Oak Creek Knolls Property Owners Association, Inc. v. Kim. M. Grill

Case Summary

Case ID 22F-H2222039-REL
Agency ADRE
Tribunal OAH
Decision Date 2022-10-03
Administrative Law Judge Tammy L. Eigenheer
Outcome loss
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Oak Creek Knolls Property Owners Association, Inc. Counsel Augustus H. Shaw, IV
Respondent Kim M. Grill Counsel Lawrence J. Felder

Alleged Violations

Article 2, Section 2.11 of the Restatement of Declaration of Covenants, Conditions and Restrictions (CC&Rs)

Outcome Summary

The Administrative Law Judge denied the petition, finding that the HOA failed to prove the homeowner violated the CC&Rs regarding leasing/occupancy rules, as the homeowner and her roommate's arrangement met the undefined term 'common household' required for a 'Single Family' occupancy.

Why this result: The HOA failed to meet the burden of proving that the homeowner's temporary roommate agreement constituted a violation of CC&R Article 2, Section 2.11.

Key Issues & Findings

Residential Use/Leasing Restrictions

Petitioner HOA alleged Respondent homeowner violated CC&R Article 2, Section 2.11 by entering into a roommate agreement while residing in the home, interpreting this as leasing less than the entire unit and arguing the parties did not constitute a 'Single Family' maintaining a 'common household.'

Orders: Petitioner’s petition denied.

Filing fee: $500.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • ARIZ. REV. STAT. §§ 32-2102
  • 32-2199 et seq.
  • ARIZ. ADMIN. CODE R2-19-119

Analytics Highlights

Topics: HOA, Rental Restriction, Common Household, Single Family, Roommate, CC&R Enforcement, Burden of Proof
Additional Citations:

  • ARIZ. REV. STAT. §§ 32-2102
  • 32-2199 et seq.
  • ARIZ. ADMIN. CODE R2-19-119
  • CC&Rs Article 2, Section 2.11

Video Overview

Audio Overview

Decision Documents

22F-H2222039-REL Decision – 1003618.pdf

Uploaded 2026-01-23T17:46:15 (125.6 KB)

22F-H2222039-REL Decision – 972982.pdf

Uploaded 2026-01-23T17:46:18 (47.8 KB)

22F-H2222039-REL Decision – 973826.pdf

Uploaded 2026-01-23T17:46:21 (50.2 KB)

22F-H2222039-REL Decision – 974120.pdf

Uploaded 2026-01-23T17:46:24 (50.6 KB)

Questions

Question

Who has the burden of proof when an HOA alleges a violation of the CC&Rs?

Short Answer

The HOA (Petitioner) bears the burden of proof by a preponderance of the evidence.

Detailed Answer

In a dispute before the OAH between an owner and an association, the HOA must prove that the homeowner violated the specific provision of the CC&Rs. The standard is 'preponderance of the evidence,' meaning it is more probable than not that the violation occurred.

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated Article 2, Section 2.11 of the CC&Rs.

Legal Basis

ARIZ. ADMIN. CODE R2-19-119

Topic Tags

  • burden of proof
  • legal standards
  • dispute resolution

Question

Can an HOA enforce a rule interpretation found in a 'Disclosure Statement' that isn't explicitly in the CC&Rs?

Short Answer

No, a disclosure statement representing the HOA's interpretation is not necessarily a binding agreement.

Detailed Answer

Even if a homeowner acknowledges a disclosure statement during purchase, if that statement merely reflects the HOA's interpretation of the governing documents (e.g., claiming an owner cannot occupy the home while renting it), it does not constitute a binding contract separate from the CC&Rs themselves.

Alj Quote

Notably, Petitioners assertion on the Disclosure Statement that '[a]n owner may NOT occupy a home at the same time as renting out the home' did not constitute a binding agreement between Petitioner and Respondent, but was merely Respondent’s statement indicating its interpretation of the governing documents.

Legal Basis

Contract Law Principles

Topic Tags

  • disclosure statements
  • enforceability
  • governing documents

Question

If my CC&Rs prohibit leasing 'less than the entire unit,' can I still have a roommate?

Short Answer

Potentially yes, if the roommate has full access to the entire property and shares living expenses.

Detailed Answer

The ALJ found that a 'roommate agreement' granting the tenant full access to all living spaces and sharing expenses (utilities, internet, etc.) did not violate a ban on leasing less than the entire unit, as the tenant was not restricted to a specific portion of the home.

Alj Quote

By its terms, the Agreement was for a period of greater than 30 days and afforded Mr. Snyder access to the entire unit.

Legal Basis

CC&R Interpretation

Topic Tags

  • rentals
  • roommates
  • leasing restrictions

Question

How does an HOA define a 'Single Family' if unrelated people live together?

Short Answer

It may depend on whether the group maintains a 'common household.'

Detailed Answer

If the CC&Rs define 'Single Family' to include a group of unrelated persons maintaining a 'common household,' acts like sharing utility costs, living expenses, and having full access to the property can serve as evidence of a common household.

Alj Quote

This arrangement, together with the fact that Mr. Snyder had full access to the entire property, could reasonably be interpreted to constitute evidence of a 'common household.'

Legal Basis

CC&R Definitions

Topic Tags

  • single family definition
  • occupancy limits
  • common household

Question

What happens if a key term like 'common household' is not defined in the CC&Rs?

Short Answer

Undefined terms are open to different reasonable interpretations.

Detailed Answer

When the governing documents fail to define a critical term, it creates ambiguity. In this case, the lack of a definition for 'common household' allowed for an interpretation that included a homeowner and a roommate sharing expenses.

Alj Quote

The term 'common household' was not defined in the CC&Rs and is open to different interpretations.

Legal Basis

Contract Interpretation

Topic Tags

  • ambiguity
  • definitions
  • legal interpretation

Question

Can I rent out a room if my CC&Rs require leases to be for a minimum of 30 days?

Short Answer

Yes, as long as the lease meets the time requirement and grants access to the whole unit (if partial leasing is banned).

Detailed Answer

The ALJ ruled in favor of the homeowner where the roommate agreement was for 12 months (satisfying the 30-day minimum) and granted access to the entire home, distinguishing it from short-term transient use or partial leasing.

Alj Quote

By its terms, the Agreement was for a period of greater than 30 days and afforded Mr. Snyder access to the entire unit.

Legal Basis

CC&R Compliance

Topic Tags

  • rental restrictions
  • lease terms
  • minimum stay

Case

Docket No
22F-H2222039-REL
Case Title
Oak Creek Knolls Property Owners Association, Inc. vs Kim M. Grill
Decision Date
2022-10-03
Alj Name
Tammy L. Eigenheer
Tribunal
OAH
Agency
ADRE

Questions

Question

Who has the burden of proof when an HOA alleges a violation of the CC&Rs?

Short Answer

The HOA (Petitioner) bears the burden of proof by a preponderance of the evidence.

Detailed Answer

In a dispute before the OAH between an owner and an association, the HOA must prove that the homeowner violated the specific provision of the CC&Rs. The standard is 'preponderance of the evidence,' meaning it is more probable than not that the violation occurred.

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated Article 2, Section 2.11 of the CC&Rs.

Legal Basis

ARIZ. ADMIN. CODE R2-19-119

Topic Tags

  • burden of proof
  • legal standards
  • dispute resolution

Question

Can an HOA enforce a rule interpretation found in a 'Disclosure Statement' that isn't explicitly in the CC&Rs?

Short Answer

No, a disclosure statement representing the HOA's interpretation is not necessarily a binding agreement.

Detailed Answer

Even if a homeowner acknowledges a disclosure statement during purchase, if that statement merely reflects the HOA's interpretation of the governing documents (e.g., claiming an owner cannot occupy the home while renting it), it does not constitute a binding contract separate from the CC&Rs themselves.

Alj Quote

Notably, Petitioners assertion on the Disclosure Statement that '[a]n owner may NOT occupy a home at the same time as renting out the home' did not constitute a binding agreement between Petitioner and Respondent, but was merely Respondent’s statement indicating its interpretation of the governing documents.

Legal Basis

Contract Law Principles

Topic Tags

  • disclosure statements
  • enforceability
  • governing documents

Question

If my CC&Rs prohibit leasing 'less than the entire unit,' can I still have a roommate?

Short Answer

Potentially yes, if the roommate has full access to the entire property and shares living expenses.

Detailed Answer

The ALJ found that a 'roommate agreement' granting the tenant full access to all living spaces and sharing expenses (utilities, internet, etc.) did not violate a ban on leasing less than the entire unit, as the tenant was not restricted to a specific portion of the home.

Alj Quote

By its terms, the Agreement was for a period of greater than 30 days and afforded Mr. Snyder access to the entire unit.

Legal Basis

CC&R Interpretation

Topic Tags

  • rentals
  • roommates
  • leasing restrictions

Question

How does an HOA define a 'Single Family' if unrelated people live together?

Short Answer

It may depend on whether the group maintains a 'common household.'

Detailed Answer

If the CC&Rs define 'Single Family' to include a group of unrelated persons maintaining a 'common household,' acts like sharing utility costs, living expenses, and having full access to the property can serve as evidence of a common household.

Alj Quote

This arrangement, together with the fact that Mr. Snyder had full access to the entire property, could reasonably be interpreted to constitute evidence of a 'common household.'

Legal Basis

CC&R Definitions

Topic Tags

  • single family definition
  • occupancy limits
  • common household

Question

What happens if a key term like 'common household' is not defined in the CC&Rs?

Short Answer

Undefined terms are open to different reasonable interpretations.

Detailed Answer

When the governing documents fail to define a critical term, it creates ambiguity. In this case, the lack of a definition for 'common household' allowed for an interpretation that included a homeowner and a roommate sharing expenses.

Alj Quote

The term 'common household' was not defined in the CC&Rs and is open to different interpretations.

Legal Basis

Contract Interpretation

Topic Tags

  • ambiguity
  • definitions
  • legal interpretation

Question

Can I rent out a room if my CC&Rs require leases to be for a minimum of 30 days?

Short Answer

Yes, as long as the lease meets the time requirement and grants access to the whole unit (if partial leasing is banned).

Detailed Answer

The ALJ ruled in favor of the homeowner where the roommate agreement was for 12 months (satisfying the 30-day minimum) and granted access to the entire home, distinguishing it from short-term transient use or partial leasing.

Alj Quote

By its terms, the Agreement was for a period of greater than 30 days and afforded Mr. Snyder access to the entire unit.

Legal Basis

CC&R Compliance

Topic Tags

  • rental restrictions
  • lease terms
  • minimum stay

Case

Docket No
22F-H2222039-REL
Case Title
Oak Creek Knolls Property Owners Association, Inc. vs Kim M. Grill
Decision Date
2022-10-03
Alj Name
Tammy L. Eigenheer
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • Augustus H. Shaw, IV (HOA Attorney)
    SHAW & LINES LLC
    Represented Petitioner Oak Creek Knolls Property Owners Association, Inc.
  • Lisa Frost (Board Member/Witness)
    Oak Creek Knolls POA
    Association Secretary and testifying witness
  • Brenda Keller (Board Member/Witness)
    Oak Creek Knolls POA
    Alternate Director/Chair of the Architectural Committee and testifying witness
  • Dana Shel (Board Member)
    Oak Creek Knolls POA
    Association Board President
  • Denise Dotto (Neighbor/Complainant)
    Adjacent property owner whose concerns were noted by Petitioner's witnesses

Respondent Side

  • Kim M. Grill (Respondent)
    Property owner and Association member
  • Lawrence J. Felder (Respondent Attorney)
    Doncaster Law, PLLC
    Represented Respondent Kim M. Grill

Neutral Parties

  • Tammy L. Eigenheer (ALJ)
    OAH
    Administrative Law Judge
  • Louis Dettorre (ADRE Commissioner)
    ADRE
    Commissioner of the Arizona Department of Real Estate
  • AHansen (ADRE Staff)
    ADRE
    Transmittal recipient
  • vnunez (ADRE Staff)
    ADRE
    Transmittal recipient
  • djones (ADRE Staff)
    ADRE
    Transmittal recipient
  • labril (ADRE Staff)
    ADRE
    Transmittal recipient
  • Miranda Alvarez (Legal Secretary)
    Transmitting administrative staff
  • c. serrano (Administrative Staff)
    Transmitting administrative staff

Other Participants

  • Ken Snyder (Housemate/Non-party)
    Individual renting under the temporary roommate agreement with Respondent
  • David Goldman (Housemate/Non-party)
    Another individual residing at Respondent's property
  • Bruce Eert (Neighbor)
  • Chris Green (Neighbor)

Darryl Jacobson-Barnes & Robert Barnes v. Circle G Ranches 4

Case Summary

Case ID 21F-H2120022-REL
Agency ADRE
Tribunal OAH
Decision Date 2021-08-24
Administrative Law Judge Velva Moses-Thompson
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Darryl Jacobson-Barnes & Robert Barnes Counsel Anthony L. Perez, Esq.
Respondent Circle G Ranches 4 Homeowners Association Counsel Clint G. Goodman, Esq.

Alleged Violations

A.R.S. § 33-1803(D) and (E)
A.R.S. § 33-1804(a)(5)
A.R.S. § 33-1811
Article III, § 3.10 (CC&Rs)

Outcome Summary

The Administrative Law Judge dismissed the petition filed by Darryl L. Jacobson-Barnes and Robert Barnes, finding that the Petitioner failed to prove by a preponderance of the evidence that the Respondent HOA violated any of the cited Arizona Revised Statutes or that the alleged CC&R violation was outside the scope of Article III, § 3.10. The Respondent was deemed the prevailing party.

Why this result: The Petitioner failed to meet the burden of proving by a preponderance of the evidence that the HOA violated A.R.S. §§ 33-1803(D) and (E), 33-1804(5), or 33-1811, or that the alleged unapproved flood light violation was outside the scope of the cited CC&R provision (Article III, § 3.10).

Key Issues & Findings

The Association violated A.R.S.§ 33-1803(D) and (E) by failing to properly respond to the Barnes response to the notice of alleged violation and proceeding with enforcement actions.

Petitioner failed to establish the HOA violated these statutes because the HOA's May 27, 2020 notice contained all required information under A.R.S. § 1803(D)(1)-(4), rendering A.R.S. § 33-1803(E) inapplicable.

Orders: Petition dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 33-1803(D)
  • A.R.S. § 33-1803(E)
  • A.A.C. R2-19-119

The association violated A.R.S. § 33-1804(a)(5) in rendering its decision on the Barnes contest of the notice.

Petitioner failed to establish violation of meeting procedures, as the appeal was discussed in an open session, and the subsequent closed session was justified to allow the HOA to seek legal counsel pursuant to A.R.S. § 33-1804(A)(1).

Orders: Petition dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 33-1804(a)(5)
  • A.R.S. § 33-1804(A)(1)

The alleged violation and resulting penalty imposed are void and unenforceable under A.R.S. § 33-1811.

Petitioner failed to prove violation. A.R.S. § 33-1811 applies only to contracts, decisions, or actions for compensation, and no evidence was presented that the Petitioner's appeal involved such compensation.

Orders: Petition dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 33-1811

The alleged violation is outside the scope of the cited CC&R Article III, § 3.10.

Petitioner failed to prove the violation (installation of an unapproved flood light) was outside the scope of Article III, § 3.10, which requires prior approval for 'other structure[s]'.

Orders: Petition dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • Article III, § 3.10 (CC&Rs)
  • Article IV, 4.6 (CC&Rs)

Analytics Highlights

Topics: Architectural Control Committee, CC&R Enforcement, Floodlight, Meeting Procedure, Statutory Compliance
Additional Citations:

  • A.R.S. § 33-1803(D)
  • A.R.S. § 33-1803(E)
  • A.R.S. § 33-1804(a)(5)
  • A.R.S. § 33-1804(A)(1)
  • A.R.S. § 33-1811
  • Article III, § 3.10 (CC&Rs)
  • A.A.C. R2-19-119

Video Overview

Audio Overview

Decision Documents

21F-H2120022-REL Decision – 895732.pdf

Uploaded 2026-01-23T17:36:00 (39.8 KB)

21F-H2120022-REL Decision – 895827.pdf

Uploaded 2026-01-23T17:36:03 (5.6 KB)

21F-H2120022-REL Decision – 906326.pdf

Uploaded 2026-01-23T17:36:06 (99.4 KB)

Questions

Question

What specific information must be included in a violation notice for it to be legally sufficient?

Short Answer

The notice must include the provision violated, the date of observation, the name of the observer, and the process to contest it.

Detailed Answer

An HOA violation notice is considered sufficient if it includes four key pieces of information: the specific community document provision alleged to be violated, the date the violation was observed, the first and last name of the person who observed it, and the process the member must follow to contest the notice. If these are present, the HOA has met its obligation.

Alj Quote

The weight of the evidence shows that the HOA notified Petitioner of the provision of the community documents that had allegedly been violated, the date the violation was observed, the first and last name of the person who observed the violation, and the process the member must follow to contest the notice through the May 27, 2020 notice.

Legal Basis

A.R.S. § 33-1803(D)

Topic Tags

  • violation notices
  • due process
  • HOA procedures

Question

Does the HOA have to send a second 'explanation' letter after I receive a violation notice?

Short Answer

No, not if the original notice already contained all the legally required details.

Detailed Answer

Under Arizona law, the requirement for an HOA to provide a written explanation (often detailed in A.R.S. § 33-1803(E)) is only triggered if the initial violation notice was missing required information. If the initial notice fully satisfied the statutory requirements (provision, date, observer, contest process), the HOA is not required to send further explanation letters before proceeding.

Alj Quote

If a homeowner’s association satisfies the requirements in A.R.S. § 1803(D) (1)-(4) in its notice of violation, A.R.S. § 33-1803 (E) is not triggered and does not apply.

Legal Basis

A.R.S. § 33-1803(E)

Topic Tags

  • violation notices
  • legal requirements

Question

Can the HOA Board go into a closed session to decide on my appeal?

Short Answer

Yes, if the closed session is used to seek legal counsel regarding the decision.

Detailed Answer

While appeals generally involve open discussion, the Board is permitted to adjourn to an executive (closed) session to deliberate if they need to obtain legal advice concerning the decision. This does not violate the open meeting requirement of A.R.S. § 33-1804.

Alj Quote

The preponderance of the evidence does not show that Respondent violated A.R.S. § 33-1804(5) because Petitioner’s appeal was discussed in an open session. Moreover, the HOA presented credible testimony that the session was closed to allow the HOA to seek legal counsel concerning its decision in Petitioner’s appeal

Legal Basis

A.R.S. § 33-1804(A)(1)

Topic Tags

  • board meetings
  • open meeting law
  • executive session

Question

Do I need architectural approval to install a floodlight?

Short Answer

Yes, floodlights can be considered 'structures' or changes requiring approval under CC&Rs.

Detailed Answer

Even if not a building, items like floodlights attached to a home can fall under the scope of CC&R restrictions regarding 'structures' or unapproved changes. The ALJ found that an allegation of an unapproved floodlight falls within the scope of architectural control provisions.

Alj Quote

Respondent alleged that an unapproved flood light was installed at the back of Petitioner’s home. Such allegation falls within the scope of CC&R Article III, § 3.10.

Legal Basis

CC&R Article III, § 3.10

Topic Tags

  • architectural control
  • home improvements
  • lighting

Question

Can I use A.R.S. § 33-1811 to void a penalty if I disagree with the violation?

Short Answer

Generally no, unless the decision involved a conflict of interest or compensation for a board member.

Detailed Answer

A.R.S. § 33-1811 specifically addresses the validity of contracts or decisions involving compensation/conflicts of interest. It is not a catch-all statute to void standard violation penalties where no such compensation or conflict exists.

Alj Quote

A.R.S. § 33-1811 applies to the validity of any contract, decision, or action for compensation taken by or on behalf of the Board. There was no evidence presented at hearing that the Petitioner’s appeal involved a contract, decision or other action for compensation.

Legal Basis

A.R.S. § 33-1811

Topic Tags

  • conflicts of interest
  • penalties
  • statutory interpretation

Question

What is the burden of proof for a homeowner suing their HOA in an administrative hearing?

Short Answer

The homeowner must prove the HOA violated the law by a 'preponderance of the evidence'.

Detailed Answer

In these administrative proceedings, the burden is on the petitioner (the homeowner) to provide evidence that carries greater weight or is more convincing than the evidence offered by the HOA.

Alj Quote

At this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated A.R.S. § 33-1808.

Legal Basis

A.A.C. R2-19-119

Topic Tags

  • legal standards
  • hearings
  • burden of proof

Case

Docket No
21F-H2120022-REL
Case Title
Darryl Jacobson-Barnes & Robert Barnes vs. Circle G Ranches 4 Homeowners Association
Decision Date
2021-08-24
Alj Name
Velva Moses-Thompson
Tribunal
OAH
Agency
ADRE

Questions

Question

What specific information must be included in a violation notice for it to be legally sufficient?

Short Answer

The notice must include the provision violated, the date of observation, the name of the observer, and the process to contest it.

Detailed Answer

An HOA violation notice is considered sufficient if it includes four key pieces of information: the specific community document provision alleged to be violated, the date the violation was observed, the first and last name of the person who observed it, and the process the member must follow to contest the notice. If these are present, the HOA has met its obligation.

Alj Quote

The weight of the evidence shows that the HOA notified Petitioner of the provision of the community documents that had allegedly been violated, the date the violation was observed, the first and last name of the person who observed the violation, and the process the member must follow to contest the notice through the May 27, 2020 notice.

Legal Basis

A.R.S. § 33-1803(D)

Topic Tags

  • violation notices
  • due process
  • HOA procedures

Question

Does the HOA have to send a second 'explanation' letter after I receive a violation notice?

Short Answer

No, not if the original notice already contained all the legally required details.

Detailed Answer

Under Arizona law, the requirement for an HOA to provide a written explanation (often detailed in A.R.S. § 33-1803(E)) is only triggered if the initial violation notice was missing required information. If the initial notice fully satisfied the statutory requirements (provision, date, observer, contest process), the HOA is not required to send further explanation letters before proceeding.

Alj Quote

If a homeowner’s association satisfies the requirements in A.R.S. § 1803(D) (1)-(4) in its notice of violation, A.R.S. § 33-1803 (E) is not triggered and does not apply.

Legal Basis

A.R.S. § 33-1803(E)

Topic Tags

  • violation notices
  • legal requirements

Question

Can the HOA Board go into a closed session to decide on my appeal?

Short Answer

Yes, if the closed session is used to seek legal counsel regarding the decision.

Detailed Answer

While appeals generally involve open discussion, the Board is permitted to adjourn to an executive (closed) session to deliberate if they need to obtain legal advice concerning the decision. This does not violate the open meeting requirement of A.R.S. § 33-1804.

Alj Quote

The preponderance of the evidence does not show that Respondent violated A.R.S. § 33-1804(5) because Petitioner’s appeal was discussed in an open session. Moreover, the HOA presented credible testimony that the session was closed to allow the HOA to seek legal counsel concerning its decision in Petitioner’s appeal

Legal Basis

A.R.S. § 33-1804(A)(1)

Topic Tags

  • board meetings
  • open meeting law
  • executive session

Question

Do I need architectural approval to install a floodlight?

Short Answer

Yes, floodlights can be considered 'structures' or changes requiring approval under CC&Rs.

Detailed Answer

Even if not a building, items like floodlights attached to a home can fall under the scope of CC&R restrictions regarding 'structures' or unapproved changes. The ALJ found that an allegation of an unapproved floodlight falls within the scope of architectural control provisions.

Alj Quote

Respondent alleged that an unapproved flood light was installed at the back of Petitioner’s home. Such allegation falls within the scope of CC&R Article III, § 3.10.

Legal Basis

CC&R Article III, § 3.10

Topic Tags

  • architectural control
  • home improvements
  • lighting

Question

Can I use A.R.S. § 33-1811 to void a penalty if I disagree with the violation?

Short Answer

Generally no, unless the decision involved a conflict of interest or compensation for a board member.

Detailed Answer

A.R.S. § 33-1811 specifically addresses the validity of contracts or decisions involving compensation/conflicts of interest. It is not a catch-all statute to void standard violation penalties where no such compensation or conflict exists.

Alj Quote

A.R.S. § 33-1811 applies to the validity of any contract, decision, or action for compensation taken by or on behalf of the Board. There was no evidence presented at hearing that the Petitioner’s appeal involved a contract, decision or other action for compensation.

Legal Basis

A.R.S. § 33-1811

Topic Tags

  • conflicts of interest
  • penalties
  • statutory interpretation

Question

What is the burden of proof for a homeowner suing their HOA in an administrative hearing?

Short Answer

The homeowner must prove the HOA violated the law by a 'preponderance of the evidence'.

Detailed Answer

In these administrative proceedings, the burden is on the petitioner (the homeowner) to provide evidence that carries greater weight or is more convincing than the evidence offered by the HOA.

Alj Quote

At this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated A.R.S. § 33-1808.

Legal Basis

A.A.C. R2-19-119

Topic Tags

  • legal standards
  • hearings
  • burden of proof

Case

Docket No
21F-H2120022-REL
Case Title
Darryl Jacobson-Barnes & Robert Barnes vs. Circle G Ranches 4 Homeowners Association
Decision Date
2021-08-24
Alj Name
Velva Moses-Thompson
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • Darryl Jacobson-Barnes (petitioner)
    Also referred to as Darryl Lynn Barnes–Jacobson and Darryl Barnes
  • Robert Barnes (petitioner)
    Also referred to as Robert A Barnes and Bob Barnes
  • Anthony L. Perez (petitioner attorney)
    Boyes Legal, PC

Respondent Side

  • Clint G. Goodman (respondent attorney)
    Goodman Holmgren Law Group
  • Michelle Mooney (board member)
    Circle G Ranches 4 Homeowners Association Board of Directors
    Filed complaint against Petitioner
  • Jennifer Amundson (property manager)
    VISION Community Management
    Also referred to as Jen Amundson; inspected violation
  • Amanda Stewart (board member)
    Circle G Ranches 4 Homeowners Association Board of Directors
    Board President

Neutral Parties

  • Velva Moses-Thompson (ALJ)
    Office of Administrative Hearings
  • Judy Lowe (ADRE contact)
    Arizona Department of Real Estate
  • AHansen (ADRE staff)
    Arizona Department of Real Estate
  • djones (ADRE staff)
    Arizona Department of Real Estate
  • DGardner (ADRE staff)
    Arizona Department of Real Estate
  • c. serrano (administrative staff)
    Transmitted July 14, 2021 Order
  • Miranda Alvarez (administrative staff)
    Transmitted August 24, 2021 Order

MICHAEL J. STOLTENBERG v. RANCHO DEL ORO HOMEOWNERS ASSOCIATION

Note: A Rehearing was requested for this case. The dashboard statistics reflect the final outcome of the rehearing process.

Case Summary

Case ID 20F-H2020059-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2021-02-12
Administrative Law Judge Sondra J. Vanella
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Michael J. Stoltenberg Counsel
Respondent Rancho Del Oro Homeowners Association Counsel Nicole Payne

Alleged Violations

CC&Rs § 5.1; A.R.S. § 10-3842

Outcome Summary

The Administrative Law Judge dismissed the petition because the Petitioner failed to meet the burden of proof to show that the HOA violated the governing documents, primarily because the Petitioner refused access to his back yard, and the CC&Rs were not interpreted to include maintenance of an individual homeowner’s swimming pool.

Why this result: Petitioner refused to allow the HOA access to his back yard to perform landscape services, and failed to establish that pool maintenance was included in the HOA’s landscaping responsibility under the CC&Rs.

Key Issues & Findings

Failure to maintain landscaping and acting in bad faith

Petitioner alleged the HOA violated CC&Rs § 5.1 and A.R.S. § 10-3842 by failing to maintain landscaping in 2020. The dispute centered on whether landscaping duties included Petitioner's private pool/hardscape and Petitioner's refusal to grant access to his locked backyard for maintenance services.

Orders: Petition dismissed. Respondent was required to communicate the days and times for performing back yard landscaping so Petitioner could provide access while maintaining safety precautions.

Filing fee: $0.00

Disposition: respondent_win

Cited:

  • CC&Rs § 5.1
  • A.R.S. § 10-3842

Analytics Highlights

Topics: Landscaping, Pool Maintenance, Access Denial, CC&R Enforcement, A.R.S. § 10-3842
Additional Citations:

  • A.R.S. § 32-2199(B)
  • A.R.S. § 33-1803
  • A.R.S. § 41-1092.07(G)(2)
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • A.A.C. R2-19-119(B)(2)
  • A.R.S. § 32-2199.02(B)
  • CC&Rs § 5.1
  • A.R.S. § 10-3842

Video Overview

Audio Overview

Decision Documents

20F-H2020059-REL-RHG Decision – 855028.pdf

Uploaded 2025-10-09T03:35:25 (139.1 KB)

20F-H2020059-REL-RHG Decision – ../20F-H2020059-REL/815480.pdf

Uploaded 2026-01-20T13:57:27 (124.1 KB)





Briefing Doc – 20F-H2020059-REL-RHG


Briefing on Stoltenberg v. Rancho Del Oro Homeowners Association

Executive Summary

This document synthesizes the findings and rulings from two administrative hearings concerning a dispute between homeowner Michael J. Stoltenberg (Petitioner) and the Rancho Del Oro Homeowners Association (Respondent). The Petitioner alleged the HOA violated its governing documents by failing to maintain landscaping at his property. The case was ultimately dismissed after an initial hearing and a subsequent rehearing.

The core of the dispute centered on two key issues: the scope of “landscaping” services required by the HOA’s Covenants, Conditions, and Restrictions (CC&Rs), and the Petitioner’s denial of access to his backyard. The Petitioner argued that the undefined term “landscaping” in the CC&Rs should be interpreted broadly to include maintenance of his private swimming pool, which he referred to as a “water feature.” Concurrently, he acknowledged keeping his backyard gate locked for liability reasons related to the pool, preventing the HOA’s contractor from performing any work.

The Administrative Law Judge dismissed the petition, finding that the Petitioner failed to meet his burden of proof. The judge concluded that the HOA had made repeated, documented attempts to perform its duties, but was actively prevented from doing so by the Petitioner. Critically, the judge ruled that a reasonable interpretation of “landscaping,” supported by dictionary definitions and the Arizona Registrar of Contractors’ distinct licensing classifications for landscaping and swimming pool services, does not include the maintenance of a private pool and its associated mechanical equipment.

I. Case Overview

Case Detail

Information

Case Number

20F-H2020059-REL and 20F-H2020059-REL-RHG (Rehearing)

Petitioner

Michael J. Stoltenberg (Homeowner at 11777 E. Calle Gaudi, Yuma, AZ)

Respondent

Rancho Del Oro Homeowners Association (HOA)

Office of Administrative Hearings, Arizona

Presiding Judge

Administrative Law Judge Sondra J. Vanella

Hearing Dates

August 3, 2020 (Initial Hearing) and February 2, 2021 (Rehearing)

Final Disposition

Petition Dismissed (February 12, 2021)

II. Petitioner’s Allegations and Arguments

The Petitioner filed a petition with the Arizona Department of Real Estate on or about April 21, 2020, alleging the HOA acted in “bad faith” and failed to perform its duties in 2020. The core of his case was built on the following claims:

Violation of CC&Rs: The Petitioner alleged a violation of § 5.1 of the HOA’s CC&Rs, which mandates that the “Association shall maintain… landscaping on individual Lots outside of structures.” He also alleged a violation of Arizona Revised Statutes (A.R.S.) § 10-3842, although this was not addressed at the hearing.

Broad Interpretation of “Landscaping”: The Petitioner contended that since the CC&Rs do not define “landscaping,” the term should encompass all features on his lot. He specifically asserted that the HOA was responsible for maintaining:

◦ His swimming pool (referred to as a “water feature”), including the pump, filter, and chemicals.

◦ His unique xeriscape with geometric patterns.

◦ Walking paths that required staining.

◦ Replenishing decorative rock when it wears thin.

◦ The patio and all hardscape.

Denial of Access: The Petitioner acknowledged that the gate to his backyard was “always locked for liability reasons” due to the pool. At the rehearing, he argued that the HOA failed to communicate the landscaping schedule, which would have afforded him an opportunity to unlock the gate.

Rehearing Claims: In his request for a rehearing, the Petitioner cited several grounds, including an abuse of discretion by the judge, errors in evidence, and issues related to the Americans with Disabilities Act (ADA), claiming hearing loss put him at a “severe disadvantage.” At the rehearing itself, he also asserted that the Respondent was “falsely representing themselves as an HOA” and did not have an elected Board.

III. Respondent’s Defense and Evidence

The HOA, represented by Nicole Payne, Esq., argued that it had fulfilled its obligations and that any failure to maintain the Petitioner’s backyard was due to his own actions.

Consistent Maintenance of Front Yard: The HOA established that its contractor, Mowtown Landscape, had continuously maintained the Petitioner’s front yard since their contract began in January 2020.

Denied Access to Backyard: The central defense was that the HOA’s contractor was repeatedly and deliberately denied access to the backyard. This was supported by substantial evidence:

Testimony of Rian Baas (Mowtown Landscape): Mr. Baas testified that his crews were at the community every Wednesday and Thursday. He stated they knocked on the Petitioner’s door and left notes or business cards four or five times between January and March 2020.

Testimony of Diana Crites (Property Manager): Ms. Crites presented a text message from Mr. Baas dated March 24, 2020, which read:

Documentary Evidence: A photograph of the locked gate was submitted, along with a letter from Mr. Baas stating, “There is a lock on the gate going to the back yard and we were trying to see if they [sic] people inside the house wanted us to maintenance the back yard. No one ever answered or came to the door.”

Scope of HOA Services: Ms. Crites testified that the HOA provides uniform services (front yard maintenance, mowing and blowing of back yards, sprinkler system maintenance) and does not offer “concierge” services like maintaining potted plants or private pools. The community pool, she noted, is maintained by a different company entirely (Crystal Clear Pool Maintenance).

IV. Judicial Findings and Legal Rulings

Administrative Law Judge Sondra J. Vanella found in favor of the Respondent in both the initial decision and the rehearing, ultimately dismissing the petition.

Initial Decision (August 17, 2020)

The initial petition was denied because the Petitioner failed to meet the burden of proof. The judge’s reasoning was:

1. Denial of Access: The Petitioner’s own admission, coupled with “credible, probative, and substantial evidence,” established that he had refused to allow the HOA access to his backyard since January 2020.

2. HOA Attempts: The evidence demonstrated that the HOA had attempted to access the yard on multiple occasions and was “specifically instructed in March 2020, that Respondent was not permitted to access Petitioner’s back yard.”

3. Scope of CC&Rs: The judge concluded that while § 5.1(a) of the CC&Rs requires the HOA to maintain yards, “nothing therein requires Respondent to maintain an individual member’s pool.”

Rehearing Decision (February 12, 2021)

After the Commissioner of the Department of Real Estate granted a rehearing, Judge Vanella again dismissed the petition, providing a more detailed legal analysis of the term “landscaping.”

1. Burden of Proof: The judge reiterated that the Petitioner bore the burden to establish that the HOA was legally obligated to maintain his pool, but “failed to establish by a preponderance of the evidence that Respondent must do so.”

2. Definition of “Landscaping”: The judge found that the definitions of “landscaping” from various sources, including dictionaries, “cannot reasonably be read to include a swimming pool and the associated mechanical equipment.”

3. State Licensing as Key Differentiator: The most definitive part of the ruling relied on the Arizona Registrar of Contractors’ licensing classifications, which treat landscaping and pool maintenance as two separate and distinct services.

License Classification

Description & Relevance

R-21 Hardscaping and Irrigation Systems (Formerly Landscaping and Irrigation Systems)

Allows for installation and repair of non-loadbearing concrete, patios, decorative walls, irrigation systems, and water features not attached to swimming pools. The classification specifically precludes the licensee from contracting for work on “swimming pools, pool deck coatings.”

R-6 Swimming Pool Service and Repair

A separate license required “to service and perform minor repair of residential pools and accessories.”

The judge concluded: “The Registrar’s licensing scheme supports a conclusion that landscaping maintenance and pool maintenance are two separate and distinct services… the CC&Rs cannot reasonably be interpreted to include pool maintenance when it required Respondent to maintain landscaping.”

Judicial Recommendation

While ruling against the Petitioner, the judge offered a forward-looking, non-binding recommendation:

“…given that Petitioner is required to keep his gate secured due to having a pool, it is reasonable, going forward, for Respondent to communicate the days and times that it will be performing the landscaping of Petitioner’s back yard so that Petitioner can provide access for that service while maintaining safety precautions.”






Study Guide – 20F-H2020059-REL-RHG


Study Guide: Case No. 20F-H2020059-REL

Quiz: Short-Answer Questions

Instructions: Please answer the following questions in 2-3 complete sentences, using only information provided in the case documents.

1. Identify the Petitioner and Respondent in this case and describe the core issue of their dispute.

2. What specific provision of the governing documents did the Petitioner, Michael J. Stoltenberg, claim the Respondent violated?

3. According to the Petitioner’s testimony, what unique features did his property’s landscaping include, and what services did he believe the HOA was responsible for?

4. What was the primary reason the Respondent’s landscaping contractor, Mowtown Landscape, was unable to perform maintenance in the Petitioner’s backyard?

5. What was the testimony of Diana Crites, the property manager, regarding the scope of standard landscaping services provided by the HOA?

6. On what grounds did the Administrative Law Judge deny the Petitioner’s initial petition in the decision dated August 17, 2020?

7. For what primary reasons did the Commissioner of the Department of Real Estate grant the Petitioner a rehearing?

8. In the rehearing, what external sources did the Administrative Law Judge consult to determine the definition of “landscaping”?

9. What is the legal standard of proof required in this case, and who bears the responsibility for meeting it?

10. What was the final order issued after the rehearing on February 12, 2021, and what reasonable suggestion did the judge offer for future interactions?

——————————————————————————–

Answer Key

1. The Petitioner was homeowner Michael J. Stoltenberg. The Respondent was the Rancho Del Oro Homeowners Association (HOA). The core dispute concerned the HOA’s alleged failure to maintain the landscaping on the Petitioner’s property as required by the community’s CC&Rs, specifically whether this obligation included maintaining the Petitioner’s private pool.

2. The Petitioner claimed the Respondent violated Section 5.1 of the Covenants, Conditions, and Restrictions (CC&Rs). This section outlines the Association’s duties, including the maintenance of landscaping on individual lots outside of structures. The Petitioner also initially alleged a violation of Arizona Revised Statutes (A.R.S.) § 10-3842.

3. The Petitioner testified that his landscaping was unique, including xeriscape with geometric patterns, “water features” (a pool), and walking paths that needed staining. He contended that the HOA should be responsible for maintaining these features, including replenishing the rock in his front yard when it wore thin.

4. The landscaping contractor was unable to perform maintenance because the gate to the backyard was always locked. The Petitioner acknowledged he kept it locked for liability reasons due to the pool, and evidence showed that in March 2020, a woman at the residence explicitly told the landscapers she did not want anyone in the backyard.

5. Diana Crites testified that the HOA provides uniform services, not “concierge” services. This includes front yard maintenance and mowing and blowing of backyards, but not maintaining potted plants, driveways, property-dividing walls, or individual homeowners’ pools.

6. The judge denied the petition because the evidence, including the Petitioner’s own admission, established that he had refused to allow the Respondent access to his backyard since January 2020. The decision noted the Respondent had made multiple attempts to access the yard and had consistently maintained the front yard.

7. The rehearing was granted for reasons outlined in the Petitioner’s rehearing request. These included claims of irregularity in the proceedings, newly discovered evidence, errors in the admission of evidence, and that the original decision was not supported by evidence or was contrary to law. The Petitioner also cited ADA and privacy issues.

8. The Administrative Law Judge consulted various online dictionary definitions (Oxford English Dictionary, Dictionary.com, Merriam-Webster, Law Insider). She also analyzed the license classifications from the Arizona Registrar of Contractors, specifically the R-21 Hardscaping and Irrigation Systems license and the R-6 Swimming Pool Service and Repair license.

9. The legal standard is “preponderance of the evidence,” which means the proof must convince the trier of fact that a contention is more probably true than not. The Petitioner bears the burden of proof to establish that the Respondent violated the governing documents.

10. The final order dismissed the Petitioner’s petition again, finding he failed to prove the HOA was obligated to maintain his pool. However, the judge suggested that it would be reasonable for the Respondent to communicate the days and times of its landscaping services going forward so the Petitioner could provide access while maintaining safety precautions.

——————————————————————————–

Essay Questions

Instructions: The following questions are designed to test a deeper, more comprehensive understanding of the case. Formulate a detailed essay response for each prompt.

1. Analyze the concept of “burden of proof” as it applies to this case. Explain who held the burden, what they were required to prove, and why the Administrative Law Judge ultimately found that they failed to meet this burden in both the initial hearing and the rehearing.

2. Discuss the role of access in the dispute between Michael J. Stoltenberg and the Rancho Del Oro HOA. How did the issue of the locked gate impact the initial ruling, and how did the Petitioner attempt to reframe this issue in the rehearing?

3. The interpretation of the word “landscaping” was central to the rehearing. Detail the Petitioner’s interpretation versus the conclusion reached by the Administrative Law Judge. What evidence and legal reasoning did the Judge use to support her conclusion that pool maintenance is not included in landscaping?

4. Trace the procedural history of this case, from the initial petition filing on April 21, 2020, to the final order after the rehearing. Identify the key events, the specific reasons cited for the rehearing, and the legal basis for the final dismissal.

5. Based on the testimony of Diana Crites and Rian Baas, describe the standard landscaping services provided by the Rancho Del Oro HOA and its contractor. How does this standard practice contrast with the specific and unique services the Petitioner demanded for his property?

——————————————————————————–

Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

An independent judge who presides over administrative hearings, makes findings of fact and conclusions of law, and issues decisions and orders. In this case, Sondra J. Vanella served as the ALJ.

A.R.S.

Abbreviation for Arizona Revised Statutes, which are the codified laws of the state of Arizona.

Burden of Proof

The obligation on a party in a legal dispute to provide sufficient evidence to prove their claim. In this case, the Petitioner bore the burden of proof.

Covenants, Conditions, and Restrictions. These are the governing legal documents that set up the rules for a planned community or homeowners’ association.

Department

Refers to the Arizona Department of Real Estate (ADRE), the state agency with jurisdiction over HOA dispute resolution petitions.

Homeowners’ Association. An organization in a subdivision, planned community, or condominium that makes and enforces rules for the properties and its residents. The Respondent was the Rancho Del Oro HOA.

Petitioner

The party who files a petition initiating a legal action. In this case, homeowner Michael J. Stoltenberg.

Petition

A formal written request filed with a court or administrative body to initiate a legal proceeding. Mr. Stoltenberg filed a petition alleging the HOA violated its CC&Rs.

Preponderance of the Evidence

The standard of proof in most civil and administrative cases. It requires the party with the burden of proof to convince the fact-finder that their claim is more likely to be true than not true.

Registrar of Contractors

The Arizona state agency responsible for licensing and regulating contractors. The ALJ referenced its license classifications for landscaping (R-21) and swimming pools (R-6) to help define the scope of services.

Respondent

The party against whom a petition is filed. In this case, the Rancho Del Oro Homeowners Association.






Blog Post – 20F-H2020059-REL-RHG


Briefing on Stoltenberg v. Rancho Del Oro Homeowners Association

Executive Summary

This document synthesizes the findings and rulings from two administrative hearings concerning a dispute between homeowner Michael J. Stoltenberg (Petitioner) and the Rancho Del Oro Homeowners Association (Respondent). The Petitioner alleged the HOA violated its governing documents by failing to maintain landscaping at his property. The case was ultimately dismissed after an initial hearing and a subsequent rehearing.

The core of the dispute centered on two key issues: the scope of “landscaping” services required by the HOA’s Covenants, Conditions, and Restrictions (CC&Rs), and the Petitioner’s denial of access to his backyard. The Petitioner argued that the undefined term “landscaping” in the CC&Rs should be interpreted broadly to include maintenance of his private swimming pool, which he referred to as a “water feature.” Concurrently, he acknowledged keeping his backyard gate locked for liability reasons related to the pool, preventing the HOA’s contractor from performing any work.

The Administrative Law Judge dismissed the petition, finding that the Petitioner failed to meet his burden of proof. The judge concluded that the HOA had made repeated, documented attempts to perform its duties, but was actively prevented from doing so by the Petitioner. Critically, the judge ruled that a reasonable interpretation of “landscaping,” supported by dictionary definitions and the Arizona Registrar of Contractors’ distinct licensing classifications for landscaping and swimming pool services, does not include the maintenance of a private pool and its associated mechanical equipment.

I. Case Overview

Case Detail

Information

Case Number

20F-H2020059-REL and 20F-H2020059-REL-RHG (Rehearing)

Petitioner

Michael J. Stoltenberg (Homeowner at 11777 E. Calle Gaudi, Yuma, AZ)

Respondent

Rancho Del Oro Homeowners Association (HOA)

Office of Administrative Hearings, Arizona

Presiding Judge

Administrative Law Judge Sondra J. Vanella

Hearing Dates

August 3, 2020 (Initial Hearing) and February 2, 2021 (Rehearing)

Final Disposition

Petition Dismissed (February 12, 2021)

II. Petitioner’s Allegations and Arguments

The Petitioner filed a petition with the Arizona Department of Real Estate on or about April 21, 2020, alleging the HOA acted in “bad faith” and failed to perform its duties in 2020. The core of his case was built on the following claims:

Violation of CC&Rs: The Petitioner alleged a violation of § 5.1 of the HOA’s CC&Rs, which mandates that the “Association shall maintain… landscaping on individual Lots outside of structures.” He also alleged a violation of Arizona Revised Statutes (A.R.S.) § 10-3842, although this was not addressed at the hearing.

Broad Interpretation of “Landscaping”: The Petitioner contended that since the CC&Rs do not define “landscaping,” the term should encompass all features on his lot. He specifically asserted that the HOA was responsible for maintaining:

◦ His swimming pool (referred to as a “water feature”), including the pump, filter, and chemicals.

◦ His unique xeriscape with geometric patterns.

◦ Walking paths that required staining.

◦ Replenishing decorative rock when it wears thin.

◦ The patio and all hardscape.

Denial of Access: The Petitioner acknowledged that the gate to his backyard was “always locked for liability reasons” due to the pool. At the rehearing, he argued that the HOA failed to communicate the landscaping schedule, which would have afforded him an opportunity to unlock the gate.

Rehearing Claims: In his request for a rehearing, the Petitioner cited several grounds, including an abuse of discretion by the judge, errors in evidence, and issues related to the Americans with Disabilities Act (ADA), claiming hearing loss put him at a “severe disadvantage.” At the rehearing itself, he also asserted that the Respondent was “falsely representing themselves as an HOA” and did not have an elected Board.

III. Respondent’s Defense and Evidence

The HOA, represented by Nicole Payne, Esq., argued that it had fulfilled its obligations and that any failure to maintain the Petitioner’s backyard was due to his own actions.

Consistent Maintenance of Front Yard: The HOA established that its contractor, Mowtown Landscape, had continuously maintained the Petitioner’s front yard since their contract began in January 2020.

Denied Access to Backyard: The central defense was that the HOA’s contractor was repeatedly and deliberately denied access to the backyard. This was supported by substantial evidence:

Testimony of Rian Baas (Mowtown Landscape): Mr. Baas testified that his crews were at the community every Wednesday and Thursday. He stated they knocked on the Petitioner’s door and left notes or business cards four or five times between January and March 2020.

Testimony of Diana Crites (Property Manager): Ms. Crites presented a text message from Mr. Baas dated March 24, 2020, which read:

Documentary Evidence: A photograph of the locked gate was submitted, along with a letter from Mr. Baas stating, “There is a lock on the gate going to the back yard and we were trying to see if they [sic] people inside the house wanted us to maintenance the back yard. No one ever answered or came to the door.”

Scope of HOA Services: Ms. Crites testified that the HOA provides uniform services (front yard maintenance, mowing and blowing of back yards, sprinkler system maintenance) and does not offer “concierge” services like maintaining potted plants or private pools. The community pool, she noted, is maintained by a different company entirely (Crystal Clear Pool Maintenance).

IV. Judicial Findings and Legal Rulings

Administrative Law Judge Sondra J. Vanella found in favor of the Respondent in both the initial decision and the rehearing, ultimately dismissing the petition.

Initial Decision (August 17, 2020)

The initial petition was denied because the Petitioner failed to meet the burden of proof. The judge’s reasoning was:

1. Denial of Access: The Petitioner’s own admission, coupled with “credible, probative, and substantial evidence,” established that he had refused to allow the HOA access to his backyard since January 2020.

2. HOA Attempts: The evidence demonstrated that the HOA had attempted to access the yard on multiple occasions and was “specifically instructed in March 2020, that Respondent was not permitted to access Petitioner’s back yard.”

3. Scope of CC&Rs: The judge concluded that while § 5.1(a) of the CC&Rs requires the HOA to maintain yards, “nothing therein requires Respondent to maintain an individual member’s pool.”

Rehearing Decision (February 12, 2021)

After the Commissioner of the Department of Real Estate granted a rehearing, Judge Vanella again dismissed the petition, providing a more detailed legal analysis of the term “landscaping.”

1. Burden of Proof: The judge reiterated that the Petitioner bore the burden to establish that the HOA was legally obligated to maintain his pool, but “failed to establish by a preponderance of the evidence that Respondent must do so.”

2. Definition of “Landscaping”: The judge found that the definitions of “landscaping” from various sources, including dictionaries, “cannot reasonably be read to include a swimming pool and the associated mechanical equipment.”

3. State Licensing as Key Differentiator: The most definitive part of the ruling relied on the Arizona Registrar of Contractors’ licensing classifications, which treat landscaping and pool maintenance as two separate and distinct services.

License Classification

Description & Relevance

R-21 Hardscaping and Irrigation Systems (Formerly Landscaping and Irrigation Systems)

Allows for installation and repair of non-loadbearing concrete, patios, decorative walls, irrigation systems, and water features not attached to swimming pools. The classification specifically precludes the licensee from contracting for work on “swimming pools, pool deck coatings.”

R-6 Swimming Pool Service and Repair

A separate license required “to service and perform minor repair of residential pools and accessories.”

The judge concluded: “The Registrar’s licensing scheme supports a conclusion that landscaping maintenance and pool maintenance are two separate and distinct services… the CC&Rs cannot reasonably be interpreted to include pool maintenance when it required Respondent to maintain landscaping.”

Judicial Recommendation

While ruling against the Petitioner, the judge offered a forward-looking, non-binding recommendation:

“…given that Petitioner is required to keep his gate secured due to having a pool, it is reasonable, going forward, for Respondent to communicate the days and times that it will be performing the landscaping of Petitioner’s back yard so that Petitioner can provide access for that service while maintaining safety precautions.”


Case Participants

Petitioner Side

  • Michael J. Stoltenberg (petitioner)

Respondent Side

  • Nicole Payne (HOA attorney)
  • Diana Crites (property manager/witness)
    Crites and Associates
    Owner of Respondent's property management company; licensed broker
  • Rian Baas (witness/contractor owner)
    Mowtown Landscape
    Owner of landscaping company contracted by Respondent
  • Lydia A. Peirce Linsmeier (HOA attorney)
    CARPENTER, HAZLEWOOD, DELGADO & BOLEN LLP
  • Luis (landscaping staff)
    Staff member mentioned in text regarding access attempts
  • Jill (staff/employee)
    Staff member mentioned printing paper for Luis regarding access attempts

Neutral Parties

  • Sondra J. Vanella (ALJ)
    OAH
  • Judy Lowe (Commissioner)
    Arizona Department of Real Estate

Susan E Abbass v. 10000 North Central Homeowners Association

Note: A Rehearing was requested for this case. The dashboard statistics reflect the final outcome of the rehearing process.

Case Summary

Case ID 20F-H2020057-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2020-12-01
Administrative Law Judge Adam D. Stone
Outcome loss
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Susan E Abbass Counsel
Respondent 10000 North Central Homeowners Association Counsel Blake R. Johnson

Alleged Violations

CC&R’s Article XII, Section 6 & Article XIII, Section 1(d) & 4

Outcome Summary

The Administrative Law Judge concluded that the Respondent HOA acted in compliance with the CC&R’s and was the prevailing party, finding that the HOA had the right to enter property to correct emergency conditions, but was under no obligation to do so. The petition was dismissed following the rehearing.

Why this result: Petitioner failed to sustain her burden to establish a violation by Respondent of Article XII Section 6, and Article XIII Section 1(d) and 4 or the CC&R’s. The ALJ noted that the relief sought (forcing access) may require a different venue or party.

Key Issues & Findings

Whether 10,000 North Central Homeowners Association violated the CCR’s Article XII, Section 6 & Article XIII, Section 1(d) & 4

Petitioner filed a single-issue petition alleging the HOA violated CC&Rs by refusing to grant access to a neighboring property to investigate and remedy a water leak causing damage. The ALJ found the HOA had the right, but not the obligation, to enter the property.

Orders: Petitioner’s petition was denied in the initial decision (August 17, 2020). Upon rehearing, the Administrative Law Judge concluded that there was no violation by the Respondent, and the Respondent was the prevailing party; Petitioner’s appeal was dismissed.

Filing fee: $500.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • ARIZ. REV. STAT. § 32-2199.02
  • ARIZ. REV. STAT. § 32-2199.05
  • ARIZ. REV. STAT. § 41-2198.01

Analytics Highlights

Topics: HOA Dispute, CC&R Enforcement, Right of Entry, Drainage Issues, Rehearing
Additional Citations:

  • ARIZ. REV. STAT. § 32-2199.02
  • ARIZ. REV. STAT. § 32-2199.05
  • ARIZ. REV. STAT. § 41-2198.01
  • CC&R’s Article XII Section 6
  • CC&R’s Article XIII Section 1(d) and 4

Video Overview

Audio Overview

Decision Documents

20F-H2020057-REL-RHG Decision – 839845.pdf

Uploaded 2025-10-09T03:35:20 (108.6 KB)

20F-H2020057-REL-RHG Decision – ../20F-H2020057-REL/815490.pdf

Uploaded 2026-01-20T13:57:22 (135.6 KB)





Briefing Doc – 20F-H2020057-REL-RHG


Briefing Document: Abbass v. 10000 North Central Homeowners Association

Executive Summary

This document synthesizes the findings from two Administrative Law Judge (ALJ) Decisions concerning a dispute between homeowner Susan E. Abbass (Petitioner) and the 10000 North Central Homeowners Association (Respondent). The core of the dispute was the Petitioner’s request for the Association to exercise its authority under the community’s Covenants, Conditions, and Restrictions (CC&Rs) to enter a neighboring property to inspect the source of a persistent water leak affecting the Petitioner’s home.

The ALJ ultimately denied the Petitioner’s petition and subsequent appeal. The central conclusion across both hearings was that while the Association’s CC&Rs grant it the right to enter a member’s property under specific circumstances (such as for inspections or emergencies), they do not impose an obligation or duty to do so. The Petitioner failed to meet the burden of proof required to demonstrate that the Association violated any provision of the CC&Rs. The ALJ characterized the situation as a “neighbor versus neighbor dispute” and determined that the Association acted within its business judgment by requiring more definitive proof of the leak’s source before authorizing entry, citing concerns over potential liability.

Case Overview

This matter involves a single-issue petition filed by a homeowner against her Homeowners Association (HOA) with the Arizona Department of Real Estate. The case was referred to the Office of Administrative Hearings for adjudication.

Case Details

Information

Case Number

20F-H2020057-REL

Petitioner

Susan E. Abbass

Respondent

10000 North Central Homeowners Association

Administrative Law Judge

Adam D. Stone

Initial Hearing Date

July 28, 2020

Rehearing Date

November 24, 2020

Core Allegation

The Association violated CC&Rs Article XII, Section 6 and Article XIII, Sections 1(d) & 4 by failing to grant access to a neighbor’s property to investigate a water leak.

Chronology of Key Events

1. November 14, 2019: Ronald Pick, residing with the Petitioner, discovers the home office carpet is “completely soaked with water.” He determines the drainage issue originates from the neighboring property.

2. November 2019: After the neighbor refuses to cooperate, the Petitioner contacts Robert Kersten, the Association’s Community Manager. Kersten sends a violation notice to the neighbor.

3. January 2020: The Association’s Board of Directors informs Kersten that they will handle the matter directly, and he ceases interaction with the Petitioner.

4. May 5, 2020: The Petitioner files a single-issue petition against the Association with the Arizona Department of Real Estate, paying a $500.00 fee.

5. July 28, 2020: The initial evidentiary hearing is held before an Administrative Law Judge.

6. August 17, 2020: The ALJ issues a decision denying the Petitioner’s petition, finding she failed to meet her burden of proof.

7. August 31, 2020: The Petitioner files a request for a rehearing.

8. October 14, 2020: The Commissioner of the Arizona Department of Real Estate grants the request for a rehearing.

9. November 24, 2020: The rehearing is conducted.

10. December 1, 2020: The ALJ issues a final decision, again finding for the Respondent and dismissing the Petitioner’s appeal.

Summary of Arguments

Petitioner’s Position (Susan E. Abbass)

The Problem: A water leak originating from a neighboring property caused damage, with recurring water intrusion during rainfall.

Attempted Resolution: The Petitioner and Mr. Pick attempted to work with the neighbor, who was uncooperative on the advice of her insurance company. They then sought the Association’s help to gain access for inspection.

Core Argument: The Petitioner argued that the water leak constituted an “emergency situation” and that the Association had an obligation under the CC&Rs to grant access to the neighbor’s property for inspection.

Evidence Provided: The Petitioner provided the Association with all available evidence, including a report from the City of Phoenix.

Financial Responsibility: The Petitioner offered to pay for a geotechnical engineer and any associated costs for the inspection.

Legal Basis: The Petitioner claimed the Association violated CC&Rs Article XII, Section 6 and Article XIII, Sections 1(d) and 4.

Respondent’s Position (10000 North Central HOA)

Actions Taken: The Association, through its manager Robert Kersten, acknowledged the complaint and sent a violation notice to the neighbor regarding improper vegetation. They also contacted the neighbor to request access.

Core Argument: The Association contended that the CC&Rs do not allow its manager to authorize entry “whenever they feel like it.” Entry requires “reasonable justification” and “some type of proof,” which the Board determined had not been provided by the Petitioner.

Business Judgment and Liability: Respondent’s counsel argued the Board was exercising its business judgment to avoid potential liability that could arise from granting third-party access to a member’s property without sufficient cause.

Neighbor’s Actions: The Association stated that, to its knowledge, the neighbor’s insurance company inspected the water flow and determined the neighbor was not at fault.

Evidence Provided: At the rehearing, the Association submitted photographs (Exhibits K, L, M) purportedly showing a fixed pipe and drainage flowing away from the Petitioner’s property.

Analysis of CC&R Provisions

The dispute centered on the interpretation of specific articles within the Association’s Covenants, Conditions, and Restrictions.

Article

Provision Summary

XII, Section 6

Easement in Favor of Association: Grants the Association and its agents the right to enter Lots for specific purposes, including: (a) inspection of owner maintenance, (c) correction of emergency conditions, and (d) exercising its powers and duties.

XIII, Section 1(d)

Drainage Flow: States that “nothing shall be erected, planted or maintained to impede or interrupt said or normal drainage flow” in patio or yard areas that have been graded for drainage.

XIII, Section 4

Owner Maintenance and Association’s Right to Enter: Requires owners to keep their Lot in good order and repair. If an owner fails, the Association “shall have the right to enter upon said Lot or Patio to correct drainage and to repair, maintain and restore the Lot…” after providing notice to the owner and receiving approval from the Board.

Administrative Law Judge’s Findings and Rulings

The ALJ’s conclusions were consistent across both the initial decision and the rehearing. The Petitioner bore the burden of proving by a “preponderance of the evidence” that the Association violated the CC&Rs.

Key Findings from the Initial Decision (August 17, 2020)

Right vs. Obligation: The judge’s central finding was that the Petitioner was “incorrect that the Respondent has an ‘obligation’ to enter the property.” The CC&Rs grant the Association a right to enter but do not impose a duty or obligation to do so.

Lack of “True Emergency”: While Mr. Pick testified about water damage during rain, the judge noted a lack of testimony on the extent of the damage. The fact that over eight months had passed since the initial leak discovery indicated there was “no true emergency situation.”

Stalemate and Business Judgment: The judge acknowledged the “stalemate” where the Petitioner could not obtain more proof without access, and the Association would not grant access without more proof. The Association’s decision was framed as an exercise of business judgment based on its determination that the submitted proof did not meet its standard for entry.

Nature of the Dispute: The matter was characterized as a “neighbor versus neighbor dispute,” implying the Association was not the proper party to compel action.

Conclusion: The Petitioner failed to meet her burden of proof.

Key Findings from the Rehearing Decision (December 1, 2020)

No New Evidence: The Petitioner “failed to provide new evidence or witness testimony” that would alter the original conclusion.

Petitioner’s Concession: During the rehearing, the Petitioner “agreed that Respondent does not have an obligation to enter the property, only the right.”

Respondent’s Compliance: The ALJ concluded that the Association “acted in compliance with the CC&Rs.” It was “receptive to the information provided by Petitioner and requested the neighboring property owners cooperation.” The lack of the neighbor’s full cooperation did not constitute a violation by the Association.

Jurisdictional Limits: The judge stated that under statute A.R.S. § 32-2199.02(A), an ALJ can only order a party to abide by the community documents. The judge “cannot force the neighbor or the Respondent to grant access to the property.”

Incorrect Venue: The decision noted that “it appears that Petitioner has or the incorrect venue and possibly party to grant the relief for which it seeks.”

Final Disposition

IT IS ORDERED that Petitioner’s petition in this matter be denied. The final decision from the rehearing on December 1, 2020, named the Respondent as the prevailing party and dismissed the Petitioner’s appeal. This order is binding on the parties, with any further appeal requiring judicial review in the superior court within thirty-five days of the order being served.






Study Guide – 20F-H2020057-REL-RHG


Study Guide: Abbass v. 10000 North Central Homeowners Association

This study guide provides a review of the administrative case involving Petitioner Susan E. Abbass and Respondent 10000 North Central Homeowners Association. It covers the initial hearing and the subsequent rehearing concerning an alleged violation of the Association’s governing documents. The materials are designed to test and deepen understanding of the case facts, legal arguments, and final rulings.

——————————————————————————–

Short-Answer Quiz

Instructions: Answer the following questions in 2-3 complete sentences, based on the information provided in the case documents.

1. Who are the primary parties in this case, and what are their respective roles?

2. What specific event on November 14, 2019, initiated the dispute between the Petitioner and her neighbor?

3. Identify the specific articles and sections of the Covenants, Conditions, and Restrictions (CC&Rs) that the Petitioner alleged the Respondent violated.

4. According to the Respondent’s property manager, Robert Kersten, what was required before the Association could authorize entry onto a member’s property?

5. What was the central legal distinction made by the Administrative Law Judge regarding the Association’s power to enter a property under the CC&Rs?

6. What was the outcome of the initial hearing on July 28, 2020, and what was the judge’s primary reason for this decision?

7. On what grounds did the Petitioner file her request for a rehearing after the initial decision?

8. Did the Petitioner present new evidence or testimony at the rehearing that changed the outcome? Explain briefly.

9. According to the Administrative Law Judge, what is the legal definition of “preponderance of the evidence”?

10. What limitations on the Administrative Law Judge’s authority are described in A.R.S. § 32-2199.02(A), and how did this affect the final order?

——————————————————————————–

Answer Key

1. The primary parties are Susan E. Abbass, the Petitioner, and the 10000 North Central Homeowners Association, the Respondent. The Petitioner is a property owner and Association member who filed a complaint, while the Respondent is the homeowners’ association responsible for governing the community.

2. On or about November 14, 2019, Ronald Pick, who resides with the Petitioner, discovered that the carpet in their home office was completely soaked with water. He ultimately determined the drainage problem originated from the neighboring property, which sparked the dispute.

3. The Petitioner alleged that the Respondent violated Article XII, Section 6, as well as Article XIII, Sections 1(d) and 4 of the CC&Rs. These sections relate to the Association’s easement rights for inspection and maintenance, rules against impeding drainage flow, and an owner’s duty to keep their lot in good repair.

4. Robert Kersten testified that the Association could not authorize entrance onto another’s property “whenever they feel like it.” He stated there must be “reasonable justification” and “some type of proof” to allow for access, which he determined the Petitioner had not provided.

5. The Administrative Law Judge determined that the CC&Rs give the Respondent the right to enter a property for specific purposes, but they do not impose an obligation to do so. This distinction was crucial, as the judge concluded the Association was not required to act, even if it had the authority.

6. In the initial hearing, the judge denied the Petitioner’s petition. The primary reason was that the Petitioner failed to meet her burden of proof, by a preponderance of the evidence, that the Respondent had violated a provision of the CC&Rs.

7. The Petitioner requested a rehearing on the grounds that the initial findings of fact were “arbitrary, capricious, or an abuse of discretion” and that the decision was “not supported by the evidence or is contrary to law.”

8. No, the Petitioner failed to provide new evidence or witness testimony at the rehearing that demonstrated a violation by the Respondent. The judge concluded that the Petitioner again failed to sustain her burden of proof, leading to the dismissal of her appeal.

9. The judge cites two definitions for “preponderance of the evidence.” The first is “such proof as convinces the trier of fact that the contention is more probably true than not.” The second, from Black’s Law Dictionary, is “The greater weight of the evidence… sufficient to incline a fair and impartial mind to one side of the issue rather than the other.”

10. A.R.S. § 32-2199.02(A) states that the judge “may order any party to abide by the statutes, condominium documents, community documents or contract provision at issue.” The judge interpreted this to mean he could not force the Respondent or the neighbor to grant access to the property, as his only power was to order compliance with the CC&Rs, which had not been violated.

——————————————————————————–

Essay Questions

Instructions: The following questions are designed for longer, essay-style responses. Use the details from the case documents to construct a thorough and well-supported argument for each prompt. (Answers not provided).

1. Analyze the concept of “burden of proof” as it applies to this case. Explain what the Petitioner needed to demonstrate to prevail and detail the specific reasons cited by the Administrative Law Judge for why she failed to meet this standard in both the initial hearing and the rehearing.

2. Discuss the legal and practical reasoning behind the Respondent’s decision not to grant access to the neighboring property. Evaluate the “business judgment” defense, the potential liability concerns, and the characterization of the issue as a “neighbor versus neighbor dispute.”

3. Examine the distinction between a “right” and an “obligation” as interpreted by the Administrative Law Judge from the CC&Rs. How did this interpretation become the central pillar of the decisions in this case, and what does it reveal about the scope of a homeowners’ association’s power?

4. Trace the procedural history of this case from the initial filing of the petition to the final order after the rehearing. Identify each key date and procedural step, and explain the purpose and outcome of each stage of the administrative hearing process.

5. Imagine you are advising the Petitioner after the final decision. Based on the judge’s conclusions that the Petitioner was in the “incorrect venue and possibly party,” what alternative legal avenues might she pursue to resolve the underlying water leak issue? Use evidence from the text to support your suggestions.

——————————————————————————–

Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

An independent judge who presides over administrative hearings, hears evidence, and makes legal rulings and decisions, in this case for the Office of Administrative Hearings.

Arizona Department of Real Estate

The state agency in Arizona authorized by statute to receive and decide petitions for hearings involving disputes between homeowners and their homeowners’ associations.

Burden of Proof

The duty of a party in a legal proceeding to prove a disputed assertion or charge. In this case, the Petitioner had the burden to prove her claims by a preponderance of the evidence.

Covenants, Conditions, and Restrictions (CC&Rs)

The governing legal documents that set up the rules for a planned community or subdivision. The Petitioner alleged the Respondent violated specific articles within these documents.

Easement

A legal right to use another person’s land for a specific, limited purpose. In this case, Article XII Section 6 of the CC&Rs granted an easement to the Association for purposes such as inspection, maintenance, and correction of emergencies.

Jurisdiction

The official power to make legal decisions and judgments. The Arizona Department of Real Estate and the Office of Administrative Hearings had jurisdiction to hear and decide this case pursuant to Arizona Revised Statutes.

Office of Administrative Hearings (OAH)

An independent state agency in Arizona responsible for conducting evidentiary hearings for other state agencies, providing an impartial forum for disputes like the one in this case.

Petitioner

The party who files a petition initiating a legal action. In this matter, Susan E. Abbass was the Petitioner.

Preponderance of the Evidence

The standard of proof in most civil cases. It is defined in the text as “such proof as convinces the trier of fact that the contention is more probably true than not” and as evidence with “the most convincing force.”

Prevailing Party

The party who wins a lawsuit or legal action. In the rehearing, the Administrative Law Judge concluded that the Respondent was the prevailing party.

Rehearing

A second hearing of a case to reconsider the issues and decision. A rehearing was granted in this case after the Petitioner claimed the initial decision was arbitrary, capricious, or not supported by evidence.

Respondent

The party against whom a petition is filed. In this matter, the 10000 North Central Homeowners Association was the Respondent.






Blog Post – 20F-H2020057-REL-RHG


Study Guide: Abbass v. 10000 North Central Homeowners Association

This study guide provides a review of the administrative case involving Petitioner Susan E. Abbass and Respondent 10000 North Central Homeowners Association. It covers the initial hearing and the subsequent rehearing concerning an alleged violation of the Association’s governing documents. The materials are designed to test and deepen understanding of the case facts, legal arguments, and final rulings.

——————————————————————————–

Short-Answer Quiz

Instructions: Answer the following questions in 2-3 complete sentences, based on the information provided in the case documents.

1. Who are the primary parties in this case, and what are their respective roles?

2. What specific event on November 14, 2019, initiated the dispute between the Petitioner and her neighbor?

3. Identify the specific articles and sections of the Covenants, Conditions, and Restrictions (CC&Rs) that the Petitioner alleged the Respondent violated.

4. According to the Respondent’s property manager, Robert Kersten, what was required before the Association could authorize entry onto a member’s property?

5. What was the central legal distinction made by the Administrative Law Judge regarding the Association’s power to enter a property under the CC&Rs?

6. What was the outcome of the initial hearing on July 28, 2020, and what was the judge’s primary reason for this decision?

7. On what grounds did the Petitioner file her request for a rehearing after the initial decision?

8. Did the Petitioner present new evidence or testimony at the rehearing that changed the outcome? Explain briefly.

9. According to the Administrative Law Judge, what is the legal definition of “preponderance of the evidence”?

10. What limitations on the Administrative Law Judge’s authority are described in A.R.S. § 32-2199.02(A), and how did this affect the final order?

——————————————————————————–

Answer Key

1. The primary parties are Susan E. Abbass, the Petitioner, and the 10000 North Central Homeowners Association, the Respondent. The Petitioner is a property owner and Association member who filed a complaint, while the Respondent is the homeowners’ association responsible for governing the community.

2. On or about November 14, 2019, Ronald Pick, who resides with the Petitioner, discovered that the carpet in their home office was completely soaked with water. He ultimately determined the drainage problem originated from the neighboring property, which sparked the dispute.

3. The Petitioner alleged that the Respondent violated Article XII, Section 6, as well as Article XIII, Sections 1(d) and 4 of the CC&Rs. These sections relate to the Association’s easement rights for inspection and maintenance, rules against impeding drainage flow, and an owner’s duty to keep their lot in good repair.

4. Robert Kersten testified that the Association could not authorize entrance onto another’s property “whenever they feel like it.” He stated there must be “reasonable justification” and “some type of proof” to allow for access, which he determined the Petitioner had not provided.

5. The Administrative Law Judge determined that the CC&Rs give the Respondent the right to enter a property for specific purposes, but they do not impose an obligation to do so. This distinction was crucial, as the judge concluded the Association was not required to act, even if it had the authority.

6. In the initial hearing, the judge denied the Petitioner’s petition. The primary reason was that the Petitioner failed to meet her burden of proof, by a preponderance of the evidence, that the Respondent had violated a provision of the CC&Rs.

7. The Petitioner requested a rehearing on the grounds that the initial findings of fact were “arbitrary, capricious, or an abuse of discretion” and that the decision was “not supported by the evidence or is contrary to law.”

8. No, the Petitioner failed to provide new evidence or witness testimony at the rehearing that demonstrated a violation by the Respondent. The judge concluded that the Petitioner again failed to sustain her burden of proof, leading to the dismissal of her appeal.

9. The judge cites two definitions for “preponderance of the evidence.” The first is “such proof as convinces the trier of fact that the contention is more probably true than not.” The second, from Black’s Law Dictionary, is “The greater weight of the evidence… sufficient to incline a fair and impartial mind to one side of the issue rather than the other.”

10. A.R.S. § 32-2199.02(A) states that the judge “may order any party to abide by the statutes, condominium documents, community documents or contract provision at issue.” The judge interpreted this to mean he could not force the Respondent or the neighbor to grant access to the property, as his only power was to order compliance with the CC&Rs, which had not been violated.

——————————————————————————–

Essay Questions

Instructions: The following questions are designed for longer, essay-style responses. Use the details from the case documents to construct a thorough and well-supported argument for each prompt. (Answers not provided).

1. Analyze the concept of “burden of proof” as it applies to this case. Explain what the Petitioner needed to demonstrate to prevail and detail the specific reasons cited by the Administrative Law Judge for why she failed to meet this standard in both the initial hearing and the rehearing.

2. Discuss the legal and practical reasoning behind the Respondent’s decision not to grant access to the neighboring property. Evaluate the “business judgment” defense, the potential liability concerns, and the characterization of the issue as a “neighbor versus neighbor dispute.”

3. Examine the distinction between a “right” and an “obligation” as interpreted by the Administrative Law Judge from the CC&Rs. How did this interpretation become the central pillar of the decisions in this case, and what does it reveal about the scope of a homeowners’ association’s power?

4. Trace the procedural history of this case from the initial filing of the petition to the final order after the rehearing. Identify each key date and procedural step, and explain the purpose and outcome of each stage of the administrative hearing process.

5. Imagine you are advising the Petitioner after the final decision. Based on the judge’s conclusions that the Petitioner was in the “incorrect venue and possibly party,” what alternative legal avenues might she pursue to resolve the underlying water leak issue? Use evidence from the text to support your suggestions.

——————————————————————————–

Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

An independent judge who presides over administrative hearings, hears evidence, and makes legal rulings and decisions, in this case for the Office of Administrative Hearings.

Arizona Department of Real Estate

The state agency in Arizona authorized by statute to receive and decide petitions for hearings involving disputes between homeowners and their homeowners’ associations.

Burden of Proof

The duty of a party in a legal proceeding to prove a disputed assertion or charge. In this case, the Petitioner had the burden to prove her claims by a preponderance of the evidence.

Covenants, Conditions, and Restrictions (CC&Rs)

The governing legal documents that set up the rules for a planned community or subdivision. The Petitioner alleged the Respondent violated specific articles within these documents.

Easement

A legal right to use another person’s land for a specific, limited purpose. In this case, Article XII Section 6 of the CC&Rs granted an easement to the Association for purposes such as inspection, maintenance, and correction of emergencies.

Jurisdiction

The official power to make legal decisions and judgments. The Arizona Department of Real Estate and the Office of Administrative Hearings had jurisdiction to hear and decide this case pursuant to Arizona Revised Statutes.

Office of Administrative Hearings (OAH)

An independent state agency in Arizona responsible for conducting evidentiary hearings for other state agencies, providing an impartial forum for disputes like the one in this case.

Petitioner

The party who files a petition initiating a legal action. In this matter, Susan E. Abbass was the Petitioner.

Preponderance of the Evidence

The standard of proof in most civil cases. It is defined in the text as “such proof as convinces the trier of fact that the contention is more probably true than not” and as evidence with “the most convincing force.”

Prevailing Party

The party who wins a lawsuit or legal action. In the rehearing, the Administrative Law Judge concluded that the Respondent was the prevailing party.

Rehearing

A second hearing of a case to reconsider the issues and decision. A rehearing was granted in this case after the Petitioner claimed the initial decision was arbitrary, capricious, or not supported by evidence.

Respondent

The party against whom a petition is filed. In this matter, the 10000 North Central Homeowners Association was the Respondent.


Case Participants

Petitioner Side

  • Susan E Abbass (petitioner)
  • Ronald Pick (witness)
    witness for Petitioner

Respondent Side

  • Blake Johnson (HOA attorney)
    Brown Olcott, PLLC
  • Robert Kersten (property manager)
    witness for Respondent
  • Kelly Oetinger (HOA attorney)
    Brown Olcott, PLLC

Neutral Parties

  • Adam D. Stone (ALJ)
  • Judy Lowe (Commissioner)
    Arizona Department of Real Estate

Other Participants

  • c. serrano (staff)
    electronic transmission staff

Michael Stoltenberg vs Rancho Del Oro Homeowners Association

Case Summary

Case ID 19F-H1918038-REL
Agency ADRE
Tribunal OAH
Decision Date 2019-04-03
Administrative Law Judge Diane Mihalsky
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Michael Stoltenberg Counsel
Respondent Rancho Del Oro Homeowners Association Counsel Nicole D. Payne

Alleged Violations

CC&Rs §§ 1.8, 1.9, 2.1, 3.1, 4.1, 4.2, 4.3, 5.1, and 14.2

Outcome Summary

The Administrative Law Judge denied the petition, concluding that the HOA acted in accordance with its governing documents (CC&Rs § 4.1) by imposing uniform assessments. The CC&Rs did not provide an exception for reduced assessments based on an owner's choice of landscaping (rock yard) or refusal of HOA maintenance services.

Why this result: Petitioner failed to meet the burden of proof that the Respondent violated its CC&Rs, as CC&R § 4.1 requires uniform assessment and no provision requires or allows Respondent to assess Petitioner less due to his rock yard and refusal of maintenance.

Key Issues & Findings

HOA Assessment Uniformity Requirement

Petitioner, who had rock landscaping and refused HOA maintenance, alleged the HOA violated CC&Rs by assessing him uniform dues, arguing he should pay less since HOA expenditures on lawn maintenance were substantial and primarily benefited neighbors with grass yards.

Orders: Petitioner's petition is denied.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • CC&Rs § 4.1
  • CC&Rs § 5.1(a)
  • A.R.S. § 32-2199(B)
  • A.R.S. § 33-1803
  • A.R.S. § 41-1092.07(G)(2)
  • Powell v. Washburn, 211 Ariz. 553
  • Vazanno v. Superior Court, 74 Ariz. 369

Analytics Highlights

Topics: HOA Assessment, Uniform Dues, CC&R Enforcement, Landscaping Maintenance
Additional Citations:

  • A.R.S. § 32-2199(B)
  • A.R.S. § 33-1803
  • A.R.S. § 41-1092.07(G)(2)
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • A.A.C. R2-19-119(B)(2)
  • MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960)
  • BLACK’S LAW DICTIONARY at page 1220 (8th ed. 1999)
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373, 376 (2006)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)

Video Overview

Audio Overview

Decision Documents

19F-H1918038-REL Decision – 698869.pdf

Uploaded 2026-01-23T17:28:18 (141.7 KB)





Briefing Doc – 19F-H1918038-REL


Briefing Document: Stoltenberg v. Rancho Del Oro Homeowners Association

Executive Summary

This document synthesizes the findings from the Administrative Law Judge Decision in case number 19F-H1918038-REL, concerning a dispute between homeowner Michael Stoltenberg and the Rancho Del Oro Homeowners Association (HOA). The core conflict centered on Mr. Stoltenberg’s claim that he should pay lower HOA assessments because his property has rock landscaping, while his neighbors have grass yards requiring more costly maintenance by the HOA.

The Administrative Law Judge ultimately denied the petition. The decision rested on an unambiguous interpretation of the HOA’s Covenants, Conditions, and Restrictions (CC&Rs). The Judge found that the CC&Rs explicitly obligate the HOA to maintain landscaping on all individual lots and, crucially, require assessments to be uniform for all members to cover these “common expenses.” The petitioner’s argument for a reduced assessment was unsupported by any provision in the governing documents. Furthermore, evidence showed that Mr. Stoltenberg had actively refused the HOA access to his property to install a community irrigation system and to perform the very landscaping maintenance that is a central component of the assessments.

Case Overview

Case Number: 19F-H1918038-REL

Parties Involved:

Petitioner: Michael Stoltenberg, a homeowner at 11777 E. Calle Gaudi, Rancho Del Oro.

Respondent: Rancho Del Oro Homeowners Association (HOA).

Hearing Date: March 19, 2019

Presiding Judge: Diane Mihalsky, Administrative Law Judge

Core Allegation: On December 29, 2018, the Petitioner filed a petition alleging the HOA violated multiple sections of its CC&Rs (§§ 1.8, 1.9, 2.1, 3.1, 4.1, 4.2, 4.3, 5.1, and 14.2) by levying the same assessment fees on his property as on neighboring properties with grass lawns.

Petitioner’s Position and Evidence (Michael Stoltenberg)

The Petitioner’s case was built on the argument of fairness, contending that his assessment should be lower because his property does not utilize the HOA’s most expensive landscaping services.

Primary Argument: It is inequitable for the HOA to charge him the same amount as neighbors with grass yards, given that his front yard is rock and does not receive the same level of maintenance.

Financial Evidence: The Petitioner testified that in 2016, the HOA spent $54,000 on lawn maintenance and landscaping, which constituted 39% of its total budget.

Refusal of Services: The Petitioner acknowledged that he refused to allow the HOA access to his property for two key purposes:

1. To install irrigation pipes connecting his lot to a new community well.

2. To perform any landscape maintenance on his front yard.

Justification for Refusal: The Petitioner accused the HOA of previously killing his trees during maintenance activities and stated that he now undertakes all maintenance of his own yard.

Respondent’s Position and Evidence (Rancho Del Oro HOA)

The HOA’s defense was grounded in its adherence to the plain language of its governing documents, arguing that its actions were not only permissible but mandated by the CC&Rs.

Primary Argument: The HOA is legally bound by its CC&Rs to levy uniform assessments on all members and is simultaneously obligated to maintain the landscaping on every individual lot.

Key Testimony (Diana Crites, Property Manager):

◦ CC&R § 5.1(a) explicitly requires the HOA to maintain the yards of its members.

◦ CC&R § 4.1 requires all owners to be assessed uniformly, without regard to the type of landscaping they have chosen or whether they permit the HOA to perform its maintenance duties.

◦ The Petitioner’s property is one of eight constructed by a different developer, who did not originally install grass or an irrigation system.

◦ The HOA has since drilled a community well to address water costs and has offered to remove rock and install grass for these properties, an offer the Petitioner could accept.

Supporting Evidence (Letter from Dawn Simpson, former bookkeeper):

◦ A 2013 HOA project was initiated to install a community well for landscaping and to connect all homes, including the Petitioner’s.

◦ The letter details an incident where the Petitioner “became very heated with [the] contractor” and “declared that no one was to enter his yard for any purpose.”

◦ This action directly halted all construction to connect his property to the irrigation system and ceased all landscaping services provided by the HOA.

Analysis of Governing Documents (CC&Rs)

The judge’s decision centered on the clear, unambiguous language of specific articles within the CC&Rs. The petitioner failed to identify any language that would permit or require a non-uniform assessment.

CC&R Section

Key Language

Implication & Ruling

Article IV, Section 4.1

Assessments “shall be used for the… common benefit… of the Owners” and “shall constitute common expenses for which the apartment owners shall be severally liable in proportion to their respective common interests.”

This establishes the principle of uniform, shared liability for common expenses, regardless of an individual owner’s specific use of a particular service.

Article V, Section 5.1(a)

“The Association shall maintain… landscaping… It shall also include maintenance of the landscaping on individual Lots outside of structures.”

This article imposes a direct obligation on the HOA to maintain all members’ landscaping, not merely an optional service.

Legal Conclusions and Final Order

Burden of Proof: The decision established that the Petitioner, Mr. Stoltenberg, held the burden to prove by a “preponderance of the evidence” that the HOA had violated its CC&Rs.

Interpretation of Covenants: In Arizona, unambiguous restrictive covenants are enforced to give effect to the intent of the parties. The judge found the CC&Rs to be unambiguous, requiring a holistic interpretation. The documents clearly mandate that the HOA must maintain all yards and must assess all members equally to fund that maintenance.

Final Ruling: The Petitioner did not meet his burden of proof. He failed to point to any provision within the CC&Rs that “allows, much less requires, Respondent to assess Petitioner less because he has a rock yard and will not allow Respondent to maintain his yard.”

Order: The petition was denied. The HOA’s practice of charging uniform assessments was upheld as compliant with its governing documents.






Study Guide – 19F-H1918038-REL


Study Guide: Stoltenberg v. Rancho Del Oro Homeowners Association

This guide is designed to review the key facts, legal arguments, and conclusions presented in the Administrative Law Judge Decision for case number 19F-H1918038-REL, Michael Stoltenberg v. Rancho Del Oro Homeowners Association.

Short-Answer Quiz Questions

Answer the following questions in 2-3 complete sentences, based on the information provided in the case document.

1. Who are the primary parties involved in this case, and what are their respective roles?

2. What was the central allegation in the petition filed by Michael Stoltenberg with the Arizona Department of Real Estate?

3. According to the Petitioner’s testimony, what was the financial basis for his claim of unfair assessment?

4. Describe the history of the water and irrigation system issue at the Petitioner’s property prior to 2013, as detailed in Dawn Simpson’s letter.

5. What action did the Petitioner take during the 2013 well construction project, and what were the consequences of this action?

6. According to Article V, Section 5.1(a) of the CC&Rs, what specific maintenance obligation does the homeowners’ association have regarding individual lots?

7. How did Diana Crites, the HOA’s property manager, justify the uniform assessment for all homeowners based on the CC&Rs?

8. What reason did Ms. Crites provide for why eight units, including the Petitioner’s, were originally landscaped with rock instead of grass?

9. What is the legal standard of proof required in this hearing, and on which party does the burden of proof rest?

10. What was the final order of the Administrative Law Judge, and what was the core legal reasoning for this decision?

——————————————————————————–

Answer Key

1. The primary parties are Michael Stoltenberg, the “Petitioner,” and the Rancho Del Oro Homeowners Association, the “Respondent.” Mr. Stoltenberg is a homeowner and member of the HOA who filed a complaint against the association. The Respondent is the governing HOA for the Rancho Del Oro community in Yuma, Arizona.

2. The Petitioner alleged that the Respondent violated multiple sections of its Covenants, Conditions, and Restrictions (CC&Rs). His central claim was that it was unfair for the HOA to charge him the same assessment fees as his neighbors because his property has rock landscaping, while his neighbors have grass yards that require more maintenance.

3. The financial basis for his claim was the HOA’s budget. The Petitioner testified that in 2016, the Respondent spent $54,000 on lawn maintenance and landscaping, which accounted for 39% of the total budget.

4. Prior to 2013, the Petitioner made several complaints that his home was not connected to the community water system. The HOA Board’s position was that the Petitioner knew his home was not connected to the system when he purchased it.

5. During the 2013 construction to install a well and connect all homes to an irrigation system, the Petitioner became “very heated” with the contractor. He declared that no one was to enter his yard for any purpose, which halted all construction in his backyard and all landscaping provided by the HOA for his front yard.

6. Section 5.1(a) of the CC&Rs states that the Association’s maintenance duties “shall also include maintenance of the landscaping on individual Lots outside of structures.” This obligates the HOA to maintain landscaping even on privately owned lots.

7. Diana Crites testified that CC&R Section 4.1 requires all owners to be assessed uniformly. She stated this uniformity applies regardless of the type of landscaping an owner has chosen or whether they permit the HOA onto their property to perform maintenance.

8. Ms. Crites testified that the eight units were built by a different developer after the original construction and were not equipped with an irrigation system or grass. She believed rock was used in the front yards of these lots due to the high cost of water, an issue later resolved by the installation of a community well.

9. The legal standard is “a preponderance of the evidence,” which means the evidence must be convincing enough to make the contention more probably true than not. The burden of proof to establish a CC&R violation rests on the Petitioner, Mr. Stoltenberg.

10. The Administrative Law Judge denied the Petitioner’s petition. The reasoning was that the Petitioner failed to bear his burden of proof because he could not point to any provision in the CC&Rs that allows or requires the HOA to assess him less than his neighbors based on his landscaping choice or his refusal to allow maintenance.

——————————————————————————–

Essay Questions

The following questions are designed for longer-form analysis. Formulate a detailed response for each, citing specific evidence and CC&R provisions from the case document.

1. Analyze the central conflict between the Petitioner’s concept of fairness and the Respondent’s interpretation of the CC&Rs. Use specific clauses from the CC&Rs (e.g., Articles IV and V) to support the analysis of each party’s position.

2. Discuss the significance of the “preponderance of the evidence” standard in this case. How did the evidence presented by both the Petitioner (e.g., budget figures) and the Respondent (e.g., witness testimony and CC&Rs) contribute to the judge’s final decision regarding this standard?

3. Trace the history of the water and irrigation issue at the Petitioner’s property, from his initial complaints to his refusal to allow construction access. How did these past events impact the central issue of the 2019 hearing?

4. Explain the legal principle that “restrictive covenants must be construed as a whole.” How did the Administrative Law Judge apply this principle by referencing both Section 4.1 (Assessments) and Section 5.1(a) (Maintenance) of the CC&Rs to reach her conclusion?

5. Evaluate the actions of the Petitioner, Mr. Stoltenberg. Based on the evidence presented, did his own actions—specifically, denying the HOA access to his property—undermine his legal argument for a reduced assessment? Explain your reasoning using facts from the hearing evidence.

——————————————————————————–

Glossary

Definition from Source Context

Administrative Law Judge (ALJ)

An official (Diane Mihalsky) who presides over hearings at the Office of Administrative Hearings, an independent state agency, and makes decisions in matters referred by state departments like the Arizona Department of Real Estate.

Assessments

Charges levied by the homeowners’ association on its members. According to CC&R § 4.1, they are used for promoting the recreation, health, safety, and welfare of owners, including property maintenance, and are to be proportioned to each owner’s respective common interests.

Burden of Proof

The obligation of a party in a legal case to establish their claim. In this matter, the Petitioner bears the burden of proof to establish that the Respondent violated its CC&Rs.

Common Area

Defined in CC&R § 1.8 as “those portions of the Project to which title is held by the Association for the common use and enjoyment of the Owners and excepting the individual units.”

Common Expenses

Defined in CC&R § 1.9 as the “actual and estimated expenses of operating the association,” including any reasonable reserves and all sums designated as Common Expense by project documents.

Covenants, Conditions, and Restrictions (CC&Rs)

The governing documents for a planned community that outline the rules, obligations, and rights of the homeowners and the homeowners’ association.

Easements

A right of use over the property of another. CC&R § 2.1 grants every owner a “non-exclusive easement and equitable right of use and enjoyment in, to, and throughout the Common Area.”

Homeowners’ Association (HOA)

The governing body for a planned community (Rancho Del Oro Homeowners Association) whose members are the property owners within that community. It is responsible for managing common areas and enforcing the CC&Rs.

Petitioner

The party who files a petition initiating a legal action. In this case, Michael Stoltenberg, a homeowner in Rancho Del Oro.

Preponderance of the Evidence

The evidentiary standard required to win the case. The source defines it as “such proof as convinces the trier of fact that the contention is more probably true than not” and as evidence with “the most convincing force” that is “sufficient to incline a fair and impartial mind to one side of the issue rather than the other.”

Respondent

The party against whom a petition is filed. In this case, the Rancho Del Oro Homeowners Association.

Restrictive Covenant

A provision in a deed or community document that limits the use of the property. The source notes that in Arizona, an unambiguous restrictive covenant is enforced to give effect to the intent of the parties and must be construed as a whole.






Blog Post – 19F-H1918038-REL


He Sued His HOA Over an ‘Unfair’ Fee—The Reason He Lost Is a Warning for Every Homeowner

Introduction: The HOA Fee Frustration

For many homeowners, the monthly or annual bill from the Homeowners Association (HOA) can be a source of constant frustration. It’s easy to look at the line items—landscaping, pool maintenance, common area repairs—and wonder if you’re truly getting your money’s worth, especially when you feel you aren’t using a particular service.

This was exactly the position of Michael Stoltenberg, a homeowner in Arizona who believed he had an open-and-shut case to lower his HOA fees. His argument seemed logical, fair, and simple. But the ultimate ruling in his case, Stoltenberg v. Rancho Del Oro Homeowners Association, reveals some surprising and crucial truths about how HOA rules actually work and serves as a powerful lesson for every person living in a planned community.

Takeaway 1: You Pay for the Service, Even If You Actively Refuse It

Michael Stoltenberg’s argument was straightforward: his front yard was landscaped with rocks, while his neighbors had grass. He pointed out that in 2016, lawn maintenance accounted for a significant 39% of the HOA’s total budget. He argued it was fundamentally unfair for him to pay the same assessment as his neighbors when he wasn’t consuming this costly service.

His sense of unfairness was rooted in the history of the development. His home was one of eight built by a different developer than the rest of the community. Likely due to high water costs at the time, these eight lots were constructed without irrigation systems or grass. From the very beginning, his property was different. This context makes the crucial twist in the case all the more telling. In 2013, the HOA undertook a community-wide project to drill a new well and install an irrigation system, an effort designed to rectify the inconsistency and bring these outlier properties up to the community standard. When the construction reached Stoltenberg’s property, he refused the workers access.

Testimony from the HOA’s former bookkeeper laid this fact bare:

At this time, [Petitioner] declared that no one was to enter his yard for any purpose. This was also to include his front yard. This halted all construction that was currently in place in his back yard, and all landscaping being provided by the HOA for the front yard.

Legally, this transformed the situation. Stoltenberg’s complaint was no longer about a service he didn’t need, but about a service he actively rejected. This case establishes a critical principle: HOA assessments are tied to your property ownership and membership in the community, not your individual consumption of services. By refusing the service, Mr. Stoltenberg did not absolve himself of the cost associated with its availability to the community.

Takeaway 2: “Common Benefit” Isn’t the Same as “Your Personal Benefit”

The legal foundation for the HOA’s position rested in the language of its Covenants, Conditions, and Restrictions (CC&Rs). Specifically, Section 4.1 states that assessments are to be used for the “common benefit, and enjoyment of the Owners.”

In an HOA context, “common benefit” is a broad concept. It means that well-maintained landscaping throughout the entire neighborhood enhances curb appeal, creates a cohesive community aesthetic, and supports the property values of all residents. This includes Mr. Stoltenberg, whose home value is supported by the beautiful, uniform appearance of the neighborhood, regardless of whether his specific yard has grass. It’s the same reason a homeowner without children still pays for the upkeep of a community playground; the amenity benefits the community as a whole.

Further testimony reinforced this point. The HOA’s property manager stated that the association was still willing to remove the rock and install grass on his property, just as they had already done for two other homeowners in a similar situation. The benefit was available to him; he simply continued to refuse it.

Takeaway 3: The Rules Are a Package Deal, Not an A La Carte Menu

Ultimately, the Administrative Law Judge’s role was not to rule on a general sense of fairness but to enforce the community’s governing documents as written. When examined together, two key clauses in the CC&Rs created a contractual vise, leaving the judge with no other legal option. The two clauses created a perfect, inescapable loop.

Section 5.1(a): This clause states the HOA has an obligation that “shall also include maintenance of the landscaping on individual Lots outside of structures.” The HOA wasn’t just permitted to do the work; it was contractually required to.

Section 4.1: This clause, which also defines assessments as being for the “common benefit,” requires that they “shall constitute common expenses for which the apartment owners shall be severally liable in proportion to their respective common interests.”

The documents legally obligated the HOA to maintain all yards and to charge every owner the same proportional amount for doing so. The CC&Rs provided no mechanism for a homeowner to opt-out of a service and receive a corresponding discount. The judge’s final ruling was decisive, emphasizing the absolute nature of this contractual obligation:

Because Petitioner has not pointed to any CC&R that allows, much less requires, Respondent to assess Petitioner less because he has a rock yard and will not allow Respondent to maintain his yard, Petitioner has not borne his burden in this matter.

Conclusion: The Contract You Live In

The case of Michael Stoltenberg is a powerful reminder that an HOA’s CC&Rs are not just a set of neighborhood rules; they are restrictive covenants that run with the land. When you buy the property, you are irrevocably buying into the contract that governs it. These documents are designed to prioritize the uniform application of standards for the collective good, and they supersede an individual’s personal preferences or interpretation of what seems “fair.”

This case forces every potential buyer to ask a critical question: Are you simply purchasing a dwelling, or are you prepared to become a party to the binding legal contract that governs the entire community?


Case Participants

Petitioner Side

  • Michael Stoltenberg (Petitioner)

Respondent Side

  • Rancho Del Oro Homeowners Association (Respondent Entity)
    Entity, not human
  • Nicole D. Payne (HOA Attorney)
    Carpenter, Hazlewood, Delgado & Bolen LLP
    Represented Respondent
  • Diana Crites (Property Manager/Witness)
    Property manager for Respondent; testified
  • Dawn Simpson (Former Bookkeeper/Witness)
    Former bookkeeper for Respondent; provided a letter/testimony regarding history
  • Lydia A. Peirce Linsmeier (HOA Attorney)
    Carpenter, Hazlewood, Delgado & Bolen LLP
    Received transmission of the Order

Neutral Parties

  • Diane Mihalsky (ALJ)
  • Judy Lowe (ADRE Commissioner)
    Arizona Department of Real Estate
    Received transmission of the Order
  • Felicia Del Sol (Administrative Staff)
    Transmitted the decision

Michael Stoltenberg vs Rancho Del Oro Homeowners Association

Case Summary

Case ID 19F-H1918038-REL
Agency ADRE
Tribunal OAH
Decision Date 2019-04-03
Administrative Law Judge Diane Mihalsky
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Michael Stoltenberg Counsel
Respondent Rancho Del Oro Homeowners Association Counsel Nicole D. Payne

Alleged Violations

CC&Rs §§ 1.8, 1.9, 2.1, 3.1, 4.1, 4.2, 4.3, 5.1, and 14.2

Outcome Summary

The Administrative Law Judge denied the petition, concluding that the HOA acted in accordance with its governing documents (CC&Rs § 4.1) by imposing uniform assessments. The CC&Rs did not provide an exception for reduced assessments based on an owner's choice of landscaping (rock yard) or refusal of HOA maintenance services.

Why this result: Petitioner failed to meet the burden of proof that the Respondent violated its CC&Rs, as CC&R § 4.1 requires uniform assessment and no provision requires or allows Respondent to assess Petitioner less due to his rock yard and refusal of maintenance.

Key Issues & Findings

HOA Assessment Uniformity Requirement

Petitioner, who had rock landscaping and refused HOA maintenance, alleged the HOA violated CC&Rs by assessing him uniform dues, arguing he should pay less since HOA expenditures on lawn maintenance were substantial and primarily benefited neighbors with grass yards.

Orders: Petitioner's petition is denied.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • CC&Rs § 4.1
  • CC&Rs § 5.1(a)
  • A.R.S. § 32-2199(B)
  • A.R.S. § 33-1803
  • A.R.S. § 41-1092.07(G)(2)
  • Powell v. Washburn, 211 Ariz. 553
  • Vazanno v. Superior Court, 74 Ariz. 369

Analytics Highlights

Topics: HOA Assessment, Uniform Dues, CC&R Enforcement, Landscaping Maintenance
Additional Citations:

  • A.R.S. § 32-2199(B)
  • A.R.S. § 33-1803
  • A.R.S. § 41-1092.07(G)(2)
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • A.A.C. R2-19-119(B)(2)
  • MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960)
  • BLACK’S LAW DICTIONARY at page 1220 (8th ed. 1999)
  • Powell v. Washburn, 211 Ariz. 553, 556 ¶ 9, 125 P.3d 373, 376 (2006)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs., 867 P.2d 70, 75 (Colo. App. 1993)

Video Overview

Audio Overview

Decision Documents

19F-H1918038-REL Decision – 698869.pdf

Uploaded 2025-10-09T03:33:59 (141.7 KB)





Briefing Doc – 19F-H1918038-REL


Briefing Document: Stoltenberg v. Rancho Del Oro Homeowners Association

Executive Summary

This document synthesizes the findings from the Administrative Law Judge Decision in case number 19F-H1918038-REL, concerning a dispute between homeowner Michael Stoltenberg and the Rancho Del Oro Homeowners Association (HOA). The core conflict centered on Mr. Stoltenberg’s claim that he should pay lower HOA assessments because his property has rock landscaping, while his neighbors have grass yards requiring more costly maintenance by the HOA.

The Administrative Law Judge ultimately denied the petition. The decision rested on an unambiguous interpretation of the HOA’s Covenants, Conditions, and Restrictions (CC&Rs). The Judge found that the CC&Rs explicitly obligate the HOA to maintain landscaping on all individual lots and, crucially, require assessments to be uniform for all members to cover these “common expenses.” The petitioner’s argument for a reduced assessment was unsupported by any provision in the governing documents. Furthermore, evidence showed that Mr. Stoltenberg had actively refused the HOA access to his property to install a community irrigation system and to perform the very landscaping maintenance that is a central component of the assessments.

Case Overview

Case Number: 19F-H1918038-REL

Parties Involved:

Petitioner: Michael Stoltenberg, a homeowner at 11777 E. Calle Gaudi, Rancho Del Oro.

Respondent: Rancho Del Oro Homeowners Association (HOA).

Hearing Date: March 19, 2019

Presiding Judge: Diane Mihalsky, Administrative Law Judge

Core Allegation: On December 29, 2018, the Petitioner filed a petition alleging the HOA violated multiple sections of its CC&Rs (§§ 1.8, 1.9, 2.1, 3.1, 4.1, 4.2, 4.3, 5.1, and 14.2) by levying the same assessment fees on his property as on neighboring properties with grass lawns.

Petitioner’s Position and Evidence (Michael Stoltenberg)

The Petitioner’s case was built on the argument of fairness, contending that his assessment should be lower because his property does not utilize the HOA’s most expensive landscaping services.

Primary Argument: It is inequitable for the HOA to charge him the same amount as neighbors with grass yards, given that his front yard is rock and does not receive the same level of maintenance.

Financial Evidence: The Petitioner testified that in 2016, the HOA spent $54,000 on lawn maintenance and landscaping, which constituted 39% of its total budget.

Refusal of Services: The Petitioner acknowledged that he refused to allow the HOA access to his property for two key purposes:

1. To install irrigation pipes connecting his lot to a new community well.

2. To perform any landscape maintenance on his front yard.

Justification for Refusal: The Petitioner accused the HOA of previously killing his trees during maintenance activities and stated that he now undertakes all maintenance of his own yard.

Respondent’s Position and Evidence (Rancho Del Oro HOA)

The HOA’s defense was grounded in its adherence to the plain language of its governing documents, arguing that its actions were not only permissible but mandated by the CC&Rs.

Primary Argument: The HOA is legally bound by its CC&Rs to levy uniform assessments on all members and is simultaneously obligated to maintain the landscaping on every individual lot.

Key Testimony (Diana Crites, Property Manager):

◦ CC&R § 5.1(a) explicitly requires the HOA to maintain the yards of its members.

◦ CC&R § 4.1 requires all owners to be assessed uniformly, without regard to the type of landscaping they have chosen or whether they permit the HOA to perform its maintenance duties.

◦ The Petitioner’s property is one of eight constructed by a different developer, who did not originally install grass or an irrigation system.

◦ The HOA has since drilled a community well to address water costs and has offered to remove rock and install grass for these properties, an offer the Petitioner could accept.

Supporting Evidence (Letter from Dawn Simpson, former bookkeeper):

◦ A 2013 HOA project was initiated to install a community well for landscaping and to connect all homes, including the Petitioner’s.

◦ The letter details an incident where the Petitioner “became very heated with [the] contractor” and “declared that no one was to enter his yard for any purpose.”

◦ This action directly halted all construction to connect his property to the irrigation system and ceased all landscaping services provided by the HOA.

Analysis of Governing Documents (CC&Rs)

The judge’s decision centered on the clear, unambiguous language of specific articles within the CC&Rs. The petitioner failed to identify any language that would permit or require a non-uniform assessment.

CC&R Section

Key Language

Implication & Ruling

Article IV, Section 4.1

Assessments “shall be used for the… common benefit… of the Owners” and “shall constitute common expenses for which the apartment owners shall be severally liable in proportion to their respective common interests.”

This establishes the principle of uniform, shared liability for common expenses, regardless of an individual owner’s specific use of a particular service.

Article V, Section 5.1(a)

“The Association shall maintain… landscaping… It shall also include maintenance of the landscaping on individual Lots outside of structures.”

This article imposes a direct obligation on the HOA to maintain all members’ landscaping, not merely an optional service.

Legal Conclusions and Final Order

Burden of Proof: The decision established that the Petitioner, Mr. Stoltenberg, held the burden to prove by a “preponderance of the evidence” that the HOA had violated its CC&Rs.

Interpretation of Covenants: In Arizona, unambiguous restrictive covenants are enforced to give effect to the intent of the parties. The judge found the CC&Rs to be unambiguous, requiring a holistic interpretation. The documents clearly mandate that the HOA must maintain all yards and must assess all members equally to fund that maintenance.

Final Ruling: The Petitioner did not meet his burden of proof. He failed to point to any provision within the CC&Rs that “allows, much less requires, Respondent to assess Petitioner less because he has a rock yard and will not allow Respondent to maintain his yard.”

Order: The petition was denied. The HOA’s practice of charging uniform assessments was upheld as compliant with its governing documents.






Study Guide – 19F-H1918038-REL


Study Guide: Stoltenberg v. Rancho Del Oro Homeowners Association

This guide is designed to review the key facts, legal arguments, and conclusions presented in the Administrative Law Judge Decision for case number 19F-H1918038-REL, Michael Stoltenberg v. Rancho Del Oro Homeowners Association.

Short-Answer Quiz Questions

Answer the following questions in 2-3 complete sentences, based on the information provided in the case document.

1. Who are the primary parties involved in this case, and what are their respective roles?

2. What was the central allegation in the petition filed by Michael Stoltenberg with the Arizona Department of Real Estate?

3. According to the Petitioner’s testimony, what was the financial basis for his claim of unfair assessment?

4. Describe the history of the water and irrigation system issue at the Petitioner’s property prior to 2013, as detailed in Dawn Simpson’s letter.

5. What action did the Petitioner take during the 2013 well construction project, and what were the consequences of this action?

6. According to Article V, Section 5.1(a) of the CC&Rs, what specific maintenance obligation does the homeowners’ association have regarding individual lots?

7. How did Diana Crites, the HOA’s property manager, justify the uniform assessment for all homeowners based on the CC&Rs?

8. What reason did Ms. Crites provide for why eight units, including the Petitioner’s, were originally landscaped with rock instead of grass?

9. What is the legal standard of proof required in this hearing, and on which party does the burden of proof rest?

10. What was the final order of the Administrative Law Judge, and what was the core legal reasoning for this decision?

——————————————————————————–

Answer Key

1. The primary parties are Michael Stoltenberg, the “Petitioner,” and the Rancho Del Oro Homeowners Association, the “Respondent.” Mr. Stoltenberg is a homeowner and member of the HOA who filed a complaint against the association. The Respondent is the governing HOA for the Rancho Del Oro community in Yuma, Arizona.

2. The Petitioner alleged that the Respondent violated multiple sections of its Covenants, Conditions, and Restrictions (CC&Rs). His central claim was that it was unfair for the HOA to charge him the same assessment fees as his neighbors because his property has rock landscaping, while his neighbors have grass yards that require more maintenance.

3. The financial basis for his claim was the HOA’s budget. The Petitioner testified that in 2016, the Respondent spent $54,000 on lawn maintenance and landscaping, which accounted for 39% of the total budget.

4. Prior to 2013, the Petitioner made several complaints that his home was not connected to the community water system. The HOA Board’s position was that the Petitioner knew his home was not connected to the system when he purchased it.

5. During the 2013 construction to install a well and connect all homes to an irrigation system, the Petitioner became “very heated” with the contractor. He declared that no one was to enter his yard for any purpose, which halted all construction in his backyard and all landscaping provided by the HOA for his front yard.

6. Section 5.1(a) of the CC&Rs states that the Association’s maintenance duties “shall also include maintenance of the landscaping on individual Lots outside of structures.” This obligates the HOA to maintain landscaping even on privately owned lots.

7. Diana Crites testified that CC&R Section 4.1 requires all owners to be assessed uniformly. She stated this uniformity applies regardless of the type of landscaping an owner has chosen or whether they permit the HOA onto their property to perform maintenance.

8. Ms. Crites testified that the eight units were built by a different developer after the original construction and were not equipped with an irrigation system or grass. She believed rock was used in the front yards of these lots due to the high cost of water, an issue later resolved by the installation of a community well.

9. The legal standard is “a preponderance of the evidence,” which means the evidence must be convincing enough to make the contention more probably true than not. The burden of proof to establish a CC&R violation rests on the Petitioner, Mr. Stoltenberg.

10. The Administrative Law Judge denied the Petitioner’s petition. The reasoning was that the Petitioner failed to bear his burden of proof because he could not point to any provision in the CC&Rs that allows or requires the HOA to assess him less than his neighbors based on his landscaping choice or his refusal to allow maintenance.

——————————————————————————–

Essay Questions

The following questions are designed for longer-form analysis. Formulate a detailed response for each, citing specific evidence and CC&R provisions from the case document.

1. Analyze the central conflict between the Petitioner’s concept of fairness and the Respondent’s interpretation of the CC&Rs. Use specific clauses from the CC&Rs (e.g., Articles IV and V) to support the analysis of each party’s position.

2. Discuss the significance of the “preponderance of the evidence” standard in this case. How did the evidence presented by both the Petitioner (e.g., budget figures) and the Respondent (e.g., witness testimony and CC&Rs) contribute to the judge’s final decision regarding this standard?

3. Trace the history of the water and irrigation issue at the Petitioner’s property, from his initial complaints to his refusal to allow construction access. How did these past events impact the central issue of the 2019 hearing?

4. Explain the legal principle that “restrictive covenants must be construed as a whole.” How did the Administrative Law Judge apply this principle by referencing both Section 4.1 (Assessments) and Section 5.1(a) (Maintenance) of the CC&Rs to reach her conclusion?

5. Evaluate the actions of the Petitioner, Mr. Stoltenberg. Based on the evidence presented, did his own actions—specifically, denying the HOA access to his property—undermine his legal argument for a reduced assessment? Explain your reasoning using facts from the hearing evidence.

——————————————————————————–

Glossary

Definition from Source Context

Administrative Law Judge (ALJ)

An official (Diane Mihalsky) who presides over hearings at the Office of Administrative Hearings, an independent state agency, and makes decisions in matters referred by state departments like the Arizona Department of Real Estate.

Assessments

Charges levied by the homeowners’ association on its members. According to CC&R § 4.1, they are used for promoting the recreation, health, safety, and welfare of owners, including property maintenance, and are to be proportioned to each owner’s respective common interests.

Burden of Proof

The obligation of a party in a legal case to establish their claim. In this matter, the Petitioner bears the burden of proof to establish that the Respondent violated its CC&Rs.

Common Area

Defined in CC&R § 1.8 as “those portions of the Project to which title is held by the Association for the common use and enjoyment of the Owners and excepting the individual units.”

Common Expenses

Defined in CC&R § 1.9 as the “actual and estimated expenses of operating the association,” including any reasonable reserves and all sums designated as Common Expense by project documents.

Covenants, Conditions, and Restrictions (CC&Rs)

The governing documents for a planned community that outline the rules, obligations, and rights of the homeowners and the homeowners’ association.

Easements

A right of use over the property of another. CC&R § 2.1 grants every owner a “non-exclusive easement and equitable right of use and enjoyment in, to, and throughout the Common Area.”

Homeowners’ Association (HOA)

The governing body for a planned community (Rancho Del Oro Homeowners Association) whose members are the property owners within that community. It is responsible for managing common areas and enforcing the CC&Rs.

Petitioner

The party who files a petition initiating a legal action. In this case, Michael Stoltenberg, a homeowner in Rancho Del Oro.

Preponderance of the Evidence

The evidentiary standard required to win the case. The source defines it as “such proof as convinces the trier of fact that the contention is more probably true than not” and as evidence with “the most convincing force” that is “sufficient to incline a fair and impartial mind to one side of the issue rather than the other.”

Respondent

The party against whom a petition is filed. In this case, the Rancho Del Oro Homeowners Association.

Restrictive Covenant

A provision in a deed or community document that limits the use of the property. The source notes that in Arizona, an unambiguous restrictive covenant is enforced to give effect to the intent of the parties and must be construed as a whole.






Blog Post – 19F-H1918038-REL


He Sued His HOA Over an ‘Unfair’ Fee—The Reason He Lost Is a Warning for Every Homeowner

Introduction: The HOA Fee Frustration

For many homeowners, the monthly or annual bill from the Homeowners Association (HOA) can be a source of constant frustration. It’s easy to look at the line items—landscaping, pool maintenance, common area repairs—and wonder if you’re truly getting your money’s worth, especially when you feel you aren’t using a particular service.

This was exactly the position of Michael Stoltenberg, a homeowner in Arizona who believed he had an open-and-shut case to lower his HOA fees. His argument seemed logical, fair, and simple. But the ultimate ruling in his case, Stoltenberg v. Rancho Del Oro Homeowners Association, reveals some surprising and crucial truths about how HOA rules actually work and serves as a powerful lesson for every person living in a planned community.

Takeaway 1: You Pay for the Service, Even If You Actively Refuse It

Michael Stoltenberg’s argument was straightforward: his front yard was landscaped with rocks, while his neighbors had grass. He pointed out that in 2016, lawn maintenance accounted for a significant 39% of the HOA’s total budget. He argued it was fundamentally unfair for him to pay the same assessment as his neighbors when he wasn’t consuming this costly service.

His sense of unfairness was rooted in the history of the development. His home was one of eight built by a different developer than the rest of the community. Likely due to high water costs at the time, these eight lots were constructed without irrigation systems or grass. From the very beginning, his property was different. This context makes the crucial twist in the case all the more telling. In 2013, the HOA undertook a community-wide project to drill a new well and install an irrigation system, an effort designed to rectify the inconsistency and bring these outlier properties up to the community standard. When the construction reached Stoltenberg’s property, he refused the workers access.

Testimony from the HOA’s former bookkeeper laid this fact bare:

At this time, [Petitioner] declared that no one was to enter his yard for any purpose. This was also to include his front yard. This halted all construction that was currently in place in his back yard, and all landscaping being provided by the HOA for the front yard.

Legally, this transformed the situation. Stoltenberg’s complaint was no longer about a service he didn’t need, but about a service he actively rejected. This case establishes a critical principle: HOA assessments are tied to your property ownership and membership in the community, not your individual consumption of services. By refusing the service, Mr. Stoltenberg did not absolve himself of the cost associated with its availability to the community.

Takeaway 2: “Common Benefit” Isn’t the Same as “Your Personal Benefit”

The legal foundation for the HOA’s position rested in the language of its Covenants, Conditions, and Restrictions (CC&Rs). Specifically, Section 4.1 states that assessments are to be used for the “common benefit, and enjoyment of the Owners.”

In an HOA context, “common benefit” is a broad concept. It means that well-maintained landscaping throughout the entire neighborhood enhances curb appeal, creates a cohesive community aesthetic, and supports the property values of all residents. This includes Mr. Stoltenberg, whose home value is supported by the beautiful, uniform appearance of the neighborhood, regardless of whether his specific yard has grass. It’s the same reason a homeowner without children still pays for the upkeep of a community playground; the amenity benefits the community as a whole.

Further testimony reinforced this point. The HOA’s property manager stated that the association was still willing to remove the rock and install grass on his property, just as they had already done for two other homeowners in a similar situation. The benefit was available to him; he simply continued to refuse it.

Takeaway 3: The Rules Are a Package Deal, Not an A La Carte Menu

Ultimately, the Administrative Law Judge’s role was not to rule on a general sense of fairness but to enforce the community’s governing documents as written. When examined together, two key clauses in the CC&Rs created a contractual vise, leaving the judge with no other legal option. The two clauses created a perfect, inescapable loop.

Section 5.1(a): This clause states the HOA has an obligation that “shall also include maintenance of the landscaping on individual Lots outside of structures.” The HOA wasn’t just permitted to do the work; it was contractually required to.

Section 4.1: This clause, which also defines assessments as being for the “common benefit,” requires that they “shall constitute common expenses for which the apartment owners shall be severally liable in proportion to their respective common interests.”

The documents legally obligated the HOA to maintain all yards and to charge every owner the same proportional amount for doing so. The CC&Rs provided no mechanism for a homeowner to opt-out of a service and receive a corresponding discount. The judge’s final ruling was decisive, emphasizing the absolute nature of this contractual obligation:

Because Petitioner has not pointed to any CC&R that allows, much less requires, Respondent to assess Petitioner less because he has a rock yard and will not allow Respondent to maintain his yard, Petitioner has not borne his burden in this matter.

Conclusion: The Contract You Live In

The case of Michael Stoltenberg is a powerful reminder that an HOA’s CC&Rs are not just a set of neighborhood rules; they are restrictive covenants that run with the land. When you buy the property, you are irrevocably buying into the contract that governs it. These documents are designed to prioritize the uniform application of standards for the collective good, and they supersede an individual’s personal preferences or interpretation of what seems “fair.”

This case forces every potential buyer to ask a critical question: Are you simply purchasing a dwelling, or are you prepared to become a party to the binding legal contract that governs the entire community?


Case Participants

Petitioner Side

  • Michael Stoltenberg (Petitioner)

Respondent Side

  • Rancho Del Oro Homeowners Association (Respondent Entity)
    Entity, not human
  • Nicole D. Payne (HOA Attorney)
    Carpenter, Hazlewood, Delgado & Bolen LLP
    Represented Respondent
  • Diana Crites (Property Manager/Witness)
    Property manager for Respondent; testified
  • Dawn Simpson (Former Bookkeeper/Witness)
    Former bookkeeper for Respondent; provided a letter/testimony regarding history
  • Lydia A. Peirce Linsmeier (HOA Attorney)
    Carpenter, Hazlewood, Delgado & Bolen LLP
    Received transmission of the Order

Neutral Parties

  • Diane Mihalsky (ALJ)
  • Judy Lowe (ADRE Commissioner)
    Arizona Department of Real Estate
    Received transmission of the Order
  • Felicia Del Sol (Administrative Staff)
    Transmitted the decision