Tag Archives: Financial Records

Rainey, Chad D. v. The Garden Lakes Community Association

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Case Summary

Case ID 25F-H061-REL
Agency ADRE
Tribunal OAH
Decision Date 2025-09-01
Administrative Law Judge Kay A. Abramsohn
Outcome total
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Chad D. Rainey Counsel —
Respondent The Garden Lakes Community Association Counsel Ashley N. Turner, Esq.

Alleged Violations

ARIZ. REV. STAT. § 33-1805(A)

Outcome Summary

The Administrative Law Judge granted the Petition, finding that Garden violated ARIZ. REV. STAT. § 33-1805(A) and its Bylaws by failing to provide access to vendor invoices. The ALJ concluded that vendor invoices are financial records of the association, and the HOA's argument characterizing them as exempt 'source' or 'third-party' documents was rejected. Garden was ordered to provide access to the requested documents and reimburse the filing fee.

Key Issues & Findings

Refusal to provide vendor invoices as part of financial records

Petitioner alleged that the Association failed to fulfill his records request for vendor invoices related to specific bookkeeping accounts (including lake maintenance and annual meeting expenses) for the past 12-24 months. Respondent refused disclosure, arguing invoices were 'third-party' documents and not 'records of the Association' required to be produced under ARS § 33-1805.

Orders: Garden is ordered to comply with ARIZ. REV. STAT. § 33-1805(A) and Garden Bylaws Article VI, Section 6.13, and reasonably provide examination access to the requested documents. Respondent must reimburse Petitioner’s filing fee of $500.00.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • ARIZ. REV. STAT. § 33-1805(A)
  • Garden Bylaws Article VI, Section 6.13
  • ARIZ. REV. STAT. § 10-11601

Analytics Highlights

Topics: Records Request, Financial Records, Vendor Invoices, HOA Transparency, Bylaws Violation
Additional Citations:

  • ARIZ. REV. STAT. § 33-1805
  • ARIZ. REV. STAT. § 33-1805(A)
  • Garden Bylaws Article VI, Section 6.13
  • ARIZ. REV. STAT. § 10-11601

Audio Overview

Decision Documents

25F-H061-REL Decision – 1327389.pdf

Uploaded 2026-01-23T18:25:46 (53.6 KB)

25F-H061-REL Decision – 1332130.pdf

Uploaded 2026-01-23T18:25:50 (48.6 KB)

25F-H061-REL Decision – 1334329.pdf

Uploaded 2026-01-23T18:25:54 (47.9 KB)

25F-H061-REL Decision – 1345206.pdf

Uploaded 2026-01-23T18:25:58 (136.1 KB)





Briefing Doc – 25F-H061-REL


Briefing Document: Rainey v. The Garden Lakes Community Association

Executive Summary

This document synthesizes the proceedings and outcome of case number 25F-H061-REL, a dispute between homeowner Chad D. Rainey (Petitioner) and The Garden Lakes Community Association (Respondent) adjudicated by the Arizona Office of Administrative Hearings. The central issue was the Association’s refusal to provide copies of vendor invoices related to lake maintenance and other expenses, which were requested by the Petitioner on April 18, 2025.

The Association argued that such invoices were not “records of the Association” under Arizona law, but rather “third-party” or “source” documents that it was not obligated to disclose. The Petitioner contended that Arizona statute A.R.S. § 33-1805(A), which mandates that “all financial and other records” be made available, clearly includes these invoices.

Following an evidentiary hearing on August 4, 2025, Administrative Law Judge Kay A. Abramsohn ruled decisively in favor of the Petitioner. The final decision, issued September 1, 2025, concluded that the Association’s characterization of the invoices as “disingenuous” and found that records kept by a management company on behalf of an association are legally considered the association’s records. The judge ordered the Association to provide access to the requested invoices and reimburse the Petitioner’s $500 filing fee, establishing that an association cannot arbitrarily exclude such fundamental financial documents from member examination.

Case Overview

Detail

Description

Case Number

No. 25F-H061-REL

Petitioner

Chad D. Rainey

Respondent

The Garden Lakes Community Association

Adjudicating Body

Arizona Office of Administrative Hearings (OAH)

Presiding Judge

Administrative Law Judge Kay A. Abramsohn

Hearing Date

August 4, 2025

Decision Date

September 1, 2025

Statutes at Issue

A.R.S. § 33-1805(A)

Bylaws at Issue

Article VI, Section 6.13

Procedural History

1. Initial Concern: Beginning March 12, 2025, Mr. Rainey communicated with the community manager regarding concerns about lake quality and fish kills within the community.

2. Formal Records Request: On April 18, 2025, Mr. Rainey sent a formal email request to the Association for specific documents, including vendor invoices for lake maintenance accounts.

3. Association’s Refusal: In a letter dated May 1, 2025, the Association’s legal counsel provided some requested documents (contracts) but explicitly refused to produce any vendor invoices.

4. Petition Filed: On May 8, 2025, Mr. Rainey filed a petition with the Arizona Department of Real Estate, alleging the Association violated state law and its own bylaws.

5. Subpoena Dispute: A subpoena was issued for the Association’s Treasurer, Deborah Taylor. The Association filed a Motion to Quash on July 21, 2025, which was initially granted on July 24. However, upon reconsideration, the OAH reissued the subpoena on July 30, 2025, compelling Ms. Taylor’s virtual appearance.

6. Evidentiary Hearing: A virtual hearing was conducted via Google Meet on August 4, 2025.

7. Final Decision: On September 1, 2025, the Administrative Law Judge (ALJ) issued a final decision granting the Petitioner’s petition.

The Central Dispute: The Records Request

The core of the conflict was Mr. Rainey’s formal request for documents, specifically the Association’s refusal to provide invoices.

Petitioner’s Request (April 18, 2025)

Mr. Rainey requested access to copies of the following:

• Invoices for the past 24 months for bookkeeping accounts related to lake maintenance, including:

◦ 618 Water Feature Maintenance

◦ 66702 Lake Repairs

◦ 664 Water Feature Repairs/Maint

◦ 70705 Chemicals

◦ 72308 Lake Chemicals/Dye

◦ 724 Fish Stock

• Invoices for the past 12 months for account 56701 Annual Meeting Expense.

• Copy of the current contract with CCMC (the management company).

• Copy of the current contract for the landscape contractor.

Respondent’s Refusal (May 1, 2025)

The Association’s law firm, CHBD Law, responded by providing the CCMC and landscape contracts but refused to supply the requested invoices. The letter stated:

“[T]he Association declines to produce any documents related to your requests for invoices from various vendors or other contractors. Such third-party invoices are not ‘records of the Association’ and the Association has no obligation under Arizona law to produce or disclose thirty-party invoices. See A.R.S. § 10-11601. For this reason, the Association declines to produce any of the invoices you requested for the past 12 or 24 months.”

Key Arguments Presented at Hearing

Petitioner’s Position (Chad D. Rainey)

• Plain Language of the Law: A.R.S. § 33-1805(A) is unambiguous, stating “all financial and other records of the association shall be made reasonably available.” The term “all” is inclusive and does not permit the Association to selectively withhold records like invoices.

• Insufficiency of Available Records: The summary financial documents on the homeowner portal are inadequate for transparency, as they only list line-item totals without identifying vendors or detailing specific services performed.

• Refutation of Association’s Legal Defense:

◦ The Association’s reliance on A.R.S. § 10-11601 (corporate records) is misplaced. Paragraph F of that statute explicitly states that in a conflict, Title 33 (which governs planned communities) prevails.

◦ None of the specific exemptions listed in A.R.S. § 33-1805(B) (e.g., privileged communications, pending litigation) apply to vendor invoices.

• Governing Documents: The Association’s own bylaws (Section 6.13) require it to keep “detailed and accurate records… of the receipts and expenditures affecting the Common Areas,” which logically includes invoices.

• Motivation for Request: The request was made in good faith to understand how the Association was maintaining community lakes amid declining water quality. As Mr. Rainey stated, “I requested these specific and pointed invoices to learn about how the association maintained the lakes.”

Respondent’s Position (The Garden Lakes Community Association)

• Invoices are Not “Association Records”: The core of the defense was the assertion that invoices created by third-party vendors are not financial records of the Association. They were characterized as “source documents” that inform the financials but are not the financials themselves.

• Demonstrated Transparency: The Association argued it complies with the law by making its official financial records—such as balance sheets, statements of revenue, and budget summaries—available to all homeowners on the online portal.

• Operational Structure: The defense emphasized that invoices are not part of the Association’s ordinary records. They are handled exclusively by the management company’s accounting department, processed through a separate system called “IPS,” and are not included in the monthly financial packets reviewed by the Board of Directors.

• Statutory Interpretation: The Association contended that the statute does not specifically mention the word “invoice” and therefore does not compel their disclosure.

Key Witness Testimony

Deborah Taylor (Association Treasurer)

• Role and Responsibilities: Ms. Taylor testified that her role as Treasurer involves reviewing financial statements prepared by the management company, primarily to check for variances from the budget.

• Invoice Handling: She confirmed that neither she nor any other board member reviews, processes, or approves individual vendor invoices. This function is entirely delegated to the management company. She stated, “They [the Board] do not” review invoices and approve them for payment. When asked who does, she said, “As far as I’m I know, the management company. That’s what they’re contracted for.”

• Financial Packet: She testified that the monthly financial packet provided to the Board is over 100 pages long but does not contain copies of vendor invoices.

Stephanie Via (Community Manager, CCMC)

• Invoice Process: Ms. Via detailed the “life cycle” of an invoice. Vendors typically send invoices to CCMC’s invoicing department, which are then uploaded into a third-party system called IPS. She or others in the management company then process the payments.

• Board Approval: She testified that the Board approves expenditures based on contracts agreed upon in open meetings, not by reviewing individual invoices. For non-contractual repairs, she has a spending limit of $2,500 for emergencies.

• Online Financials: Ms. Via confirmed that the financial statements posted on the homeowner portal are summaries of about 14-15 pages and do not contain vendor names, only line-item categories. When asked if a homeowner could see who was paid, she responded, “It doesn’t have vendor names, but it has line items that pertain to lake maintenance or landscape.”

Administrative Law Judge’s Decision and Order

The ALJ’s final decision sided entirely with the Petitioner, rejecting the Association’s arguments and interpretation of the law.

Findings and Conclusions

• Records Held by Agent are Association Records: The decision established that “Garden’s financial documents are prepared by, and kept in the custody of, Garden’s property management company and, thus, are considered to be Garden’s documents.” An association cannot evade its disclosure obligations by delegating record-keeping to a third party.

• Rejection of “Source Document” Argument: The ALJ found the Association’s attempt to reclassify the invoices to be without merit, stating, “Garden’s portrayal of requested documents as ‘executive,’ ‘third-party,’ or ‘source’ is disingenuous.”

• Plain Meaning of Statute and Bylaws: The decision affirmed that A.R.S. § 33-1805’s use of “all financial and other records” is comprehensive. Furthermore, the Association’s own bylaws require “detailed and accurate records” of expenditures, which invoices represent.

• Violation Confirmed: The judge concluded that the Petitioner had sustained his burden of proof and that the Association violated both A.R.S. § 33-1805(A) and its own Bylaws (Article VI, Section 6.13) by failing to provide the requested records.

Final Order

1. The Petitioner, Chad D. Rainey, is declared the prevailing party and his Petition is GRANTED.

2. The Garden Lakes Community Association is ordered to comply with the law and reasonably provide examination access to the requested documents.

3. The Association is ordered to reimburse the Petitioner’s filing fee of $500.00.

4. No civil penalty was found to be appropriate in the matter.


Case Participants

Petitioner Side

  • Chad D. Rainey (petitioner)
    Self-represented at hearing

Respondent Side

  • Ashley N. Turner (HOA attorney)
    CHBD Law
  • Deborah Taylor (Treasurer/Board Member/Witness)
    The Garden Lakes Community Association
    Respondent's Treasurer/Board Member; presented testimony for Garden
  • Stephanie Via (Community Manager/Witness)
    CCMC Capital Consulting Property Management
    Also referred to as Stephanie Villa in findings. Presented testimony for Garden.
  • Joshua Bolen (Attorney)
    CHBD Law
    Electronic recipient of OAH documents
  • Theresa Laubenthal (Staff)
    CHBD Law
    Electronic recipient of OAH documents

Neutral Parties

  • Kay A. Abramsohn (ALJ)
    Office of Administrative Hearings
  • Susan Nicolson (Commissioner)
    Arizona Department of Real Estate

Other Participants

  • Madison Raider (Observer)
    CHBD Law
    Summer associate observing the hearing
  • Sebastian Shuya (Observer)
    CHBD Law
    Summer associate observing the hearing
  • V. Nunez (ADRE Staff)
    Arizona Department of Real Estate
    Electronic recipient of OAH documents (derived from email [email protected]),,,
  • D. Jones (ADRE Staff)
    Arizona Department of Real Estate
    Electronic recipient of OAH documents (derived from email [email protected]),,,
  • L. Abril (ADRE Staff)
    Arizona Department of Real Estate
    Electronic recipient of OAH documents (derived from email [email protected]),,,
  • M. Neat (ADRE Staff)
    Arizona Department of Real Estate
    Electronic recipient of OAH documents (derived from email [email protected]),,,
  • L. Recchia (ADRE Staff)
    Arizona Department of Real Estate
    Electronic recipient of OAH documents (derived from email [email protected]),,,
  • G. Osborn (ADRE Staff)
    Arizona Department of Real Estate
    Electronic recipient of OAH documents (derived from email [email protected]),,,

John R Krahn Living Trust & Janet Krahn Living Trust v. Tonto Forest

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Case Summary

Case ID 24F-H013-REL
Agency ADRE
Tribunal OAH
Decision Date 2023-12-19
Administrative Law Judge Brian Del Vecchio
Outcome partial
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner John R Krahn Living Trust & Janet Krahn Living Trust Counsel —
Respondent Tonto Forest Estates Homeowners Association Counsel —

Alleged Violations

ARIZ. REV. STAT. § 33-1805

Outcome Summary

The Administrative Law Judge affirmed the Petitioner's petition, finding the Respondent violated ARIZ. REV. STAT. § 33-1805 by failing to provide requested financial records (check registers) within the mandated ten business days. The request for civil penalties was denied, but the Respondent was ordered to reimburse the $500.00 filing fee.

Why this result: Petitioner failed to provide sufficient evidence that Respondent's actions warranted the issuance of civil penalties.

Key Issues & Findings

Failure to provide association financial records (check registers) within 10 business days

Respondent failed to provide the requested check registers within the ten business day statutory requirement for requests made on December 1, 2022, and July 26, 2023. The first request was fulfilled on April 6, 2023, and the second on November 21, 2023.

Orders: The Administrative Law Judge affirmed the petition, concluded Respondent violated ARS § 33-1805, and ordered Respondent to reimburse Petitioner the $500.00 filing fee.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • ARIZ. REV. STAT. § 33-1805
  • ARIZ. REV. STAT. § 32-2199.02(A)

Analytics Highlights

Topics: HOA Records Request, Financial Records, Check Register, Timeliness Violation, Civil Penalties Denied
Additional Citations:

  • ARIZ. REV. STAT. § 33-1805
  • ARIZ. REV. STAT. § 32-2199.02(A)
  • ARIZ. REV. STAT. § 32-2199.05
  • ARIZ. REV. STAT. § 41-1092 et seq.

Video Overview

Audio Overview

Decision Documents

24F-H013-REL Decision – 1115590.pdf

Uploaded 2026-01-23T18:02:05 (57.6 KB)

24F-H013-REL Decision – 1125702.pdf

Uploaded 2026-01-23T18:02:10 (127.1 KB)





Study Guide – 24F-H013-REL


{ “case”: { “docket_no”: “24F-H013-REL”, “case_title”: “John R Krahn Living Trust & Janet Krahn Living Trust v Tonto Forest Estates Homeowners Association”, “decision_date”: “2023-12-19”, “alj_name”: “Brian Del Vecchio”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “Is a check register considered an official financial record that an HOA must provide upon request?”, “short_answer”: “Yes. The decision confirms that check registers are undisputed financial records under Arizona law.”, “detailed_answer”: “The Administrative Law Judge ruled that a check register qualifies as a financial record. Consequently, homeowners are entitled to review these documents when requested under A.R.S. § 33-1805.”, “alj_quote”: “It was undisputed that a check register is a financial record within the meaning of ARIZ. REV. STAT. § 33-1805. Thus, Mr. Krahn was entitled to the requested financial record.”, “legal_basis”: “A.R.S. § 33-1805”, “topic_tags”: [ “records request”, “financial records”, “check register” ] }, { “question”: “How many days does the HOA have to fulfill my request to inspect records?”, “short_answer”: “The HOA has ten business days to fulfill a request for examination.”, “detailed_answer”: “Arizona statute mandates a specific timeframe for HOAs to comply with record requests. Failure to provide access within ten business days constitutes a violation of the statute.”, “alj_quote”: “The association shall have ten business days to fulfill a request for examination.”, “legal_basis”: “A.R.S. § 33-1805(A)”, “topic_tags”: [ “deadlines”, “records request”, “compliance” ] }, { “question”: “Can the HOA charge me a fee just to review the records?”, “short_answer”: “No. The HOA cannot charge a member for making material available for review.”, “detailed_answer”: “While the HOA can charge for copies (up to fifteen cents per page), they are explicitly prohibited from charging a fee for the act of making materials available for a member’s review.”, “alj_quote”: “The association shall not charge a member or any person designated by the member in writing for making material available for review… An association may charge a fee for making copies of not more than fifteen cents per page.”, “legal_basis”: “A.R.S. § 33-1805(A)”, “topic_tags”: [ “fees”, “records request”, “homeowner rights” ] }, { “question”: “If the HOA eventually provides the records months later, is it still a violation?”, “short_answer”: “Yes. Providing records after the ten-business-day deadline is considered a violation of the statute.”, “detailed_answer”: “Even if the HOA fulfills the request eventually, missing the ten-day statutory window establishes a violation. In this case, delays of several months were deemed violations despite the records ultimately being provided.”, “alj_quote”: “Both requests were fulfilled beyond the ten business day statutory requirement. Therefore, the Administrative Law Judge concludes that Respondent’s conduct… was in violation of the charged provision of ARIZ. REV. STAT. § 33-1805.”, “legal_basis”: “A.R.S. § 33-1805”, “topic_tags”: [ “compliance”, “deadlines”, “violations” ] }, { “question”: “If I win my case against the HOA, will I get my filing fee back?”, “short_answer”: “Yes. If the petitioner prevails, the judge must order the HOA to reimburse the filing fee.”, “detailed_answer”: “Reimbursement of the filing fee is mandatory under A.R.S. § 32-2199.02(A) when the homeowner prevails in the hearing.”, “alj_quote”: “If the petitioner prevails, the administrative law judge shall order the respondent to pay to the petitioner the filing fee required by section 32-2199.01.”, “legal_basis”: “A.R.S. § 32-2199.02(A)”, “topic_tags”: [ “filing fees”, “reimbursement”, “legal costs” ] }, { “question”: “Will the judge automatically fine the HOA (civil penalties) if they are found in violation?”, “short_answer”: “No. Civil penalties are not automatic; the homeowner must provide sufficient evidence that the HOA’s actions warrant them.”, “detailed_answer”: “While the judge has the authority to levy civil penalties for each violation, they may deny them if the petitioner fails to provide sufficient evidence justifying such penalties, even if a statutory violation is proven.”, “alj_quote”: “Petitioner failed to provide sufficient evidence that Respondent’s actions warranted the issuance of civil penalties… Thus, civil penalties ought to be denied.”, “legal_basis”: “A.R.S. § 32-2199.02(A)”, “topic_tags”: [ “civil penalties”, “fines”, “enforcement” ] }, { “question”: “Who has the burden of proof in an HOA dispute hearing?”, “short_answer”: “The homeowner (petitioner) bears the burden of proving the violation.”, “detailed_answer”: “The party bringing the complaint must prove their case by a ‘preponderance of the evidence,’ meaning they must show it is more likely than not that the HOA violated the statute.”, “alj_quote”: “In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated ARIZ. REV. STAT. § 33-1805.”, “legal_basis”: “Ariz. Admin. Code R2-19-119”, “topic_tags”: [ “burden of proof”, “procedure”, “evidence” ] }, { “question”: “Can the HOA simply tell me the records are on an online portal if they aren’t actually there?”, “short_answer”: “No. Incorrectly stating records are on a portal does not satisfy the requirement if the records are not actually available.”, “detailed_answer”: “In this case, the HOA claimed records were available online, but the homeowner proved they were not. The ALJ found the HOA in violation for failing to provide the records within the statutory time, regardless of the portal claims.”, “alj_quote”: “Respondent… stated he must submit a written request by certified mail and reiterated the financial documents were available through the online portal. At the time, the check registers were not available through the online portal… the Administrative Law Judge concludes that Respondent’s conduct… was in violation”, “legal_basis”: “A.R.S. § 33-1805”, “topic_tags”: [ “online portal”, “access to records”, “bad faith” ] } ] }






Blog Post – 24F-H013-REL


{ “case”: { “docket_no”: “24F-H013-REL”, “case_title”: “John R Krahn Living Trust & Janet Krahn Living Trust v Tonto Forest Estates Homeowners Association”, “decision_date”: “2023-12-19”, “alj_name”: “Brian Del Vecchio”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “Is a check register considered an official financial record that an HOA must provide upon request?”, “short_answer”: “Yes. The decision confirms that check registers are undisputed financial records under Arizona law.”, “detailed_answer”: “The Administrative Law Judge ruled that a check register qualifies as a financial record. Consequently, homeowners are entitled to review these documents when requested under A.R.S. § 33-1805.”, “alj_quote”: “It was undisputed that a check register is a financial record within the meaning of ARIZ. REV. STAT. § 33-1805. Thus, Mr. Krahn was entitled to the requested financial record.”, “legal_basis”: “A.R.S. § 33-1805”, “topic_tags”: [ “records request”, “financial records”, “check register” ] }, { “question”: “How many days does the HOA have to fulfill my request to inspect records?”, “short_answer”: “The HOA has ten business days to fulfill a request for examination.”, “detailed_answer”: “Arizona statute mandates a specific timeframe for HOAs to comply with record requests. Failure to provide access within ten business days constitutes a violation of the statute.”, “alj_quote”: “The association shall have ten business days to fulfill a request for examination.”, “legal_basis”: “A.R.S. § 33-1805(A)”, “topic_tags”: [ “deadlines”, “records request”, “compliance” ] }, { “question”: “Can the HOA charge me a fee just to review the records?”, “short_answer”: “No. The HOA cannot charge a member for making material available for review.”, “detailed_answer”: “While the HOA can charge for copies (up to fifteen cents per page), they are explicitly prohibited from charging a fee for the act of making materials available for a member’s review.”, “alj_quote”: “The association shall not charge a member or any person designated by the member in writing for making material available for review… An association may charge a fee for making copies of not more than fifteen cents per page.”, “legal_basis”: “A.R.S. § 33-1805(A)”, “topic_tags”: [ “fees”, “records request”, “homeowner rights” ] }, { “question”: “If the HOA eventually provides the records months later, is it still a violation?”, “short_answer”: “Yes. Providing records after the ten-business-day deadline is considered a violation of the statute.”, “detailed_answer”: “Even if the HOA fulfills the request eventually, missing the ten-day statutory window establishes a violation. In this case, delays of several months were deemed violations despite the records ultimately being provided.”, “alj_quote”: “Both requests were fulfilled beyond the ten business day statutory requirement. Therefore, the Administrative Law Judge concludes that Respondent’s conduct… was in violation of the charged provision of ARIZ. REV. STAT. § 33-1805.”, “legal_basis”: “A.R.S. § 33-1805”, “topic_tags”: [ “compliance”, “deadlines”, “violations” ] }, { “question”: “If I win my case against the HOA, will I get my filing fee back?”, “short_answer”: “Yes. If the petitioner prevails, the judge must order the HOA to reimburse the filing fee.”, “detailed_answer”: “Reimbursement of the filing fee is mandatory under A.R.S. § 32-2199.02(A) when the homeowner prevails in the hearing.”, “alj_quote”: “If the petitioner prevails, the administrative law judge shall order the respondent to pay to the petitioner the filing fee required by section 32-2199.01.”, “legal_basis”: “A.R.S. § 32-2199.02(A)”, “topic_tags”: [ “filing fees”, “reimbursement”, “legal costs” ] }, { “question”: “Will the judge automatically fine the HOA (civil penalties) if they are found in violation?”, “short_answer”: “No. Civil penalties are not automatic; the homeowner must provide sufficient evidence that the HOA’s actions warrant them.”, “detailed_answer”: “While the judge has the authority to levy civil penalties for each violation, they may deny them if the petitioner fails to provide sufficient evidence justifying such penalties, even if a statutory violation is proven.”, “alj_quote”: “Petitioner failed to provide sufficient evidence that Respondent’s actions warranted the issuance of civil penalties… Thus, civil penalties ought to be denied.”, “legal_basis”: “A.R.S. § 32-2199.02(A)”, “topic_tags”: [ “civil penalties”, “fines”, “enforcement” ] }, { “question”: “Who has the burden of proof in an HOA dispute hearing?”, “short_answer”: “The homeowner (petitioner) bears the burden of proving the violation.”, “detailed_answer”: “The party bringing the complaint must prove their case by a ‘preponderance of the evidence,’ meaning they must show it is more likely than not that the HOA violated the statute.”, “alj_quote”: “In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated ARIZ. REV. STAT. § 33-1805.”, “legal_basis”: “Ariz. Admin. Code R2-19-119”, “topic_tags”: [ “burden of proof”, “procedure”, “evidence” ] }, { “question”: “Can the HOA simply tell me the records are on an online portal if they aren’t actually there?”, “short_answer”: “No. Incorrectly stating records are on a portal does not satisfy the requirement if the records are not actually available.”, “detailed_answer”: “In this case, the HOA claimed records were available online, but the homeowner proved they were not. The ALJ found the HOA in violation for failing to provide the records within the statutory time, regardless of the portal claims.”, “alj_quote”: “Respondent… stated he must submit a written request by certified mail and reiterated the financial documents were available through the online portal. At the time, the check registers were not available through the online portal… the Administrative Law Judge concludes that Respondent’s conduct… was in violation”, “legal_basis”: “A.R.S. § 33-1805”, “topic_tags”: [ “online portal”, “access to records”, “bad faith” ] } ] }


Case Participants

Petitioner Side

  • John R Krahn (petitioner)
    John R Krahn Living Trust & Janet Krahn Living Trust
    Trustee and Hearing Representative for Petitioner
  • Janet Krahn (petitioner)
    John R Krahn Living Trust & Janet Krahn Living Trust

Respondent Side

  • Steve Gower (HOA president)
    Tonto Forest Estates Homeowners Association
    Respondent representative at hearing
  • Kurt Meister (board member)
    Tonto Forest Estates Homeowners Association
    Former Board President who filed initial response
  • Melissa Jordan (property manager)
    Ogden Community Management
    Former Community Manager who handled early communication (also referred to as 'Melissa')
  • Dan Francom (HOA attorney)
    Attorney for HOA (Tonto Forest Estates)
  • Barbara (property manager)
    Ogden Community Management
    Current Community Manager (referred to by first name only)
  • Ken (board member)
    Tonto Forest Estates Homeowners Association
    Board member (referred to by first name only)
  • Todd (board member)
    Tonto Forest Estates Homeowners Association
    Board member (referred to by first name only)
  • Jean (former board member)
    Tonto Forest Estates Homeowners Association
    Former board member (referred to by first name only)

Neutral Parties

  • Brian Del Vecchio (ALJ)
    OAH
    Administrative Law Judge for the hearing and decision
  • Velva Moses-Thompson (ALJ)
    OAH
    Administrative Law Judge who signed the initial Order
  • Susan Nicolson (Commissioner)
    ADRE
  • AHansen (ADRE staff)
    ADRE
    Recipient of official correspondence
  • vnunez (ADRE staff)
    ADRE
    Recipient of official correspondence
  • djones (ADRE staff)
    ADRE
    Recipient of official correspondence
  • labril (ADRE staff)
    ADRE
    Recipient of official correspondence
  • Diane Mahowski (ALJ)
    OAH
    Referenced in prior ALJ ruling cited as precedent
  • Lang (ALJ)
    OAH
    Referenced in prior ALJ ruling cited as precedent (last name only)

Other Participants

  • Michael Holland (party)
    Referenced as a party in a prior ADR dispute regarding records
  • Dennis Lair (HOA law advocate)
    Arizona Homeowners Coalition
    Referenced expert/advocate

Deanna Smith v. Moondance Townhomes Homeowners Association

Posted on by

Case Summary

Case ID 23F-H049-REL
Agency ADRE
Tribunal OAH
Decision Date 2023-06-06
Administrative Law Judge Brian Del Vecchio
Outcome partial
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Deanna Smith Counsel —
Respondent Moondance Townhomes Homeowners Association Counsel Christina Morgan

Alleged Violations

ARIZ. REV. STAT. § 33-1805

Outcome Summary

The ALJ affirmed the petition, finding the HOA violated ARIZ. REV. STAT. § 33-1805 by failing to provide complete financial statements (including balance sheets and statements of cash flows) to the Petitioner upon request. The HOA was ordered to provide the missing financial statements and reimburse the $500 filing fee. A civil penalty was denied.

Key Issues & Findings

Failure to provide association financial records upon member request.

The Petitioner alleged that the Association failed to comply with her request for financial records dated December 15, 2022, pursuant to ARS § 33-1805. The Association provided only Profit & Loss statements on January 12, 2023, but failed to provide other requisite financial documents, such as balance sheets, statements of cash flows, or statements of income, as defined by ARS § 32-701. The failure to fulfill the request for financial statements constituted a violation.

Orders: The petition was affirmed. Respondent was ordered to reimburse the Petitioner's filing fee of $500.00 pursuant to ARIZ. REV. STAT. § 32-2199.02(A). Respondent was ordered to provide financial statements, as defined by ARIZ. REV. STAT. § 32-701, for the months of August 2022 through December 2022 pursuant to ARIZ. REV. STAT. § 33-1805. Petitioner's request for a civil penalty was denied.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • ARIZ. REV. STAT. § 33-1805
  • ARIZ. REV. STAT. § 32-701
  • ARIZ. REV. STAT. § 32-2199.02(A)

Analytics Highlights

Topics: Financial Records, Statutory Compliance, Record Request Delay, Filing Fee Reimbursement, HOA Board Member
Additional Citations:

  • ARIZ. REV. STAT. § 33-1805
  • ARIZ. REV. STAT. § 32-701
  • ARIZ. REV. STAT. § 32-2199.02(A)
  • ARIZ. REV. STAT. § 32-2199.05
  • ARIZ. REV. STAT. § 32-2102
  • ARIZ. REV. STAT. § 32-2199 et seq.
  • ARIZ. REV. STAT. § 32-2199(2)
  • ARIZ. REV. STAT. § 32-2199.01(A)
  • ARIZ. REV. STAT. § 32-2199.01(D)
  • ARIZ. REV. STAT. § 32-2199.02
  • ARIZ. REV. STAT. § 41-1092 et seq.

Video Overview

Audio Overview

Decision Documents

23F-H049-REL Decision – 1062328.pdf

Uploaded 2026-01-23T17:57:27 (149.9 KB)

Questions

Question

If I request 'financial statements' from my HOA, is it enough for them to just send a Profit and Loss statement?

Short Answer

No. A request for 'financial statements' implies more than just a Profit and Loss statement, and the HOA must provide the full range of documents defined by law.

Detailed Answer

The ALJ determined that providing only a Profit and Loss statement is insufficient when a homeowner requests 'financial statements.' The term encompasses a broader set of documents, including balance sheets and statements of cash flows, which must be provided to fully satisfy the request.

Alj Quote

Because Petitioner requested financial statements for the same period after receiving the Profit and Loss statements, implicit in her request was the understanding merely providing the Profit and Loss statement was insufficient to satisfy her request for financial statements.

Legal Basis

ARIZ. REV. STAT. § 32-701; ARIZ. REV. STAT. § 33-1805

Topic Tags

  • financial records
  • definitions
  • HOA obligations

Question

What specific documents does the law include in the definition of 'financial statements'?

Short Answer

The definition includes balance sheets, statements of income, retained earnings, cash flows, changes in equity, and other standard summaries.

Detailed Answer

Arizona law defines 'Financial Statement' broadly. It is not limited to a single report but includes statements and footnotes showing financial position in conformity with accounting principles.

Alj Quote

In Arizona, “Financial Statement… (b) Includes balance sheets, statements of income, statements of retained earnings, statements of cash flows, statements of changes in equity and other commonly used or recognized summaries of financial information.”

Legal Basis

ARIZ. REV. STAT. § 32-701

Topic Tags

  • financial records
  • definitions
  • accounting

Question

How quickly must my HOA respond to my request to examine records?

Short Answer

The HOA has ten business days to fulfill a request for examination or to provide copies.

Detailed Answer

The statute explicitly sets a ten-business-day deadline for the association to fulfill a request for examination or to provide copies of requested records.

Alj Quote

The association shall have ten business days to fulfill a request for examination. … On request for purchase of copies of records… the association shall have ten business days to provide copies of the requested records.

Legal Basis

ARIZ. REV. STAT. § 33-1805

Topic Tags

  • deadlines
  • procedural requirements
  • homeowner rights

Question

Can the HOA tell me to find the records on a Google Drive or website instead of sending them to me?

Short Answer

Only if the records are actually there and accessible. Directing a homeowner to an empty or incomplete digital folder does not count as providing access.

Detailed Answer

In this case, the HOA President directed the homeowner to a Google Drive, but the Treasurer later admitted the specific documents requested were never uploaded. The ALJ ruled that because the documents were not on the drive, the homeowner was not supplied with access.

Alj Quote

Furthermore, although President directed Petitioner to search the Google Drive for the documents, Treasurer admitted on January 23, 2023, that the documents Petitioner was seeking were never on the drive. Thus, Petitioner was neither supplied nor had access to obtain the requisite financial statements.

Legal Basis

ARIZ. REV. STAT. § 33-1805

Topic Tags

  • digital access
  • compliance
  • records request

Question

Can the HOA charge me a fee for looking at the records?

Short Answer

No. The HOA cannot charge for making material available for review, though they can charge for copies.

Detailed Answer

The law prohibits charging a member for the act of making material available for review. However, if the member requests copies, the association may charge a fee for those copies.

Alj Quote

The association shall not charge a member or any person designated by the member in writing for making material available for review. … An association may charge a fee for making copies of not more than fifteen cents per page.

Legal Basis

ARIZ. REV. STAT. § 33-1805

Topic Tags

  • fees
  • homeowner rights
  • costs

Question

If I win my hearing against the HOA, will I get my filing fee back?

Short Answer

Yes. If the petitioner prevails, the judge is required to order the respondent to reimburse the filing fee.

Detailed Answer

The statute mandates that if the homeowner (petitioner) prevails in the hearing, the administrative law judge must order the HOA (respondent) to pay the filing fee back to the homeowner.

Alj Quote

If the petitioner prevails, the administrative law judge shall order the respondent to pay to the petitioner the filing fee required by section 32-2199.01.

Legal Basis

ARIZ. REV. STAT. § 32-2199.02(A)

Topic Tags

  • reimbursement
  • outcomes
  • filing fees

Question

Will the judge automatically fine the HOA if they violated the records law?

Short Answer

No. While the judge has the authority to levy a civil penalty, it is not mandatory, and they may choose to deny a request for a penalty.

Detailed Answer

The ALJ has the discretion to levy a civil penalty but is not required to do so. In this case, although a violation was found, the judge explicitly denied the request to levy a civil penalty against the HOA.

Alj Quote

The administrative law judge… may levy a civil penalty on the basis of each violation… IT IS FURTHER ORDERED that Petitioner’s request to levy a civil penalty against Respondent is denied.

Legal Basis

ARIZ. REV. STAT. § 32-2199.02(A)

Topic Tags

  • penalties
  • civil penalty
  • judgement

Case

Docket No
23F-H049-REL
Case Title
Deanna Smith v Moondance Townhomes Homeowners Association
Decision Date
2023-06-06
Alj Name
Brian Del Vecchio
Tribunal
OAH
Agency
ADRE

Questions

Question

If I request 'financial statements' from my HOA, is it enough for them to just send a Profit and Loss statement?

Short Answer

No. A request for 'financial statements' implies more than just a Profit and Loss statement, and the HOA must provide the full range of documents defined by law.

Detailed Answer

The ALJ determined that providing only a Profit and Loss statement is insufficient when a homeowner requests 'financial statements.' The term encompasses a broader set of documents, including balance sheets and statements of cash flows, which must be provided to fully satisfy the request.

Alj Quote

Because Petitioner requested financial statements for the same period after receiving the Profit and Loss statements, implicit in her request was the understanding merely providing the Profit and Loss statement was insufficient to satisfy her request for financial statements.

Legal Basis

ARIZ. REV. STAT. § 32-701; ARIZ. REV. STAT. § 33-1805

Topic Tags

  • financial records
  • definitions
  • HOA obligations

Question

What specific documents does the law include in the definition of 'financial statements'?

Short Answer

The definition includes balance sheets, statements of income, retained earnings, cash flows, changes in equity, and other standard summaries.

Detailed Answer

Arizona law defines 'Financial Statement' broadly. It is not limited to a single report but includes statements and footnotes showing financial position in conformity with accounting principles.

Alj Quote

In Arizona, “Financial Statement… (b) Includes balance sheets, statements of income, statements of retained earnings, statements of cash flows, statements of changes in equity and other commonly used or recognized summaries of financial information.”

Legal Basis

ARIZ. REV. STAT. § 32-701

Topic Tags

  • financial records
  • definitions
  • accounting

Question

How quickly must my HOA respond to my request to examine records?

Short Answer

The HOA has ten business days to fulfill a request for examination or to provide copies.

Detailed Answer

The statute explicitly sets a ten-business-day deadline for the association to fulfill a request for examination or to provide copies of requested records.

Alj Quote

The association shall have ten business days to fulfill a request for examination. … On request for purchase of copies of records… the association shall have ten business days to provide copies of the requested records.

Legal Basis

ARIZ. REV. STAT. § 33-1805

Topic Tags

  • deadlines
  • procedural requirements
  • homeowner rights

Question

Can the HOA tell me to find the records on a Google Drive or website instead of sending them to me?

Short Answer

Only if the records are actually there and accessible. Directing a homeowner to an empty or incomplete digital folder does not count as providing access.

Detailed Answer

In this case, the HOA President directed the homeowner to a Google Drive, but the Treasurer later admitted the specific documents requested were never uploaded. The ALJ ruled that because the documents were not on the drive, the homeowner was not supplied with access.

Alj Quote

Furthermore, although President directed Petitioner to search the Google Drive for the documents, Treasurer admitted on January 23, 2023, that the documents Petitioner was seeking were never on the drive. Thus, Petitioner was neither supplied nor had access to obtain the requisite financial statements.

Legal Basis

ARIZ. REV. STAT. § 33-1805

Topic Tags

  • digital access
  • compliance
  • records request

Question

Can the HOA charge me a fee for looking at the records?

Short Answer

No. The HOA cannot charge for making material available for review, though they can charge for copies.

Detailed Answer

The law prohibits charging a member for the act of making material available for review. However, if the member requests copies, the association may charge a fee for those copies.

Alj Quote

The association shall not charge a member or any person designated by the member in writing for making material available for review. … An association may charge a fee for making copies of not more than fifteen cents per page.

Legal Basis

ARIZ. REV. STAT. § 33-1805

Topic Tags

  • fees
  • homeowner rights
  • costs

Question

If I win my hearing against the HOA, will I get my filing fee back?

Short Answer

Yes. If the petitioner prevails, the judge is required to order the respondent to reimburse the filing fee.

Detailed Answer

The statute mandates that if the homeowner (petitioner) prevails in the hearing, the administrative law judge must order the HOA (respondent) to pay the filing fee back to the homeowner.

Alj Quote

If the petitioner prevails, the administrative law judge shall order the respondent to pay to the petitioner the filing fee required by section 32-2199.01.

Legal Basis

ARIZ. REV. STAT. § 32-2199.02(A)

Topic Tags

  • reimbursement
  • outcomes
  • filing fees

Question

Will the judge automatically fine the HOA if they violated the records law?

Short Answer

No. While the judge has the authority to levy a civil penalty, it is not mandatory, and they may choose to deny a request for a penalty.

Detailed Answer

The ALJ has the discretion to levy a civil penalty but is not required to do so. In this case, although a violation was found, the judge explicitly denied the request to levy a civil penalty against the HOA.

Alj Quote

The administrative law judge… may levy a civil penalty on the basis of each violation… IT IS FURTHER ORDERED that Petitioner’s request to levy a civil penalty against Respondent is denied.

Legal Basis

ARIZ. REV. STAT. § 32-2199.02(A)

Topic Tags

  • penalties
  • civil penalty
  • judgement

Case

Docket No
23F-H049-REL
Case Title
Deanna Smith v Moondance Townhomes Homeowners Association
Decision Date
2023-06-06
Alj Name
Brian Del Vecchio
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • Deanna Smith (petitioner, board member)
    Moondance Townhomes Homeowners Association

Respondent Side

  • Christina Morgan (HOA attorney)
    Vingham
  • George Minter (President, board member, witness)
    Moondance Townhomes Homeowners Association
  • Linda Dieball (Treasurer, board member)
    Moondance Townhomes Homeowners Association

Neutral Parties

  • Brian Del Vecchio (ALJ)
    Office of Administrative Hearings
  • Susan Nicolson (Commissioner)
    Arizona Department of Real Estate
  • AHansen (ADRE staff)
    Arizona Department of Real Estate
  • vnunez (ADRE staff)
    Arizona Department of Real Estate
  • djones (ADRE staff)
    Arizona Department of Real Estate
  • labril (ADRE staff)
    Arizona Department of Real Estate

Deborah Masear v. Paradise Park Condominiums Phase II Homeowners

Posted on by

Case Summary

Case ID 22F-H2222057-REL
Agency ADRE
Tribunal OAH
Decision Date 2022-10-05
Administrative Law Judge Velva Moses-Thompson
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Deborah Mesear Counsel —
Respondent Paradise Park Condominiums Phase II Homeowners Association Counsel Ashley N. Moscarello, Esq.

Alleged Violations

A.R.S. § 33-1243(J)

Outcome Summary

The petition filed by the homeowner against the HOA was dismissed because the homeowner failed to prove the HOA violated A.R.S. § 33-1243(J) regarding financial reporting.

Why this result: The Petitioner failed to establish that the Association violated the applicable statute by a preponderance of the evidence, resulting in the dismissal of the petition.

Key Issues & Findings

Violation of HOA statutory duty to provide annual financial reports (audit, review, or compilation)

Petitioner alleged the HOA failed to share an annual audit/compilation for 2017-2021. The ALJ found the HOA provided financial compilations for 2017-2020 after the petition was filed. The claim regarding 2021 was found to be premature because the financial compilation was not yet due when the petition was filed on May 29, 2022.

Orders: The petition is dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 33-1243(J)
  • A.R.S. § 33-1810

Analytics Highlights

Topics: Condominium Act, Financial Records, Compilation, Statutory Compliance, HOA Management
Additional Citations:

  • A.R.S. § 33-1243(J)
  • A.R.S. § 33-1810
  • A.R.S. § 32-2199(1)
  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.09

Video Overview

Audio Overview

Decision Documents

22F-H2222057-REL Decision – 1003891.pdf

Uploaded 2026-01-23T17:48:33 (95.1 KB)

22F-H2222057-REL Decision – 988206.pdf

Uploaded 2026-01-23T17:48:37 (57.1 KB)

22F-H2222057-REL Decision – 989133.pdf

Uploaded 2026-01-23T17:48:39 (50.1 KB)

22F-H2222057-REL Decision – 994978.pdf

Uploaded 2026-01-23T17:48:42 (50.8 KB)

Questions

Question

Is my condo HOA legally required to perform a full financial audit every year?

Short Answer

Not necessarily; a review or compilation is often sufficient unless the governing documents specifically require an audit.

Detailed Answer

Under Arizona law for condominiums, an association is not required to perform a full audit unless the specific condominium documents demand it. The law allows for an audit, a review, or a compilation.

Alj Quote

Unless any provision in the condominium documents requires an annual audit by a certified public accountant, the board of directors shall provide for an annual financial audit, review or compilation of the association.

Legal Basis

A.R.S. § 33-1243(J)

Topic Tags

  • Financial Reports
  • Audits
  • HOA Obligations

Question

What is the deadline for the HOA to complete the annual financial report?

Short Answer

The report must be completed no later than 180 days after the end of the fiscal year.

Detailed Answer

The association has a statutory window of 180 days following the close of the fiscal year to complete the required financial audit, review, or compilation.

Alj Quote

The audit, review or compilation shall be completed no later than one hundred eighty days after the end of the association's fiscal year

Legal Basis

A.R.S. § 33-1243(J)

Topic Tags

  • Deadlines
  • Financial Reports
  • Procedural Requirements

Question

Once the financial report is finished, how soon must the HOA provide it to me?

Short Answer

The HOA must make it available within 30 days of its completion upon request.

Detailed Answer

After the financial document (audit, review, or compilation) is completed, the association is legally obligated to make it available to unit owners who request it within a 30-day window.

Alj Quote

and shall be made available on request to the unit owners within thirty days after its completion.

Legal Basis

A.R.S. § 33-1243(J)

Topic Tags

  • Homeowner Rights
  • Transparency
  • Financial Reports

Question

Can I file a complaint against my HOA for failing to provide a financial report before the 180-day deadline has passed?

Short Answer

No, a complaint filed before the deadline is considered premature (not ripe).

Detailed Answer

If a homeowner files a petition regarding a missing financial report before the statutory 180-day period has elapsed, the issue is not yet ripe for adjudication because the obligation is not yet due.

Alj Quote

Moreover, the issue of whether the Association complied with A.R.S. section 33-1243 for year 2021 was not yet ripe at the time that Ms. Mesear filed her May 29, 2022 petition, because a financial compilation was not yet due.

Legal Basis

Ripeness Doctrine

Topic Tags

  • Legal Procedures
  • Filing Disputes
  • Deadlines

Question

Who is responsible for proving that the HOA violated the law in a hearing?

Short Answer

The homeowner (Petitioner) bears the burden of proof.

Detailed Answer

In an administrative hearing regarding HOA disputes, the petitioner must prove their case by a preponderance of the evidence.

Alj Quote

Petitioner bears the burden of proof to establish that Respondent violated the A.R.S. section 33-1243(J) by a preponderance of the evidence.

Legal Basis

Burden of Proof

Topic Tags

  • Legal Standards
  • Hearing Procedures

Question

What standard of proof is used in these administrative hearings?

Short Answer

Preponderance of the evidence.

Detailed Answer

This standard requires evidence that is sufficient to incline a fair and impartial mind to one side rather than the other, making the contention more probably true than not.

Alj Quote

A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.

Legal Basis

Evidentiary Standard

Topic Tags

  • Legal Standards
  • Evidence

Question

If I live in a condominium, can I cite the Planned Communities statutes (A.R.S. § 33-1810) in my complaint?

Short Answer

No, condominiums are governed by the Condominium Act, specifically A.R.S. § 33-1243(J) for financials.

Detailed Answer

While the requirements may be similar, the specific statute for planned communities does not apply to condominiums. Condominium owners must cite the applicable Condominium Act statutes.

Alj Quote

A.R.S. section 33-1810 applies to planned communities and does not apply to the Association. However, A.R.S. section 33-1243(J) applies to condominiums

Legal Basis

A.R.S. § 33-1243(J)

Topic Tags

  • Jurisdiction
  • Statutes
  • Condominiums

Case

Docket No
22F-H2222057-REL
Case Title
Deborah Mesear vs Paradise Park Condominiums Phase II Homeowners Association
Decision Date
2022-10-05
Alj Name
Velva Moses-Thompson
Tribunal
OAH
Agency
ADRE

Questions

Question

Is my condo HOA legally required to perform a full financial audit every year?

Short Answer

Not necessarily; a review or compilation is often sufficient unless the governing documents specifically require an audit.

Detailed Answer

Under Arizona law for condominiums, an association is not required to perform a full audit unless the specific condominium documents demand it. The law allows for an audit, a review, or a compilation.

Alj Quote

Unless any provision in the condominium documents requires an annual audit by a certified public accountant, the board of directors shall provide for an annual financial audit, review or compilation of the association.

Legal Basis

A.R.S. § 33-1243(J)

Topic Tags

  • Financial Reports
  • Audits
  • HOA Obligations

Question

What is the deadline for the HOA to complete the annual financial report?

Short Answer

The report must be completed no later than 180 days after the end of the fiscal year.

Detailed Answer

The association has a statutory window of 180 days following the close of the fiscal year to complete the required financial audit, review, or compilation.

Alj Quote

The audit, review or compilation shall be completed no later than one hundred eighty days after the end of the association's fiscal year

Legal Basis

A.R.S. § 33-1243(J)

Topic Tags

  • Deadlines
  • Financial Reports
  • Procedural Requirements

Question

Once the financial report is finished, how soon must the HOA provide it to me?

Short Answer

The HOA must make it available within 30 days of its completion upon request.

Detailed Answer

After the financial document (audit, review, or compilation) is completed, the association is legally obligated to make it available to unit owners who request it within a 30-day window.

Alj Quote

and shall be made available on request to the unit owners within thirty days after its completion.

Legal Basis

A.R.S. § 33-1243(J)

Topic Tags

  • Homeowner Rights
  • Transparency
  • Financial Reports

Question

Can I file a complaint against my HOA for failing to provide a financial report before the 180-day deadline has passed?

Short Answer

No, a complaint filed before the deadline is considered premature (not ripe).

Detailed Answer

If a homeowner files a petition regarding a missing financial report before the statutory 180-day period has elapsed, the issue is not yet ripe for adjudication because the obligation is not yet due.

Alj Quote

Moreover, the issue of whether the Association complied with A.R.S. section 33-1243 for year 2021 was not yet ripe at the time that Ms. Mesear filed her May 29, 2022 petition, because a financial compilation was not yet due.

Legal Basis

Ripeness Doctrine

Topic Tags

  • Legal Procedures
  • Filing Disputes
  • Deadlines

Question

Who is responsible for proving that the HOA violated the law in a hearing?

Short Answer

The homeowner (Petitioner) bears the burden of proof.

Detailed Answer

In an administrative hearing regarding HOA disputes, the petitioner must prove their case by a preponderance of the evidence.

Alj Quote

Petitioner bears the burden of proof to establish that Respondent violated the A.R.S. section 33-1243(J) by a preponderance of the evidence.

Legal Basis

Burden of Proof

Topic Tags

  • Legal Standards
  • Hearing Procedures

Question

What standard of proof is used in these administrative hearings?

Short Answer

Preponderance of the evidence.

Detailed Answer

This standard requires evidence that is sufficient to incline a fair and impartial mind to one side rather than the other, making the contention more probably true than not.

Alj Quote

A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.

Legal Basis

Evidentiary Standard

Topic Tags

  • Legal Standards
  • Evidence

Question

If I live in a condominium, can I cite the Planned Communities statutes (A.R.S. § 33-1810) in my complaint?

Short Answer

No, condominiums are governed by the Condominium Act, specifically A.R.S. § 33-1243(J) for financials.

Detailed Answer

While the requirements may be similar, the specific statute for planned communities does not apply to condominiums. Condominium owners must cite the applicable Condominium Act statutes.

Alj Quote

A.R.S. section 33-1810 applies to planned communities and does not apply to the Association. However, A.R.S. section 33-1243(J) applies to condominiums

Legal Basis

A.R.S. § 33-1243(J)

Topic Tags

  • Jurisdiction
  • Statutes
  • Condominiums

Case

Docket No
22F-H2222057-REL
Case Title
Deborah Mesear vs Paradise Park Condominiums Phase II Homeowners Association
Decision Date
2022-10-05
Alj Name
Velva Moses-Thompson
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • Deborah Mesear (petitioner, witness)
    Also appears as Deborah Masear and Deborah Mesier in the sources.

Respondent Side

  • Ashley N. Moscarello (HOA attorney)
    Goodman Holmgren Law Group
    Also appears as Ashley Moscarello, Esq. and Ashley Carillo.
  • Carl Westlund (property manager, witness)
    The Management Trust
    Community manager for Paradise Park Condominiums Phase II Homeowners Association.
  • Mark A. Holmgren (HOA attorney)
    Goodman Holmgren Law Group

Neutral Parties

  • Velva Moses-Thompson (ALJ)
    Office of Administrative Hearings
  • Louis Dettorre (ADRE Commissioner)
    Arizona Department of Real Estate
  • A. Hansen (ADRE staff)
    Arizona Department of Real Estate
    Listed as administrative contact (Attn:).
  • V. Nunez (ADRE staff)
    Arizona Department of Real Estate
    Listed as administrative contact (Attn:).
  • D. Jones (ADRE staff)
    Arizona Department of Real Estate
    Listed as administrative contact (Attn:).
  • L. Abril (ADRE staff)
    Arizona Department of Real Estate
    Listed as administrative contact (Attn:).

Other Participants

  • Miranda Alvarez (legal secretary)
    Signed transmission notice.
  • c. serrano (legal secretary)
    Signed transmission notice.

Roberta J Stevenson-McDemott v. Four Palms Homeowners

Posted on by

Case Summary

Case ID 22F-H2222033-REL
Agency ADRE
Tribunal OAH
Decision Date 2022-07-08
Administrative Law Judge Adam D. Stone
Outcome loss
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Roberta J Stevenson-McDermott Counsel —
Respondent Four Palms Homeowners Counsel Araceli Rodriguez

Alleged Violations

A.R.S. § 33-1258

Outcome Summary

The petition was denied because the Petitioner failed to meet her burden of proving a violation of A.R.S. § 33-1258, as she had not made a proper written request for the documents since 2019, as required by the statute.

Why this result: Petitioner failed to make a request for records in writing as required by A.R.S. § 33-1258.

Key Issues & Findings

Access to Association Financial and Other Records

Petitioner alleged the HOA violated A.R.S. § 33-1258 by denying her access and copies of various financial records dating back to 2016. The HOA argued they provided financial summaries and offered in-person review, noting Petitioner failed to make a proper written request.

Orders: Petition denied. Respondent is directed to comply with A.R.S. § 33-1258 going forward upon a proper written request from Petitioner.

Filing fee: $500.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 33-1258
  • A.R.S. § 33-1248
  • A.A.C. R2-19-119
  • A.R.S. § 32-2199 et seq.

Analytics Highlights

Topics: Financial Records, Written Request Requirement, HOA Governance, Condominium Act
Additional Citations:

  • A.R.S. § 33-1258
  • A.R.S. § 33-1248
  • A.R.S. § 32-2199 et seq.
  • A.A.C. R2-19-119

Video Overview

Audio Overview

Decision Documents

22F-H2222033-REL Decision – 967350.pdf

Uploaded 2026-01-23T17:45:19 (46.5 KB)

22F-H2222033-REL Decision – 982397.pdf

Uploaded 2026-01-23T17:45:21 (99.3 KB)

Questions

Question

Must I submit my request for HOA financial records in writing?

Short Answer

Yes, the statute explicitly requires that requests for examination of records be made in writing.

Detailed Answer

The Administrative Law Judge ruled against the homeowner partly because she failed to provide evidence of a written request. The decision emphasizes that the governing statute requires requests for examination to be in writing to be valid and enforceable.

Alj Quote

A.R.S. § 33-1258 requires that association documents, with certain identified exceptions, 'shall be made reasonably available for examination by any member…in writing'.

Legal Basis

A.R.S. § 33-1258(A)

Topic Tags

  • records request
  • procedural requirements

Question

Do I have the right to look through all HOA documents whenever I want?

Short Answer

No, homeowners do not have an unlimited right to peruse all association documents at will.

Detailed Answer

While the law requires records to be reasonably available, it does not grant an unfettered right to browse all documents. Specific procedures must be followed, and certain documents may be withheld.

Alj Quote

Nothing in the statute however, grants a condominium unit owner the right to peruse all of the association’s documents at will as some documents may properly be withheld.

Legal Basis

A.R.S. § 33-1258

Topic Tags

  • homeowner rights
  • limitations

Question

What happens if I cannot prove I sent a written request for records?

Short Answer

Your petition may be denied for failing to meet the burden of proof.

Detailed Answer

In this case, the homeowner claimed she was denied access, but the judge found she failed to establish a denial because the preponderance of the evidence showed she had not made the required written request.

Alj Quote

Further, the preponderance of the evidence showed that she has failed to make any such request in writing as the statute requires. … Therefore, at this time, Petitioner failed to establish that she was denied access to the financial records.

Legal Basis

A.A.C. R2-19-119

Topic Tags

  • burden of proof
  • evidence

Question

Can the HOA charge me for copies of records?

Short Answer

Yes, the HOA is allowed to charge a fee for copies.

Detailed Answer

The statute permits the association to charge a fee per page for making copies of requested records, provided the request is for the purchase of copies.

Alj Quote

An association may charge a fee for making copies of not more than fifteen cents per page.

Legal Basis

A.R.S. § 33-1258(A)

Topic Tags

  • fees
  • copies

Question

Is the HOA allowed to withhold certain records from me?

Short Answer

Yes, specific categories of records, such as personal or privileged information, may be withheld.

Detailed Answer

The decision outlines statutory exceptions where books and records can be withheld, including privileged attorney communications, pending litigation, and personal financial or health records of individual members or employees.

Alj Quote

Books and records kept by or on behalf of the association and the board may be withheld from disclosure to the extent that the portion withheld relates to any of the following: … Personal, health or financial records of an individual member of the association…

Legal Basis

A.R.S. § 33-1258(B)

Topic Tags

  • privacy
  • exemptions

Question

How long does the HOA have to fulfill my request for records?

Short Answer

The HOA has ten business days to fulfill a request for examination or to provide copies.

Detailed Answer

The statute mandates a ten-business-day timeframe for the association to comply with a written request for either examining records or purchasing copies.

Alj Quote

The association shall have ten business days to fulfill a request for examination. … On request for purchase of copies … the association shall have ten business days to provide copies of the requested records.

Legal Basis

A.R.S. § 33-1258(A)

Topic Tags

  • timelines
  • deadlines

Question

Who is responsible for proving that the HOA violated the law?

Short Answer

The homeowner (Petitioner) bears the burden of proof.

Detailed Answer

In an administrative hearing, it is the petitioner's responsibility to prove by a preponderance of the evidence that the HOA violated the specific statute.

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated A.R.S. § 33-1258.

Legal Basis

A.A.C. R2-19-119

Topic Tags

  • burden of proof
  • legal standards

Case

Docket No
22F-H2222033-REL
Case Title
Roberta J Stevenson-McDermott vs. Four Palms Homeowners
Decision Date
2022-07-08
Alj Name
Adam D. Stone
Tribunal
OAH
Agency
ADRE

Questions

Question

Must I submit my request for HOA financial records in writing?

Short Answer

Yes, the statute explicitly requires that requests for examination of records be made in writing.

Detailed Answer

The Administrative Law Judge ruled against the homeowner partly because she failed to provide evidence of a written request. The decision emphasizes that the governing statute requires requests for examination to be in writing to be valid and enforceable.

Alj Quote

A.R.S. § 33-1258 requires that association documents, with certain identified exceptions, 'shall be made reasonably available for examination by any member…in writing'.

Legal Basis

A.R.S. § 33-1258(A)

Topic Tags

  • records request
  • procedural requirements

Question

Do I have the right to look through all HOA documents whenever I want?

Short Answer

No, homeowners do not have an unlimited right to peruse all association documents at will.

Detailed Answer

While the law requires records to be reasonably available, it does not grant an unfettered right to browse all documents. Specific procedures must be followed, and certain documents may be withheld.

Alj Quote

Nothing in the statute however, grants a condominium unit owner the right to peruse all of the association’s documents at will as some documents may properly be withheld.

Legal Basis

A.R.S. § 33-1258

Topic Tags

  • homeowner rights
  • limitations

Question

What happens if I cannot prove I sent a written request for records?

Short Answer

Your petition may be denied for failing to meet the burden of proof.

Detailed Answer

In this case, the homeowner claimed she was denied access, but the judge found she failed to establish a denial because the preponderance of the evidence showed she had not made the required written request.

Alj Quote

Further, the preponderance of the evidence showed that she has failed to make any such request in writing as the statute requires. … Therefore, at this time, Petitioner failed to establish that she was denied access to the financial records.

Legal Basis

A.A.C. R2-19-119

Topic Tags

  • burden of proof
  • evidence

Question

Can the HOA charge me for copies of records?

Short Answer

Yes, the HOA is allowed to charge a fee for copies.

Detailed Answer

The statute permits the association to charge a fee per page for making copies of requested records, provided the request is for the purchase of copies.

Alj Quote

An association may charge a fee for making copies of not more than fifteen cents per page.

Legal Basis

A.R.S. § 33-1258(A)

Topic Tags

  • fees
  • copies

Question

Is the HOA allowed to withhold certain records from me?

Short Answer

Yes, specific categories of records, such as personal or privileged information, may be withheld.

Detailed Answer

The decision outlines statutory exceptions where books and records can be withheld, including privileged attorney communications, pending litigation, and personal financial or health records of individual members or employees.

Alj Quote

Books and records kept by or on behalf of the association and the board may be withheld from disclosure to the extent that the portion withheld relates to any of the following: … Personal, health or financial records of an individual member of the association…

Legal Basis

A.R.S. § 33-1258(B)

Topic Tags

  • privacy
  • exemptions

Question

How long does the HOA have to fulfill my request for records?

Short Answer

The HOA has ten business days to fulfill a request for examination or to provide copies.

Detailed Answer

The statute mandates a ten-business-day timeframe for the association to comply with a written request for either examining records or purchasing copies.

Alj Quote

The association shall have ten business days to fulfill a request for examination. … On request for purchase of copies … the association shall have ten business days to provide copies of the requested records.

Legal Basis

A.R.S. § 33-1258(A)

Topic Tags

  • timelines
  • deadlines

Question

Who is responsible for proving that the HOA violated the law?

Short Answer

The homeowner (Petitioner) bears the burden of proof.

Detailed Answer

In an administrative hearing, it is the petitioner's responsibility to prove by a preponderance of the evidence that the HOA violated the specific statute.

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated A.R.S. § 33-1258.

Legal Basis

A.A.C. R2-19-119

Topic Tags

  • burden of proof
  • legal standards

Case

Docket No
22F-H2222033-REL
Case Title
Roberta J Stevenson-McDermott vs. Four Palms Homeowners
Decision Date
2022-07-08
Alj Name
Adam D. Stone
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • Roberta J Stevenson-McDermott (petitioner)
  • Sean Embry (owner/witness)
    Provided letter of support (not admitted as evidence)
  • Lenor Embry (owner/witness)
    Provided letter of support (not admitted as evidence)
  • Philip Smith (owner/witness)
    Provided letter of support (not admitted as evidence)
  • c. serrano (clerical staff)
    Transmitted document for Petitioner

Respondent Side

  • Araceli Rodriguez (HOA attorney)
    Yuma Law Firm (inferred)
    Represented Four Palms Homeowners Association
  • Faye Burson (board member)
    Four Palms Homeowners HOA
    Vice President and witness (also listed as FA Buren)
  • Mario Salinas (board member)
    Four Palms Homeowners HOA
    Treasurer and witness (also listed as Mario Selenus)
  • Gilbert Sto (board member)
    Four Palms Homeowners HOA
    President
  • Lesie Blessing (board member)
    Four Palms Homeowners HOA
    Vice President (2016 board) and Secretary (current board)
  • Gail Hall (board member)
    Four Palms Homeowners HOA
    Fifth member
  • Linia Ohn (former board member)
    Four Palms Homeowners HOA
    Received payments in 2018 (also listed as Lenia own)
  • Scott Hoser (former board member)
    Four Palms Homeowners HOA
    Fifth member (2016 board)

Neutral Parties

  • Adam D. Stone (ALJ)
    OAH
  • Louis Dettorre (ADRE Commissioner)
    ADRE
  • Miranda Alvarez (Legal Secretary)
    ADRE
    Transmitted decision

Other Participants

  • Lisa Bon (former board member/owner)
    Secretary (2016 board); provided letter of support to Petitioner