Case Summary
| Case ID | 24F-H036-REL |
|---|---|
| Agency | ADRE |
| Tribunal | OAH |
| Decision Date | 2024-07-05 |
| Administrative Law Judge | Adam D. Stone |
| Outcome | The tribunal granted the petition, finding the Association violated ARIZ. REV. STAT. § 33-1803(B) and CC&R section 5.2.3 by failing to provide Petitioners an opportunity to be heard before imposing monetary penalties. The Respondent was ordered to reimburse the $500 filing fee. However, the tribunal denied all other requests for relief, including the reimbursement of fines, imposition of civil penalties, and forced approval of the modification, citing lack of statutory authority. |
| Filing Fees Refunded | $500.00 |
| Civil Penalties | $0.00 |
Parties & Counsel
| Petitioner | Aaron Solen and Anh Jung | Counsel | — |
|---|---|---|---|
| Respondent | Power Ranch Community Association | Counsel | Charles H. Oldham |
Alleged Violations
A.R.S. §33-1803(B) and Article 5.2.4 of the Association’s by-laws
Outcome Summary
The tribunal granted the petition, finding the Association violated ARIZ. REV. STAT. § 33-1803(B) and CC&R section 5.2.3 by failing to provide Petitioners an opportunity to be heard before imposing monetary penalties. The Respondent was ordered to reimburse the $500 filing fee. However, the tribunal denied all other requests for relief, including the reimbursement of fines, imposition of civil penalties, and forced approval of the modification, citing lack of statutory authority.
Why this result: The tribunal lacks statutory authority to erase fines imposed, force the Association to rewrite its CC&R’s, or force the Association to accept the planters without Petitioners going through the proper Design Review Committee processes.
Key Issues & Findings
Petitioner was issued fines as a result of a Design Review Committee decision and petitioner was not provided an opportunity to appeal to or be heard by the board of directors as required by A.R.S. §33-1803(B) and Article 5, specifically Article 5.2.4 of the Association’s by-laws.
Petitioners were fined for an unapproved modification (planter) without being granted a proper opportunity to be heard by the Board, as required by statute and bylaws, leading to a violation finding against the Association. The May 2023 meeting did not include the hearing, and the June 2023 Executive Session was not deemed a proper 'hearing' due to confusion over the closed session terminology.
Orders: The petition alleging violation of hearing rights was granted. Respondent was ordered to reimburse the Petitioner’s filing fee pursuant to ARIZ. REV. STAT. § 32-2199.02(A). Requests for reimbursement of fines incurred ($400.00), approval of the planters, imposition of a civil penalty, and rewriting CC&R’s procedures were denied.
Filing fee: $500.00, Fee refunded: Yes
Disposition: petitioner_win
- ARIZ. REV. STAT. § 33-1803(B)
- Article 5.2.4
- CC&R Section 5.2.3
- ARIZ. REV. STAT. § 32-2199.02(A)
Analytics Highlights
- ARIZ. REV. STAT. § 33-1803(B)
- Article 5.2.4
- CC&R Section 5.2.3
- ARIZ. REV. STAT. § 32-2199.02(A)
- ARIZ. REV. STAT. § 32-2199.01
- ARIZ. REV. STAT. §§ 32-2102
- ARIZ. REV. STAT. § 41-1092
Video Overview
Audio Overview
Decision Documents
24F-H036-REL Decision – 1162665.pdf
24F-H036-REL Decision – 1184634.pdf
24F-H036-REL Decision – 1191323.pdf
24F-H036-REL Decision – 1196403.pdf
24F-H036-REL Decision – 1162665.pdf
24F-H036-REL Decision – 1184634.pdf
24F-H036-REL Decision – 1191323.pdf
24F-H036-REL Decision – 1196403.pdf
This summary details the hearing before the Office of Administrative Hearings (OAH) in the matter of *Aaron Solen and Anh Jung (Petitioners) vs. Power Ranch Community Association (Respondent)* (No. 24F-H036-REL).
Key Facts and Background
The dispute centered on the installation of an unapproved planter in the Petitioners' front yard. Following a courtesy notice on March 9, 2023, Petitioners submitted a Design Review Committee (DRC) Application, which was denied on April 10, 2023, for not aligning with community aesthetics and being "too large". Petitioners subsequently modified the planter but refused to submit a formal modification application, arguing that the governing documents (CC&Rs) only required modification or new information, not another form, to be granted an appeal.
The Association (Respondent) argued that a formal written application was essential for maintaining accurate written records, especially given the community's size (15,000 members). Although the violation was first noted in March 2023, the Association delayed imposing $100 fines until October 2023, attempting to work with Petitioners to resolve the issue.
Main Issues and Arguments
- Violation of Hearing Rights: Petitioners argued they were fined without being provided a proper opportunity to appeal or be heard by the Board of Directors, violating A.R.S. § 33-1803(B) and Article 5.2.4 of the Association's bylaws.
- Appeal Procedure: The Board failed to address Petitioners' appeal at the May 22, 2023 meeting because it intended to give Petitioners time to cure the violation and avoid a "final decision".
- Executive Session as Hearing: The Association claimed that the invitation to the June 26, 2023 Executive Session was intended to serve as the appeal hearing. Petitioners did not attend, believing executive sessions were closed to homeowners.
Outcome and Legal Decision
The Administrative Law Judge (ALJ) Adam D. Stone granted the Petition.
The ALJ made the following key legal conclusions:
- Standing: The ALJ confirmed that Petitioners (as members residing at the property) were the proper parties to the action, rejecting the Respondent's argument that only the LLC (the title owner) had standing.
- Due Process Violation: The tribunal found Petitioners met their burden of proof that the opportunity to have a hearing was not granted.
- The May meeting delay, though a "noble gesture," still denied Petitioners their statutory right to a hearing.
- The June Executive Session was found insufficient as a "hearing" due to the confusion its terminology caused, denying the "opportunity to be heard".
- Final Ruling: The Association violated ARIZ. REV. STAT. § 33-1803(B) (requiring notice and opportunity to be heard before imposing penalties) and CC&R's section 5.2.3.
Remedies
While granting the Petition, the ALJ noted he lacked statutory authority to grant several requested remedies:
- The ALJ could not erase the fines imposed.
- The ALJ could not force the Association to approve the planters without Petitioners following the proper DRC procedures.
- The ALJ denied the request to force the Association to rewrite its CC&R’s.
The only monetary relief ordered was that the Respondent reimburse the Petitioners’ filing fee.
{
“case”: {
“docket_no”: “24F-H036-REL”,
“case_title”: “Aaron Solen & Anh Jung vs Power Ranch Community Association”,
“decision_date”: “2024-07-05”,
“alj_name”: “Adam D. Stone”,
“tribunal”: “OAH”,
“agency”: “ADRE”
},
“questions”: [
{
“question”: “Does the HOA have to provide a hearing before imposing fines?”,
“short_answer”: “Yes, state law requires notice and an opportunity to be heard before monetary penalties are imposed.”,
“detailed_answer”: “The decision cites Arizona Revised Statutes, which mandate that a board of directors may only impose reasonable monetary penalties after providing the member with notice and an opportunity to be heard regarding the violation.”,
“alj_quote”: “After notice and an opportunity to be heard, the board of directors may impose reasonable monetary penalties on members for violations of the declaration, bylaws and rules of the association.”,
“legal_basis”: “A.R.S. § 33-1803(B)”,
“topic_tags”: [
“fines”,
“hearings”,
“due process”
]
},
{
“question”: “Can the Administrative Law Judge order the HOA to remove fines from my account?”,
“short_answer”: “No, the tribunal stated it lacks the statutory authority to erase fines.”,
“detailed_answer”: “Even if the homeowner prevails on the procedural issue (like lack of a hearing), the ALJ in this case ruled that they do not have the power to order the fines be removed or erased.”,
“alj_quote”: “However, the tribunal has no statutory authority to erase the fines imposed nor force the Association to rewrite its CC&R’s”,
“legal_basis”: “Administrative Authority”,
“topic_tags”: [
“fines”,
“remedies”,
“jurisdiction”
]
},
{
“question”: “Can the ALJ force the HOA to approve my architectural modification (e.g., planters)?”,
“short_answer”: “No, the tribunal cannot force the HOA to accept improvements that haven’t gone through the proper design review process.”,
“detailed_answer”: “The ALJ denied the request to force approval of the unapproved planters, noting that the homeowners must still go through the association’s Design Review Committee (DRC) processes.”,
“alj_quote”: “nor can it force the Association to accept the planters as is without Petitioners going through the property DRC processes.”,
“legal_basis”: “Administrative Authority”,
“topic_tags”: [
“architectural review”,
“landscaping”,
“remedies”
]
},
{
“question”: “Is an invitation to an ‘Executive Session’ sufficient to satisfy the requirement for a hearing?”,
“short_answer”: “Not necessarily, especially if the terminology is confusing and leads homeowners to believe they cannot attend.”,
“detailed_answer”: “In this case, the ALJ found that inviting homeowners to an Executive Session—which is generally understood to be closed to the public—was confusing. Because the homeowners believed they couldn’t attend, the session did not count as a valid opportunity to be heard.”,
“alj_quote”: “Thus, the tribunal finds that the June 2023 Executive Session was not a “hearing” for purposes of the CC&R’s, and it was not an opportunity to be heard based upon the confusion the Executive Session terminology caused.”,
“legal_basis”: “A.R.S. § 33-1803(B)”,
“topic_tags”: [
“hearings”,
“executive session”,
“meetings”
]
},
{
“question”: “If I own my home through an LLC, can I still file a petition against the HOA?”,
“short_answer”: “Yes, provided you are the member residing at the property and the HOA has treated you as the owner.”,
“detailed_answer”: “The HOA argued the petition was deficient because the title was held by an LLC. The ALJ rejected this, finding the residents were the proper parties because they were members of the association and the HOA sent mail to them individually.”,
“alj_quote”: “At the outset, the tribunal finds that Petitioners are the proper parties to the action. They are the members of the Association, and all mail went directly to Petitioners individually, and not as a member/manager of the LLC.”,
“legal_basis”: “Standing”,
“topic_tags”: [
“LLC ownership”,
“standing”,
“membership”
]
},
{
“question”: “If I win my hearing against the HOA, will I get my filing fee back?”,
“short_answer”: “Yes, the ALJ can order the HOA to reimburse the filing fee.”,
“detailed_answer”: “The decision ordered the Respondent (the HOA) to reimburse the Petitioner’s filing fee pursuant to Arizona statutes.”,
“alj_quote”: “IT IS FURTHER ORDERED pursuant to ARIZ. REV. STAT. § 32-2199.02(A), Respondent shall reimburse Petitioner’s filing fee as required by ARIZ. REV. STAT. § 32-2199.01.”,
“legal_basis”: “A.R.S. § 32-2199.02(A)”,
“topic_tags”: [
“fees”,
“reimbursement”,
“costs”
]
},
{
“question”: “Can the Board delay my hearing to give me time to fix a violation instead of hearing my appeal?”,
“short_answer”: “No, if you requested a hearing, the Board should address it rather than delaying it indefinitely.”,
“detailed_answer”: “The Board delayed the hearing to avoid issuing a final denial, hoping the homeowner would fix the issue. The ALJ ruled that while well-intentioned (“noble gesture”), this delay violated the homeowner’s right to be heard when the matter was not addressed at the monthly meetings.”,
“alj_quote”: “Therefore, although the Board was most generous in delaying the “hearing” to avoid a final decision, the matter should have been addressed in May and June at the monthly meetings and it was not.”,
“legal_basis”: “A.R.S. § 33-1803(B)”,
“topic_tags”: [
“hearings”,
“delays”,
“board conduct”
]
},
{
“question”: “Can the ALJ impose civil penalties on the HOA for their actions?”,
“short_answer”: “It is possible but was denied in this specific case.”,
“detailed_answer”: “The homeowners requested civil penalties against the HOA. The ALJ explicitly denied this request in the final order.”,
“alj_quote”: “IT IS FURTHER ORDERED denying Petitioners’ request for the imposition of a civil penalty…”,
“legal_basis”: “Administrative Discretion”,
“topic_tags”: [
“civil penalties”,
“sanctions”
]
}
]
}
{
“case”: {
“docket_no”: “24F-H036-REL”,
“case_title”: “Aaron Solen & Anh Jung vs Power Ranch Community Association”,
“decision_date”: “2024-07-05”,
“alj_name”: “Adam D. Stone”,
“tribunal”: “OAH”,
“agency”: “ADRE”
},
“questions”: [
{
“question”: “Does the HOA have to provide a hearing before imposing fines?”,
“short_answer”: “Yes, state law requires notice and an opportunity to be heard before monetary penalties are imposed.”,
“detailed_answer”: “The decision cites Arizona Revised Statutes, which mandate that a board of directors may only impose reasonable monetary penalties after providing the member with notice and an opportunity to be heard regarding the violation.”,
“alj_quote”: “After notice and an opportunity to be heard, the board of directors may impose reasonable monetary penalties on members for violations of the declaration, bylaws and rules of the association.”,
“legal_basis”: “A.R.S. § 33-1803(B)”,
“topic_tags”: [
“fines”,
“hearings”,
“due process”
]
},
{
“question”: “Can the Administrative Law Judge order the HOA to remove fines from my account?”,
“short_answer”: “No, the tribunal stated it lacks the statutory authority to erase fines.”,
“detailed_answer”: “Even if the homeowner prevails on the procedural issue (like lack of a hearing), the ALJ in this case ruled that they do not have the power to order the fines be removed or erased.”,
“alj_quote”: “However, the tribunal has no statutory authority to erase the fines imposed nor force the Association to rewrite its CC&R’s”,
“legal_basis”: “Administrative Authority”,
“topic_tags”: [
“fines”,
“remedies”,
“jurisdiction”
]
},
{
“question”: “Can the ALJ force the HOA to approve my architectural modification (e.g., planters)?”,
“short_answer”: “No, the tribunal cannot force the HOA to accept improvements that haven’t gone through the proper design review process.”,
“detailed_answer”: “The ALJ denied the request to force approval of the unapproved planters, noting that the homeowners must still go through the association’s Design Review Committee (DRC) processes.”,
“alj_quote”: “nor can it force the Association to accept the planters as is without Petitioners going through the property DRC processes.”,
“legal_basis”: “Administrative Authority”,
“topic_tags”: [
“architectural review”,
“landscaping”,
“remedies”
]
},
{
“question”: “Is an invitation to an ‘Executive Session’ sufficient to satisfy the requirement for a hearing?”,
“short_answer”: “Not necessarily, especially if the terminology is confusing and leads homeowners to believe they cannot attend.”,
“detailed_answer”: “In this case, the ALJ found that inviting homeowners to an Executive Session—which is generally understood to be closed to the public—was confusing. Because the homeowners believed they couldn’t attend, the session did not count as a valid opportunity to be heard.”,
“alj_quote”: “Thus, the tribunal finds that the June 2023 Executive Session was not a “hearing” for purposes of the CC&R’s, and it was not an opportunity to be heard based upon the confusion the Executive Session terminology caused.”,
“legal_basis”: “A.R.S. § 33-1803(B)”,
“topic_tags”: [
“hearings”,
“executive session”,
“meetings”
]
},
{
“question”: “If I own my home through an LLC, can I still file a petition against the HOA?”,
“short_answer”: “Yes, provided you are the member residing at the property and the HOA has treated you as the owner.”,
“detailed_answer”: “The HOA argued the petition was deficient because the title was held by an LLC. The ALJ rejected this, finding the residents were the proper parties because they were members of the association and the HOA sent mail to them individually.”,
“alj_quote”: “At the outset, the tribunal finds that Petitioners are the proper parties to the action. They are the members of the Association, and all mail went directly to Petitioners individually, and not as a member/manager of the LLC.”,
“legal_basis”: “Standing”,
“topic_tags”: [
“LLC ownership”,
“standing”,
“membership”
]
},
{
“question”: “If I win my hearing against the HOA, will I get my filing fee back?”,
“short_answer”: “Yes, the ALJ can order the HOA to reimburse the filing fee.”,
“detailed_answer”: “The decision ordered the Respondent (the HOA) to reimburse the Petitioner’s filing fee pursuant to Arizona statutes.”,
“alj_quote”: “IT IS FURTHER ORDERED pursuant to ARIZ. REV. STAT. § 32-2199.02(A), Respondent shall reimburse Petitioner’s filing fee as required by ARIZ. REV. STAT. § 32-2199.01.”,
“legal_basis”: “A.R.S. § 32-2199.02(A)”,
“topic_tags”: [
“fees”,
“reimbursement”,
“costs”
]
},
{
“question”: “Can the Board delay my hearing to give me time to fix a violation instead of hearing my appeal?”,
“short_answer”: “No, if you requested a hearing, the Board should address it rather than delaying it indefinitely.”,
“detailed_answer”: “The Board delayed the hearing to avoid issuing a final denial, hoping the homeowner would fix the issue. The ALJ ruled that while well-intentioned (“noble gesture”), this delay violated the homeowner’s right to be heard when the matter was not addressed at the monthly meetings.”,
“alj_quote”: “Therefore, although the Board was most generous in delaying the “hearing” to avoid a final decision, the matter should have been addressed in May and June at the monthly meetings and it was not.”,
“legal_basis”: “A.R.S. § 33-1803(B)”,
“topic_tags”: [
“hearings”,
“delays”,
“board conduct”
]
},
{
“question”: “Can the ALJ impose civil penalties on the HOA for their actions?”,
“short_answer”: “It is possible but was denied in this specific case.”,
“detailed_answer”: “The homeowners requested civil penalties against the HOA. The ALJ explicitly denied this request in the final order.”,
“alj_quote”: “IT IS FURTHER ORDERED denying Petitioners’ request for the imposition of a civil penalty…”,
“legal_basis”: “Administrative Discretion”,
“topic_tags”: [
“civil penalties”,
“sanctions”
]
}
]
}
Case Participants
Petitioner Side
- Aaron Solen (petitioner)
ACRE Holdings, LLC - Anh Jung (petitioner)
ACRE Holdings, LLC
Also known as Ann Young
Respondent Side
- Charles H. Oldham (HOA attorney)
CHDB Law LLP - Jennifer Partridge (property manager/witness)
CCMC
Also known as Jennifer Campbell; Executive Director for Power Ranch - Nick Ferre (property manager)
CCMC
Jennifer Partridge's supervisor - Allison Sanchez (property manager)
CCMC - Chris Ecknar (board member)
Power Ranch Community Association
Listed attendee in contested board minutes exhibit - Josh Bolen (HOA attorney)
CHDB Law LLP - Marcus R. Martinez (HOA attorney)
Carpenter Hazlewood
Listed in early transmission list with Respondent's counsel - Curtis Mark (HOA attorney)
Power Ranch Community Association
Association attorney
Neutral Parties
- Adam D. Stone (ALJ)
OAH - Susan Nicolson (commissioner)
ADRE
Other Participants
- Sherikillo (witness)
Neighbor
Confirmed petitioner's topic was raised at May 2023 board meeting