  • Approval: Requires a majority vote of each class of members at a meeting, or a written notice where no more than 10% of members object within 30 days.
  • Consistency: The new use must be for the common benefit and consistent with zoning and deed restrictions.
2. Section 4.9: Areas of Association Responsibility

This provision establishes the Board's authority over the management of the property:

  • The Association is responsible for managing, maintaining, repairing, and replacing "Areas of Association Responsibility."
  • The Board is designated as the sole judge of what constitutes appropriate maintenance, repair, and replacement.
3. Section 8.2(c): Maintenance of Common Areas

This section grants the Board specific rights regarding landscaping without requiring owner approval:

  • The Board may plant, replace, maintain, and cultivate landscaping, shrubs, trees, and plantings at any time.
  • The Board has the right to replace injured or diseased vegetation.
  • Under Section 8.2(c)(12), the Board is the sole judge of appropriate maintenance within both common areas and lots.
4. Definition of "Change of Use"

The central legal dispute involved how to define a change in "use":

  • Petitioners' View: Argued that "use" refers to the appearance, character, function, or nature of the space. Removing grass used for recreation (walking dogs, children playing) and replacing it with rock/desertscape is a change of function.
  • Respondent's View: Argued that "use" refers to zoning and legal designations. Changing "open space" to another "open space" (even with different plants) is not a change of use. A change of use would require a physical barrier or a new facility, such as a clubhouse or pickleball court.
  • ALJ’s Ruling: Determined that because the CC&Rs explicitly grant the Board authority over landscaping and "cultivation" without approval, Section 4.6 cannot be interpreted to include landscaping changes.

Fact Summary: The Turf Conversion Project

Feature Details
Locations Lot 21 (private residence at 9191 E. Overland Rd) and three common areas near villas 9191, 9179, and 9167.
Scale Approximately 2,500 square feet of landscape conversion.
Justification Water conservation mandates from the City of Scottsdale and the Arizona Department of Water Resources (ADWR).
Financials The project was recorded in reserve accounts as a "Capital Improvement," which Petitioners argued indicated it was more than routine maintenance.
Community Feedback A survey found that 26 out of 30 respondents favored moving from grass to desert landscaping; 22 out of 30 felt a membership vote was not required for every transition.
Lot 21 Specifics The conversion was triggered by a Master Association (DC Ranch) citation for dead grass caused by heavy tree shade and drainage issues.

Short-Answer Practice Questions

  1. What was the specific allegation made by the Petitioners in their July 2025 filing?
  • Answer: That the Board violated Section 4.6 by removing turf and installing desert landscaping in common areas without a properly noticed membership vote.
  1. According to Section 4.9, who is the "sole judge" of appropriate maintenance and repair?
  • Answer: The Association Board.
  1. What external factors did the Board President cite as reasons for the turf reduction plan?
  • Answer: Expected mandates from the City of Scottsdale and the Arizona Department of Water Resources (ADWR) to significantly reduce water consumption over five years.
  1. What is the "Tract" designation for the common areas at issue in the DC Ranch Parcel 2.8 plat?
  • Answer: Tract C, designated as "open space."
  1. How did the ALJ define "use" in the final decision, and what source was cited?
  • Answer: "A purpose, object, or end, esp. of a useful or advantageous nature," citing the Oxford English Dictionary.
  1. Why was the turf conversion on Lot 21 excluded from the final legal determination regarding Section 4.6?
  • Answer: Lot 21 is a privately owned residence, and Section 4.6 explicitly applies only to "Common Areas."
  1. What was the result of the $8,000 rebate mentioned in the testimony?
  • Answer: The Association's property manager secured an $8,000 rebate from the City of Scottsdale for performing the turf reductions.
  1. What physical examples did Aaron Largo provide to describe a true "change of use"?
  • Answer: Converting an area into a community center, a pickleball court, or a gated sports area (anything creating a physical obstruction).

Essay Prompts for Deeper Exploration

  1. Maintenance vs. Substantial Alteration: Compare the language of Section 8.2 (Maintenance) with Section 4.6 (Change of Use). How does a Board distinguish between "cultivating" landscaping and "altering the character" of a common area? Use evidence from the ALJ's decision to support your argument.
  2. The Role of Fiduciary Duty and Transparency: The Board President testified about detailed minutes, annual meetings, red-flagging project areas, and conducting a survey. Analyze whether these actions satisfy the Board's duty to the members, even if a formal vote under Section 4.6 was not legally required.
  3. External Regulatory Pressures: Discuss how environmental mandates (like those from the ADWR or City of Scottsdale) influence the interpretation of HOA contracts. Should a Board be given more latitude to bypass membership votes when acting to comply with state or municipal water conservation goals?
  4. The Impact of CC&R Section 11.3: Section 11.3 states that common areas are intended "solely for aesthetic purposes and limited recreational use." How does this provision undermine the Petitioners' argument that the loss of grass for "walking and playing" constitutes a fundamental change in the use of the land?

Glossary of Important Terms

  • ADWR: Arizona Department of Water Resources; the state agency responsible for water management.
  • ALJ: Administrative Law Judge; the official who presides over an administrative hearing and issues a decision.
  • Areas of Association Responsibility: Specific parts of the property that the HOA is legally obligated to manage, maintain, and repair.
  • CAD Drawing: Computer-Aided Design drawing; used in this case by Desert Earth Works to plan irrigation and plant placement.
  • CC&Rs: Covenants, Conditions, and Restrictions; the governing documents that dictate the rules and rights within a planned community.
  • Common Area: Property within a development that is owned or managed by the HOA for the use and benefit of all members.
  • Continuance: A legal order to postpone a hearing to a later date.
  • Desertscape (Xeriscape): Landscaping designed to reduce or eliminate the need for supplemental water from irrigation.
  • OAH: Office of Administrative Hearings; the independent state agency in Arizona that conducts evidentiary hearings.
  • Open Space: A land-use designation (like Tract B or C in the plat) intended to remain undeveloped and accessible.
  • Petitioners: The parties bringing the complaint (in this case, the Longs).
  • Respondent: The party responding to the complaint (in this case, the Villas at Desert Camp Association).

The Great Grass Debate: Navigating HOA Rights and "Change of Use" in Desert Landscaping

Introduction: A Neighborhood Divided over Turf

The adjudication of Kay & William Long vs. Villas at Desert Camp Association (No. 25F-H073-REL) provides a definitive case study in the evolving landscape of Arizona community governance. Heard before the Office of Administrative Hearings (OAH) under Ariz. Rev. Stat. § 32-2199.01, the dispute encapsulates the friction between a homeowner’s expectation of historical community aesthetics and a Board’s broad authority to manage landscaping for sustainability and regulatory compliance.

The central triable issue was whether the Association’s decision to remove approximately 2,500 square feet of turf and install desert landscaping (desertscape) constituted a "change of use." If so, under the community's governing documents, a full membership vote would have been a prerequisite. The Administrative Law Judge (ALJ) was tasked with a fundamental question: Does shifting from grass to rock change the purpose of the land, or is it merely an exercise of the Board’s maintenance duty of care?

The Catalyst: From Citations to Conservation

The project was not an arbitrary aesthetic pivot but a strategic response to external pressures and site-specific maintenance failures. Several factors served as the catalyst:

  • Regulatory Citations: The Master Association (DC Ranch) issued formal citations regarding "dead grass" on Lot 21, a private residence within the Villas where Bermuda grass had become unsustainable.
  • Conservation Mandates: The Board cited looming water conservation requirements from the City of Scottsdale and the Arizona Department of Water Resources (ADWR). The Association aimed for a 20% total water reduction to ensure long-term viability and to secure an $8,000 rebate from the City of Scottsdale.
  • Professional Planning: Rather than a simple rock installation, the Board engaged "Desert Earth Works" to develop a sophisticated "Planting Palette" and CAD drawings to improve drainage and adhere to Master Association standards.

The areas affected included the front yard of Lot 21 and common areas (Tract C) situated in front of Villas 9191, 9179, and 9167.

The Homeowner’s Challenge: The Argument for Section 4.6

Petitioners Kay and William Long contended that the Board had bypassed mandatory democratic protocols. Their challenge relied on a specific interpretation of CC&R Section 4.6:

  • Substantial Alteration: They argued that the removal of 2,500 square feet of grass was a "substantial alteration" to the community’s character and appearance.
  • Functional Loss: The Longs argued the transition from grass to desertscape resulted in a loss of recreational utility. They maintained that while grass provided a space for grandchildren to play or residents to gather, the new "aesthetic" desertscape was non-functional.
  • The Voting Requirement: Under their reading of Section 4.6, any change of this magnitude required a majority vote of the membership, which the Board did not conduct.
The Board’s Rejoinder: Maintenance Duty of Care

The Association’s defense rested on the distinction between "use" and "maintenance." They argued that the fundamental use of the land—open space—remained unchanged. To justify their authority, they relied on a "Statutory Harmonization" of several CC&R sections:

CC&R Section 4.6 (Membership Rights) CC&R Section 8.2(c) & 4.9 (Delegated Board Prerogative)
Trigger: Requires a vote only if the Board resolves that the "current use" is no longer in the best interest of members. Authority: Grants the Board the right to "plant, replace, maintain, and cultivate" landscaping at any time without owner approval.
Scope: Pertains to changes in the "purpose, object, or end" of the land (e.g., from a park to a building). Discretion: Designates the Board as the "sole judge" (Sections 4.9 and 8.2(12)) as to the appropriate maintenance of common areas.

As evidence of community sentiment, the Board presented results from a resident survey conducted on February 5, 2024. The data showed 26 residents favored grass reduction (versus 4 opposed), and 22 residents specifically voted against requiring a formal membership vote for every landscaping change (versus 8 in favor).

Inside the Hearing: Key Evidence and Testimony

The hearing on March 13, 2026, delved into the operational definitions of governance.

  • Defining "Use" vs. "Appearance": Property Manager Aaron Largo testified that a "change of use" typically involves a physical barrier or obstruction—such as converting open space into a gated pickleball court or a community center—that fundamentally alters access.
  • The Professionalism Defense: The Board submitted CAD drawings and testimony regarding the "Planting Palette" to prove the conversion was a professionally designed modification intended to address soil saturation and tree shade issues, not an arbitrary reduction.
  • The "Conspiracy" Rebuttal: The Petitioners alleged the Board intentionally shut off water to Lot 21 to kill the grass and force the conversion. Board President Ron Stacy provided a decisive rebuttal, testifying that he was not in the community from June through September, making the allegation of his personal involvement logistically impossible.
The Verdict: Why the HOA Prevailed

In the ALJ’s Findings of Fact and Conclusions of Law, the Association was deemed the prevailing party. The ruling hinged on three critical legal anchors:

1. The Definition of "Use" The ALJ defined "Use" as a "purpose, object, or end." Since the common areas remained "open space" before and after the conversion, no change of use occurred under Section 4.6.

2. The Section 11.3 "Aesthetic" Anchor A pivotal "smoking gun" in the ALJ’s logic was CC&R Section 11.3(2), which explicitly states that common areas are intended "solely for aesthetic purposes and limited recreational use." This allowed the judge to conclude that because the land’s primary purpose was already "aesthetic," a change from one aesthetic (grass) to another (desertscape) did not alter the land's underlying purpose.

3. Plat Designation (Tract C) The ALJ noted that the common areas were located in "Tract C" of the recorded plat, designated as "open space." As long as the areas remained open and accessible, the Board was operating within its maintenance authority. Under Sections 4.9 and 8.2(12), the Board was the "sole judge" of how to maintain that space.

Conclusion: Top Takeaways for Homeowners and Boards

The Long vs. Villas at Desert Camp decision clarifies the boundaries of Board discretion in an era of environmental transition:

  1. "Sole Judge" Clauses are Powerful: When CC&Rs designate the Board as the sole judge of maintenance, courts are hesitant to interfere unless there is a fundamental shift in the land’s purpose (e.g., from open space to a structure).
  2. Aesthetics Do Not Equal Use: A change in the "character" or "look" of a neighborhood—even a substantial one—is legally distinct from a "change of use."
  3. Good Faith Efforts Matter: While not legally binding as a "vote," the Board’s use of a resident survey on February 5, 2024, and the marking of areas with red flags for inspection demonstrated a "good faith" effort to maintain transparency.
  4. Professional Substantiation: Utilizing Landscape Design Architects and CAD drawings helps insulate Boards from claims that landscaping changes are arbitrary or retaliatory.

As water scarcity continues to drive policy in the Southwest, this case reinforces that sustainability-driven landscaping modifications generally fall under a Board’s maintenance prerogative, provided the land remains dedicated to its platted purpose.

Case Participants

Petitioner Side

  • Kay Long (Petitioner)
    Homeowner representing herself in the hearing
  • William Long (Petitioner)
    Co-petitioner homeowner
  • Pam Dendrak (Witness)
    DC Ranch Modification Committee
    Called by petitioner to testify regarding landscaping modification requirements

Respondent Side

  • Kyle von Johnson (Counsel)
    CHBD Law
    Attorney for Villas at Desert Camp Association
  • Allison Preston (Counsel)
    CHBD Law
    Attorney for Villas at Desert Camp Association
  • Bri Roberts (Counsel)
    CHBD Law
    Attorney for Villas at Desert Camp Association
  • Ron Stacy (Board President / Witness)
    Villas at Desert Camp Association
    Testified on behalf of the respondent association
  • Aaron Largo (Property Manager / Witness)
    Villas at Desert Camp Association
    Community manager for the sub-association

Neutral Parties

  • Nedra-Su Kawasaki (Administrative Law Judge)
    Office of Administrative Hearings
    Presiding judge who authored the final decision
  • Kay Abramsohn (Administrative Law Judge)
    Office of Administrative Hearings
    Signed initial orders granting continuances
  • Susan Nicolson (Commissioner)
    Arizona Department of Real Estate
    Listed on the transmittal record for OAH documents

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)

{
“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