**Case Summary: David & Loree Janusz v. Cresta Norte HOA**
**Case No. 13F-H1314002-BFS**

**Forum and Parties**
This matter was heard before the Arizona Office of Administrative Hearings on February 18, 2014. The Petitioners, David and Loree Janusz, represent themselves against the Respondent, Cresta Norte Homeowners Association (HOA), regarding a dispute over architectural improvements.

**Background and Main Issues**
The Petitioners, homeowners in Scottsdale, Arizona, submitted an Architectural Change Request to install exterior shutters on their residence. The Cresta Norte Architectural Committee denied the request, and the HOA Board of Directors subsequently denied the Petitioners' appeal. The Petitioners filed a claim alleging the HOA violated the community’s Design Guidelines and CC&Rs by refusing the installation. The central issue was whether the guidelines, which mention shutters, mandated their approval or if the Board retained discretion to deny them based on community aesthetics.

**Hearing Proceedings and Key Arguments**
**Petitioners' Argument:**
David Janusz, a former Board President (2006–2010) and Architectural Committee chairman, testified that the guidelines were drafted to "encourage creativity and diversity". He argued that Section N Miscellaneous (7) of the guidelines specifically lists "shutters" as a type of exterior change, which he interpreted as explicit authorization for their installation. He asserted that during his tenure, the committee intended to offer shutters to allow homeowners to show individuality. He also testified that no neighbors opposed the project.

**Respondent's Argument:**
The HOA, represented by legal counsel, presented testimony from current Board members James Wooley and Brian McNamara. Mr. Wooley testified that the inclusion of the word "shutters" in the guidelines was merely an example of a potential change requiring review, not an express approval. He stated there was no intent to establish shutters as an approved feature and that the guidelines do not prohibit them but require approval. Mr. McNamara noted that no residences in Cresta Norte currently have exterior shutters and that the Board determined they were not a "desirable architectural feature" for the community.

**Legal Findings**
Administrative Law Judge M. Douglas analyzed the case under the "preponderance of the evidence" standard. The findings focused on the text of the 2011 Design Guidelines, which state: "Any change to the exterior appearance of the house (garage door, stone work, shutters, etc.) must be consistent with the design and color palette of the community. Architectural Committee written approval is