Marc Archer v. PMPE Community Association, Inc.

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

Case Summary

Case ID 20F-H2020063-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2021-03-16
Administrative Law Judge Tammy L. Eigenheer
Outcome none
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Marc Archer Counsel
Respondent PMPE Community Association, Inc. Counsel Nicholas Nogami, Esq.

Alleged Violations

A.R.S. § 32-2199.02(B)

Outcome Summary

The Administrative Law Judge issued an Order Vacating Hearing after the Petitioner voluntarily withdrew his request for rehearing.

Key Issues & Findings

Request for Rehearing Withdrawal

Petitioner requested a rehearing based on actions taken by the Respondent after the initial decision. When informed that a rehearing could only address matters occurring prior to the initial petition filing, Petitioner chose to withdraw the request for rehearing and stated intent to file a new petition challenging Respondent’s denial of his submission to build an addition to his house.

Orders: The hearing in this matter is vacated from the calendar of the Office of Administrative Hearings.

Filing fee: $0.00, Fee refunded: No

Disposition: dismissed

Cited:

  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Analytics Highlights

Topics: Rehearing, Withdrawal, Vacated Hearing, Procedural
Additional Citations:

  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Marc Archer v. PMPE Community Association, Inc.

Case Summary

Case ID 20F-H2020063-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2021-03-16
Administrative Law Judge Tammy L. Eigenheer
Outcome none
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Marc Archer Counsel
Respondent PMPE Community Association, Inc. Counsel Nicholas Nogami, Esq.

Alleged Violations

A.R.S. § 32-2199.02(B)

Outcome Summary

The Administrative Law Judge issued an Order Vacating Hearing after the Petitioner voluntarily withdrew his request for rehearing.

Key Issues & Findings

Request for Rehearing Withdrawal

Petitioner requested a rehearing based on actions taken by the Respondent after the initial decision. When informed that a rehearing could only address matters occurring prior to the initial petition filing, Petitioner chose to withdraw the request for rehearing and stated intent to file a new petition challenging Respondent’s denial of his submission to build an addition to his house.

Orders: The hearing in this matter is vacated from the calendar of the Office of Administrative Hearings.

Filing fee: $0.00, Fee refunded: No

Disposition: dismissed

Cited:

  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Analytics Highlights

Topics: Rehearing, Withdrawal, Vacated Hearing, Procedural
Additional Citations:

  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Marc Archer v. PMPE Community Association, Inc.

Case Summary

Case ID 20F-H2020063-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2021-03-16
Administrative Law Judge Tammy L. Eigenheer
Outcome none
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Marc Archer Counsel
Respondent PMPE Community Association, Inc. Counsel Nicholas Nogami, Esq.

Alleged Violations

A.R.S. § 32-2199.02(B)

Outcome Summary

The Administrative Law Judge issued an Order Vacating Hearing after the Petitioner voluntarily withdrew his request for rehearing.

Key Issues & Findings

Request for Rehearing Withdrawal

Petitioner requested a rehearing based on actions taken by the Respondent after the initial decision. When informed that a rehearing could only address matters occurring prior to the initial petition filing, Petitioner chose to withdraw the request for rehearing and stated intent to file a new petition challenging Respondent’s denial of his submission to build an addition to his house.

Orders: The hearing in this matter is vacated from the calendar of the Office of Administrative Hearings.

Filing fee: $0.00, Fee refunded: No

Disposition: dismissed

Cited:

  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Analytics Highlights

Topics: Rehearing, Withdrawal, Vacated Hearing, Procedural
Additional Citations:

  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Marc Archer v. PMPE Community Association, Inc.

Case Summary

Case ID 20F-H2020063-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2021-03-16
Administrative Law Judge Tammy L. Eigenheer
Outcome none
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Marc Archer Counsel
Respondent PMPE Community Association, Inc. Counsel Nicholas Nogami, Esq.

Alleged Violations

A.R.S. § 32-2199.02(B)

Outcome Summary

The Administrative Law Judge issued an Order Vacating Hearing after the Petitioner voluntarily withdrew his request for rehearing.

Key Issues & Findings

Request for Rehearing Withdrawal

Petitioner requested a rehearing based on actions taken by the Respondent after the initial decision. When informed that a rehearing could only address matters occurring prior to the initial petition filing, Petitioner chose to withdraw the request for rehearing and stated intent to file a new petition challenging Respondent’s denial of his submission to build an addition to his house.

Orders: The hearing in this matter is vacated from the calendar of the Office of Administrative Hearings.

Filing fee: $0.00, Fee refunded: No

Disposition: dismissed

Cited:

  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Analytics Highlights

Topics: Rehearing, Withdrawal, Vacated Hearing, Procedural
Additional Citations:

  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Marc Archer v. PMPE Community Association, Inc.

Case Summary

Case ID 20F-H2020063-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2021-03-16
Administrative Law Judge Tammy L. Eigenheer
Outcome none
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Marc Archer Counsel
Respondent PMPE Community Association, Inc. Counsel Nicholas Nogami, Esq.

Alleged Violations

A.R.S. § 32-2199.02(B)

Outcome Summary

The Administrative Law Judge issued an Order Vacating Hearing after the Petitioner voluntarily withdrew his request for rehearing.

Key Issues & Findings

Request for Rehearing Withdrawal

Petitioner requested a rehearing based on actions taken by the Respondent after the initial decision. When informed that a rehearing could only address matters occurring prior to the initial petition filing, Petitioner chose to withdraw the request for rehearing and stated intent to file a new petition challenging Respondent’s denial of his submission to build an addition to his house.

Orders: The hearing in this matter is vacated from the calendar of the Office of Administrative Hearings.

Filing fee: $0.00, Fee refunded: No

Disposition: dismissed

Cited:

  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Analytics Highlights

Topics: Rehearing, Withdrawal, Vacated Hearing, Procedural
Additional Citations:

  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Marc Archer v. PMPE Community Association, Inc.

Case Summary

Case ID 20F-H2020063-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2021-03-16
Administrative Law Judge Tammy L. Eigenheer
Outcome none
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Marc Archer Counsel
Respondent PMPE Community Association, Inc. Counsel Nicholas Nogami, Esq.

Alleged Violations

A.R.S. § 32-2199.02(B)

Outcome Summary

The Administrative Law Judge issued an Order Vacating Hearing after the Petitioner voluntarily withdrew his request for rehearing.

Key Issues & Findings

Request for Rehearing Withdrawal

Petitioner requested a rehearing based on actions taken by the Respondent after the initial decision. When informed that a rehearing could only address matters occurring prior to the initial petition filing, Petitioner chose to withdraw the request for rehearing and stated intent to file a new petition challenging Respondent’s denial of his submission to build an addition to his house.

Orders: The hearing in this matter is vacated from the calendar of the Office of Administrative Hearings.

Filing fee: $0.00, Fee refunded: No

Disposition: dismissed

Cited:

  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Analytics Highlights

Topics: Rehearing, Withdrawal, Vacated Hearing, Procedural
Additional Citations:

  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Michael J Stoltenberg v. Rancho Del Oro Homeowners Association

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

Case Summary

Case ID 20F-H2020049-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2021-03-08
Administrative Law Judge Jenna Clark
Outcome loss
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

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

Alleged Violations

CC&Rs Section 14.8

Outcome Summary

The Administrative Law Judge denied the petition, concluding that the Association did not violate CC&Rs Section 14.8. The provision was determined to be inapplicable, governing the Association’s obligation to provide notice, not the methods homeowners must use to send payments.

Why this result: Petitioner failed to meet the burden of proof. CC&Rs Section 14.8 was inapplicable, and Petitioner's chosen restricted delivery method for assessment payments caused delays, which were not the responsibility of the Respondent.

Key Issues & Findings

Whether the Association violated CC&Rs 14.8 concerning notice obligations.

Petitioner alleged the Association violated CC&Rs 14.8 by improperly handling or failing to receive his monthly assessment payments, which he sent via restricted delivery to a board member despite receiving instructions to mail payments to the Association's designated P.O. Box address.

Orders: Petitioner's petition was denied because he failed to sustain his burden of proof that the Association violated CC&Rs Section 14.8.

Filing fee: $500.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • ARIZ. REV. STAT. § 32-2102
  • ARIZ. REV. STAT. § 32-2199 et seq.
  • ARIZ. REV. STAT. § 32-2199.05
  • ARIZ. REV. STAT. § 33-1243
  • CC&Rs 14.8

Analytics Highlights

Topics: homeowner assessments, CC&Rs interpretation, restricted delivery, jurisdiction, notice provision, rehearing
Additional Citations:

  • ARIZ. REV. STAT. § 32-2102
  • ARIZ. REV. STAT. § 32-2199 et seq.
  • ARIZ. REV. STAT. § 32-2199.05
  • ARIZ. REV. STAT. § 32-2199.02
  • ARIZ. REV. STAT. § 33-1243
  • ARIZ. REV. STAT. § 41-1092 et seq.
  • ARIZ. REV. STAT. § 10-3842
  • CC&Rs 14.8
  • Tierra Ranchos Homeowners Ass'n v. Kitchukov, 216 Ariz. 195, 165 P.3d 173 (App. 2007)

Video Overview

Audio Overview

Decision Documents

20F-H2020049-REL-RHG Decision – 861466.pdf

Uploaded 2026-01-23T17:32:01 (145.6 KB)

20F-H2020049-REL-RHG Decision – ../20F-H2020049-REL/811290.pdf

Uploaded 2026-01-23T17:32:04 (131.7 KB)





Briefing Doc – 20F-H2020049-REL-RHG


Briefing Document: Stoltenberg v. Rancho Del Oro Homeowners Association

Executive Summary

This document synthesizes the findings and conclusions from two administrative law judge decisions concerning a dispute between homeowner Michael J. Stoltenberg (Petitioner) and the Rancho Del Oro Homeowners Association (Respondent). The Petitioner’s complaint, alleging the Association violated its governing documents and acted in bad faith regarding the handling of his monthly assessment payments, was comprehensively reviewed and ultimately denied. This denial was subsequently affirmed in a rehearing.

The core of the dispute centered on the Petitioner’s unilateral decision to send his monthly payments via restricted U.S. Postal Service delivery to a specific, unpaid volunteer board member. This action, taken despite clear instructions to mail payments to the Association’s P.O. Box, resulted in delayed receipt and returned mail, leading to the imposition of late fees and threats of foreclosure against the Petitioner.

The Administrative Law Judge’s central finding was that the Petitioner fundamentally misinterpreted Section 14.8 of the Association’s Covenants, Conditions, and Restrictions (CC&Rs). The judge concluded this section is unambiguously applicable only to notices sent from the Association to its members, and imposes no obligations on the Association regarding mail received from members. The payment delays and resulting penalties were determined to be the direct consequence of the Petitioner’s own “volitionally took” actions, for which the Association bore no responsibility. Furthermore, the Petitioner’s claims of “bad faith” under Arizona’s nonprofit corporation statutes were dismissed as falling outside the jurisdictional authority of the Arizona Department of Real Estate and the Office of Administrative Hearings.

I. Case Overview

The legal matter concerns a petition filed by a homeowner against his condominium association, alleging violations of the community’s governing documents and state law.

Case Number

20F-H2020049-REL / 20F-H2020049-REL-RHG

Petitioner

Michael J. Stoltenberg

Respondent

Rancho Del Oro Homeowners Association

Adjudicating Body

Arizona Office of Administrative Hearings (OAH)

Administrative Law Judge

Jenna Clark

The Petitioner’s initial complaint, filed on March 2, 2020, alleged that the Association “fail to do their job, and are acting in bad faith,” specifically citing violations of ARIZ. REV. STAT. §§ 10-3842 and 10-801, and Section 14.8 of the Association’s CC&Rs. He sought an order compelling the Association’s compliance and the issuance of a civil penalty.

II. Procedural History and Timeline

The dispute progressed through an initial hearing, a decision, a granted request for rehearing, and a final binding order.

March 2, 2020: Petitioner files a single-issue petition with the Arizona Department of Real Estate (“Department”).

March 24, 2020: Respondent files an ANSWER, denying all complaint items.

April 1, 2020: The Department refers the matter to the Office of Administrative Hearings (OAH) for an evidentiary hearing.

July 14, 2020: The initial evidentiary hearing is held.

August 3, 2020: An AMENDED ADMINISTRATIVE LAW JUDGE DECISION is issued, denying the Petitioner’s petition.

August 28, 2020: Petitioner submits a request for a rehearing.

September 9, 2020: The Petitioner’s request for a rehearing is granted.

February 16, 2021: A rehearing is held before the same Administrative Law Judge.

March 8, 2021: A final ADMINISTRATIVE LAW JUDGE DECISION is issued, again denying the Petitioner’s petition.

III. Central Dispute: Assessment Payments and CC&R Section 14.8

The conflict originated from the Petitioner’s method of submitting monthly assessment payments and his interpretation of the Association’s obligations under its CC&Rs.

The Petitioner’s Actions and Their Consequences

Instruction: On January 4, 2016, the Petitioner was advised that the Association’s “primary address for receiving all correspondence and all assessment payments from its members” was PO Box 4333, Yuma, Arizona 85366.

Unilateral Change in Method: Beginning in November 2019, the Petitioner began sending his monthly payments via restricted delivery through the United States Postal Service (USPS), designated for “board member Rhea Carlisle’s pickup only.”

Petitioner’s Rationale: He took this action based on a belief that an agent of the Association’s property management company had previously thrown away one of his mailed payments.

Petitioner’s Acknowledged Awareness: The Petitioner was aware that the Association employed a property management company to collect mail and that Ms. Carlisle was an “unpaid volunteer board member,” not an employee of that company.

Resulting Delays and Penalties: This restricted delivery method caused significant issues.

◦ One payment was returned by USPS on January 25, 2020.

◦ Another was returned by USPS on June 8, 2020.

◦ Other payments were picked up late on various dates.

◦ For each instance where the payment was received late, the Petitioner was assessed a late fee and his residence was placed in danger of foreclosure.

The Disputed Provision: CC&Rs Section 14.8

The legal basis for the Petitioner’s claim rested on his interpretation of Section 14.8 of the Association’s Bylaws.

Full Text of Section 14.8, Notices:

Respondent’s Argument: The Association argued that this section was “inapplicable to the facts as presented” because it governs the Association’s obligation when sending notices to homeowners, not the other way around.

IV. Administrative Law Judge’s Findings and Conclusions

Across two separate decisions, the Administrative Law Judge (ALJ) consistently found that the Petitioner failed to meet his burden of proof and that his interpretation of the governing documents was incorrect.

Initial Decision (August 3, 2020)

Inapplicability of Section 14.8: The ALJ’s primary conclusion was a complete rejection of the Petitioner’s legal argument.

Petitioner’s Culpability: The ALJ placed the responsibility for the late payments squarely on the Petitioner.

Outcome: The petition was denied.

Rehearing Decision (March 8, 2021)

The rehearing was granted on the Petitioner’s grounds of an alleged “Error in the admission or rejection of evidence or other errors of law” and that the initial decision was “arbitrary, capricious, or an abuse of discretion.” The ALJ found no merit in these claims.

Reaffirmation of Core Finding: The ALJ reiterated and strengthened the conclusion regarding Section 14.8.

Jurisdictional Ruling: The ALJ explicitly addressed the Petitioner’s “bad faith” claim by citing ARIZ. REV. STAT. § 10-3842, which concerns standards of conduct for officers of nonprofit corporations.

Failure to Support Rehearing Claims: The ALJ noted a complete lack of new evidence to justify the rehearing.

Final Outcome: The petition was again denied. The order was made final and binding, with any further appeal requiring judicial review in superior court.






Study Guide – 20F-H2020049-REL-RHG


Study Guide: Stoltenberg v. Rancho Del Oro Homeowners Association

Short-Answer Quiz

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

1. Who are the two primary parties in case No. 20F-H2020049-REL, and what are their respective roles?

2. What was the specific allegation Michael Stoltenberg made against the Rancho Del Oro Homeowners Association in his petition?

3. Why did the Petitioner, beginning in November 2019, change the way he mailed his monthly assessment payments?

4. What is the specific subject of Section 14.8 of the Association’s Covenants, Conditions, and Restrictions (CC&Rs)?

5. What were the consequences for the Petitioner each time the Association received his monthly assessment payment late?

6. According to the Administrative Law Judge, why was Section 14.8 of the CC&Rs inapplicable to the facts of this case?

7. What was the legal standard of proof the Petitioner was required to meet, and what is its definition?

8. On what grounds did the Petitioner request and receive a rehearing after the initial decision was issued?

9. Why did the Administrative Law Judge dismiss the Petitioner’s argument regarding Arizona Revised Statutes § 10-3842 during the rehearing?

10. What was the final outcome of both the initial hearing on July 14, 2020, and the rehearing on February 16, 2021?

——————————————————————————–

Quiz Answer Key

1. The primary parties are Michael J Stoltenberg, the “Petitioner,” and the Rancho Del Oro Homeowners Association, the “Respondent.” The Petitioner is a condominium owner and member of the Association who filed a petition alleging violations, while the Respondent is the homeowners’ association that governs the development.

2. The Petitioner alleged that the Association was in violation of Arizona Revised Statutes §§ 10-3842 and 10-801, and section 14.8 of the Association’s CC&Rs. Specifically, he alleged that the Association “fail to do their job, and are acting in bad faith.”

3. The Petitioner changed his mailing method because he believed an agent of the Association’s property management company had thrown away one of his mailed payments. As a result, he began sending payments via restricted delivery by the USPS, for board member Rhea Carlisle’s pickup only.

4. Section 14.8, titled “Notices,” pertains to any notice permitted or required by the Declaration or Bylaws. It specifically addresses the Association’s notice obligation to its members when mailing them information, outlining when such notices are deemed delivered.

5. Each time the Petitioner’s monthly assessment was received late, he was assessed a late fee by the Association. Additionally, each late payment occurrence put his residence in danger of foreclosure by the Association.

6. The Judge concluded Section 14.8 was inapplicable because its language speaks specifically to the Association’s obligation to provide notice to its members. The section has no binding authority or control over homeowners sending mail to the Association.

7. The Petitioner was required to prove his case by a “preponderance of the evidence.” This standard is defined as “proof as convinces the trier of fact that the contention is more probably true than not,” or evidence with the most convincing force that inclines an impartial mind to one side of an issue.

8. The Petitioner’s rehearing request was granted on the grounds that there was an alleged “Error in the admission or rejection of evidence or other errors of law occurring during the proceeding.” He also claimed that the initial findings of fact or decision were “arbitrary, capricious, or an abuse of discretion.”

9. The argument regarding ARIZ. REV. STAT. § 10-3842, which concerns standards of conduct for officers, was dismissed because it falls outside of the Department of Real Estate’s jurisdiction. The Petitioner had been advised of the Department’s jurisdictional limitations when he first filed his petition.

10. In both the initial decision (dated August 03, 2020) and the final order after the rehearing (dated March 08, 2021), the Administrative Law Judge denied the Petitioner’s petition. The Judge concluded in both instances that the Petitioner failed to sustain his burden of proof.

——————————————————————————–

Essay Questions

Instructions: The following questions are designed to be answered in a detailed essay format, synthesizing information from across the provided documents. Answers are not provided.

1. Analyze the legal reasoning used by Administrative Law Judge Jenna Clark to deny the Petitioner’s claims in both the initial hearing and the rehearing. Discuss the interpretation of CC&R Section 14.8, the concept of burden of proof, and jurisdictional limitations.

2. Trace the complete procedural history of case No. 20F-H2020049-REL from the filing of the petition to the final order. Include all key dates, actions taken by the parties and the Department, and the specific reasons for each major step, such as the granting of the rehearing.

3. Evaluate the actions taken by the Petitioner, Michael Stoltenberg, regarding his assessment payments. Explain why his unilateral decision to use restricted mail delivery, despite being aware of the Association’s procedures, ultimately caused the negative outcomes he sought to avoid.

4. Explain the contractual relationship between a homeowners’ association and a property owner as described in the legal documents. How do the CC&Rs function as an enforceable contract, and how was this concept central to the dispute?

5. Discuss the roles and authorities of the Arizona Department of Real Estate and the Office of Administrative Hearings (OAH) in resolving HOA disputes, as demonstrated by this case. What are their powers, and what specific limitations on their jurisdiction are identified in the text?

——————————————————————————–

Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

The official who presides over the evidentiary hearing at the Office of Administrative Hearings and issues findings of fact, conclusions of law, and an order. In this case, the ALJ was Jenna Clark.

Arizona Department of Real Estate (Department)

The state agency authorized by statute to receive and decide petitions for hearings from members of homeowners’ associations in Arizona.

ARIZ. REV. STAT.

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

Association

The Rancho Del Oro Homeowners Association, a condominium association whose membership is comprised of the condominium owners in the Rancho Del Oro residential real estate development in Yuma, Arizona.

Board of Directors (the Board)

The body that oversees the Homeowners Association.

Burden of Proof

The obligation of a party in a legal proceeding to prove their contention. In this case, the Petitioner bore the burden of proving the Respondent violated the CC&Rs.

An abbreviation for the Declaration of Covenants, Conditions and Restrictions. These governing documents form an enforceable contract between the Association and each property owner, empowering the Association to control certain aspects of property use.

Office of Administrative Hearings (OAH)

An independent state agency to which the Department of Real Estate refers matters for an evidentiary hearing. The OAH has the authority to hear and decide contested cases and interpret the contract (CC&Rs) between parties.

Petitioner

The party who files a petition initiating a legal action. In this case, Michael J Stoltenberg, a homeowner and member of the Association.

Preponderance of the Evidence

The standard of proof required in this proceeding. It is defined as “proof as convinces the trier of fact that the contention is more probably true than not” and is considered the “greater weight of the evidence.”

Respondent

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

Statutory Agent

An individual listed as an official agent for an entity. For the years 2019 and 2020, Diana Crites was listed as the Association’s Statutory Agent.

Abbreviation for the United States Postal Service.






Blog Post – 20F-H2020049-REL-RHG


Study Guide: Stoltenberg v. Rancho Del Oro Homeowners Association

Short-Answer Quiz

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

1. Who are the two primary parties in case No. 20F-H2020049-REL, and what are their respective roles?

2. What was the specific allegation Michael Stoltenberg made against the Rancho Del Oro Homeowners Association in his petition?

3. Why did the Petitioner, beginning in November 2019, change the way he mailed his monthly assessment payments?

4. What is the specific subject of Section 14.8 of the Association’s Covenants, Conditions, and Restrictions (CC&Rs)?

5. What were the consequences for the Petitioner each time the Association received his monthly assessment payment late?

6. According to the Administrative Law Judge, why was Section 14.8 of the CC&Rs inapplicable to the facts of this case?

7. What was the legal standard of proof the Petitioner was required to meet, and what is its definition?

8. On what grounds did the Petitioner request and receive a rehearing after the initial decision was issued?

9. Why did the Administrative Law Judge dismiss the Petitioner’s argument regarding Arizona Revised Statutes § 10-3842 during the rehearing?

10. What was the final outcome of both the initial hearing on July 14, 2020, and the rehearing on February 16, 2021?

——————————————————————————–

Quiz Answer Key

1. The primary parties are Michael J Stoltenberg, the “Petitioner,” and the Rancho Del Oro Homeowners Association, the “Respondent.” The Petitioner is a condominium owner and member of the Association who filed a petition alleging violations, while the Respondent is the homeowners’ association that governs the development.

2. The Petitioner alleged that the Association was in violation of Arizona Revised Statutes §§ 10-3842 and 10-801, and section 14.8 of the Association’s CC&Rs. Specifically, he alleged that the Association “fail to do their job, and are acting in bad faith.”

3. The Petitioner changed his mailing method because he believed an agent of the Association’s property management company had thrown away one of his mailed payments. As a result, he began sending payments via restricted delivery by the USPS, for board member Rhea Carlisle’s pickup only.

4. Section 14.8, titled “Notices,” pertains to any notice permitted or required by the Declaration or Bylaws. It specifically addresses the Association’s notice obligation to its members when mailing them information, outlining when such notices are deemed delivered.

5. Each time the Petitioner’s monthly assessment was received late, he was assessed a late fee by the Association. Additionally, each late payment occurrence put his residence in danger of foreclosure by the Association.

6. The Judge concluded Section 14.8 was inapplicable because its language speaks specifically to the Association’s obligation to provide notice to its members. The section has no binding authority or control over homeowners sending mail to the Association.

7. The Petitioner was required to prove his case by a “preponderance of the evidence.” This standard is defined as “proof as convinces the trier of fact that the contention is more probably true than not,” or evidence with the most convincing force that inclines an impartial mind to one side of an issue.

8. The Petitioner’s rehearing request was granted on the grounds that there was an alleged “Error in the admission or rejection of evidence or other errors of law occurring during the proceeding.” He also claimed that the initial findings of fact or decision were “arbitrary, capricious, or an abuse of discretion.”

9. The argument regarding ARIZ. REV. STAT. § 10-3842, which concerns standards of conduct for officers, was dismissed because it falls outside of the Department of Real Estate’s jurisdiction. The Petitioner had been advised of the Department’s jurisdictional limitations when he first filed his petition.

10. In both the initial decision (dated August 03, 2020) and the final order after the rehearing (dated March 08, 2021), the Administrative Law Judge denied the Petitioner’s petition. The Judge concluded in both instances that the Petitioner failed to sustain his burden of proof.

——————————————————————————–

Essay Questions

Instructions: The following questions are designed to be answered in a detailed essay format, synthesizing information from across the provided documents. Answers are not provided.

1. Analyze the legal reasoning used by Administrative Law Judge Jenna Clark to deny the Petitioner’s claims in both the initial hearing and the rehearing. Discuss the interpretation of CC&R Section 14.8, the concept of burden of proof, and jurisdictional limitations.

2. Trace the complete procedural history of case No. 20F-H2020049-REL from the filing of the petition to the final order. Include all key dates, actions taken by the parties and the Department, and the specific reasons for each major step, such as the granting of the rehearing.

3. Evaluate the actions taken by the Petitioner, Michael Stoltenberg, regarding his assessment payments. Explain why his unilateral decision to use restricted mail delivery, despite being aware of the Association’s procedures, ultimately caused the negative outcomes he sought to avoid.

4. Explain the contractual relationship between a homeowners’ association and a property owner as described in the legal documents. How do the CC&Rs function as an enforceable contract, and how was this concept central to the dispute?

5. Discuss the roles and authorities of the Arizona Department of Real Estate and the Office of Administrative Hearings (OAH) in resolving HOA disputes, as demonstrated by this case. What are their powers, and what specific limitations on their jurisdiction are identified in the text?

——————————————————————————–

Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

The official who presides over the evidentiary hearing at the Office of Administrative Hearings and issues findings of fact, conclusions of law, and an order. In this case, the ALJ was Jenna Clark.

Arizona Department of Real Estate (Department)

The state agency authorized by statute to receive and decide petitions for hearings from members of homeowners’ associations in Arizona.

ARIZ. REV. STAT.

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

Association

The Rancho Del Oro Homeowners Association, a condominium association whose membership is comprised of the condominium owners in the Rancho Del Oro residential real estate development in Yuma, Arizona.

Board of Directors (the Board)

The body that oversees the Homeowners Association.

Burden of Proof

The obligation of a party in a legal proceeding to prove their contention. In this case, the Petitioner bore the burden of proving the Respondent violated the CC&Rs.

An abbreviation for the Declaration of Covenants, Conditions and Restrictions. These governing documents form an enforceable contract between the Association and each property owner, empowering the Association to control certain aspects of property use.

Office of Administrative Hearings (OAH)

An independent state agency to which the Department of Real Estate refers matters for an evidentiary hearing. The OAH has the authority to hear and decide contested cases and interpret the contract (CC&Rs) between parties.

Petitioner

The party who files a petition initiating a legal action. In this case, Michael J Stoltenberg, a homeowner and member of the Association.

Preponderance of the Evidence

The standard of proof required in this proceeding. It is defined as “proof as convinces the trier of fact that the contention is more probably true than not” and is considered the “greater weight of the evidence.”

Respondent

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

Statutory Agent

An individual listed as an official agent for an entity. For the years 2019 and 2020, Diana Crites was listed as the Association’s Statutory Agent.

Abbreviation for the United States Postal Service.


Case Participants

Petitioner Side

  • Michael J Stoltenberg (petitioner)
    Rancho Del Oro condominium owner
    Appeared on his own behalf,

Respondent Side

  • Nicole Payne (HOA attorney)
    Carpenter, Hazlewood, Delgado & Bolen, LLP
    Appeared on behalf of Rancho Del Oro Homeowners Association,,
  • Rhea Carlisle (board member)
    Rancho Del Oro Homeowners Association
    Unpaid volunteer board member; Petitioner directed mail specifically to her,,,
  • Diana Crites (statutory agent)
    Rancho Del Oro Homeowners Association
    Statutory Agent for 2019 and 2020,
  • Lydia Peirce (HOA attorney staff/contact)
    Linsmeier Carpenter, Hazlewood, Delgado & Bolen, LLP
    Listed as contact for Respondent in 2020 decision transmission

Neutral Parties

  • Jenna Clark (ALJ)
    Office of Administrative Hearings
  • Judy Lowe (ADRE commissioner)
    Arizona Department of Real Estate
    Commissioner receiving the OAH order,
  • Dan Gardner (HOA coordinator)
    Arizona Department of Real Estate
    HOA Coordinator contact for the Commissioner

Michael J Stoltenberg v. Rancho Del Oro Homeowners Association

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

Case Summary

Case ID 20F-H2020049-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2021-03-08
Administrative Law Judge Jenna Clark
Outcome loss
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

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

Alleged Violations

CC&Rs Section 14.8

Outcome Summary

The Administrative Law Judge denied the Petitioner's petition following a rehearing. The ALJ concluded that the Petitioner failed to sustain the burden of proof that the Association violated CC&Rs Section 14.8, as that section applies only to the Association's notice obligation to members and not to assessment payments sent by members to the Association.

Why this result: The Petitioner failed to meet the burden of proof because the CC&R provision cited was inapplicable to the dispute. Additionally, the Petitioner was found to have inadvertently caused delays in payment receipt by using restricted delivery, contrary to instructions.

Key Issues & Findings

Whether the Association violated CC&Rs 14.8.

Petitioner alleged the Association violated CC&Rs Section 14.8 by failing to handle his monthly assessment payments correctly, resulting in late fees and threats of foreclosure. The ALJ found that Section 14.8 governs the Association's notice obligations to members and is inapplicable to the Petitioner's delivery of assessment payments to the Association.

Orders: Petitioner's petition was denied on rehearing.

Filing fee: $500.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • ARIZ. REV. STAT. § 32-2102
  • ARIZ. REV. STAT. § 32-2199 et seq.
  • ARIZ. REV. STAT. § 32-2199.05
  • 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.
  • ARIZ. REV. STAT. § 33-1243
  • ARIZ. ADMIN. CODE R2-19-119
  • Tierra Ranchos Homeowners Ass'n v. Kitchukov, 216 Ariz. 195, 165 P.3d 173 (App. 2007)
  • MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960)
  • BLACK’S LAW DICTIONARY 1220 (8th ed. 1999)

Analytics Highlights

Topics: CC&Rs, Assessments, Late Fees, Notice Provision, Burden of Proof, Rehearing
Additional Citations:

  • ARIZ. REV. STAT. § 32-2102
  • ARIZ. REV. STAT. § 32-2199 et seq.
  • ARIZ. REV. STAT. § 32-2199.05
  • 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.
  • ARIZ. REV. STAT. § 33-1243
  • ARIZ. ADMIN. CODE R2-19-119
  • Tierra Ranchos Homeowners Ass'n v. Kitchukov, 216 Ariz. 195, 165 P.3d 173 (App. 2007)
  • MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960)
  • BLACK’S LAW DICTIONARY 1220 (8th ed. 1999)

Video Overview

Audio Overview

Decision Documents

20F-H2020049-REL-RHG Decision – 861466.pdf

Uploaded 2025-10-09T03:35:03 (145.6 KB)

20F-H2020049-REL-RHG Decision – ../20F-H2020049-REL/811290.pdf

Uploaded 2026-01-20T13:56:54 (131.7 KB)





Briefing Doc – 20F-H2020049-REL-RHG


Briefing Document: Stoltenberg v. Rancho Del Oro Homeowners Association

Executive Summary

This document synthesizes the findings and conclusions from two administrative law judge decisions concerning a dispute between homeowner Michael J. Stoltenberg (Petitioner) and the Rancho Del Oro Homeowners Association (Respondent). The Petitioner’s complaint, alleging the Association violated its governing documents and acted in bad faith regarding the handling of his monthly assessment payments, was comprehensively reviewed and ultimately denied. This denial was subsequently affirmed in a rehearing.

The core of the dispute centered on the Petitioner’s unilateral decision to send his monthly payments via restricted U.S. Postal Service delivery to a specific, unpaid volunteer board member. This action, taken despite clear instructions to mail payments to the Association’s P.O. Box, resulted in delayed receipt and returned mail, leading to the imposition of late fees and threats of foreclosure against the Petitioner.

The Administrative Law Judge’s central finding was that the Petitioner fundamentally misinterpreted Section 14.8 of the Association’s Covenants, Conditions, and Restrictions (CC&Rs). The judge concluded this section is unambiguously applicable only to notices sent from the Association to its members, and imposes no obligations on the Association regarding mail received from members. The payment delays and resulting penalties were determined to be the direct consequence of the Petitioner’s own “volitionally took” actions, for which the Association bore no responsibility. Furthermore, the Petitioner’s claims of “bad faith” under Arizona’s nonprofit corporation statutes were dismissed as falling outside the jurisdictional authority of the Arizona Department of Real Estate and the Office of Administrative Hearings.

I. Case Overview

The legal matter concerns a petition filed by a homeowner against his condominium association, alleging violations of the community’s governing documents and state law.

Case Number

20F-H2020049-REL / 20F-H2020049-REL-RHG

Petitioner

Michael J. Stoltenberg

Respondent

Rancho Del Oro Homeowners Association

Adjudicating Body

Arizona Office of Administrative Hearings (OAH)

Administrative Law Judge

Jenna Clark

The Petitioner’s initial complaint, filed on March 2, 2020, alleged that the Association “fail to do their job, and are acting in bad faith,” specifically citing violations of ARIZ. REV. STAT. §§ 10-3842 and 10-801, and Section 14.8 of the Association’s CC&Rs. He sought an order compelling the Association’s compliance and the issuance of a civil penalty.

II. Procedural History and Timeline

The dispute progressed through an initial hearing, a decision, a granted request for rehearing, and a final binding order.

March 2, 2020: Petitioner files a single-issue petition with the Arizona Department of Real Estate (“Department”).

March 24, 2020: Respondent files an ANSWER, denying all complaint items.

April 1, 2020: The Department refers the matter to the Office of Administrative Hearings (OAH) for an evidentiary hearing.

July 14, 2020: The initial evidentiary hearing is held.

August 3, 2020: An AMENDED ADMINISTRATIVE LAW JUDGE DECISION is issued, denying the Petitioner’s petition.

August 28, 2020: Petitioner submits a request for a rehearing.

September 9, 2020: The Petitioner’s request for a rehearing is granted.

February 16, 2021: A rehearing is held before the same Administrative Law Judge.

March 8, 2021: A final ADMINISTRATIVE LAW JUDGE DECISION is issued, again denying the Petitioner’s petition.

III. Central Dispute: Assessment Payments and CC&R Section 14.8

The conflict originated from the Petitioner’s method of submitting monthly assessment payments and his interpretation of the Association’s obligations under its CC&Rs.

The Petitioner’s Actions and Their Consequences

Instruction: On January 4, 2016, the Petitioner was advised that the Association’s “primary address for receiving all correspondence and all assessment payments from its members” was PO Box 4333, Yuma, Arizona 85366.

Unilateral Change in Method: Beginning in November 2019, the Petitioner began sending his monthly payments via restricted delivery through the United States Postal Service (USPS), designated for “board member Rhea Carlisle’s pickup only.”

Petitioner’s Rationale: He took this action based on a belief that an agent of the Association’s property management company had previously thrown away one of his mailed payments.

Petitioner’s Acknowledged Awareness: The Petitioner was aware that the Association employed a property management company to collect mail and that Ms. Carlisle was an “unpaid volunteer board member,” not an employee of that company.

Resulting Delays and Penalties: This restricted delivery method caused significant issues.

◦ One payment was returned by USPS on January 25, 2020.

◦ Another was returned by USPS on June 8, 2020.

◦ Other payments were picked up late on various dates.

◦ For each instance where the payment was received late, the Petitioner was assessed a late fee and his residence was placed in danger of foreclosure.

The Disputed Provision: CC&Rs Section 14.8

The legal basis for the Petitioner’s claim rested on his interpretation of Section 14.8 of the Association’s Bylaws.

Full Text of Section 14.8, Notices:

Respondent’s Argument: The Association argued that this section was “inapplicable to the facts as presented” because it governs the Association’s obligation when sending notices to homeowners, not the other way around.

IV. Administrative Law Judge’s Findings and Conclusions

Across two separate decisions, the Administrative Law Judge (ALJ) consistently found that the Petitioner failed to meet his burden of proof and that his interpretation of the governing documents was incorrect.

Initial Decision (August 3, 2020)

Inapplicability of Section 14.8: The ALJ’s primary conclusion was a complete rejection of the Petitioner’s legal argument.

Petitioner’s Culpability: The ALJ placed the responsibility for the late payments squarely on the Petitioner.

Outcome: The petition was denied.

Rehearing Decision (March 8, 2021)

The rehearing was granted on the Petitioner’s grounds of an alleged “Error in the admission or rejection of evidence or other errors of law” and that the initial decision was “arbitrary, capricious, or an abuse of discretion.” The ALJ found no merit in these claims.

Reaffirmation of Core Finding: The ALJ reiterated and strengthened the conclusion regarding Section 14.8.

Jurisdictional Ruling: The ALJ explicitly addressed the Petitioner’s “bad faith” claim by citing ARIZ. REV. STAT. § 10-3842, which concerns standards of conduct for officers of nonprofit corporations.

Failure to Support Rehearing Claims: The ALJ noted a complete lack of new evidence to justify the rehearing.

Final Outcome: The petition was again denied. The order was made final and binding, with any further appeal requiring judicial review in superior court.






Study Guide – 20F-H2020049-REL-RHG


Study Guide: Stoltenberg v. Rancho Del Oro Homeowners Association

Short-Answer Quiz

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

1. Who are the two primary parties in case No. 20F-H2020049-REL, and what are their respective roles?

2. What was the specific allegation Michael Stoltenberg made against the Rancho Del Oro Homeowners Association in his petition?

3. Why did the Petitioner, beginning in November 2019, change the way he mailed his monthly assessment payments?

4. What is the specific subject of Section 14.8 of the Association’s Covenants, Conditions, and Restrictions (CC&Rs)?

5. What were the consequences for the Petitioner each time the Association received his monthly assessment payment late?

6. According to the Administrative Law Judge, why was Section 14.8 of the CC&Rs inapplicable to the facts of this case?

7. What was the legal standard of proof the Petitioner was required to meet, and what is its definition?

8. On what grounds did the Petitioner request and receive a rehearing after the initial decision was issued?

9. Why did the Administrative Law Judge dismiss the Petitioner’s argument regarding Arizona Revised Statutes § 10-3842 during the rehearing?

10. What was the final outcome of both the initial hearing on July 14, 2020, and the rehearing on February 16, 2021?

——————————————————————————–

Quiz Answer Key

1. The primary parties are Michael J Stoltenberg, the “Petitioner,” and the Rancho Del Oro Homeowners Association, the “Respondent.” The Petitioner is a condominium owner and member of the Association who filed a petition alleging violations, while the Respondent is the homeowners’ association that governs the development.

2. The Petitioner alleged that the Association was in violation of Arizona Revised Statutes §§ 10-3842 and 10-801, and section 14.8 of the Association’s CC&Rs. Specifically, he alleged that the Association “fail to do their job, and are acting in bad faith.”

3. The Petitioner changed his mailing method because he believed an agent of the Association’s property management company had thrown away one of his mailed payments. As a result, he began sending payments via restricted delivery by the USPS, for board member Rhea Carlisle’s pickup only.

4. Section 14.8, titled “Notices,” pertains to any notice permitted or required by the Declaration or Bylaws. It specifically addresses the Association’s notice obligation to its members when mailing them information, outlining when such notices are deemed delivered.

5. Each time the Petitioner’s monthly assessment was received late, he was assessed a late fee by the Association. Additionally, each late payment occurrence put his residence in danger of foreclosure by the Association.

6. The Judge concluded Section 14.8 was inapplicable because its language speaks specifically to the Association’s obligation to provide notice to its members. The section has no binding authority or control over homeowners sending mail to the Association.

7. The Petitioner was required to prove his case by a “preponderance of the evidence.” This standard is defined as “proof as convinces the trier of fact that the contention is more probably true than not,” or evidence with the most convincing force that inclines an impartial mind to one side of an issue.

8. The Petitioner’s rehearing request was granted on the grounds that there was an alleged “Error in the admission or rejection of evidence or other errors of law occurring during the proceeding.” He also claimed that the initial findings of fact or decision were “arbitrary, capricious, or an abuse of discretion.”

9. The argument regarding ARIZ. REV. STAT. § 10-3842, which concerns standards of conduct for officers, was dismissed because it falls outside of the Department of Real Estate’s jurisdiction. The Petitioner had been advised of the Department’s jurisdictional limitations when he first filed his petition.

10. In both the initial decision (dated August 03, 2020) and the final order after the rehearing (dated March 08, 2021), the Administrative Law Judge denied the Petitioner’s petition. The Judge concluded in both instances that the Petitioner failed to sustain his burden of proof.

——————————————————————————–

Essay Questions

Instructions: The following questions are designed to be answered in a detailed essay format, synthesizing information from across the provided documents. Answers are not provided.

1. Analyze the legal reasoning used by Administrative Law Judge Jenna Clark to deny the Petitioner’s claims in both the initial hearing and the rehearing. Discuss the interpretation of CC&R Section 14.8, the concept of burden of proof, and jurisdictional limitations.

2. Trace the complete procedural history of case No. 20F-H2020049-REL from the filing of the petition to the final order. Include all key dates, actions taken by the parties and the Department, and the specific reasons for each major step, such as the granting of the rehearing.

3. Evaluate the actions taken by the Petitioner, Michael Stoltenberg, regarding his assessment payments. Explain why his unilateral decision to use restricted mail delivery, despite being aware of the Association’s procedures, ultimately caused the negative outcomes he sought to avoid.

4. Explain the contractual relationship between a homeowners’ association and a property owner as described in the legal documents. How do the CC&Rs function as an enforceable contract, and how was this concept central to the dispute?

5. Discuss the roles and authorities of the Arizona Department of Real Estate and the Office of Administrative Hearings (OAH) in resolving HOA disputes, as demonstrated by this case. What are their powers, and what specific limitations on their jurisdiction are identified in the text?

——————————————————————————–

Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

The official who presides over the evidentiary hearing at the Office of Administrative Hearings and issues findings of fact, conclusions of law, and an order. In this case, the ALJ was Jenna Clark.

Arizona Department of Real Estate (Department)

The state agency authorized by statute to receive and decide petitions for hearings from members of homeowners’ associations in Arizona.

ARIZ. REV. STAT.

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

Association

The Rancho Del Oro Homeowners Association, a condominium association whose membership is comprised of the condominium owners in the Rancho Del Oro residential real estate development in Yuma, Arizona.

Board of Directors (the Board)

The body that oversees the Homeowners Association.

Burden of Proof

The obligation of a party in a legal proceeding to prove their contention. In this case, the Petitioner bore the burden of proving the Respondent violated the CC&Rs.

An abbreviation for the Declaration of Covenants, Conditions and Restrictions. These governing documents form an enforceable contract between the Association and each property owner, empowering the Association to control certain aspects of property use.

Office of Administrative Hearings (OAH)

An independent state agency to which the Department of Real Estate refers matters for an evidentiary hearing. The OAH has the authority to hear and decide contested cases and interpret the contract (CC&Rs) between parties.

Petitioner

The party who files a petition initiating a legal action. In this case, Michael J Stoltenberg, a homeowner and member of the Association.

Preponderance of the Evidence

The standard of proof required in this proceeding. It is defined as “proof as convinces the trier of fact that the contention is more probably true than not” and is considered the “greater weight of the evidence.”

Respondent

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

Statutory Agent

An individual listed as an official agent for an entity. For the years 2019 and 2020, Diana Crites was listed as the Association’s Statutory Agent.

Abbreviation for the United States Postal Service.






Blog Post – 20F-H2020049-REL-RHG


Study Guide: Stoltenberg v. Rancho Del Oro Homeowners Association

Short-Answer Quiz

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

1. Who are the two primary parties in case No. 20F-H2020049-REL, and what are their respective roles?

2. What was the specific allegation Michael Stoltenberg made against the Rancho Del Oro Homeowners Association in his petition?

3. Why did the Petitioner, beginning in November 2019, change the way he mailed his monthly assessment payments?

4. What is the specific subject of Section 14.8 of the Association’s Covenants, Conditions, and Restrictions (CC&Rs)?

5. What were the consequences for the Petitioner each time the Association received his monthly assessment payment late?

6. According to the Administrative Law Judge, why was Section 14.8 of the CC&Rs inapplicable to the facts of this case?

7. What was the legal standard of proof the Petitioner was required to meet, and what is its definition?

8. On what grounds did the Petitioner request and receive a rehearing after the initial decision was issued?

9. Why did the Administrative Law Judge dismiss the Petitioner’s argument regarding Arizona Revised Statutes § 10-3842 during the rehearing?

10. What was the final outcome of both the initial hearing on July 14, 2020, and the rehearing on February 16, 2021?

——————————————————————————–

Quiz Answer Key

1. The primary parties are Michael J Stoltenberg, the “Petitioner,” and the Rancho Del Oro Homeowners Association, the “Respondent.” The Petitioner is a condominium owner and member of the Association who filed a petition alleging violations, while the Respondent is the homeowners’ association that governs the development.

2. The Petitioner alleged that the Association was in violation of Arizona Revised Statutes §§ 10-3842 and 10-801, and section 14.8 of the Association’s CC&Rs. Specifically, he alleged that the Association “fail to do their job, and are acting in bad faith.”

3. The Petitioner changed his mailing method because he believed an agent of the Association’s property management company had thrown away one of his mailed payments. As a result, he began sending payments via restricted delivery by the USPS, for board member Rhea Carlisle’s pickup only.

4. Section 14.8, titled “Notices,” pertains to any notice permitted or required by the Declaration or Bylaws. It specifically addresses the Association’s notice obligation to its members when mailing them information, outlining when such notices are deemed delivered.

5. Each time the Petitioner’s monthly assessment was received late, he was assessed a late fee by the Association. Additionally, each late payment occurrence put his residence in danger of foreclosure by the Association.

6. The Judge concluded Section 14.8 was inapplicable because its language speaks specifically to the Association’s obligation to provide notice to its members. The section has no binding authority or control over homeowners sending mail to the Association.

7. The Petitioner was required to prove his case by a “preponderance of the evidence.” This standard is defined as “proof as convinces the trier of fact that the contention is more probably true than not,” or evidence with the most convincing force that inclines an impartial mind to one side of an issue.

8. The Petitioner’s rehearing request was granted on the grounds that there was an alleged “Error in the admission or rejection of evidence or other errors of law occurring during the proceeding.” He also claimed that the initial findings of fact or decision were “arbitrary, capricious, or an abuse of discretion.”

9. The argument regarding ARIZ. REV. STAT. § 10-3842, which concerns standards of conduct for officers, was dismissed because it falls outside of the Department of Real Estate’s jurisdiction. The Petitioner had been advised of the Department’s jurisdictional limitations when he first filed his petition.

10. In both the initial decision (dated August 03, 2020) and the final order after the rehearing (dated March 08, 2021), the Administrative Law Judge denied the Petitioner’s petition. The Judge concluded in both instances that the Petitioner failed to sustain his burden of proof.

——————————————————————————–

Essay Questions

Instructions: The following questions are designed to be answered in a detailed essay format, synthesizing information from across the provided documents. Answers are not provided.

1. Analyze the legal reasoning used by Administrative Law Judge Jenna Clark to deny the Petitioner’s claims in both the initial hearing and the rehearing. Discuss the interpretation of CC&R Section 14.8, the concept of burden of proof, and jurisdictional limitations.

2. Trace the complete procedural history of case No. 20F-H2020049-REL from the filing of the petition to the final order. Include all key dates, actions taken by the parties and the Department, and the specific reasons for each major step, such as the granting of the rehearing.

3. Evaluate the actions taken by the Petitioner, Michael Stoltenberg, regarding his assessment payments. Explain why his unilateral decision to use restricted mail delivery, despite being aware of the Association’s procedures, ultimately caused the negative outcomes he sought to avoid.

4. Explain the contractual relationship between a homeowners’ association and a property owner as described in the legal documents. How do the CC&Rs function as an enforceable contract, and how was this concept central to the dispute?

5. Discuss the roles and authorities of the Arizona Department of Real Estate and the Office of Administrative Hearings (OAH) in resolving HOA disputes, as demonstrated by this case. What are their powers, and what specific limitations on their jurisdiction are identified in the text?

——————————————————————————–

Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

The official who presides over the evidentiary hearing at the Office of Administrative Hearings and issues findings of fact, conclusions of law, and an order. In this case, the ALJ was Jenna Clark.

Arizona Department of Real Estate (Department)

The state agency authorized by statute to receive and decide petitions for hearings from members of homeowners’ associations in Arizona.

ARIZ. REV. STAT.

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

Association

The Rancho Del Oro Homeowners Association, a condominium association whose membership is comprised of the condominium owners in the Rancho Del Oro residential real estate development in Yuma, Arizona.

Board of Directors (the Board)

The body that oversees the Homeowners Association.

Burden of Proof

The obligation of a party in a legal proceeding to prove their contention. In this case, the Petitioner bore the burden of proving the Respondent violated the CC&Rs.

An abbreviation for the Declaration of Covenants, Conditions and Restrictions. These governing documents form an enforceable contract between the Association and each property owner, empowering the Association to control certain aspects of property use.

Office of Administrative Hearings (OAH)

An independent state agency to which the Department of Real Estate refers matters for an evidentiary hearing. The OAH has the authority to hear and decide contested cases and interpret the contract (CC&Rs) between parties.

Petitioner

The party who files a petition initiating a legal action. In this case, Michael J Stoltenberg, a homeowner and member of the Association.

Preponderance of the Evidence

The standard of proof required in this proceeding. It is defined as “proof as convinces the trier of fact that the contention is more probably true than not” and is considered the “greater weight of the evidence.”

Respondent

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

Statutory Agent

An individual listed as an official agent for an entity. For the years 2019 and 2020, Diana Crites was listed as the Association’s Statutory Agent.

Abbreviation for the United States Postal Service.


Case Participants

Petitioner Side

  • Michael J Stoltenberg (petitioner)
    Rancho Del Oro condominium owner
    Appeared on his own behalf,

Respondent Side

  • Nicole Payne (HOA attorney)
    Carpenter, Hazlewood, Delgado & Bolen, LLP
    Appeared on behalf of Rancho Del Oro Homeowners Association,,
  • Rhea Carlisle (board member)
    Rancho Del Oro Homeowners Association
    Unpaid volunteer board member; Petitioner directed mail specifically to her,,,
  • Diana Crites (statutory agent)
    Rancho Del Oro Homeowners Association
    Statutory Agent for 2019 and 2020,
  • Lydia Peirce (HOA attorney staff/contact)
    Linsmeier Carpenter, Hazlewood, Delgado & Bolen, LLP
    Listed as contact for Respondent in 2020 decision transmission

Neutral Parties

  • Jenna Clark (ALJ)
    Office of Administrative Hearings
  • Judy Lowe (ADRE commissioner)
    Arizona Department of Real Estate
    Commissioner receiving the OAH order,
  • Dan Gardner (HOA coordinator)
    Arizona Department of Real Estate
    HOA Coordinator contact for the Commissioner

MICHAEL J. STOLTENBERG v. RANCHO DEL ORO HOMEOWNERS ASSOCIATION

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

Case Summary

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

Parties & Counsel

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

Alleged Violations

CC&Rs § 5.1; A.R.S. § 10-3842

Outcome Summary

The Petition was dismissed after rehearing because Petitioner failed to establish by a preponderance of the evidence that the Respondent violated the CC&Rs. The ALJ found that Petitioner continually refused Respondent access to his locked back yard for landscaping maintenance, and the CC&Rs requiring landscaping do not mandate pool maintenance.

Why this result: Petitioner failed to establish a violation due to refusal of access to the back yard and misinterpretation of CC&R obligations regarding pool maintenance.

Key Issues & Findings

Failure to maintain landscaping and acting in bad faith

Petitioner alleged Respondent HOA violated CC&Rs by failing to maintain landscaping in 2020 and acting in bad faith, asserting that pool/hardscape maintenance was included in landscaping duties, and requesting the maximum fine. Respondent countered that they consistently maintained the front yard but were denied access to the locked backyard due to Petitioner's pool liability concerns.

Orders: Petitioner's Petition was dismissed/denied as Petitioner failed to establish a violation by a preponderance of the evidence. However, Respondent was ordered, going forward, to communicate the days and times they will be performing back yard landscaping so Petitioner can provide access.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • CC&Rs § 5.1
  • CC&Rs § 5.1(a)
  • A.R.S. § 10-3842
  • A.R.S. § 32-2199(B)
  • A.R.S. § 33-1803
  • A.R.S. § 41-1092.07(G)(2)
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • A.A.C. R2-19-119(B)(2)
  • A.R.S. § 32-1122(A)(1)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Analytics Highlights

Topics: HOA Duties, Landscaping, Pool Maintenance, CC&Rs, Access Refusal, Rehearing
Additional Citations:

  • CC&Rs § 5.1
  • CC&Rs § 5.1(a)
  • A.R.S. § 10-3842
  • A.R.S. § 32-2199(B)
  • A.R.S. § 33-1803
  • A.R.S. § 41-1092.07(G)(2)
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • A.A.C. R2-19-119(B)(2)
  • A.R.S. § 32-1122(A)(1)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Video Overview

Audio Overview

Decision Documents

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

Uploaded 2026-01-23T17:33:28 (139.1 KB)

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

Uploaded 2026-01-23T17:33:31 (124.1 KB)





Briefing Doc – 20F-H2020059-REL-RHG


Briefing on Stoltenberg v. Rancho Del Oro Homeowners Association

Executive Summary

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

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

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

I. Case Overview

Case Detail

Information

Case Number

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

Petitioner

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

Respondent

Rancho Del Oro Homeowners Association (HOA)

Office of Administrative Hearings, Arizona

Presiding Judge

Administrative Law Judge Sondra J. Vanella

Hearing Dates

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

Final Disposition

Petition Dismissed (February 12, 2021)

II. Petitioner’s Allegations and Arguments

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

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

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

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

◦ His unique xeriscape with geometric patterns.

◦ Walking paths that required staining.

◦ Replenishing decorative rock when it wears thin.

◦ The patio and all hardscape.

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

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

III. Respondent’s Defense and Evidence

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

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

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

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

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

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

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

IV. Judicial Findings and Legal Rulings

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

Initial Decision (August 17, 2020)

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

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

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

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

Rehearing Decision (February 12, 2021)

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

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

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

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

License Classification

Description & Relevance

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

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

R-6 Swimming Pool Service and Repair

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

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

Judicial Recommendation

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

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






Study Guide – 20F-H2020059-REL-RHG


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

Quiz: Short-Answer Questions

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

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

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

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

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

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

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

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

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

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

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

——————————————————————————–

Answer Key

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

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

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

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

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

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

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

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

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

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

——————————————————————————–

Essay Questions

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

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

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

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

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

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

——————————————————————————–

Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

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

A.R.S.

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

Burden of Proof

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

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

Department

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

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

Petitioner

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

Petition

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

Preponderance of the Evidence

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

Registrar of Contractors

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

Respondent

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






Blog Post – 20F-H2020059-REL-RHG


Briefing on Stoltenberg v. Rancho Del Oro Homeowners Association

Executive Summary

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

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

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

I. Case Overview

Case Detail

Information

Case Number

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

Petitioner

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

Respondent

Rancho Del Oro Homeowners Association (HOA)

Office of Administrative Hearings, Arizona

Presiding Judge

Administrative Law Judge Sondra J. Vanella

Hearing Dates

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

Final Disposition

Petition Dismissed (February 12, 2021)

II. Petitioner’s Allegations and Arguments

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

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

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

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

◦ His unique xeriscape with geometric patterns.

◦ Walking paths that required staining.

◦ Replenishing decorative rock when it wears thin.

◦ The patio and all hardscape.

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

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

III. Respondent’s Defense and Evidence

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

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

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

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

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

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

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

IV. Judicial Findings and Legal Rulings

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

Initial Decision (August 17, 2020)

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

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

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

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

Rehearing Decision (February 12, 2021)

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

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

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

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

License Classification

Description & Relevance

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

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

R-6 Swimming Pool Service and Repair

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

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

Judicial Recommendation

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

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


Case Participants

Petitioner Side

  • Michael J. Stoltenberg (petitioner)

Respondent Side

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

Neutral Parties

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

Debra K Morin v. Solera Chandler Homeowners’ Association, Inc.

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

Case Summary

Case ID 20F-H2020051-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2021-01-08
Administrative Law Judge Kay Abramsohn
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Debra K. Morin Counsel
Respondent Solera Chandler Homeowners' Association, Inc. Counsel Lydia A. Perce Linsmeier, Esq.

Alleged Violations

CC&R Article 7, Section 7.1

Outcome Summary

The Administrative Law Judge ruled that Solera was in compliance with its governing documents, specifically CC&R Article 7, Section 7.1, concluding that the Board is the 'sole judge' regarding appropriate maintenance of AREAS. The Petitioner failed to meet the burden of proof, and the Rehearing Petition was dismissed.

Why this result: Petitioner failed to sustain her burden to establish a violation. The governing documents grant the Board 'the sole judge' authority over maintenance, and Petitioner did not provide legal support requiring the HOA to meet the homeowner maintenance standard.

Key Issues & Findings

Failure to maintain Areas of Association Responsibility (AREAS) in good condition and repair at all times

Petitioner alleged that Solera failed to maintain Areas of Association Responsibility (AREAS) in good condition and repair at all times, arguing that the same strict maintenance standard applied to homeowners (CC&R 7.2) should apply to the HOA (CC&R 7.1). The issue was heard on rehearing after the initial decision dismissed the petition.

Orders: The Administrative Law Judge concluded Solera was in compliance with its governing documents and was the prevailing party. Petitioner's appeal (Rehearing Petition) was dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. 33-1801 et seq.
  • A.R.S. §§ 32-2102
  • A.R.S. §§ 32-2199 et al.
  • A.R.S. § 32-2199.05
  • A.R.S. §§ 32-2199(2)
  • A.R.S. § 32-2199.01(D)
  • A.R.S. § 32-2199.02
  • A.R.S. § 41-1092
  • CC&R Article 7, Section 7.1
  • CC&R Article 7, Section 7.2
  • CC&R Article 9, Section 9.5
  • ARIZ. ADMIN. CODE R2-19-119
  • ARIZ. ADMIN. CODE R2-19-116

Analytics Highlights

Topics: HOA Dispute, CC&R Violation, Maintenance Standard, Areas of Association Responsibility, Rehearing, Sole Judge
Additional Citations:

  • A.R.S. 33-1801 et seq.
  • A.R.S. §§ 32-2102
  • A.R.S. §§ 32-2199 et al.
  • A.R.S. § 32-2199.05
  • A.R.S. §§ 32-2199(2)
  • A.R.S. § 32-2199.01(D)
  • A.R.S. § 32-2199.02
  • A.R.S. § 41-1092
  • CC&R Article 7, Section 7.1
  • CC&R Article 7, Section 7.2
  • CC&R Article 9, Section 9.5
  • ARIZ. ADMIN. CODE R2-19-119
  • ARIZ. ADMIN. CODE R2-19-116

Video Overview

Audio Overview

Decision Documents

20F-H2020051-REL-RHG Decision – 847175.pdf

Uploaded 2026-01-23T17:32:20 (246.5 KB)

20F-H2020051-REL-RHG Decision – ../20F-H2020051-REL/816310.pdf

Uploaded 2026-01-23T17:32:23 (199.6 KB)





Briefing Doc – 20F-H2020051-REL-RHG


Briefing Document: Morin v. Solera Chandler Homeowners’ Association, Inc.

Executive Summary

This briefing document synthesizes the findings and rulings from an administrative law case involving a homeowner, Debra K. Morin (Petitioner), and the Solera Chandler Homeowners’ Association, Inc. (Respondent/Solera). The case centered on the Petitioner’s allegations that the HOA failed to maintain common areas to the standards required by its own governing documents.

The Petitioner filed a two-issue petition, with the primary surviving issue being that Solera, its Board of Directors, and its management company were not maintaining the “Areas of Association Responsibility” (AREAS) in good condition and repair at all times. The Petitioner’s core argument was that the same stringent maintenance standard applied to individual homeowners must be equally applied to the HOA. She provided extensive photographic evidence of issues such as weeds, deteriorating sidewalks, street disrepair, and exposed wiring.

The HOA defended its actions by citing its established procedures for maintenance, including a committee review process, a scheduled Reserves plan, and the use of licensed contractors. Critically, Solera’s defense rested on provisions within its Declaration of Covenants, Conditions, and Restrictions (CC&Rs), which grant the Board of Directors the exclusive right to interpret the CC&Rs and designate it as the “sole judge as to the appropriate maintenance, repair and replacement” of all common areas.

Following an initial hearing, the Administrative Law Judge (ALJ) dismissed the petition, finding that the Petitioner had not met the burden of proof. The ALJ ruled that under the governing documents, the HOA Board has sole discretion in maintenance matters, and the Petitioner’s subjective opinions on how and when work should be done were not relevant to determining a violation. The Petitioner was granted a rehearing, where she presented additional evidence and arguments. However, the ALJ upheld the original decision, reaffirming that the CC&Rs grant the Board authority superseding that of an individual homeowner in determining appropriate maintenance. The petition was dismissed, and Solera was deemed the prevailing party in both instances.

Case Overview

Case Name

Debra K. Morin, Petitioner, v. Solera Chandler Homeowners’ Association, Inc., Respondent.

Case Number

No. 20F-H2020051-REL / 20F-H2020051-REL-RHG

Tribunal

Arizona Office of Administrative Hearings

Presiding Judge

Administrative Law Judge (ALJ) Kay Abramsohn

Petitioner

Debra K. Morin (represented herself)

Respondent

Solera Chandler Homeowners’ Association, Inc. (represented by Lydia Linsmeier, Esq.)

Petition Filed

On or about March 12, 2020

Initial Hearing

May 20, 2020 and July 15, 2020

Initial Decision

August 19, 2020 (Petition Dismissed)

Rehearing Hearing

December 16, 2020

Rehearing Decision

January 8, 2021 (Original Dismissal Upheld)

Petitioner’s Allegations and Arguments

The Petitioner, a resident of Solera for four years, filed a petition with the Arizona Department of Real Estate alleging violations of Solera’s Articles of Incorporation, By-Laws, CC&Rs, and Rules and Regulations (R&Rs). The allegations were organized into two primary issues.

Issue #1: Lack of Direct Communication

Allegation: Solera, its Board, and its management company, Premier Management Company (Premier), “do not allow direct communication from homeowners.”

Requested Relief: The Petitioner sought to have this “policy” rescinded.

Outcome: This issue was connected to allegations of ethics violations based on the Board’s Code of Ethics, which the Tribunal determined was a non-governing document outside its jurisdiction. As a result, the Petitioner withdrew Issue #1 during the May 20, 2020 hearing.

Issue #2: Failure to Maintain Common Areas

Allegation: Solera, its Board, and Premier “are not providing oversight to the General Manager in maintaining all Areas of Association Responsibility … in good condition and repair at all times.” Specific complaints included “uncontrolled weeds” and poor maintenance of the Community Center and other AREAS.

Core Argument: The Petitioner’s central thesis was that the HOA must be held to the identical maintenance standard it imposes on homeowners. She argued that just as homeowners are required to maintain their lots “in a weed free condition 365 days a year,” the HOA has no discretion for delays in addressing maintenance issues in common areas.

Requested Relief:

1. A public admission by the Board of its failures to follow governing documents.

2. The establishment of “direct communication rules” for reporting management deficiencies.

3. Compliance monitoring by the “Real Estate Board.”

Evidence and Specific Complaints

The Petitioner presented over 80 photographs at the initial hearing (growing to 310 by the rehearing) and multiple emails to document a wide range of perceived maintenance failures.

Maintenance Issue

Petitioner’s Specific Complaint

Uncontrolled weeds in granite rock locations throughout the community.

Community Center

Poor exterior condition.

Streets & Curbs

Deteriorating asphalt, cracking, and issues with sealing.

Sidewalks

Trip hazards and disintegrating cool-decking.

Drainage

Clogged storm drains and water pooling issues.

Landscaping

Exposed wiring for lights, exposed drip irrigation lines, and unremoved tree stumps.

Disrepair of boundary walls.

A key piece of evidence was a February 21, 2020 email exchange regarding weeds, which the ALJ found “representative of the overall situation.”

Petitioner’s Complaint: “This is NOT being done and our HOA looks disgusting with the continued presence of unchecked weeds inside and outside our community! No excuses, you cannot hold homeowners to a higher standard than you are willing to do for our HOA. You are on notice to rectify this violation immediately!”

General Manager’s Response: “…the landscape crew hula hoes and sprays daily, based on routine maintenance cycle and location of site work… Considering that we have 1,143,550 square feet of granite and 270,933 square feet of turf, the maintenance of weeds is a continuous and ongoing concern that is constantly being addressed.”

Petitioner’s Rebuttal: “YOUR response is just more excuses!… It appears that since it is not your personal money being spent, it is ok to have substandard work performance.”

Respondent’s Position and Defense

Solera HOA moved to dismiss the petition, arguing the issues were outside the Department’s jurisdiction and the requested relief could not be granted. While the motion was effectively denied after Issue #1 was withdrawn, Solera’s core defense remained consistent throughout the proceedings.

Central Legal Argument: Solera contended that its Board of Directors is vested with the ultimate authority on maintenance matters by the community’s governing documents. It repeatedly cited CC&R Article 7, Section 7.1, which states the Board “shall be the sole judge as to the appropriate maintenance, repair and replacement of all [AREAS].”

Interpretation Authority: The HOA also pointed to CC&R Article 9, Section 9.5, which gives it the “exclusive right to construe and interpret the provisions of the [CC&Rs],” with such interpretations being “final, conclusive and binding.”

Operational Defense: Denise Frazier, Solera’s on-site general manager, testified that the HOA has established processes for maintenance.

Committee Structure: A Building and Grounds Committee (B&G) reviews projects, which are then assessed by a Finance Committee before going to the Board for approval.

Reserves Schedule: Solera maintains a Reserves schedule for large projects, such as sidewalk repairs (every 4 years), street repairs (every 8 years), and sealing cracks (every 2 years).

Vendor Management: The Board relies on licensed contractors for specialized work, including landscaping, tree trimming (by two different companies for different heights), and stump grinding.

Response to Specific Issues:

Weeds: Frazier attributed the prevalence of weeds in early 2020 to an unusual amount of rain, creating “optimal” conditions. She noted that Solera had instructed landscapers to use dye in the weed spray to demonstrate to residents that spraying was occurring.

Sidewalks: Frazier acknowledged a several-month delay in repairing a specific sidewalk area but stated that warning cones had been placed in the interim. Solera uses a ¼ inch standard for review but the City of Chandler’s ½ inch trip-hazard guideline for repairs.

Exposed Wiring: This was explained as a temporary measure by landscapers to avoid cutting electrical and irrigation lines during tree and granite replacement projects.

Rulings and Legal Conclusions

The Administrative Law Judge dismissed the Petitioner’s case after the initial hearing and reaffirmed this dismissal after a rehearing, finding that the Petitioner failed to meet her legal burden of proof.

Key Legal Principles Applied

Burden of Proof: The ALJ established that the Petitioner “bears the burden of proving by a preponderance of the evidence that a respondent has violated the planned community document(s’) provisions.”

Supremacy of Governing Documents: The case was decided on the interpretation of the HOA’s CC&Rs, which function as the binding contract between the association and its members.

Board’s Discretionary Authority: The central and decisive legal conclusion was that the HOA’s governing documents explicitly grant the Board superior authority over maintenance decisions.

◦ CC&R Article 7, Section 7.1 (“sole judge”) was interpreted to mean that only Solera is charged with determining when and how to perform maintenance, repair, and replacement in common areas.

◦ The ALJ concluded this provision “lifts the Board’s authority above that of a homeowner.” The Petitioner failed to provide legal support for her argument that the same maintenance standard must be applied to the Board as is applied to homeowners.

Jurisdictional Limits: The Tribunal’s role is limited to adjudicating alleged violations of governing documents or statutes. The ALJ noted that a “homeowner’s dissatisfaction with management is not within the purview of this process or the jurisdiction of the Tribunal.”

Final Order

The ALJ concluded that Solera was in compliance with its governing documents, including the critical CC&R Article 7, Section 7.1. The Petitioner’s subjective opinions about the timeliness or quality of repairs were deemed irrelevant in the face of the Board’s contractual authority to be the “sole judge.”

Initial Order (August 19, 2020): “IT IS ORDERED Petitioner’s Petition is dismissed and Solera is deemed the prevailing party.”

Rehearing Order (January 8, 2021): “IT IS ORDERED that Solera is the prevailing party with regard to the Rehearing, and Petitioner’s appeal is dismissed.” The order was declared binding on the parties.






Study Guide – 20F-H2020051-REL-RHG


Study Guide: Morin v. Solera Chandler Homeowners’ Association, Inc.

This guide provides a review of the administrative case between Debra K. Morin (Petitioner) and the Solera Chandler Homeowners’ Association, Inc. (Respondent), as detailed in the Administrative Law Judge Decision of August 19, 2020, and the subsequent Rehearing Decision of January 8, 2021.

Short-Answer Quiz

Answer the following questions in 2-3 sentences each, based on the provided case documents.

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

2. What were the two main issues the petitioner, Debra K. Morin, raised in her initial petition filed on March 12, 2020?

3. Why was the petitioner’s first issue, regarding direct communication, withdrawn during the initial hearing?

4. What was the petitioner’s central argument regarding the maintenance standard that Solera should be held to?

5. According to the CC&Rs, what specific authority does the Solera Board have regarding maintenance, which formed the core of its defense?

6. What type of evidence did the petitioner primarily use to document her claims of poor maintenance in the Areas of Association Responsibility (AREAS)?

7. Who is Denise Frazier, and what role did she play in the proceedings?

8. What was the Administrative Law Judge’s final decision in the initial hearing on August 19, 2020?

9. On what grounds did the Commissioner of the Arizona Department of Real Estate grant the petitioner’s request for a rehearing?

10. What was the final outcome of the case after the rehearing decision was issued on January 8, 2021?

Answer Key

1. The primary parties were Debra K. Morin, the Petitioner and a homeowner, and the Solera Chandler Homeowners’ Association, Inc. (Solera), the Respondent. The case was heard by Administrative Law Judge Kay Abramsohn, and Solera was represented by Premier Management Company and its on-site general manager.

2. The petitioner’s Issue #1 alleged that Solera, its Board, and its management company “do not allow direct communication from homeowners.” Issue #2 alleged they were not providing oversight to the General Manager in maintaining all Areas of Association Responsibility in good condition and repair at all times.

3. The petitioner withdrew Issue #1 after it was determined that the Tribunal’s jurisdiction does not include interpreting or applying non-governing documents. Her complaint was based on the Solera Code of Ethics, which the Tribunal could not consider.

4. The petitioner argued that the same maintenance standard must be applied to Solera as is applied to homeowners. She contended that if homeowners are required by the governing documents to maintain their lots “in good condition and repair at all times,” then the HOA must be held to the identical standard for common areas (AREAS).

5. Solera’s defense centered on CC&R Article 7, Section 7.1, which states the Board “shall be the sole judge as to the appropriate maintenance, repair and replacement of all [AREAS].” Additionally, CC&R Article 9, Section 9.5 gives Solera the exclusive right to construe and interpret the CC&Rs.

6. The petitioner presented a large volume of photographic evidence, including over eighty photos for the initial hearing and more for the rehearing. These photographs were intended to document weeds, issues with sidewalks, exposed wiring, storm drains, and other maintenance problems in the common areas.

7. Denise Frazier is the on-site general manager for Solera and an employee of Premier Management Company. She testified on behalf of Solera regarding its maintenance schedules, procedures, reserve studies, and responses to the specific issues raised by the petitioner.

8. In the initial hearing, the Administrative Law Judge dismissed the petitioner’s petition and deemed Solera the prevailing party. The judge concluded that the petitioner had not demonstrated a violation of the governing documents, as the CC&Rs grant the Board sole judgment on maintenance matters.

9. The request for a rehearing was granted because the petitioner claimed there were irregularities in the proceedings, misconduct by the prevailing party, and that the decision was arbitrary, capricious, an abuse of discretion, and not supported by the evidence or contrary to law.

10. The rehearing affirmed the original decision. The Administrative Law Judge again concluded that the petitioner failed to sustain her burden of proof and that Solera was in compliance with its governing documents, specifically CC&R Article 7, Section 7.1. The appeal was dismissed, and Solera was again named the prevailing party.

Essay Questions

The following questions are designed to encourage deeper analysis of the case. No answers are provided.

1. Analyze the central legal conflict in this case by contrasting the petitioner’s interpretation of CC&R Article 7, Section 7.2 with the respondent’s defense based on CC&R Article 7, Section 7.1 and Article 9, Section 9.5. How did the Administrative Law Judge resolve this interpretive dispute?

2. Discuss the concept of jurisdiction as it applied to this case. Explain why certain arguments and evidence presented by the petitioner—such as the Board’s Code of Ethics, Premier Management Company standards, and City of Chandler ordinances—were deemed outside the Tribunal’s authority to consider.

3. Evaluate the petitioner’s strategy and use of evidence. Discuss the strengths and weaknesses of relying heavily on photographic evidence and detailed email complaints. Why did this “enormity” of evidence ultimately fail to meet the “preponderance of the evidence” standard?

4. Explain the significance of the phrase “sole judge” in CC&R Article 7, Section 7.1. How does this clause grant discretionary authority to the HOA Board, and how did it function as the key element in defeating the petitioner’s claim?

5. Trace the procedural history of the case, from the initial Petition and Motion to Dismiss through the original hearing, the Decision, the Rehearing Request, and the final Rehearing Decision. Identify the key rulings and turning points that determined the ultimate outcome.

Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

The judge presiding over the administrative hearing at the Arizona Office of Administrative Hearings. In this case, Judge Kay Abramsohn.

AREAS (Areas of Association Responsibility)

The common areas within the Solera development that the Homeowners’ Association is responsible for managing, maintaining, repairing, and replacing.

By-Laws

One of the governing documents for the Solera Chandler Homeowners’ Association.

CC&Rs (Declaration of Covenants, Conditions, and Restrictions)

A primary governing document for the Solera development, specifically the “Solera Declaration of Covenants, Conditions, and Restrictions for Springfield Lakes.” It outlines the rights and responsibilities of the homeowners and the association.

Denise Frazier

The on-site general manager for Solera, employed by Premier Management Company, who testified on behalf of the association regarding its maintenance operations.

Maintenance Standard

Defined in CC&R Article 1, Section 1.30 as “the standard of maintenance of Improvements established from time to time by the Board and/or the Architectural Review Committee in the Design Guidelines, or in the absence of any such standards, the standards of maintenance of Improvements generally prevailing through the Project.”

Motion to Dismiss

A formal request filed by Solera asking the Department of Real Estate to dismiss the petition on the grounds that the issues were outside the Department’s jurisdiction and the requested relief could not be granted.

Petitioner

The party who filed the petition initiating the legal action. In this case, Debra K. Morin, a homeowner in Solera.

Preponderance of the evidence

The burden of proof in this administrative proceeding. It is defined as proof that convinces the trier of fact that a contention is more probably true than not.

Premier Management Company

The management company hired by Solera to handle day-to-day operations of the community.

Project Documents

The set of governing documents for the community, defined as the CC&Rs, any supplemental declarations, the By-Laws, the R&Rs, and the Design Guidelines.

Respondent

The party against whom the petition is filed. In this case, the Solera Chandler Homeowners’ Association, Inc.

R&Rs (Rules and Regulations)

One of the governing documents for the Solera Chandler Homeowners’ Association.

Tribunal

A term used in the documents to refer to the Arizona Office of Administrative Hearings (OAH), where the hearing was conducted.






Blog Post – 20F-H2020051-REL-RHG


A Homeowner Took on Her HOA with Over 300 Photos of Evidence. The Reason She Lost Is a Warning for Everyone.

Introduction: The Familiar Fight

It’s a scenario familiar to millions of Americans living in planned communities. You receive a violation notice for a minor infraction on your property, yet when you look at the common areas your HOA is responsible for, you see overgrown weeds, cracked sidewalks, and general disrepair. It feels deeply unfair. Why are homeowners held to a strict standard while the association itself seems to neglect its duties?

This exact frustration drove Debra K. Morin to take on her Solera Chandler Homeowners’ Association. Armed with over 300 photographs documenting every weed and crack, she was certain her case was airtight. But she lost. The reasons why her case failed are a stark warning for any homeowner, revealing a legal battle that hinged entirely on the community’s binding contract: the Covenants, Conditions, and Restrictions (CC&Rs).

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The 5 Surprising Lessons from One Homeowner’s HOA Lawsuit

1. The “Sole Judge” Clause: Your HOA’s Ultimate Defense

The single most critical factor in this case was a single clause buried in the HOA’s governing documents. Ms. Morin argued that the HOA must “maintain in good condition and repair at all times” the common areas, believing this was the same standard applied to homeowners. However, the HOA pointed to CC&R Article 7, Section 7.1, which designates the HOA Board as the “sole judge as to the appropriate maintenance, repair and replacement” of all common areas.

This clause proved to be an almost impenetrable defense. In essence, the legal standard for maintenance was not what a “reasonable person” would consider good repair, but whatever the Board, in its exclusive judgment, decided was appropriate. Even with extensive photo evidence, the case failed because the contract Ms. Morin agreed to when she bought her home gave the Board the ultimate discretion. The Administrative Law Judge’s decision made this crystal clear:

“While the CC&Rs allow an owner to bring to the Board a complaint, the CC&Rs specify that the Board is the sole judge regarding appropriate maintenance, repair and replacement of all AREAS.”

This “sole judge” clause is the cornerstone of a much broader power imbalance, one that is codified throughout the governing documents.

2. A Power Imbalance Is Written into the Rules

While Ms. Morin argued for an equal standard of responsibility, the legal documents revealed a clear and intentional power imbalance. CC&R Article 9, Section 9.5, granted the HOA the “exclusive right to construe and interpret the provisions of the [CC&Rs],” and stated that its interpretation is “final, conclusive and binding.”

This structure legally transforms the relationship from a partnership of equals into one of administrator and subject, where one party holds the power of final interpretation. The governing documents describe in detail how the HOA can levy penalties against an owner for violations, but they provide no equivalent process for an owner to penalize the HOA for its failures. The judge in the rehearing decision explicitly summarized this built-in hierarchy:

“Thus, it is clear, that pursuant to the governing documents, the Board’s authority is lifted above that of a homeowner.”

With the Board’s authority so clearly established, Ms. Morin’s mountain of evidence was about to run into a contractual brick wall.

3. An “Enormity of Evidence” Isn’t Always the Right Evidence

Ms. Morin presented a significant volume of evidence, starting with over 80 photographs in the first hearing and later referencing what she called an “enormity” of evidence totaling over 300 pictures of weeds, damaged sidewalks, and other maintenance issues.

The critical legal distinction the judge made was that the photographs documented the condition of the common areas, but they did not prove a violation of the governing documents. The legal question was not, “Are there weeds?” The question was, “Did the Board violate a contract that explicitly makes it the sole judge of maintenance?” This demonstrates that in a contract dispute, the quality of evidence is defined by its relevance to the specific contractual terms, not its sheer volume.

4. “At All Times” Doesn’t Mean “Instantly”

A key part of the homeowner’s argument was that the HOA was failing to “maintain in good condition and repair at all times” by allowing maintenance issues to persist for months. In response, the HOA detailed its operational reality. The HOA provided evidence of long-term capital plans, such as sealing street cracks every two years and major sidewalk repairs on a four-year cycle. Daily tasks, like weed control, were handled by landscape crews operating on a continuous, rotating schedule across the large community.

From a legal perspective, “at all times” is interpreted through the lens of operational reasonableness for a large entity, not as a guarantee of immediate perfection. For an organization managing a vast property, this standard is met through consistent processes and schedules, not by fixing every issue the moment it is reported.

5. Your Dissatisfaction Is Not a Lawsuit

At its heart, the case was driven by Ms. Morin’s deep frustration. The judge recognized that her petition stemmed from a core belief that the Board and its General Manager were unresponsive and providing poor oversight. While these feelings may have been valid, they were not legally actionable on their own. The judge’s decision in the rehearing drew a firm line between a homeowner’s frustration and a legal claim:

“However, a homeowner’s dissatisfaction with management is not within the purview of this process or the jurisdiction of the Tribunal.”

This highlights a common misconception: while feelings of poor customer service are valid, they are legally irrelevant unless they can be tied to a specific, provable breach of the governing documents or a violation of state law.

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Conclusion: Read Before You Sign

The primary lesson from this case is the absolute authority of a community’s governing documents. In any dispute, the specific, written words of the CC&Rs—the contract you sign when you buy your home—will almost always outweigh a homeowner’s subjective standards, sense of fairness, or even a mountain of photographic evidence.

This case serves as a powerful reminder that from a contractual standpoint, the rules are not always designed to be “fair,” but to be enforceable. It leaves every homeowner with a critical question:

Before you complain about your HOA, have you read the rulebook they’re playing by—and that you agreed to?


Case Participants

Petitioner Side

  • Debra K. Morin (petitioner)
    Self-represented

Respondent Side

  • Lydia A. Perce Linsmeier (respondent attorney)
    CARPENTER, HAZLEWOOD, DELGADO & BOLEN LLP
  • Denise Frazier (general manager/witness)
    Premier Management Company
    On-site general manager for Solera, employed by Premier Management Company

Neutral Parties

  • Kay Abramsohn (ALJ)
  • Judy Lowe (ADRE Commissioner)
    Arizona Department of Real Estate
  • Felicia Del Sol (administrative staff)
    Transmitted original decision