**Case Summary: Ferne Skidmore v. Velda Rose Estates Homeowners Association**
**Case No. 15F-H1515006-BFS**

**Proceedings Overview**
This administrative hearing, held on August 27, 2015, before the Arizona Office of Administrative Hearings, addressed a petition filed by homeowner Ferne Skidmore against the Velda Rose Estates Homeowners Association (HOA). The dispute centered on the HOA Board's decision to prohibit a group known as the "Stocking Project" from using the community clubhouse.

**Key Facts and Arguments**
The Petitioner, Ms. Skidmore, had organized the Stocking Project for approximately six years. The group utilized the clubhouse to assemble Christmas stockings filled with donated items (e.g., toiletries and toys) for needy and homeless children,.

* **Respondent’s Position:** The HOA Board argued that it restricted the project to adhere to CC&Rs and Bylaws regarding "religious affiliation." Board members testified they excluded the group to avoid liability associated with religious organizations, because the project's funds did not pass through the HOA treasurer, and because the group included non-members,,.
* **Petitioner’s Position:** Ms. Skidmore argued the ban was discriminatory and violated the HOA's non-discrimination clauses. She testified that the project was purely charitable, had no religious affiliation, and that religion was never mentioned during activities,.

**Evidence and Testimony**
Testimony revealed inconsistencies in the HOA's enforcement of rules. While the Board cited religious affiliation as a reason for the ban, a Board member admitted the Board opens its own sessions with prayer and displays Christmas decorations in the clubhouse,. Additionally, evidence showed the clubhouse was open to other activities involving non-members and monetary prizes (such as card games) without restriction.

**Legal Findings**
Administrative Law Judge M. Douglas ruled in favor of the Petitioner based on the preponderance of the evidence,.

1. **Definition of Religious Activity:** The Tribunal found the Stocking Project was a non-profit charitable organization existing to help children, not to promote a specific belief in a deity. Therefore, it did not constitute a "religious activity",.
2. **Violation of CC&Rs:** The Judge concluded the Board's actions were discriminatory, violating Article IV, Section 3 of the Velda Rose CC&Rs, which prohibits discrimination among owners,.

**Outcome**
The Administrative Law Judge ordered the following:
* The Petitioner was deemed the prevailing party.
* The HOA must fully comply with applicable CC&R provisions in the future.
* The HOA was ordered to reimburse the Petitioner’s $550.00 filing fee.
* No civil penalty was assessed.

The decision became the final administrative decision of the Department of Fire, Building and Life Safety on October 28, 2015, following a review period during which the Department took no action to reject or modify the ruling.