Asmaa Kadhum v. Goldcrest Patio Homes Condominium Association

Case Summary

Case ID 22F-H2222028-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2022-10-11
Administrative Law Judge Tammy L. Eigenheer
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Asmaa Kadhum Counsel
Respondent Goldcrest Patio Homes Condominium Association Counsel

Alleged Violations

A.R.S. § 33-1256

Outcome Summary

The Administrative Law Judge denied the petition, concluding that Petitioner failed to prove a violation of A.R.S. § 33-1256 because the specific issue raised—a complaint about a recorded lien—was moot, as the lien had been released, and no current enforcement action regarding the disputed legal fees was pending.

Why this result: The ALJ determined that absent a recorded lien or pending enforcement action, the Office of Administrative Hearings lacked jurisdiction to address the reasonableness or accuracy of the disputed legal fees under the specific statute cited (A.R.S. § 33-1256).

Key Issues & Findings

Requesting to Waive/or Adjust Unreasonable Collection Fees.

Petitioner sought to waive or adjust unreasonable collection fees and attorney fees ($2,351.40 or $3,500.00) charged by the HOA related to a lien placed on their unit, which was later released because it was allegedly based on incorrect amounts.

Orders: Petitioner's petition is denied.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 33-1256
  • A.A.C. R2-19-119

Analytics Highlights

Topics: HOA lien, Collection fees, Attorney fees, Statutory violation, Jurisdiction, Rehearing
Additional Citations:

  • A.R.S. § 33-1256
  • A.R.S. § 32-2199 et seq.
  • A.A.C. R2-19-119
  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 41-1092.08(H)
  • A.R.S. § 12-904(A)

Video Overview

Audio Overview

Decision Documents

22F-H2222028-REL Decision – 1005275.pdf

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22F-H2222028-REL Decision – 1009064.pdf

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22F-H2222028-REL Decision – 1_aamg stmt.pdf

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22F-H2222028-REL Decision – 2_email from silvia regarding late fees.pdf

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22F-H2222028-REL Decision – 3_email regarding plumbing repair from laweyer.pdf

Uploaded 2026-04-24T11:43:48 (983.8 KB)

22F-H2222028-REL Decision – 4_ledger dec 2021.pdf

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22F-H2222028-REL Decision – 5_letter from lawyer.pdf

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22F-H2222028-REL Decision – 7_petition response.pdf

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22F-H2222028-REL Decision – 975165.pdf

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22F-H2222028-REL Decision – HO22-22028_ElectronicNotice_Hearing.pdf

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22F-H2222028-REL Decision – HO22-22028_ElectronicNotice_Petition.pdf

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22F-H2222028-REL Decision – HO22-22028_HearingScheduled.pdf

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22F-H2222028-REL Decision – HO22-22028_MC_Pet.ResponseToRespondentsResponseToPetition.pdf

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22F-H2222028-REL Decision – HO22-22028_MC_Response&ADRERequest.pdf

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22F-H2222028-REL Decision – HO22-22028_Notice_Hearing.pdf

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22F-H2222028-REL Decision – HO22-22028_Notice_Petition.pdf

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22F-H2222028-REL Decision – HO22-22028_Payment.pdf

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22F-H2222028-REL Decision – HO22-22028_Pet.ResponseTo.pdf

Uploaded 2026-04-24T11:44:48 (5499.9 KB)

22F-H2222028-REL Decision – HO22-22028_Petition.pdf

Uploaded 2026-04-24T11:44:57 (5828.4 KB)

22F-H2222028-REL Decision – HO22-22028_Response_Petition.pdf

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Briefing Document: Dispute Between Asmaa Kadhum and Goldcrest Patio Homes Condominium Association

Executive Summary

This document synthesizes the key facts and legal proceedings concerning a dispute between homeowner Asmaa Kadhum (Petitioner) and the Goldcrest Patio Homes Condominium Association (Respondent). The central conflict is the Petitioner’s refusal to pay approximately $3,500 in legal fees that the Respondent incurred during collection efforts for past-due assessments.

The dispute escalated when the Respondent, on June 15, 2020, filed a lien for $2,199.00 against the Petitioner’s property. The Petitioner contested the lien’s validity, citing numerous accounting errors. Subsequently, the Respondent’s own legal counsel advised releasing the lien on November 13, 2020, acknowledging it contained “invalid late fee charges” and was released to protect the association from a “potential false lien claim.”

Despite the release of the lien, the Respondent continued to demand payment for the legal fees. The Petitioner filed a petition with the Arizona Department of Real Estate (ADRE) on January 12, 2022, alleging a violation of A.R.S. § 33-1256 and arguing the collection fees were unreasonable.

Following a hearing and a rehearing, the Administrative Law Judge (ALJ) ultimately ruled in favor of the Respondent. The decision was based on a critical jurisdictional issue: because there was no active lien on the property at the time the petition was filed or heard, there was no existing violation of the cited statute for the Office of Administrative Hearings (OAH) to adjudicate. The ALJ concluded that the OAH lacks the authority to issue a declaratory judgment on the reasonableness of the fees in the absence of a pending enforcement action by the association. The underlying liability for the legal fees remains an unresolved issue between the parties.

Parties Involved

Name/Entity

Key Representative(s)

Petitioner

Asmaa Kadhum

Asmaa Kadhum, Mazin Ahmed Al-Salih

Respondent

Goldcrest Patio Homes Condominium Association

Jerry Latschar (Vice President), Cammy Bowring

Chronology of Key Events

Prior to May 1, 2019

Petitioner accrued unpaid assessments and fees totaling $1,375.00 under previous management (AAMG).

April 21, 2020

Respondent sent a notice to Petitioner demanding payment of $1,435.00 in past-due assessments and fees within 30 days.

April 30, 2020

Petitioner responded via email, stating it was “not a good timing for collections” due to the pandemic and requested late fees be removed.

June 15, 2020

Respondent recorded a Notice of Lien on Petitioner’s unit for an amount of $2,199.00.

August 7, 2020

Respondent’s attorney sent a notice stating the total amount due, including legal fees, was now $2,504.00.

September 10, 2020

Petitioner notified Respondent that the lien amount was incorrect and constituted an “improper lien.”

November 13, 2020

Respondent recorded a Release of Lien against the Petitioner’s unit.

December 10, 2020

Respondent’s attorney explained in a letter that the lien was released because it “included late fee charges that were found to be invalid.”

Post-Release

Respondent maintained that Petitioner still owed approximately $3,500.00 in legal fees from the collection process.

December 2021

An account ledger showed a balance of $2,685.40.

January 12, 2022

Petitioner filed a petition with the ADRE (Case No. HO22-22/028) alleging a violation of A.R.S. § 33-1256.

April 4, 2022

An administrative hearing was held before ALJ Tammy L. Eigenheer.

October 11, 2022

Following a rehearing, the ALJ issued a final decision, finding no violation of the cited statute and dismissing the petition.

October 27, 2022

Petitioner filed a miscellaneous motion, which the OAH did not consider, stating it could take no further action on the matter.

Analysis of the Core Dispute

The Disputed Legal Fees

The primary point of contention is the legal fees assessed to the Petitioner’s account for the collection of past-due assessments.

Respondent’s Claim: The Respondent asserts that legal fees of approximately $3,500.00 are owed. However, during testimony, Respondent’s representative, Mr. Latschar, was “uncertain where the $3,500.00 total originated.”

Conflicting Evidence: The amount claimed is inconsistent with other documents. Invoices from counsel submitted after the initial hearing showed total charges of only 661.50∗∗attributabletothePetitioner′smatterbetweenAugustandNovember2020.AledgerfromDecember2021showedatotaloutstandingbalanceof∗∗2,685.40, which included legal fees.

The Improper Lien

A foundational element of the Petitioner’s argument is the improper nature of the lien filed by the Respondent.

Filing and Release: A lien for $2,199.00 was recorded on June 15, 2020, and officially released on November 13, 2020.

Reason for Release: The Respondent’s attorney stated the release was necessary to “protect [Respondent] and our firm from a potential false lien claim” because the original notice “included late fee charges that were found to be invalid.” The Respondent’s response to the petition also states, “the lawyer was forced to release the lien” because of “errors” related to posting late fees.

Varying Amounts: The Petitioner highlighted the inconsistent amounts demanded throughout the process:

$1,435.00 in the April 2020 notice.

$2,199.00 in the June 2020 lien filing.

$2,504.00 in the August 2020 attorney notice.

Petitioner’s Position and Arguments

The Petitioner contends they should not be held responsible for legal fees stemming from the Respondent’s flawed collection process.

Fees are Unreasonable: The core argument is that charging legal fees for an “invalid” lien based on “false statements and invoices” is unreasonable and unacceptable.

Lack of Cooperation: The Petitioner claims to have made multiple attempts to discuss the matter and arrange payments, sending meeting requests in December 2021 that were allegedly ignored or cancelled.

Principle of Fairness: The Petitioner argued, “if someone files a claim then realized that his filing process was based on wrong documents, and then dropped the claim himself, should the other party be responsible for the legal fees for that.”

Respondent’s Position and Arguments

The Respondent maintains that the legal fees are a legitimate debt resulting from the Petitioner’s failure to pay assessments.

Legal Action was Necessary: The Respondent initiated legal action because the Petitioner had not paid assessments for “nearly a year” and had stated they would not make back payments until late fees were waived.

Lien Release vs. Debt: The Respondent argues that the release of the lien “doesn’t release the balance owing, just the lien at the county.” The legal fees incurred to collect the past assessments remain due.

Petitioner Contributed to Costs: The Respondent claims the Petitioner “proceeded to force the attorney to review the ledger, which caused further legal fees to be charged.”

Administrative Hearing and Legal Rulings

Case Details and Petition

OAH Docket: 22F-H2222028-REL

ADRE Case: HO22-22/028

Alleged Violation: A.R.S. § 33-1256, which governs the placement of liens for assessments and requires that they be for “reasonable collection fees and for reasonable attorney fee.”

Relief Sought: An order to “Waive / or Adjust Unreasonable Collection Fees.”

Administrative Law Judge’s Findings and Conclusions

Across both the initial hearing and the rehearing, the ALJ’s decision was consistent and based on a narrow interpretation of the OAH’s jurisdiction under the cited statute.

Primary Finding: The Petitioner failed to establish by a preponderance of the evidence that the Respondent violated A.R.S. § 33-1256.

Jurisdictional Limitation: The ALJ repeatedly emphasized that her authority was limited to evaluating existing liens. Since the lien was released in November 2020, well before the petition was filed in January 2022, there was no active lien to assess for reasonableness.

Corrective Action: The ALJ stated that by releasing the improper lien, the Respondent had “fixed” the past error, removing it from the OAH’s purview.

No Declaratory Judgment: The decision clarified that the OAH has “no jurisdiction to issue declaratory judgments.” It could not rule on whether the legal fees themselves were reasonable as a standalone issue, only whether an active lien containing those fees was compliant with statute.

No Enforcement Action: The decision noted that at the time of the hearing, the Respondent was not pursuing any enforcement action (such as filing a new lien or foreclosure) to collect the disputed fees. The fees existed only as “a number on a ledger.”

Salient Quotes

Petitioner: “Why why we have to pay for for them mistakes? That’s totally issue.”

Petitioner: “$3,377 legal fee for placing lean is not reasonable or acceptable.”

Respondent: “they caused us to obtain legal counsel by not paying their bills for almost a year… It doesn’t release the balance owing, just the lien at the county.”

Respondent’s Attorney (via letter): “…because the original Notice of Lien ‘included late fee charges that were found to be invalid . . . a Release of Lien was recorded in order to protect [Respondent] and our firm from a potential false lien claim.'”

Administrative Law Judge: “There is no lean on your property. I can’t say the lean is wrong because there is no lean at this point.”

Administrative Law Judge: “I can’t I can’t say that what they did in the past was wrong because they have fixed it by releasing the lean.”

Administrative Law Judge (Decision): “the exact amount of legal fees attributable to Petitioner is not relevant in this matter as there were no pending enforcement actions. This is not to say Petitioner may not be entitled to raise this question in a separate venue.”

Study Guide: Case No. 22F-H2222028-REL

Short-Answer Quiz

Instructions: Based on the provided source materials, answer the following questions in 2-3 complete sentences.

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

2. What specific Arizona Revised Statute did the Petitioner allege the Respondent violated, and what was the core of this allegation?

3. On what date did the Respondent file a Notice of Lien against the Petitioner’s property, what was the amount, and why was this lien later released?

4. According to the Administrative Law Judge (ALJ), why did the Office of Administrative Hearings lack the jurisdiction to rule on the reasonableness of the legal fees sought by the Respondent?

5. How did the Petitioner respond to the Respondent’s April 21, 2020 notice of past-due assessments?

6. What action did the Respondent’s law firm state it was prohibited from taking until May 21, 2020, and what was the legal basis for this restriction?

7. After the initial hearing, what was the total amount of legal fees supported by the four invoices submitted by Mr. Latschar for the period between August 1 and November 30, 2020?

8. The Petitioner sought to sell their property and requested a statement from the Respondent showing a zero balance. What was the central point of contention preventing this?

9. In December 2021, the Petitioner attempted to schedule a meeting with the board to dispute a fee. What was the outcome of these requests?

10. What was the final outcome of the case as stated in the Administrative Law Judge’s decision on October 11, 2022?

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Answer Key

1. The Petitioner is Asmaa Kadhum, a condominium owner. The Respondent is the Goldcrest Patio Homes Condominium Association. Their dispute centers on the reasonableness of approximately $3,500 in legal fees the Association charged to Kadhum for collection efforts related to past-due assessments, particularly after the Association filed and then released an invalid lien on the property.

2. The Petitioner alleged a violation of A.R.S. Title 33, Chapter 16, Section 33-1256. The core of the allegation was that the Association was charging unreasonable collection and attorney fees, which is a standard addressed by this statute when an HOA places a lien against a unit.

3. The Respondent filed a Notice of Lien for $2,199.00 on June 15, 2020. The lien was later released on November 13, 2020, because, as the Respondent’s attorney noted, the original Notice of Lien “included late fee charges that were found to be invalid,” and the release was recorded to protect the Association and the law firm from a potential false lien claim.

4. The ALJ stated that the court could not rule on the reasonableness of the fees because there was no longer a recorded lien against the property. The petition was filed under A.R.S. § 33-1256, which governs liens, and since the lien had been released, there was no active violation or enforcement action for the court to evaluate or remedy. The OAH has no jurisdiction to issue declaratory judgments on such matters in the absence of an active enforcement action.

5. In an email dated April 30, 2020, the Petitioner responded to the notice by stating it was “not a good timing for collections” due to the pandemic. The Petitioner disputed the total amount, claiming late fees should be removed, and stated they were planning to pay the whole amount “after this pandemic goes away.”

6. In a May 5, 2020 email, the law firm, Mulcahy Law Firm, P.C., stated that pursuant to state law, it could not proceed with collection efforts until 30 days had passed from the April 21 notice. This meant the file could not be turned over to their office for collection until after May 21, 2020, giving the owner time to pay or arrange a payment agreement.

7. According to the ALJ’s decision from the initial hearing, the four invoices submitted by Mr. Latschar after the hearing showed total charges of $661.50 attributable to the Petitioner’s matter between August 1, 2020, and November 30, 2020.

8. The Petitioner wanted a zero-balance statement to sell the property, arguing all assessments had been paid. The Respondent refused to provide this, contending that while the assessments were paid, there was still an outstanding balance for legal fees incurred during the collection process, which the Petitioner disputed as unreasonable and resulting from the Respondent’s own mistakes.

9. The Petitioner sent multiple meeting requests in December 2021 to dispute a fee of $3,377. The Respondent ultimately canceled the meeting with the homeowner and held one with only the board members, citing COVID-19 and the use of Zoom, even though previous meetings had been held via Zoom.

10. In the final decision dated October 11, 2022, the ALJ concluded that the Petitioner failed to establish by a preponderance of the evidence that the Respondent violated A.R.S. § 33-1256. This was because there was no recorded lien against the property at the time of the petition or hearings, and thus no active enforcement action for the OAH to adjudicate.

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Suggested Essay Questions

1. Trace the complete timeline of the dispute, starting from the initial delinquency prior to May 2019 through the final OAH decision in October 2022. Detail the key financial figures, legal actions, and communications from both parties at each significant stage.

2. Analyze the central legal arguments presented by both the Petitioner and the Respondent. Discuss the merits of the Petitioner’s claim regarding A.R.S. § 33-1256 and explain in detail the jurisdictional reasoning used by the Administrative Law Judge to dismiss the petition.

3. Examine the various financial discrepancies present throughout the source documents, including the differing amounts cited in notices, the lien filing, attorney letters, and account ledgers. How did these inconsistencies contribute to the escalation of the conflict and the accumulation of legal fees?

4. Discuss the role of the Respondent’s law firm, Mulcahy Law Firm, P.C., in this dispute. Based on the provided emails and legal documents, evaluate their advice to the Association and their actions regarding the lien and collection process.

5. Critically evaluate the communication and resolution attempts between the Petitioner and the Respondent’s board outside of the formal legal proceedings. What do the emails and hearing testimony reveal about their efforts to resolve the dispute directly?

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Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

An independent judge who presides over administrative hearings for government agencies, such as the Office of Administrative Hearings. In this case, Tammy L. Eigenheer served as the ALJ.

A.R.S. § 33-1256

The specific Arizona Revised Statute cited by the Petitioner. This statute pertains to liens for assessments in condominiums, including provisions for reasonable collection and attorney fees associated with such liens.

Assessment

A mandatory fee paid by condominium owners to the homeowners’ association (HOA) for the maintenance of common elements and other association expenses.

Declaratory Judgment

A binding judgment from a court defining the legal relationship between parties and their rights in a matter before any harm has occurred. The OAH stated it had no jurisdiction to issue such a judgment on the legal fees.

Department of Real Estate (ADRE)

The Arizona state agency responsible for licensing and regulating the real estate industry. Its functions include the Homeowners Association Dispute Resolution process.

A legal claim or hold on a property as security for a debt. In this case, the Condominium Association placed a lien on the Petitioner’s unit for unpaid assessments and fees.

Office of Administrative Hearings (OAH)

An independent Arizona state agency authorized to conduct hearings in contested matters for other state agencies, ensuring a fair and impartial process.

Petitioner

The party who files a petition initiating a legal case or administrative hearing. In this matter, the petitioner is the homeowner, Asmaa Kadhum.

Preponderance of the evidence

The standard of proof in most civil and administrative cases. It requires the party with the burden of proof (the Petitioner in this case) to show that their claim is more likely true than not.

Rehearing

A second hearing of a case to re-examine the issues and evidence. In this matter, a rehearing was granted after the initial April 4, 2022 hearing.

Release of Lien

A legal document that removes a previously recorded lien on a property. The Respondent recorded a Release of Lien on November 13, 2020, after acknowledging the original lien amount was incorrect.

Respondent

The party against whom a petition is filed. In this matter, the respondent is the Goldcrest Patio Homes Condominium Association.

5 Shocking Lessons from a Homeowner’s Two-Year War with Her HOA

Introduction: The Notice on the Door

It’s a moment many homeowners dread: finding an official notice from the Homeowner’s Association (HOA) taped to the front door. For most, it’s a minor issue—a reminder about lawn care or trash cans. But for homeowner Asmaa Kadhum, a notice in April 2020 regarding approximately $1,400 in past-due assessments was the first step in a spiraling, multi-year legal war with her Goldcrest Patio Homes Condominium Association.

What began as a manageable debt quickly escalated into a complex battle involving property liens, lawyers, and a dispute over thousands of dollars in legal fees. The case of Kadhum versus her HOA serves as a powerful cautionary tale, revealing several surprising and counter-intuitive truths about the high-stakes world of HOA disputes.

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1. You Can Win the Battle Over a Lien, But Still Owe the Fees

One of the central ironies of this case is how a clear victory on one front failed to end the war. After the homeowner fell behind on assessments, the HOA’s collection efforts caused the initial $1,435 dispute to snowball. On June 15, 2020, the HOA placed a lien on her property for $2,199. The homeowner disputed the lien’s accuracy, arguing that it contained errors.

Ultimately, she was proven correct. The HOA was forced to record a Release of Lien on November 13, 2020. This should have been the end of it, but here’s the twist: even with the lien gone, the HOA maintained that the homeowner was still responsible for approximately $3,500 in legal fees that had been incurred during the process of trying to collect the original debt. This reveals a crucial distinction in HOA law: getting an improper lien removed from your property title doesn’t automatically erase the associated collection costs from the HOA’s ledger. The manageable debt had now become a much larger problem.

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2. A Legal Technicality Can Get a Valid Complaint Dismissed

The homeowner, now facing a bill for thousands in legal fees related to a lien the HOA admitted was flawed, took her case to the Arizona Department of Real Estate. This move, however, highlights a critical strategic error. She filed her petition on January 12, 2022, alleging a violation of statute A.R.S. § 33-1256, which governs HOA liens and the reasonableness of the fees associated with them.

This led to a procedural “Catch-22” that doomed her case. The problem was timing. The HOA had released the improper lien on November 13, 2020—a full 14 months before the homeowner filed her petition. The case hinged on a procedural nuance that many homeowners might overlook: the statute she cited applies exclusively to active liens. Since the target of her complaint no longer existed by the time of the April 2022 hearing, the judge had no jurisdiction.

The Administrative Law Judge explained this jurisdictional trap in plain English:

and if there was a lien on your property right now, I could look at it and say whether or not the collection fees were appropriate, were reasonable. There isn’t one, so there’s nothing for me to evaluate.

The homeowner’s complaint about the fees might have had merit, but because she legally tied it to a violation that was no longer active, the court’s hands were tied. A different legal approach, perhaps focused on disputing the fees in another venue, may have been necessary.

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3. Correcting an Error Doesn’t Erase the Cost of Making It

The homeowner’s core argument was simple and relatable: why should she be forced to pay for the HOA’s mistakes? This question became even more pointed when documents revealed the HOA’s own attorney admitting the error. The attorney explained that the lien was released because it “included late fee charges that were found to be invalid” and the release was done to protect the association from a “potential false lien claim.”

During the hearing, the homeowner put the fundamental question to the judge: “Why… do we have to pay for their mistakes?”

Despite the HOA’s admission of error, the legal fees incurred during the entire collections process—including the work related to filing and defending the faulty lien—remained on her account. The situation reached a shocking climax during the hearing. When the judge reviewed the case, he noted that the HOA’s own representative, Mr. Latschar, “was uncertain where the $3,500.00 total originated.” The homeowner was being held liable for a debt that even her creditor couldn’t fully explain.

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4. A Disputed Debt Can Haunt a Property Sale

Even after the lien was officially released, the homeowner found herself in a financial vise. As she explained in the hearing, she wanted to sell her property and needed a formal statement from the HOA showing a zero balance to provide to potential buyers and title companies.

However, because the HOA’s books still showed she owed thousands in disputed legal fees, they would not provide this statement. This situation highlights the immense leverage an HOA maintains during a property conveyance. The dispute created a “phantom debt”—not an active lien recorded with the county, but a disputed balance on a ledger that can effectively halt a sale. The judge acknowledged this limbo, describing the amount as “just a number on a ledger.”

Yet, that number is a powerful barrier. Title insurance companies, which are essential for nearly all property sales, will not issue a clear policy if there is a known, unresolved financial dispute with an HOA. This gives the association the power to delay or prevent a sale, even without an active lien on the property.

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5. Small Communication Failures Lead to Big Legal Bills

This entire conflict escalated because of a pattern of communication failures that eroded trust long before lawyers were involved. Records show the friction began as early as November 2019, with the homeowner claiming disputes over incorrect receipts and the HOA’s alleged failure to waive late fees as promised.

The situation came to a head in April 2020. When the homeowner received the collection notice, she responded via email, stating it was “not a good timing for collections” due to the pandemic and that she planned to pay the full amount “after this pandemic goes away.” Instead of working toward a formal payment agreement, the HOA proceeded with legal action. The homeowner later claimed she tried to schedule meetings with the board to resolve the matter directly but “was never responded to.”

These failures in communication and negotiation were the direct catalyst for involving lawyers. That decision is what caused the debt to balloon from the original $1,435 to a prolonged, stressful, and expensive dispute over thousands in legal fees.

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Conclusion: A Pyrrhic Victory?

The ordeal of Asmaa Kadhum offers critical lessons for any homeowner in an HOA. It demonstrates that in these disputes, legal technicalities matter immensely, clear communication is non-negotiable, and winning a single battle doesn’t mean you’ve won the war. Even when a homeowner is “right” on a key point—like forcing the removal of an improper lien—they can still face significant and lasting financial consequences.

This case leaves every homeowner with a final, thought-provoking question to ponder: When facing a dispute with an HOA, how do you know when to fight for what’s right versus when to avoid a battle that might cost you more than you stand to gain?

Case Participants

Petitioner Side

  • Asmaa Kadhum (petitioner)
    Filed the petition and appeared on her own behalf,
  • Mazin Ahmed (co-owner)
    Referenced as part of 'Petitioner' definition; much of the correspondence was from/to him

Respondent Side

  • Jerry Latschar (board member)
    Goldcrest Patio Homes Condominium Association
    Vice President of the Board of Directors, appeared on behalf of Respondent

Neutral Parties

  • Tammy L. Eigenheer (ALJ)
    OAH
    Also referred to as Tammy Aganeer,,,
  • Louis Dettorre (Commissioner ADRE)
    Arizona Department of Real Estate
  • Miranda Alvarez (legal secretary)
    Transmitted decision
  • c. serrano (administrative staff)
    Transmitted minute entry

Aaron J Gragg v. Anthem Parkside at Merrill Ranch Community

Case Summary

Case ID 21F-H2121042-REL
Agency ADRE
Tribunal OAH
Decision Date 2021-11-01
Administrative Law Judge Sondra J. Vanella
Outcome The Petitioner's Petition, alleging four separate violations of Arizona statutes and CC&Rs (regarding ADR procedures, fraudulent violation assessment, failure to produce documents, and selective enforcement), was denied as the Petitioner failed to prove any of the alleged violations by a preponderance of the evidence.
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Aaron J. Gragg Counsel
Respondent Anthem Parkside at Merrill Ranch Community Association, Inc. Counsel Curtis Ekmark, Esq.

Alleged Violations

CC&R Article 12.4(a)
A.R.S. § 33-1803
A.R.S. § 33-1805
CC&R 2.4(a)

Outcome Summary

The Petitioner's Petition, alleging four separate violations of Arizona statutes and CC&Rs (regarding ADR procedures, fraudulent violation assessment, failure to produce documents, and selective enforcement), was denied as the Petitioner failed to prove any of the alleged violations by a preponderance of the evidence.

Why this result: Petitioner failed to meet the burden of proving by a preponderance of the evidence that the Respondent violated A.R.S. § 33-1803, A.R.S. § 33-1805, or CC&R sections 2.4(a) and 12.4(a).

Key Issues & Findings

Refusal to participate in Alternate Dispute Resolution (ADR)

Petitioner alleged Respondent failed to comply with CC&R Article 12.4(a) regarding ADR. The ALJ found that CC&R Article 12.4(a) excluded proceedings initiated by the Association to enforce architectural, design, and landscape controls from mandatory arbitration.

Orders: Petitioner’s Petition is denied

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • CC&Rs Section 12.4(a)

Fraudulent assessment of violations

Petitioner alleged Respondent assessed violations without observation. Evidence showed Petitioner’s landscape violations were observed during routine inspections by the Community Standards Administrator.

Orders: Petitioner’s Petition is denied

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 33-1803

Failure to produce documents

Petitioner requested documents establishing design review requirements and enforcement authority. The ALJ found Petitioner’s requests were actually legal questions posed to Respondent regarding the CC&Rs, not requests for specific documents or records.

Orders: Petitioner’s Petition is denied

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 33-1805

Selective Enforcement / Similar Treatment

Petitioner alleged selective enforcement because he was required to provide a photograph to prove compliance. The ALJ found Respondent has required photographic verification from other similarly situated non-compliant homeowners since 2010.

Orders: Petitioner’s Petition is denied

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • CC&R Section 2.4(a)

Analytics Highlights

Topics: HOA enforcement, Landscaping violation, Alternative Dispute Resolution, Selective Enforcement, Document Request
Additional Citations:

  • A.R.S. § 33-1803
  • A.R.S. § 33-1805
  • A.R.S. § 32-2199 et seq.
  • A.A.C. R2-19-119
  • CC&Rs Section 12.4(a)
  • CC&R Section 2.4(a)

Video Overview

Audio Overview

Decision Documents

21F-H2121042-REL Decision – 921903.pdf

Uploaded 2026-04-24T11:34:48 (123.1 KB)

21F-H2121042-REL Decision – 921903.pdf

Uploaded 2026-01-23T17:37:23 (123.1 KB)

Administrative Law Judge Decision Summary: Aaron J. Gragg v. Anthem Parkside at Merrill Ranch Community Association, Inc. (No. 21F-H2121042-REL)

This matter came before the Office of Administrative Hearings on June 29, 2021, and October 19, 2021, concerning a Petition filed by Aaron J. Gragg ("Petitioner") alleging four violations by the Anthem Parkside at Merrill Ranch Community Association, Inc. ("Respondent").

Key Facts and Background

The core facts revolve around the Petitioner’s failure to complete rear yard landscaping as required by the Covenants, Conditions & Restrictions (CC&Rs) within 120 days of closing escrow in December 2017. Despite multiple plan submissions and approvals between 2018 and 2019, Petitioner did not complete the landscaping. Respondent issued approximately 14 noncompliance notices. In December 2019, and again following Petitioner’s appeal to the Board in March 2021, Respondent requested photographic evidence to verify compliance and close the violation file. Evidence showed that Petitioner’s rear yard was still incomplete in April 2021, and after the initial hearing setting.

Main Issues and Legal Arguments

Petitioner alleged four violations:

  1. CC&R 12.4(a) (Alternate Dispute Resolution – ADR): Petitioner alleged Respondent refused to participate in ADR.
  2. A.R.S. § 33-1803 (Fraudulent Assessment): Petitioner alleged Respondent assessed violations that were not actually observed.
  3. A.R.S. § 33-1805 (Document Production): Petitioner alleged Respondent failed to comply with standards for producing documents.
  4. CC&R 2.4(a) (Similar Treatment/Selective Enforcement): Petitioner alleged Respondent selectively enforced rules by requiring photographic proof of compliance.

Legal Conclusions and Outcome

The Administrative Law Judge (ALJ) found that Petitioner failed to meet the burden of proof by a preponderance of the evidence on all four issues.

  • A.R.S. § 33-1803 (Observed Violations): The credible evidence established that the landscape violations were observed during routine inspections by the Community Standards Administrator; thus, Petitioner failed to establish a violation of A.R.S. § 33-1803.
  • A.R.S. § 33-1805 (Document Production): Petitioner’s requests were determined not to be requests for specific records, but rather questions posed to Respondent regarding the CC&Rs, which Petitioner already possessed. Therefore, Petitioner failed to establish a violation of A.R.S. § 33-1805.
  • CC&R 12.4(a) (ADR): The CC&Rs explicitly exclude proceedings initiated by the Association to enforce architectural, design, and landscape controls from the mandatory arbitration requirements of Section 12.4. Furthermore, Respondent had not filed suit or requested arbitration against Petitioner. Petitioner failed to establish a violation of CC&R Section 12.4(a).
  • CC&R 2.4(a) (Similar Treatment): Evidence showed that Respondent had requested photographic verification of compliance from other homeowners who were similarly non-compliant with landscape guidelines since at least 2010. The request made to Petitioner was consistent with past actions for similarly situated homeowners. Petitioner failed to establish a violation of CC&R Section 2.4(a).

Final Decision

The ALJ issued an Order denying Petitioner’s Petition on November 1, 2021.

Questions

Question

Can I use a records request to force the HOA to explain their legal authority or justification for fines?

Short Answer

No. A records request must be for existing documents, not a method to pose legal questions to the HOA.

Detailed Answer

The ALJ ruled that requests asking for 'evidence… supporting justification' or the 'location of explicit CC&Rs' are actually interrogatories (questions) rather than requests for existing records. The HOA is not required to create new documents to answer legal questions under the guise of a records request.

Alj Quote

Petitioner’s request was not for documents or records, but rather for answers to legal questions.

Legal Basis

A.R.S. § 33-1805

Topic Tags

  • records request
  • legal authority
  • HOA obligations

Question

Can the HOA require me to submit photos proving I fixed a violation?

Short Answer

Yes, particularly if there is a history of non-compliance.

Detailed Answer

The decision found it reasonable for an HOA to require a homeowner to submit photographic evidence to close a violation file, especially when the homeowner had failed to comply for an extended period. This requirement does not necessarily constitute unequal treatment.

Alj Quote

Respondent has requested of homeowners that have not been in compliance with the Landscape Design Guidelines, to submit photographic evidence when in compliance, in order prove such compliance.

Legal Basis

CC&R Section 2.4(a)

Topic Tags

  • violations
  • compliance
  • evidence

Question

Is it discrimination if the HOA asks me for proof of compliance but doesn't ask my neighbors?

Short Answer

Not if you are in a different situation (e.g., non-compliant) than your neighbors.

Detailed Answer

The ALJ determined that homeowners who are not in compliance are not 'similarly situated' to those who completed their obligations on time. Therefore, the HOA can impose different requirements (like submitting photos) on non-compliant owners without violating equal treatment clauses.

Alj Quote

This request is no different than those requests made by Respondent in the past of similarly situated homeowners, i.e., those not in compliance.

Legal Basis

CC&R Section 2.4(a)

Topic Tags

  • discrimination
  • selective enforcement
  • equal treatment

Question

Who has the burden of proof in a hearing against the HOA?

Short Answer

The homeowner (Petitioner) must prove the HOA violated the law or CC&Rs.

Detailed Answer

The homeowner bears the burden of proving their allegations by a 'preponderance of the evidence,' which means showing that the fact sought to be proved is more probable than not.

Alj Quote

Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated A.R.S. § 33-1803, A.R.S. § 33-1805, and CC&Rs sections 2.4(a) and 12.4(a).

Legal Basis

A.A.C. R2-19-119

Topic Tags

  • hearing process
  • burden of proof
  • legal standards

Question

Does the HOA have to prove they physically saw a violation?

Short Answer

Yes, but testimony regarding routine inspections is sufficient proof.

Detailed Answer

The homeowner alleged the HOA assessed violations that were not observed. However, the ALJ accepted credible testimony from the Community Standards Administrator that the violations were observed during routine inspections as sufficient proof.

Alj Quote

The credible evidence of record established that Petitioner’s landscape violations were observed during routine inspections by the Community Standards Administrator.

Legal Basis

A.R.S. § 33-1803

Topic Tags

  • violations
  • inspections
  • evidence

Question

Can I sue the HOA for refusing Alternative Dispute Resolution (ADR) if I didn't try to arbitrate?

Short Answer

No. If you skip the arbitration process required by the CC&Rs, you cannot claim the HOA refused ADR.

Detailed Answer

The homeowner claimed the HOA refused ADR procedures. However, the ALJ found that because the homeowner filed a petition with the Department instead of submitting the dispute to binding arbitration as required by the CC&Rs, the claim was invalid.

Alj Quote

Petitioner did not submit the dispute to final and binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association, choosing instead to file a Petition with the Department.

Legal Basis

CC&R Section 12.4(a)

Topic Tags

  • ADR
  • arbitration
  • dispute resolution

Case

Docket No
21F-H2121042-REL
Case Title
Aaron J. Gragg v. Anthem Parkside at Merrill Ranch Community Association, Inc.
Decision Date
2021-11-01
Alj Name
Sondra J. Vanella
Tribunal
OAH
Agency
ADRE

Questions

Question

Can I use a records request to force the HOA to explain their legal authority or justification for fines?

Short Answer

No. A records request must be for existing documents, not a method to pose legal questions to the HOA.

Detailed Answer

The ALJ ruled that requests asking for 'evidence… supporting justification' or the 'location of explicit CC&Rs' are actually interrogatories (questions) rather than requests for existing records. The HOA is not required to create new documents to answer legal questions under the guise of a records request.

Alj Quote

Petitioner’s request was not for documents or records, but rather for answers to legal questions.

Legal Basis

A.R.S. § 33-1805

Topic Tags

  • records request
  • legal authority
  • HOA obligations

Question

Can the HOA require me to submit photos proving I fixed a violation?

Short Answer

Yes, particularly if there is a history of non-compliance.

Detailed Answer

The decision found it reasonable for an HOA to require a homeowner to submit photographic evidence to close a violation file, especially when the homeowner had failed to comply for an extended period. This requirement does not necessarily constitute unequal treatment.

Alj Quote

Respondent has requested of homeowners that have not been in compliance with the Landscape Design Guidelines, to submit photographic evidence when in compliance, in order prove such compliance.

Legal Basis

CC&R Section 2.4(a)

Topic Tags

  • violations
  • compliance
  • evidence

Question

Is it discrimination if the HOA asks me for proof of compliance but doesn't ask my neighbors?

Short Answer

Not if you are in a different situation (e.g., non-compliant) than your neighbors.

Detailed Answer

The ALJ determined that homeowners who are not in compliance are not 'similarly situated' to those who completed their obligations on time. Therefore, the HOA can impose different requirements (like submitting photos) on non-compliant owners without violating equal treatment clauses.

Alj Quote

This request is no different than those requests made by Respondent in the past of similarly situated homeowners, i.e., those not in compliance.

Legal Basis

CC&R Section 2.4(a)

Topic Tags

  • discrimination
  • selective enforcement
  • equal treatment

Question

Who has the burden of proof in a hearing against the HOA?

Short Answer

The homeowner (Petitioner) must prove the HOA violated the law or CC&Rs.

Detailed Answer

The homeowner bears the burden of proving their allegations by a 'preponderance of the evidence,' which means showing that the fact sought to be proved is more probable than not.

Alj Quote

Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated A.R.S. § 33-1803, A.R.S. § 33-1805, and CC&Rs sections 2.4(a) and 12.4(a).

Legal Basis

A.A.C. R2-19-119

Topic Tags

  • hearing process
  • burden of proof
  • legal standards

Question

Does the HOA have to prove they physically saw a violation?

Short Answer

Yes, but testimony regarding routine inspections is sufficient proof.

Detailed Answer

The homeowner alleged the HOA assessed violations that were not observed. However, the ALJ accepted credible testimony from the Community Standards Administrator that the violations were observed during routine inspections as sufficient proof.

Alj Quote

The credible evidence of record established that Petitioner’s landscape violations were observed during routine inspections by the Community Standards Administrator.

Legal Basis

A.R.S. § 33-1803

Topic Tags

  • violations
  • inspections
  • evidence

Question

Can I sue the HOA for refusing Alternative Dispute Resolution (ADR) if I didn't try to arbitrate?

Short Answer

No. If you skip the arbitration process required by the CC&Rs, you cannot claim the HOA refused ADR.

Detailed Answer

The homeowner claimed the HOA refused ADR procedures. However, the ALJ found that because the homeowner filed a petition with the Department instead of submitting the dispute to binding arbitration as required by the CC&Rs, the claim was invalid.

Alj Quote

Petitioner did not submit the dispute to final and binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association, choosing instead to file a Petition with the Department.

Legal Basis

CC&R Section 12.4(a)

Topic Tags

  • ADR
  • arbitration
  • dispute resolution

Case

Docket No
21F-H2121042-REL
Case Title
Aaron J. Gragg v. Anthem Parkside at Merrill Ranch Community Association, Inc.
Decision Date
2021-11-01
Alj Name
Sondra J. Vanella
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • Aaron J. Gragg (petitioner)
    Appeared on his own behalf

Respondent Side

  • Curtis Ekmark (HOA attorney)
    CARPENTER HAZLEWOOD DELGADO & WOOD, PLC
    Represented Respondent
  • Michelle Haney (community manager)
    Appeared as witness for Respondent

Neutral Parties

  • Sondra J. Vanella (ALJ)
  • Louis Dettorre (Commissioner)
    Arizona Department of Real Estate
  • AHansen (ADRE staff)
    Arizona Department of Real Estate
    Recipient of transmittal
  • djones (ADRE staff)
    Arizona Department of Real Estate
    Recipient of transmittal
  • DGardner (ADRE staff)
    Arizona Department of Real Estate
    Recipient of transmittal

Jeffrey D Points v. Olive 66 Condominium Association

Case Summary

Case ID 21F-H2121059-REL
Agency ADRE
Tribunal OAH
Decision Date 2021-09-08
Administrative Law Judge Tammy L. Eigenheer
Outcome The Petitioner’s petition was affirmed in part (violation of A.R.S. § 33-1258 regarding documents) and denied in part (no violation of A.R.S. § 33-1248 regarding open meetings). Respondent was ordered to reimburse $500.00 of the filing fee and comply with A.R.S. § 33-1258.
Filing Fees Refunded $1,000.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Jeffrey D Points Counsel
Respondent Olive 66 Condominium Association Counsel MacKenzie Hill

Alleged Violations

A.R.S. § 33-1258
A.R.S. § 33-1248

Outcome Summary

The Petitioner’s petition was affirmed in part (violation of A.R.S. § 33-1258 regarding documents) and denied in part (no violation of A.R.S. § 33-1248 regarding open meetings). Respondent was ordered to reimburse $500.00 of the filing fee and comply with A.R.S. § 33-1258.

Why this result: Petitioner failed to prove the violation of A.R.S. § 33-1248 because evidence of improper notice was lacking and the topic discussed in executive session was likely covered by a statutory exemption.

Key Issues & Findings

Access to Association Records

Respondent violated A.R.S. § 33-1258 by failing to provide certain requested 2021 invoices that were in existence at the time of the request within the statutory 10-day period.

Orders: Respondent must comply with A.R.S. § 33-1258 going forward. Petitioner reimbursed $500.00 filing fee.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • A.R.S. § 33-1258
  • A.R.S. § 33-1805

Open Board Meetings

Petitioner failed to establish a violation of A.R.S. § 33-1248 regarding the March 25, 2021, board meeting, as the issue regarding notice was not established and the topic discussed (Landscaping Bid Review) likely fell under a statutory exemption.

Orders: Petitioner failed to establish the alleged violation of A.R.S. § 33-1248.

Filing fee: $500.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 33-1248
  • A.R.S. § 33-1804

Analytics Highlights

Topics: condominium association, document request, open meeting, executive session, invoices, filing fee refund
Additional Citations:

  • A.R.S. § 33-1248
  • A.R.S. § 33-1258
  • A.R.S. § 33-1804
  • A.R.S. § 33-1805
  • A.R.S. § 32-2199 et seq.
  • A.A.C. R2-19-119

Video Overview

Audio Overview

Decision Documents

21F-H2121059-REL Decision – 909631.pdf

Uploaded 2026-04-24T11:37:01 (47.7 KB)

21F-H2121059-REL Decision – 909633.pdf

Uploaded 2026-04-24T11:37:11 (117.7 KB)

21F-H2121059-REL Decision – 909631.pdf

Uploaded 2026-01-23T17:38:43 (47.7 KB)

21F-H2121059-REL Decision – 909633.pdf

Uploaded 2026-01-23T17:38:48 (117.7 KB)

This decision arises from the administrative hearing in the matter of *Jeffrey D Points v. Olive 66 Condominium Association*. The hearing, held on August 19, 2021, before Administrative Law Judge Tammy L. Eigenheer, addressed allegations that the Olive 66 Condominium Association (Respondent) violated Arizona statutes concerning document availability and open meetings.

Key Facts and Legal Framework

The Respondent is a condominium unit owners’ association located in Phoenix, Arizona. The Petitioner, Jeffrey D. Points, alleged violations, initially citing homeowner association (HOA) statutes (A.R.S. §§ 33-1804 and 33-1805). Due to the Respondent’s status, the legal focus shifted to the corresponding condominium statutes: A.R.S. § 33-1248 (meetings) and A.R.S. § 33-1258 (records). Petitioner bore the burden of proving violations by a preponderance of the evidence.

Main Issues and Arguments

The dispute centered on two key issues:

  1. Improper Executive Session (A.R.S. § 33-1248): Petitioner challenged the use of a closed session during the March 25, 2021, Board Meeting, specifically regarding the Landscaping Bid Review. The statute allows meetings to be closed for matters relating to the job performance of or specific complaints against an individual employee of a contractor. Respondent’s witness testified that the review addressed specific performance issues with a landscaping company employee.
  2. Failure to Produce Documents (A.R.S. § 33-1258): Petitioner made numerous requests for association records, including invoices and 1099s. The statute requires financial and other non-privileged records to be made reasonably available within ten business days of a request. Petitioner also asserted a right to examine *all* association documents in person at the office. Respondent argued that allowing unlimited in-person review was unduly burdensome due to the need to remove confidential documents and ongoing COVID-19 concerns.

Legal Conclusions and Outcome

The Administrative Law Judge (ALJ) reached the following conclusions of law:

  • Closed Session (A.R.S. § 33-1248): The ALJ found that the Respondent properly considered the landscaping issue in executive session because it fell under the statutory exception concerning the job performance of an individual contractor employee. Petitioner failed to establish that the meeting notice was improper or that the executive session violated A.R.S. § 33-1248.
  • Document Production (A.R.S. § 33-1258): The ALJ rejected Petitioner’s assertion of a right to examine all documents in person. However, Respondent’s counsel acknowledged that certain requested 2021 invoices were in existence at the time of the request but were not provided to the Petitioner within the required 10-day statutory period. This failure constituted a violation of A.R.S. § 33-1258.

The Final Decision

The Petitioner’s petition was affirmed in part and denied in part. Although a violation of the document production statute (A.R.S. § 33-1258) was established, the ALJ found that no civil penalty was appropriate.

The Order required the following remedy:

  1. Respondent must reimburse Petitioner $500.00 of the filing fee for the issue on which the Petitioner prevailed.
  2. Respondent is directed to comply with the requirements of A.R.S. § 33-1258 going forward.

Questions

Question

Can I demand to inspect every single HOA document in person at the management office?

Short Answer

No. While records must be reasonably available, you do not have the right to peruse all documents at will.

Detailed Answer

The Administrative Law Judge ruled that the statute requiring records be 'reasonably available' does not grant an unlimited right to inspect all documents in person. The HOA can withhold certain confidential documents, and sorting through everything to remove them may be considered unduly burdensome.

Alj Quote

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

Legal Basis

A.R.S. § 33-1258

Topic Tags

  • Records Request
  • Inspection Rights

Question

Is it a violation if the HOA fails to provide requested invoices within 10 days?

Short Answer

Yes. If the documents exist and are not provided within the statutory timeframe, it is a violation.

Detailed Answer

The ALJ found the Association in violation of the law because they acknowledged that requested invoices existed at the time of the request but were not provided to the homeowner.

Alj Quote

Respondent’s witness acknowledged that certain invoices requested by Petitioner were in existence at the time of the request, but were not provided to Petitioner. Such a failure to provide the documents requested was a violation of A.R.S. § 33-1258.

Legal Basis

A.R.S. § 33-1258

Topic Tags

  • Records Request
  • Invoices
  • Timeliness

Question

Can the HOA Board discuss vendor contracts or issues in a closed executive session?

Short Answer

Yes, if the discussion involves specific complaints or performance issues regarding an individual employee of the contractor.

Detailed Answer

The ALJ ruled that a 'Landscaping Bid Review' was properly held in executive session because the testimony indicated it involved specific performance issues with an employee of the landscaping company.

Alj Quote

Respondent’s witness asserted that the issue regarding the landscaping bid review was a specific performance issue with an employee of the landscaping company. As that topic falls under the exception listed in A.R.S. § 33-1248(A)(4), Respondent properly considered the issue in an executive session closed to its members.

Legal Basis

A.R.S. § 33-1248(A)(4)

Topic Tags

  • Open Meetings
  • Executive Session
  • Vendors

Question

Will the HOA be fined if they are found to have violated records request laws?

Short Answer

Not necessarily. The ALJ has discretion regarding civil penalties.

Detailed Answer

In this case, even though a violation was found regarding the failure to provide invoices, the judge decided that no civil penalty was appropriate based on the facts presented.

Alj Quote

Based on the facts presented, the Administrative Law Judge finds no civil penalty is appropriate in this matter.

Legal Basis

Administrative Discretion

Topic Tags

  • Penalties
  • Enforcement

Question

Who has the burden of proof in a dispute with the HOA?

Short Answer

The homeowner (Petitioner) must prove the violation by a preponderance of the evidence.

Detailed Answer

The homeowner is responsible for providing evidence that outweighs the evidence offered by the HOA. If the homeowner fails to provide sufficient evidence (such as proof of when a meeting agenda was issued), the claim will likely fail.

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated A.R.S. § 33-1248 and A.R.S. § 33-1258.

Legal Basis

A.A.C. R2-19-119

Topic Tags

  • Legal Standards
  • Burden of Proof

Question

Can I get my filing fee reimbursed if I win?

Short Answer

Yes, typically for the portion of the case on which you prevail.

Detailed Answer

The ALJ ordered the Association to reimburse the homeowner $500.00, which represented the filing fee for the specific issue (records request) where the homeowner won.

Alj Quote

IT IS FURTHER ORDERED that Respondent reimburse Petitioner their $500.00 filing fee for the issue on which they prevailed.

Legal Basis

Order

Topic Tags

  • Remedies
  • Fees

Question

What if I suspect the HOA altered a document they sent me?

Short Answer

You must provide proof. Mere assertion is not enough.

Detailed Answer

The homeowner claimed a landscaping contract was altered but provided no evidence. The ALJ ruled that an assertion without merit cannot be the basis for finding a violation.

Alj Quote

Petitioner’s assertion that the landscaping contract was altered in some way is completely without merit and cannot be the basis for a finding that Respondent violated A.R.S. § 33-1258.

Legal Basis

Evidence

Topic Tags

  • Evidence
  • Fraud Allegations

Question

Do Open Meeting laws apply to Condominium Associations?

Short Answer

Yes, under A.R.S. § 33-1248.

Detailed Answer

Although the homeowner originally cited the Planned Community statutes (A.R.S. § 33-1804), the hearing proceeded under the correct Condominium statutes (A.R.S. § 33-1248), which contain similar open meeting requirements.

Alj Quote

After discussion, the hearing proceeded with the understanding that the statutes applicable to the instant matter were A.R.S. § 33-1248… and A.R.S. § 33-1258…

Legal Basis

A.R.S. § 33-1248

Topic Tags

  • Jurisdiction
  • Condos vs HOAs

Case

Docket No
21F-H2121059-REL
Case Title
Jeffrey D Points vs. Olive 66 Condominium Association
Decision Date
2021-09-08
Alj Name
Tammy L. Eigenheer
Tribunal
OAH
Agency
ADRE

Questions

Question

Can I demand to inspect every single HOA document in person at the management office?

Short Answer

No. While records must be reasonably available, you do not have the right to peruse all documents at will.

Detailed Answer

The Administrative Law Judge ruled that the statute requiring records be 'reasonably available' does not grant an unlimited right to inspect all documents in person. The HOA can withhold certain confidential documents, and sorting through everything to remove them may be considered unduly burdensome.

Alj Quote

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

Legal Basis

A.R.S. § 33-1258

Topic Tags

  • Records Request
  • Inspection Rights

Question

Is it a violation if the HOA fails to provide requested invoices within 10 days?

Short Answer

Yes. If the documents exist and are not provided within the statutory timeframe, it is a violation.

Detailed Answer

The ALJ found the Association in violation of the law because they acknowledged that requested invoices existed at the time of the request but were not provided to the homeowner.

Alj Quote

Respondent’s witness acknowledged that certain invoices requested by Petitioner were in existence at the time of the request, but were not provided to Petitioner. Such a failure to provide the documents requested was a violation of A.R.S. § 33-1258.

Legal Basis

A.R.S. § 33-1258

Topic Tags

  • Records Request
  • Invoices
  • Timeliness

Question

Can the HOA Board discuss vendor contracts or issues in a closed executive session?

Short Answer

Yes, if the discussion involves specific complaints or performance issues regarding an individual employee of the contractor.

Detailed Answer

The ALJ ruled that a 'Landscaping Bid Review' was properly held in executive session because the testimony indicated it involved specific performance issues with an employee of the landscaping company.

Alj Quote

Respondent’s witness asserted that the issue regarding the landscaping bid review was a specific performance issue with an employee of the landscaping company. As that topic falls under the exception listed in A.R.S. § 33-1248(A)(4), Respondent properly considered the issue in an executive session closed to its members.

Legal Basis

A.R.S. § 33-1248(A)(4)

Topic Tags

  • Open Meetings
  • Executive Session
  • Vendors

Question

Will the HOA be fined if they are found to have violated records request laws?

Short Answer

Not necessarily. The ALJ has discretion regarding civil penalties.

Detailed Answer

In this case, even though a violation was found regarding the failure to provide invoices, the judge decided that no civil penalty was appropriate based on the facts presented.

Alj Quote

Based on the facts presented, the Administrative Law Judge finds no civil penalty is appropriate in this matter.

Legal Basis

Administrative Discretion

Topic Tags

  • Penalties
  • Enforcement

Question

Who has the burden of proof in a dispute with the HOA?

Short Answer

The homeowner (Petitioner) must prove the violation by a preponderance of the evidence.

Detailed Answer

The homeowner is responsible for providing evidence that outweighs the evidence offered by the HOA. If the homeowner fails to provide sufficient evidence (such as proof of when a meeting agenda was issued), the claim will likely fail.

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated A.R.S. § 33-1248 and A.R.S. § 33-1258.

Legal Basis

A.A.C. R2-19-119

Topic Tags

  • Legal Standards
  • Burden of Proof

Question

Can I get my filing fee reimbursed if I win?

Short Answer

Yes, typically for the portion of the case on which you prevail.

Detailed Answer

The ALJ ordered the Association to reimburse the homeowner $500.00, which represented the filing fee for the specific issue (records request) where the homeowner won.

Alj Quote

IT IS FURTHER ORDERED that Respondent reimburse Petitioner their $500.00 filing fee for the issue on which they prevailed.

Legal Basis

Order

Topic Tags

  • Remedies
  • Fees

Question

What if I suspect the HOA altered a document they sent me?

Short Answer

You must provide proof. Mere assertion is not enough.

Detailed Answer

The homeowner claimed a landscaping contract was altered but provided no evidence. The ALJ ruled that an assertion without merit cannot be the basis for finding a violation.

Alj Quote

Petitioner’s assertion that the landscaping contract was altered in some way is completely without merit and cannot be the basis for a finding that Respondent violated A.R.S. § 33-1258.

Legal Basis

Evidence

Topic Tags

  • Evidence
  • Fraud Allegations

Question

Do Open Meeting laws apply to Condominium Associations?

Short Answer

Yes, under A.R.S. § 33-1248.

Detailed Answer

Although the homeowner originally cited the Planned Community statutes (A.R.S. § 33-1804), the hearing proceeded under the correct Condominium statutes (A.R.S. § 33-1248), which contain similar open meeting requirements.

Alj Quote

After discussion, the hearing proceeded with the understanding that the statutes applicable to the instant matter were A.R.S. § 33-1248… and A.R.S. § 33-1258…

Legal Basis

A.R.S. § 33-1248

Topic Tags

  • Jurisdiction
  • Condos vs HOAs

Case

Docket No
21F-H2121059-REL
Case Title
Jeffrey D Points vs. Olive 66 Condominium Association
Decision Date
2021-09-08
Alj Name
Tammy L. Eigenheer
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • Jeffrey D Points (petitioner)
    Appeared on their own behalf

Respondent Side

  • MacKenzie Hill (respondent attorney)
    The Brown Law Group, PLLC
    Represented Olive 66 Condominium Association
  • Nathan Tennyson (respondent attorney)
    Represented Olive 66 Condominium Association
  • Cathy Hacker (association manager)
    Olive 66 Condominium Association
    Provided testimony as Association Manager,
  • Musa (individual/contractor)
    Mentioned regarding 1099s and invoices; referred to as 'Musa', and 'M. Sayegh'
  • Lorinda Brown (individual/contractor)
    Mentioned regarding 1099s and invoices

Neutral Parties

  • Tammy L. Eigenheer (ALJ)
    Office of Administrative Hearings
  • Judy Lowe (ADRE Commissioner)
    Arizona Department of Real Estate

Other Participants

  • Tim (individual)
    Mentioned regarding 1099s/invoices; reportedly 'has not done any work on the property',

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

Case Summary

Case ID 21F-H2120022-REL
Agency ADRE
Tribunal OAH
Decision Date 2021-08-24
Administrative Law Judge Velva Moses-Thompson
Outcome The Administrative Law Judge dismissed the petition filed by Darryl L. Jacobson-Barnes and Robert Barnes, finding that the Petitioner failed to prove by a preponderance of the evidence that the Respondent HOA violated any of the cited Arizona Revised Statutes or that the alleged CC&R violation was outside the scope of Article III, § 3.10. The Respondent was deemed the prevailing party.
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

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

Alleged Violations

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

Outcome Summary

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

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

Key Issues & Findings

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

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

Orders: Petition dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

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

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

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

Orders: Petition dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

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

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

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

Orders: Petition dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 33-1811

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

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

Orders: Petition dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

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

Analytics Highlights

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

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

Video Overview

Audio Overview

Decision Documents

21F-H2120022-REL Decision – 895732.pdf

Uploaded 2026-04-24T11:31:28 (39.8 KB)

21F-H2120022-REL Decision – 895827.pdf

Uploaded 2026-04-24T11:31:31 (5.6 KB)

21F-H2120022-REL Decision – 906326.pdf

Uploaded 2026-04-24T11:31:34 (99.4 KB)

21F-H2120022-REL Decision – 895732.pdf

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

21F-H2120022-REL Decision – 895827.pdf

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

21F-H2120022-REL Decision – 906326.pdf

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

This summary addresses the legal case heard in the Office of Administrative Hearings (OAH) concerning Darryl Jacobson-Barnes & Robert Barnes (Petitioner) and Circle G Ranches 4 Homeowners Association (Respondent/HOA). The case number was 21F-H2120022-REL, and the Administrative Law Judge (ALJ) was Velva Moses-Thompson. Hearings were held on January 26, 2021, March 3, 2021, and July 14, 2021, with the record held open until August 4, 2021.

Key Facts and Dispute Background

The dispute originated when a member of the HOA Board of Directors filed a complaint alleging that Petitioner had installed an unapproved floodlight at the back of their home. On May 27, 2020, the HOA issued a violation notice alleging a violation of Article III, Section 3.10 of the HOA CC&Rs, which requires prior approval of design, location, and materials for structures constructed on the property.

Petitioner requested a hearing regarding the notice. After the parties failed to resolve the issue of "excessive light trespass" following an initial July 9, 2020 open appeal session, the Board held another appeal hearing on July 24, 2020. The Board voted on the appeal in a closed, executive session in order to obtain legal advice. The Board notified the Petitioner that their appeal was denied around August 18, 2020. Petitioner subsequently filed a petition with the Arizona Department of Real Estate (Department) outlining four alleged violations by the HOA.

Main Legal Issues

The OAH hearing focused on four issues set for determination:

  1. Whether the HOA violated A.R.S. § 33-1803(D) and (E) by failing to respond properly to the notice contest and proceeding with enforcement.
  2. Whether the HOA violated A.R.S. § 33-1804(a)(5) by rendering its decision on the contest in a closed session.
  3. Whether the alleged violation and resulting penalty were void and unenforceable under A.R.S. § 33-1811.
  4. Whether the alleged violation (the unapproved floodlight) was outside the scope of the cited CC&R Article III, § 3.10.

Key Legal Findings and Decision

The ALJ concluded that the Petitioner failed to prove by a preponderance of the evidence that the Respondent HOA violated A.R.S. § 33-1808.

  • A.R.S. § 33-1803(D) and (E): The ALJ found no violation. The evidence showed the HOA's May 27, 2020 notice of violation provided all the requisite information (including the CC&R provision, observation date, observer name, and contest process) required under A.R.S. § 33-1803(D)(1)-(4). Since the notice was compliant, the requirements of A.R.S. § 33-1803(E) were not triggered and did not apply.
  • A.R.S. § 33-1804(a)(5): The ALJ found no violation. While the Board voted in a closed session, credible testimony demonstrated that the session was closed to allow the HOA to seek legal counsel concerning the decision, which is permissible pursuant to A.R.S. § 33-1804(A)(1).
  • A.R.S. § 33-1811: The ALJ found no violation. This statute pertains to the validity of actions for compensation (contracts, decisions, etc.) taken by the Board, and no evidence was presented that Petitioner’s appeal involved such an action.
  • Scope of CC&R Article III, § 3.10: The ALJ determined the allegation regarding the unapproved floodlight fell within the scope of CC&R Article III, § 3.10. This article governs the construction of structures, including "other structure[s]," requiring prior approval from the Architectural Control Committee.

Outcome

The ALJ concluded that the petition filed by Darryl L. Jacobson-Barnes and Robert Barnes should be dismissed.

IT IS ORDERED that the petition is dismissed, and the Circle G Ranches 4 Homeowners Association is deemed the prevailing party in this matter. The decision was signed on August 24, 2021.

Questions

Question

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

Short Answer

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

Detailed Answer

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

Alj Quote

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

Legal Basis

A.R.S. § 33-1803(D)

Topic Tags

  • violation notices
  • due process
  • HOA procedures

Question

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

Short Answer

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

Detailed Answer

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

Alj Quote

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

Legal Basis

A.R.S. § 33-1803(E)

Topic Tags

  • violation notices
  • legal requirements

Question

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

Short Answer

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

Detailed Answer

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

Alj Quote

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

Legal Basis

A.R.S. § 33-1804(A)(1)

Topic Tags

  • board meetings
  • open meeting law
  • executive session

Question

Do I need architectural approval to install a floodlight?

Short Answer

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

Detailed Answer

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

Alj Quote

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

Legal Basis

CC&R Article III, § 3.10

Topic Tags

  • architectural control
  • home improvements
  • lighting

Question

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

Short Answer

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

Detailed Answer

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

Alj Quote

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

Legal Basis

A.R.S. § 33-1811

Topic Tags

  • conflicts of interest
  • penalties
  • statutory interpretation

Question

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

Short Answer

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

Detailed Answer

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

Alj Quote

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

Legal Basis

A.A.C. R2-19-119

Topic Tags

  • legal standards
  • hearings
  • burden of proof

Case

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

Questions

Question

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

Short Answer

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

Detailed Answer

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

Alj Quote

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

Legal Basis

A.R.S. § 33-1803(D)

Topic Tags

  • violation notices
  • due process
  • HOA procedures

Question

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

Short Answer

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

Detailed Answer

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

Alj Quote

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

Legal Basis

A.R.S. § 33-1803(E)

Topic Tags

  • violation notices
  • legal requirements

Question

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

Short Answer

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

Detailed Answer

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

Alj Quote

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

Legal Basis

A.R.S. § 33-1804(A)(1)

Topic Tags

  • board meetings
  • open meeting law
  • executive session

Question

Do I need architectural approval to install a floodlight?

Short Answer

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

Detailed Answer

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

Alj Quote

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

Legal Basis

CC&R Article III, § 3.10

Topic Tags

  • architectural control
  • home improvements
  • lighting

Question

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

Short Answer

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

Detailed Answer

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

Alj Quote

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

Legal Basis

A.R.S. § 33-1811

Topic Tags

  • conflicts of interest
  • penalties
  • statutory interpretation

Question

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

Short Answer

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

Detailed Answer

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

Alj Quote

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

Legal Basis

A.A.C. R2-19-119

Topic Tags

  • legal standards
  • hearings
  • burden of proof

Case

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

Case Participants

Petitioner Side

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

Respondent Side

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

Neutral Parties

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

John D Klemmer v. Caribbean Gardens Association

Case Summary

Case ID 21F-H2120009-REL
Agency ADRE
Tribunal OAH
Decision Date 2020-12-17
Administrative Law Judge Kay A. Abramsohn
Outcome loss
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner John D Klemmer Counsel
Respondent Caribbean Gardens Association Counsel Nicole D. Payne, Esq., Lydia A. Pierce Linsmeier, Esq.

Alleged Violations

CC&Rs Article 1, Sections 1.5 and 1.8; Article 3, Section 3.4; Article 4, Section 4.1; Article 8, Section 8.1; and, Article 12, Section 12.4

Outcome Summary

The Petition was dismissed because the Petitioner failed to prove, by a preponderance of the evidence, that the Respondent Association violated the cited CC&R provisions by refusing to manage the disputed area, which the ALJ determined was a limited common element.

Why this result: The Petitioner lost because the area in dispute was determined to be a 'limited common element' (a balcony serving Unit 207) under Arizona statute (A.R.S. § 33-1212(A)), not a 'common area' the Association was required to manage under the referenced CC&Rs.

Key Issues & Findings

Refusal to manage, operate, maintain and administer common area

Petitioner alleged the HOA violated multiple CC&Rs by refusing to maintain an area between Unit 206 and Unit 207, which he claimed was a common area. The HOA argued the area was a limited common element. The ALJ concluded, relying on A.R.S. § 33-1212(A), that the disputed area was a limited common element (a balcony) allocated exclusively to Unit 207, thus Petitioner failed to establish a CC&R violation.

Orders: Petitioner's Petition is dismissed. Petitioner bears his $500.00 filing fee.

Filing fee: $500.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 33-1212(A)
  • CC&Rs Article 1, Section 1.5
  • CC&Rs Article 1, Section 1.6
  • CC&Rs Article 3, Section 3.4
  • CC&Rs Article 4, Section 4.1
  • CC&Rs Article 8, Section 8.1
  • CC&Rs Article 12, Section 12.4

Analytics Highlights

Topics: condominium, common elements, limited common elements, balcony dispute, CC&R violation, A.R.S. 33-1212
Additional Citations:

  • A.R.S. § 33-1212
  • A.R.S. § 33-1218
  • A.R.S. Title 33, Chapter 16
  • A.A.C. R2-19-119
  • CC&Rs Article 1, Sections 1.5, 1.8
  • CC&Rs Article 3, Section 3.4
  • CC&Rs Article 4, Section 4.1
  • CC&Rs Article 8, Section 8.1
  • CC&Rs Article 12, Section 12.4

Video Overview

Audio Overview

Decision Documents

21F-H2120009-REL Decision – 876384.pdf

Uploaded 2026-04-24T11:29:57 (124.8 KB)

21F-H2120009-REL Decision – 843358.pdf

Uploaded 2026-04-24T11:30:03 (129.8 KB)

21F-H2120009-REL Decision – 843358.pdf

Uploaded 2026-01-23T17:35:00 (129.8 KB)

Briefing Document: Klemmer v. Caribbean Gardens Association

Executive Summary

This document synthesizes the findings and decision in the administrative case of John D. Klemmer v. Caribbean Gardens Association (No. 21F-H2120009-REL). The core of the dispute was the legal classification of an outdoor space located between two condominium units. The Petitioner, a unit owner, argued the space was a “common area” that the Association was legally obligated to manage under its governing documents (CC&Rs). The Respondent Association countered that the space was a “balcony” or “limited common element” for the exclusive use of the adjacent unit owner.

The Administrative Law Judge (ALJ) ultimately dismissed the petition. While the Association’s 1973 CC&Rs and the official Plat document were ambiguous regarding the space, the decision hinged on the application of a later state statute, Arizona Revised Statutes (A.R.S.) § 33-1212. This statute defines balconies designed to serve a single unit as “limited common elements” allocated exclusively to that unit. Because the disputed area was only accessible from a single unit (Unit 207), the ALJ concluded it met this statutory definition. Consequently, the Petitioner failed to prove by a preponderance of the evidence that the Association had violated its CC&Rs by not treating the space as a general common area.

——————————————————————————–

Case Overview

Case Name

John D Klemmer v. Caribbean Gardens Association

Case Number

21F-H2120009-REL

Jurisdiction

Arizona Office of Administrative Hearings

Presiding Judge

Administrative Law Judge Kay A. Abramsohn

Hearing Date

November 6, 2020

Decision Date

December 17, 2020

Petitioner

John D. Klemmer (Unit 101 Owner), representing himself

Respondent

Caribbean Gardens Association, represented by Nicole D. Payne, Esq.

Fundamental Dispute: The case centered on whether the Caribbean Gardens Association violated its Declaration of Covenants, Conditions, and Restrictions (CC&Rs) by refusing to manage, operate, and maintain an outdoor area located on the second level between Units 206 and 207, which the Petitioner claimed was a common area belonging to all 40 unit owners.

Petitioner’s Position (John D. Klemmer)

The Petitioner’s case rested on the argument that the disputed area was a “common area” or “common element” as defined by the Association’s governing documents.

Core Allegation: On April 15, 2020, the Caribbean Board violated multiple sections of its CC&Rs by refusing to administer a common area.

Basis of Claim: The Petitioner argued that all space not explicitly delineated on the official Plat document as an “Apartment,” “patio,” or “balcony” must be considered a common area. The area in question is blank on the Plat.

Ownership Argument: Each of the 40 unit owners possesses an “undivided ownership interest in the common areas and [common] elements.” He contended that if the Board did not acknowledge ownership, this common area would be lost to its rightful owners.

Evidence of Misuse: The Petitioner presented photographic evidence showing that the owners of Unit 207 were exclusively occupying the space as if it were another room, adding furniture, walls, and making improvements to the exterior walls of Unit 206.

Cited CC&R Violations: The petition alleged violations of the following articles:

Article 1, Sections 1.5 and 1.8: Definitions of “Apartment” and “Plat.”

Article 3, Section 3.4: Requirement for the Association to manage Common Elements.

Article 4, Section 4.1: Vests title of Common Elements in the owners.

Article 8, Section 8.1: Pertains to encroachments.

Article 12, Section 12.4: Binds all owners to the Declaration.

Respondent’s Position (Caribbean Gardens Association)

The Association denied the allegations, arguing that the space was not a common area under its purview.

Core Defense: The disputed area is not a common area but is instead a “balcony” attached to Unit 207, or alternatively, a “limited common element” for the exclusive use of the Unit 207 owners.

Testimony: Board Member Alex Gomez testified that the Board’s position is that the area is a balcony. He further stated that the Association has never maintained any balconies within the community, including the one in question.

Procedural Motions: The Association initially filed a Motion to Dismiss and a Motion for Summary Judgment, arguing that the tribunal lacked jurisdiction, the Petitioner was seeking relief that couldn’t be granted (declaratory and injunctive), and that other procedural and constitutional issues existed. These motions were denied by the tribunal.

Findings of Fact and Evidence

The ALJ established the following key facts based on the hearing record:

Description of Disputed Area: The space is a concrete slab on the second level, located between the exterior walls of Unit 206 and Unit 207. It includes outside iron railings that fence it off.

Exclusive Access: The area is not a staircase landing and can only be accessed through a door from a room within Unit 207. This access is an original feature of the building’s construction.

Status on the Plat: The official Plat document, which defines the boundaries of apartments and their associated balconies and patios, is blank in the location of the disputed area. It is not specifically delineated in any way.

Current Use: Photographic evidence confirmed the space contains furniture and other decorative items, indicating exclusive use by the occupants of Unit 207.

Legal Analysis and Conclusion of the Administrative Law Judge

The ALJ’s decision was based on an interpretation of both the community’s CC&Rs and overriding state law.

Burden of Proof: The Petitioner, Mr. Klemmer, bore the burden of proving by a preponderance of the evidence that the Association had violated the specified CC&R provisions.

Ambiguity in Governing Documents: The judge acknowledged a conflict in the 1973 CC&Rs.

Article 1.5 defines an “Apartment” by its depiction on the Plat, which does not include the disputed area.

Article 1.6 defines “Common Elements” as “all other portions of the Property except the Apartments.” This definition would logically include the undelineated disputed area.

Application of State Statute: The decisive factor was the application of A.R.S. § 33-1212, a statute enacted in 1985, after the CC&Rs were recorded. The judge focused on subsection 4:

Final Conclusion: The ALJ concluded that the disputed area fits the statutory description of a balcony “designed to serve a single unit,” as it is only accessible from Unit 207. Therefore, under Arizona law, it is classified as a “limited common element” allocated exclusively to that unit. Because it is not a general common area, the Association had no obligation to manage it as such. The Petitioner thus failed to establish a violation of the CC&Rs.

Final Order

Based on the analysis, the Administrative Law Judge issued the following orders on December 17, 2020:

1. IT IS ORDERED that Petitioner’s Petition is dismissed.

2. IT IS FURTHER ORDERED that Petitioner bears his $500.00 filing fee.

Study Guide: Klemmer v. Caribbean Gardens Association

This guide provides a detailed review of the Administrative Law Judge Decision in the case of John D. Klemmer v. Caribbean Gardens Association, No. 21F-H2120009-REL. It includes a quiz with an answer key to test comprehension, a set of essay questions for deeper analysis, and a comprehensive glossary of key legal and case-specific terms.

Quiz: Short-Answer Questions

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

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

2. What was the central allegation made by the Petitioner, John D. Klemmer, in his petition filed on August 21, 2020?

3. Describe the specific physical location and characteristics of the disputed area at the heart of this case.

4. On what grounds did the Petitioner argue that the disputed area should be considered a “common area”?

5. What was the initial position of the Caribbean Gardens Association Board regarding the status of the disputed area, as testified by Board Member Alex Gomez?

6. Before the hearing, what arguments did the Respondent make in its Motion for Summary Judgment?

7. How do the CC&Rs define an “Apartment” versus “Common Elements”?

8. Which specific Arizona Revised Statute (A.R.S.) did the Administrative Law Judge ultimately rely upon to classify the disputed area?

9. What was the final conclusion of the Administrative Law Judge regarding the nature of the disputed area?

10. What was the final recommended order issued by the Administrative Law Judge in this case?

——————————————————————————–

Answer Key

1. The primary parties are John D. Klemmer, the Petitioner who brought the complaint, and the Caribbean Gardens Association, the Respondent and condominium community association. Mr. Klemmer represented himself, while the Association was represented by counsel, Nicole D. Payne, Esq.

2. The Petitioner alleged that on April 15, 2020, the Caribbean Board violated its CC&Rs by refusing to manage, operate, maintain, and administer a specific “common area.” He claimed this refusal would lead to the loss of the area to its rightful owners, the 40 unit owners of Caribbean Gardens.

3. The disputed area is located on the second level of the building, between the exterior walls of Unit 206 and Unit 207. It consists of a concrete slab with attached iron railings and can only be accessed through a door from Unit 207.

4. The Petitioner argued the area was a “common area” because it was not specifically delineated on the Plat document as part of an apartment, patio, or balcony. He contended that any space not explicitly designated as part of a unit on the Plat must therefore be a common element belonging to all 40 unit owners.

5. Board Member Alex Gomez testified that the Board’s position was that the disputed area is not a common area but is a “balcony” attached to Unit 207. He stated that the Association has never maintained any balconies, including the one in question.

6. In its Motion for Summary Judgment, the Respondent argued that the Petitioner was seeking relief that the Tribunal could not grant, that he should have filed a derivative action, and that he had not paid sufficient filing fees for multiple issues. The Respondent also challenged the constitutionality of the Enabling Statutes and the jurisdiction of the Department and the Tribunal.

7. Article 1, Section 1.5 of the CC&Rs defines an “Apartment” as the space enclosed by the planes shown on the Plat, including any patio or balcony areas identified on said Plat. In contrast, Article 1, Section 1.6 defines “Common Elements” as all other portions of the Property except the Apartments, including specific items like pools and landscaping.

8. The Judge relied on A.R.S. § 33-1212, which states that balconies and other fixtures designed to serve a single unit but located outside its boundaries are “limited common elements allocated exclusively to that unit.”

9. The Administrative Law Judge concluded that the disputed area must be a balcony “designed to serve a single unit, but located outside the unit’s boundaries.” Therefore, it is considered a limited common element, and the Petitioner did not establish that the Caribbean Gardens Association had violated any CC&R provisions.

10. The recommended order was that the Petitioner’s Petition be dismissed. It was further ordered that the Petitioner bear his own $500.00 filing fee.

——————————————————————————–

Essay Questions

The following questions are designed for longer, more analytical responses. No answers are provided.

1. Analyze the conflicting interpretations of the disputed area presented by the Petitioner and the Respondent. How did their respective readings of the CC&Rs and the Plat document lead to their opposing conclusions?

2. Discuss the critical role of the Plat document in this dispute. Explain how the blank space on the Plat between Units 206 and 207 created an ambiguity that was central to the arguments of both parties.

3. Trace the legal reasoning employed by Administrative Law Judge Kay A. Abramsohn. Detail her process of weighing the definitions in the 1973 CC&Rs against the provisions of the 1985 Arizona Revised Statutes to reach a final decision.

4. Evaluate the arguments raised by the Caribbean Gardens Association in its Motion for Summary Judgment. Although the motion was not granted, what significant legal and jurisdictional challenges did it present against the Petitioner’s case and the hearing body’s authority?

5. This case highlights a tension between a condominium’s original governing documents (the 1973 Declaration) and subsequent state law (the 1985 Condominium statutes). Discuss how this dynamic influenced the outcome and what it reveals about the hierarchy of legal authority in condominium governance.

——————————————————————————–

Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

The official who presides over an administrative hearing and issues a written decision. In this case, the ALJ was Kay A. Abramsohn.

Apartment

As defined by Article 1, Section 1.5 of the CC&Rs, it is a part of the Property intended for independent use as a dwelling unit, consisting of the space enclosed by the planes shown on the Plat, including any patio and balcony areas identified on that Plat.

An abbreviation for the Declaration of Covenants, Conditions and Restrictions, the governing legal documents for the Caribbean Gardens community. These were originally recorded in 1973.

Common Elements

As defined by Article 1, Section 1.6 of the CC&Rs, this term includes “general common elements” as defined in the former A.R.S. § 33-551, along with specific areas like parking, yards, the swimming pool, and “all other portions of the Property except the Apartments.”

Horizontal Property Regime

The legal framework governing the property, established under A.R.S. § 33-551 through § 33-561 at the time of the 1973 Declaration. These statutes were later repealed and replaced by the current Condominium laws.

Limited Common Elements

A legal classification defined in A.R.S. § 33-1212. It refers to fixtures like porches, balconies, patios, and entryways that are designed to serve a single unit but are located outside that unit’s boundaries, and are therefore allocated exclusively to that unit.

Petition

The formal, single-issue legal document filed by John D. Klemmer with the Department to initiate the dispute, alleging that the Caribbean Board violated its CC&Rs.

Petitioner

The party initiating a legal action by filing a petition. In this case, John D. Klemmer, a resident of Unit 101.

The official two-page survey map of the Property and all Apartments, attached to the Declaration as Exhibit “B.” It delineates the boundaries of individual units and other areas within the community.

Preponderance of the Evidence

The standard of proof the Petitioner was required to meet. It means the evidence presented must be more convincing than the opposing evidence, showing the fact in question is more probable than not.

Respondent

The party against whom a petition is filed and who must respond to the allegations. In this case, the Caribbean Gardens Association.

Tribunal

A term used in the decision to refer to the Arizona Office of Administrative Hearings (OAH), the state agency authorized to hear and decide the contested matter.

Questions

Question

If a balcony or patio serves only my unit but isn't explicitly drawn on the community Plat map, is it considered general common area?

Short Answer

Likely not. Under Arizona law, fixtures designed to serve a single unit located outside its boundaries are considered 'limited common elements' allocated exclusively to that unit, even if the Plat is ambiguous.

Detailed Answer

In this decision, the ALJ determined that an area not drawn on the Plat was a limited common element because it was physically accessible only from one unit. The judge cited A.R.S. § 33-1212(4), which defines features like balconies and patios designed to serve a single unit as limited common elements.

Alj Quote

Accordingly, the Administrative Law Judge concludes that the disputed area must be a balcony 'designed to serve a single unit, but located outside the unit’s boundaries.'

Legal Basis

A.R.S. § 33-1212(4)

Topic Tags

  • Common Elements
  • Plat Maps
  • Property Boundaries

Question

What is the burden of proof for a homeowner filing a petition against their HOA?

Short Answer

The homeowner (Petitioner) must prove their case by a 'preponderance of the evidence'.

Detailed Answer

The homeowner must demonstrate that their claims are more probable than not. It is not the HOA's job to disprove the allegations; the homeowner must provide evidence of greater weight.

Alj Quote

Petitioner bears the burden of proving by a preponderance of the evidence that, as alleged, Caribbean has violated CC&Rs…

Legal Basis

A.A.C. R2-19-119

Topic Tags

  • Procedure
  • Burden of Proof
  • Evidence

Question

Does the Department of Real Estate have jurisdiction to hear disputes about CC&R violations and maintenance issues?

Short Answer

Yes, the Department has jurisdiction to receive petitions and hear disputes regarding property owners and condominium associations.

Detailed Answer

The decision affirms that the Tribunal has the authority to hear contested matters between owners and associations regarding alleged violations of the CC&Rs and statutes.

Alj Quote

The Department has jurisdiction to receive petitions, hear disputes between a property owner and a condominium community association, and take other actions pursuant to Arizona Revised Statutes (A.R.S.), Title 33, Chapter 16.

Legal Basis

A.R.S. Title 33, Chapter 16

Topic Tags

  • Jurisdiction
  • ADRE Authority
  • Dispute Resolution

Question

Who is responsible for paying the filing fee if the homeowner loses the hearing?

Short Answer

The homeowner (Petitioner) typically bears the cost of the filing fee if the petition is dismissed.

Detailed Answer

In this case, after dismissing the homeowner's petition, the judge ordered the homeowner to bear the cost of the $500 filing fee.

Alj Quote

IT IS FURTHER ORDERED that Petitioner bears his $500.00 filing fee.

Legal Basis

Administrative Order

Topic Tags

  • Fees
  • Penalties
  • Hearing Costs

Question

What specifically counts as a 'limited common element' under Arizona law?

Short Answer

Fixtures like shutters, awnings, balconies, and patios that are outside a unit's boundaries but designed to serve that single unit.

Detailed Answer

State statute specifically lists items such as doorsteps, stoops, porches, balconies, and exterior doors as limited common elements if they are designed for the exclusive use of one unit.

Alj Quote

Any shutters, awnings, window boxes, doorsteps, stoops, porches, balconies, entryways or patios, and all exterior doors and windows or other fixtures designed to serve a single unit, but located outside the unit's boundaries, are limited common elements allocated exclusively to that unit.

Legal Basis

A.R.S. § 33-1212

Topic Tags

  • Definitions
  • Limited Common Elements
  • Statutes

Question

Can the HOA Board make rules regarding the use of common elements without a vote of the owners?

Short Answer

Yes, if the CC&Rs grant the Board the exclusive right to manage and regulate common elements.

Detailed Answer

The CC&Rs in this case provided the Board with the exclusive power to establish rules governing the use and maintenance of common elements.

Alj Quote

The Board shall have the exclusive right and power to establish and impose rules and regulations governing the use, maintenance and development of all and any part of the Common Elements…

Legal Basis

CC&Rs Article 3, Section 3.4

Topic Tags

  • Board Authority
  • Rules and Regulations
  • Common Elements

Case

Docket No
21F-H2120009-REL
Case Title
John D Klemmer v. Caribbean Gardens Association
Decision Date
2020-12-17
Alj Name
Kay A. Abramsohn
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • John D. Klemmer (petitioner)
    represented himself

Respondent Side

  • Nicole D. Payne (HOA attorney)
    Carpenter, Hazlewood, Delgado & Bolen, LLP
  • Alex Gomez (board member)
    Caribbean Board
    testified at hearing
  • Lydia A. Pierce Linsmeier (HOA attorney)
    Carpenter, Hazlewood, Delgado & Bolen, LLP

Neutral Parties

  • Kay A. Abramsohn (ALJ)
  • Judy Lowe (Commissioner)
    Arizona Department of Real Estate

Anthony & Karen Negrete v. Sundance Ranch Homeowners Association

Case Summary

Case ID 21F-H2120012-REL
Agency ADRE
Tribunal OAH
Decision Date 2020-12-13
Administrative Law Judge Kay A. Abramsohn
Outcome The Respondent's Motion to Dismiss was granted because the statute cited by Petitioners (A.R.S. § 33-1817(B)(2)(b)) regarding mandatory design approval meetings applies only to the construction or rebuild of the 'main residential structure,' not to a shed.
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Anthony & Karen Negrete Counsel
Respondent Sundance Ranch Homeowners Association Counsel Quinten Cupps, Esq.

Alleged Violations

A.R.S. §§ 33-1803 and 33-1817(B)(2)(b)

Outcome Summary

The Respondent's Motion to Dismiss was granted because the statute cited by Petitioners (A.R.S. § 33-1817(B)(2)(b)) regarding mandatory design approval meetings applies only to the construction or rebuild of the 'main residential structure,' not to a shed.

Why this result: The key statute relied upon by Petitioners was deemed inapplicable to the construction of a shed.

Key Issues & Findings

Failure to provide opportunity to participate in design approval meeting for replacement shed

Petitioners alleged they were not given the opportunity to participate in a final design approval meeting for building a replacement shed on their property, pursuant to A.R.S. § 33-1817(B)(2)(b).

Orders: Respondent’s Motion to Dismiss is granted and Petitioners’ Petition is dismissed.

Filing fee: $500.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 33-1803
  • A.R.S. § 33-1817(B)(2)(b)

Analytics Highlights

Topics: Design Review, Shed, Architectural Approval, Motion to Dismiss, Statutory Interpretation
Additional Citations:

  • A.R.S. § 33-1803
  • A.R.S. § 33-1817(B)(2)(b)
  • A.R.S. Title 33, Chapter 16
  • A.A.C. R2-19-119

Video Overview

Audio Overview

Decision Documents

21F-H2120012-REL Decision – 842597.pdf

Uploaded 2026-04-24T11:30:33 (131.7 KB)

21F-H2120012-REL Decision – 842597.pdf

Uploaded 2026-01-23T17:35:17 (131.7 KB)

This administrative hearing, held on November 2, 2020, before Administrative Law Judge Kay A. Abramsohn, addressed a dispute between homeowners Anthony & Karen Negrete (Petitioners) and Sundance Ranch Homeowners Association (Sundance or Respondent).

Key Facts and Procedural Background:

Petitioners, long-time residents of Sundance, removed an existing shed (approved in 2005) due to deterioration from rodents and bees, and constructed a replacement shed in a new location on their property, intending to build a pool where the old shed stood. Petitioners did not initially seek approval for the replacement or the new location, believing it was unnecessary since a shed had been previously approved.

Sundance issued violation notices in March and April 2020, asserting the new shed was built without approval from the Architectural Committee. After applying for retroactive approval in June 2020, Sundance denied the application in July 2020, stating the new shed violated Design Guidelines regarding height, materials, and placement against a shared wall, and arguing the original approved shed could not be moved.

Main Issues and Arguments:

Petitioners filed a petition alleging Sundance violated Arizona Revised Statutes (A.R.S.) §§ 33-1803 and 33-1817(B)(2)(b). The specific issue Petitioners raised at the hearing was that they were not given the opportunity to participate in a design approval meeting pursuant to A.R.S. § 33-1817(B)(2)(b). Sundance denied the allegations and moved to dismiss the Petition.

The Design Guidelines require prior written approval from the Design Review Committee for any improvement, alteration, or change in the exterior appearance of structures. A.R.S. § 33-1803 governs the HOA's authority regarding enforcement and fines.

Legal Points and Outcome:

Petitioners had the burden of proving a violation by a preponderance of the evidence. The crucial legal point centered on the applicability of A.R.S. § 33-1817(B)(2)(b), which mandates that the association must hold a final design approval meeting allowing the member to attend.

The Administrative Law Judge (ALJ) concluded that A.R.S. § 33-1817(B)(2)(b) applies only to the "new construction of the main residential structure on a lot or for rebuilds of the main residential structure on a lot". Since the dispute involved a replacement shed—not the main residential structure—this statutory mandate for a meeting did not apply.

The ALJ concluded that Petitioners failed to establish a violation by Sundance of either A.R.S. § 33-1803 or A.R.S. § 33-1817(B)(2)(b). Consequently, the Respondent’s Motion to Dismiss was granted, and Petitioners’ Petition was dismissed. Petitioners were ordered to bear their $500.00 filing fee.

Questions

Question

Do I need HOA approval to replace an old structure (like a shed) that was approved years ago?

Short Answer

Yes. Prior approval of an original structure does not automatically apply to a replacement, especially if the location or condition changes.

Detailed Answer

Even if a structure was approved in the past, building a replacement is considered a new improvement or alteration. The ALJ found that despite having a shed approved in 2005, the homeowners were required to seek approval for the new shed, particularly because the governing documents stated that no improvements or alterations could be made without prior written approval.

Alj Quote

All subsequent additions to or changes or alterations in any building, fence, wall or other structure … shall be subject to the prior written approval of the Design Review Committee.

Legal Basis

CC&Rs Article 4, Section 4.1(a)

Topic Tags

  • Architectural Review
  • Improvements
  • Grandfathering

Question

Is the HOA required to hold a 'final design approval meeting' for backyard projects like sheds?

Short Answer

No. The legal requirement for a design approval meeting applies only to the main residential structure.

Detailed Answer

The ALJ clarified that A.R.S. § 33-1817(B)(2)(b), which mandates a design approval meeting, is specific to the new construction or rebuild of the 'main residential structure.' It does not apply to ancillary structures like sheds.

Alj Quote

The Administrative Law Judge concludes that A.R.S. § 33-1817(B)(2)(b) contains a mandate for a “design approval” meeting in the circumstance of construction of a “main residential structure.” That was not the circumstance in this case.

Legal Basis

A.R.S. § 33-1817(B)(2)(b)

Topic Tags

  • Meetings
  • Statutory Interpretation
  • Homeowner Rights

Question

Can I move an approved structure to a different location on my lot without new approval?

Short Answer

No. Moving a structure is considered a change that must adhere to current guidelines and receive approval.

Detailed Answer

The HOA successfully argued that an approval from 2005 was for a specific location and condition. Moving the structure constitutes a change that requires adherence to current guidelines.

Alj Quote

Again, the shed that was approved in 2005 cannot move or change- it is not denied, it simply cannot be moved or change. Any changes must adhere to the guidelines and be approved.

Legal Basis

CC&Rs / Design Guidelines

Topic Tags

  • modifications
  • Architectural Review
  • Compliance

Question

Who bears the burden of proof when a homeowner challenges an HOA in a hearing?

Short Answer

The homeowner (Petitioner) bears the burden of proving the HOA violated the law.

Detailed Answer

In an administrative hearing, it is up to the homeowner to provide evidence that carries more weight than the evidence offered by the HOA to prove a violation occurred.

Alj Quote

In this proceeding, pursuant to Arizona Administrative Code (A.A.C.) R2-19-119, Petitioners bear the burden of proving by a preponderance of the evidence that Respondent violated A.R.S. §§ 33-1803 and 33-1817(B)(2)(b).

Legal Basis

A.A.C. R2-19-119

Topic Tags

  • Legal Procedure
  • Burden of Proof
  • Hearings

Question

Can the HOA restrict the height and placement of backyard sheds?

Short Answer

Yes. The HOA can enforce specific design guidelines regarding dimensions and location relative to neighbors and the street.

Detailed Answer

The ALJ upheld the validity of Design Guidelines that mandated maximum heights and specific lot placements to ensure conformity with city codes and minimize visibility.

Alj Quote

Sundance Design Guidelines regarding “sheds” mandates: (a) a maximum height, including the roof pitch, of no more than eight (8) feet, … [and] (c) lot placement has to conform to City codes and have approval from the Design Committee “based on neighboring properties and visibility from the street,”

Legal Basis

Design Guidelines

Topic Tags

  • Architectural Guidelines
  • Restrictions
  • Property Use

Question

What happens if I start construction without approval?

Short Answer

The HOA may issue violation notices, impose fines, and require the structure be returned to its original state.

Detailed Answer

The ALJ noted that the HOA acted within its rights to issue violation notices and fines when it discovered unapproved construction. They also warned the homeowner to return the property to its original state.

Alj Quote

If the work has been started or completed, you will have 30 days from the date of this letter to have the submitted items returned to the original state. Or fines will be imposed.

Legal Basis

A.R.S. § 33-1803

Topic Tags

  • Violations
  • Fines
  • Enforcement

Case

Docket No
21F-H2120012-REL
Case Title
Anthony & Karen Negrete v. Sundance Ranch Homeowners Association
Decision Date
2020-12-13
Alj Name
Kay A. Abramsohn
Tribunal
OAH
Agency
ADRE

Questions

Question

Do I need HOA approval to replace an old structure (like a shed) that was approved years ago?

Short Answer

Yes. Prior approval of an original structure does not automatically apply to a replacement, especially if the location or condition changes.

Detailed Answer

Even if a structure was approved in the past, building a replacement is considered a new improvement or alteration. The ALJ found that despite having a shed approved in 2005, the homeowners were required to seek approval for the new shed, particularly because the governing documents stated that no improvements or alterations could be made without prior written approval.

Alj Quote

All subsequent additions to or changes or alterations in any building, fence, wall or other structure … shall be subject to the prior written approval of the Design Review Committee.

Legal Basis

CC&Rs Article 4, Section 4.1(a)

Topic Tags

  • Architectural Review
  • Improvements
  • Grandfathering

Question

Is the HOA required to hold a 'final design approval meeting' for backyard projects like sheds?

Short Answer

No. The legal requirement for a design approval meeting applies only to the main residential structure.

Detailed Answer

The ALJ clarified that A.R.S. § 33-1817(B)(2)(b), which mandates a design approval meeting, is specific to the new construction or rebuild of the 'main residential structure.' It does not apply to ancillary structures like sheds.

Alj Quote

The Administrative Law Judge concludes that A.R.S. § 33-1817(B)(2)(b) contains a mandate for a “design approval” meeting in the circumstance of construction of a “main residential structure.” That was not the circumstance in this case.

Legal Basis

A.R.S. § 33-1817(B)(2)(b)

Topic Tags

  • Meetings
  • Statutory Interpretation
  • Homeowner Rights

Question

Can I move an approved structure to a different location on my lot without new approval?

Short Answer

No. Moving a structure is considered a change that must adhere to current guidelines and receive approval.

Detailed Answer

The HOA successfully argued that an approval from 2005 was for a specific location and condition. Moving the structure constitutes a change that requires adherence to current guidelines.

Alj Quote

Again, the shed that was approved in 2005 cannot move or change- it is not denied, it simply cannot be moved or change. Any changes must adhere to the guidelines and be approved.

Legal Basis

CC&Rs / Design Guidelines

Topic Tags

  • modifications
  • Architectural Review
  • Compliance

Question

Who bears the burden of proof when a homeowner challenges an HOA in a hearing?

Short Answer

The homeowner (Petitioner) bears the burden of proving the HOA violated the law.

Detailed Answer

In an administrative hearing, it is up to the homeowner to provide evidence that carries more weight than the evidence offered by the HOA to prove a violation occurred.

Alj Quote

In this proceeding, pursuant to Arizona Administrative Code (A.A.C.) R2-19-119, Petitioners bear the burden of proving by a preponderance of the evidence that Respondent violated A.R.S. §§ 33-1803 and 33-1817(B)(2)(b).

Legal Basis

A.A.C. R2-19-119

Topic Tags

  • Legal Procedure
  • Burden of Proof
  • Hearings

Question

Can the HOA restrict the height and placement of backyard sheds?

Short Answer

Yes. The HOA can enforce specific design guidelines regarding dimensions and location relative to neighbors and the street.

Detailed Answer

The ALJ upheld the validity of Design Guidelines that mandated maximum heights and specific lot placements to ensure conformity with city codes and minimize visibility.

Alj Quote

Sundance Design Guidelines regarding “sheds” mandates: (a) a maximum height, including the roof pitch, of no more than eight (8) feet, … [and] (c) lot placement has to conform to City codes and have approval from the Design Committee “based on neighboring properties and visibility from the street,”

Legal Basis

Design Guidelines

Topic Tags

  • Architectural Guidelines
  • Restrictions
  • Property Use

Question

What happens if I start construction without approval?

Short Answer

The HOA may issue violation notices, impose fines, and require the structure be returned to its original state.

Detailed Answer

The ALJ noted that the HOA acted within its rights to issue violation notices and fines when it discovered unapproved construction. They also warned the homeowner to return the property to its original state.

Alj Quote

If the work has been started or completed, you will have 30 days from the date of this letter to have the submitted items returned to the original state. Or fines will be imposed.

Legal Basis

A.R.S. § 33-1803

Topic Tags

  • Violations
  • Fines
  • Enforcement

Case

Docket No
21F-H2120012-REL
Case Title
Anthony & Karen Negrete v. Sundance Ranch Homeowners Association
Decision Date
2020-12-13
Alj Name
Kay A. Abramsohn
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • Anthony Negrete (petitioner)
  • Karen Negrete (petitioner)

Respondent Side

  • Quinten Cupps (HOA attorney)
    Sundance Ranch Homeowners Association

Neutral Parties

  • Kay A. Abramsohn (ALJ)
    OAH
  • Judy Lowe (Commissioner)
    Arizona Department of Real Estate

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

Case Summary

Case ID 21F-H2120001-REL
Agency ADRE
Tribunal OAH
Decision Date 2021-03-17
Administrative Law Judge Tammy L. Eigenheer
Outcome partial
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

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

Alleged Violations

A.R.S. 33-1804

Outcome Summary

The petition was affirmed in part (Complaint #1) and denied in part (Complaint #2). The Respondent HOA was found to have improperly conducted non-privileged business via email/unanimous written consent in violation of A.R.S. § 33-1804. The HOA was ordered to reimburse the $500 filing fee and comply with the statute, but no civil penalty was imposed.

Why this result: Petitioner failed to establish by a preponderance of the evidence the alleged violation concerning the improper use of emergency executive sessions (Complaint #2).

Key Issues & Findings

Non-privileged Association Business Conducted in Closed Session

The HOA improperly conducted association business, which should have been open to members, through unanimous written consent solicited via individual emails during the COVID-19 shutdown, violating the open meeting requirements of A.R.S. § 33-1804.

Orders: Respondent was ordered to comply with the requirements of A.R.S. § 33-1804 going forward and to reimburse Petitioner her $500.00 filing fee for the issue on which she prevailed.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • A.R.S. 33-1804
  • A.R.S. 10-3821

Analytics Highlights

Topics: Open Meetings, HOA Governance, Unanimous Written Consent, COVID-19, Executive Session
Additional Citations:

  • A.R.S. 33-1804
  • A.R.S. 10-3821
  • A.R.S. 32-2199 et seq.
  • A.A.C. R2-19-119

Video Overview

Audio Overview

Decision Documents

21F-H2120001-REL Decision – 864802.pdf

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Administrative Law Decision Briefing: Morin vs. Solera Chandler Homeowners’ Association

Executive Summary

This briefing synthesizes the findings and rulings from an administrative law case involving a homeowner, Debra K. Morin, and the Solera Chandler Homeowners’ Association, Inc. (HOA). The central issue was whether the HOA Board of Directors violated Arizona’s open meeting law (A.R.S. § 33-1804) by conducting association business and making decisions without open meetings accessible to its members.

The Administrative Law Judge (ALJ) ultimately ruled in favor of the petitioner on her primary complaint. The investigation and subsequent hearings revealed that the HOA Board, citing the challenges of the COVID-19 pandemic, utilized a process of “unanimous written consent” to approve numerous actions. This process, facilitated through individual emails to board members, was found to be an improper substitute for the open meetings required by law. The ALJ concluded that the specific transparency requirements for homeowners’ associations in A.R.S. § 33-1804 supersede the more general provisions for non-profit corporations in A.R.S. § 10-3821, which the HOA had cited as justification.

While the violation was established, no civil penalty was assessed due to the “unprecedented global pandemic.” The HOA was ordered to comply with the open meeting law moving forward and to reimburse the petitioner’s $500 filing fee. A second complaint from the petitioner, alleging the improper use of emergency executive sessions, was not proven and was therefore denied. A rehearing clarified the precise method of the violation—email voting rather than conference calls—but did not alter the final judgment.

Case Background and Allegations

This matter was adjudicated by the Arizona Office of Administrative Hearings following a petition filed on July 10, 2020. The case centered on the actions of the Solera Chandler HOA’s Board of Directors between March and August 2020.

Petitioner: Debra K. Morin

Respondent: Solera Chandler Homeowners’ Association, Inc.

Case Number: 21F-H2120001-REL

Key Dates:

◦ Initial Hearing: October 29, 2020

◦ Initial Decision: November 18, 2020

◦ Rehearing: February 25, 2021

◦ Final Decision After Rehearing: March 17, 2021

Petitioner’s Formal Complaints

After being ordered to clarify her initial filing, the petitioner proceeded with two specific alleged violations of A.R.S. § 33-1804:

1. Complaint #1: Non-Privileged Business in Closed Sessions: The petitioner alleged that the HOA Board conducted non-privileged association business in closed sessions by using unanimous written consent. This practice circumvented statutory requirements for providing members with agendas, giving 48-hour notice, and allowing them an opportunity to speak on key issues before the Board took action.

2. Complaint #2: Improper Emergency Executive Sessions: The petitioner alleged that the HOA Board conducted privileged business under the guise of “emergency executive sessions.” This was done without properly identifying the legal exception to the open meeting law, providing an agenda or 48-hour notice, or submitting minutes at the next board meeting that stated the reason for the emergency.

Key Evidence and Factual Findings

The evidence presented centered on the HOA’s governance practices during the initial months of the COVID-19 pandemic.

Respondent’s Justification

The HOA’s defense rested on two main arguments:

• The COVID-19 pandemic made it impossible for the Board to meet in person, necessitating alternative methods to conduct business while protecting the health of directors and members.

• The use of unanimous written consents was authorized under A.R.S. § 10-3821, a statute that permits non-profit corporations to take action without a formal meeting if all directors consent in writing. The HOA acknowledged it had not used this method before the pandemic and did not intend to continue its use.

Unanimous Written Consents

At an open Board of Directors meeting on August 5, 2020, the Board formally ratified a series of actions taken via unanimous written consent during the “Covid 19 Shutdown.” A rehearing clarified the precise mechanism: a community management company would email each board member individually to solicit a “yes” or “no” vote on a proposal. If all votes were “yes,” the Board President would sign the written consent on behalf of the Board.

The actions taken through this process included:

Action Taken by Unanimous Written Consent

March 30, 2020

Approve repair and replacement of the sidewalk and community center entrance.

March 30, 2020

Approve repair and replacement of cool decking surrounding both pools.

April 30, 2020

Approve Kirk Sandquist as a member of the Architectural Review Committee.

April 30, 2020

Approve Tom Dusbabek as a member of the Architectural Review Committee.

May 5, 2020

Approve the Gilbert Road retention basin project, related irrigation replacement, and the addition of 420 tons of granite.

May 8, 2020

Approve replacement of a Carrier 6-ton heat pump.

May 8, 2020

Approve replacement of two Carrier 5-ton heat pumps.

May 27, 2020

Approve hiring Ken Eller to draft architectural drawings.

June 4, 2020

Approve a change to the Design Guidelines at the request of the Architectural Review Committee.

July 1, 2020

Approve the 2020 summer hardwood pruning and removal of trees.

Executive Sessions

The Board held numerous executive (closed) sessions during this period, including on March 13, March 16, March 19, March 24, April 6, April 10, May 4, May 15, May 27, June 24, and August 5, 2020. An “emergency executive session” was held on May 12, 2020. The agendas for these meetings cited specific legal exceptions under A.R.S. § 33-1804(A) as justification for the closure.

Legal Analysis and Rulings

The Administrative Law Judge’s decision hinged on the interpretation and primacy of two competing Arizona statutes.

The Core Statutory Conflict

A.R.S. § 33-1804 (HOA Open Meeting Law): This statute establishes a strong state policy that all HOA board and member meetings “be conducted openly.” It mandates that members receive at least 48-hours’ notice, be provided with agendas, and be permitted to “attend and speak at an appropriate time.” The statute explicitly directs that any interpretation of its provisions must be construed “in favor of open meetings.”

A.R.S. § 10-3821 (Action Without Meeting for Non-Profits): This statute, which applies more broadly to non-profit corporations, allows a board of directors to take action without a meeting if the action is approved by one or more written consents signed by all directors.

Ruling on Complaint #1 (Violation Established)

The ALJ concluded that the petitioner had proven by a preponderance of the evidence that the HOA violated the open meeting law. The core of the ruling is that the specific requirements of A.R.S. § 33-1804 for homeowners’ associations must be followed, even if A.R.S. § 10-3821 provides a different mechanism for general non-profits.

The final decision states: “Respondent improperly conducted association business in closed sessions via email rather than in meetings open to the members.” The use of email voting to achieve unanimous consent was deemed a violation because it denied members the notice, agenda, and opportunity to speak that are guaranteed by the HOA open meeting law.

However, the ALJ gave “consideration to the fact that Respondent was faced with an unprecedented global pandemic” and found that “no civil penalty is appropriate given the circumstances.”

Ruling on Complaint #2 (Violation Not Established)

The ALJ found that the petitioner failed to prove by a preponderance of the evidence that the Board conducted improper emergency executive sessions. The decision notes that there was “nothing in the record” to suggest the Board discussed topics outside the legally permitted exceptions for closed sessions, nor was there evidence to suggest the May 12, 2020, meeting was not a genuine emergency.

Final Order and Disposition

The final judgment, issued after the rehearing, is binding on both parties.

Outcome: The petitioner’s petition was affirmed in part (regarding Complaint #1) and denied in part (regarding Complaint #2).

Directives to Respondent (HOA):

1. The HOA is ordered to reimburse the petitioner’s $500.00 filing fee.

2. The HOA is directed to comply with the requirements of A.R.S. § 33-1804 going forward.

Appeal: Any appeal of the final order must be filed for judicial review with the superior court within 35 days from the date of service.

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

This guide provides a detailed review of the administrative case between Debra K. Morin (Petitioner) and the Solera Chandler Homeowners’ Association, Inc. (Respondent), as detailed in Administrative Law Judge Decisions No. 21F-H2120001-REL and No. 21F-H2120001-REL-RHG. It includes a short-answer quiz, an answer key, suggested essay questions, and a glossary of key terms to facilitate a comprehensive understanding of the case’s facts, legal arguments, and outcomes.

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Short-Answer Quiz

Instructions: Answer the following questions in two to three complete sentences, based only on the information provided in the source documents.

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

2. What was the central accusation in the Petitioner’s first complaint against the Respondent?

3. What two primary justifications did the Respondent provide for its actions during the COVID-19 pandemic?

4. According to the findings of the rehearing, what specific procedure did the Respondent use to obtain “unanimous written consents”?

5. Identify the two main Arizona Revised Statutes (A.R.S.) that were central to the legal dispute and briefly describe the function of each.

6. What was the final ruling on Complaint #1, and what was the judge’s reasoning?

7. Why did the Petitioner fail to prove the allegations in Complaint #2?

8. What specific factual error in the first Administrative Law Judge Decision prompted the Respondent to request a rehearing?

9. What two orders were issued against the Respondent in the final decision?

10. What specific circumstance did the Administrative Law Judge cite as a reason for not imposing a civil penalty on the Respondent?

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Answer Key

1. The primary parties were Debra K. Morin, the Petitioner and homeowner, and the Solera Chandler Homeowners’ Association, Inc., the Respondent. The Petitioner filed a petition with the Arizona Department of Real Estate alleging the Respondent violated state law, while the Respondent defended its actions before an Administrative Law Judge.

2. The Petitioner’s first complaint accused the Solera Homeowners’ Association Board of Directors of conducting non-privileged association business in closed sessions. Specifically, she alleged they used unanimous written consent to take action without providing agendas, giving 48-hour notice, or allowing members an opportunity to speak on key issues.

3. The Respondent argued that the COVID-19 pandemic prevented the Board of Directors from meeting in person to protect the health of members and directors. The Respondent also asserted that its use of unanimous written consents was legally authorized for non-profit corporations under A.R.S. § 10-3821.

4. The rehearing established that an individual from the community management company would email each Board member individually to request a “yes” or “no” vote on a proposal. If all members replied “yes,” the item was considered passed by unanimous consent, and the Board President would sign the formal consent document.

5. The central statutes were A.R.S. § 33-1804 and A.R.S. § 10-3821. A.R.S. § 33-1804 is the state’s open meeting law for homeowners’ associations, requiring meetings to be open to members with proper notice, while A.R.S. § 10-3821 allows the board of a non-profit corporation to take action without a meeting if all directors provide written consent.

6. The judge ruled in favor of the Petitioner on Complaint #1, affirming the violation. The judge reasoned that while A.R.S. § 10-3821 allows for action without a meeting, the more specific requirements of A.R.S. § 33-1804 mandate that all HOA board meetings be open to members, a requirement the Respondent violated by conducting business via email.

7. The Petitioner failed to prove Complaint #2 because she did not establish by a preponderance of the evidence that the Respondent’s executive sessions were improper. The judge found nothing in the record to suggest the Board discussed issues outside the legal exceptions listed in A.R.S. § 33-1804(A) or that the May 12, 2020, session was not a genuine emergency.

8. The Respondent requested a rehearing to correct a finding in Conclusion of Law 8 of the initial decision, which incorrectly stated that the association business at issue was conducted in closed sessions via “conference calls.” The Respondent acknowledged using conference calls for executive sessions but denied using them for the actions taken by unanimous written consent.

9. The Respondent was ordered to reimburse the Petitioner’s $500.00 filing fee for the issue on which she prevailed. Additionally, the Respondent was directed to comply with all requirements of A.R.S. § 33-1804 in the future.

10. The Administrative Law Judge gave consideration to the fact that the Respondent was “faced with an unprecedented global pandemic while balancing the need to comply with the applicable statutes and conduct association business.” Because of these unique circumstances, the judge found that no civil penalty was appropriate.

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Suggested Essay Questions

1. Discuss the conflict between A.R.S. § 33-1804 and A.R.S. § 10-3821 as it relates to the actions of the Solera Chandler Homeowners’ Association. How did the Administrative Law Judge resolve this conflict, and what does this imply about the hierarchy of state laws governing specific entities versus general corporations?

2. Analyze the Respondent’s argument that the COVID-19 pandemic justified their actions. To what extent did the Administrative Law Judge accept this argument, and how did it influence the final order?

3. Explain the legal standard of “preponderance of the evidence” and detail how it was applied to both Complaint #1 and Complaint #2. Why did the Petitioner meet this burden for the first complaint but not the second?

4. Trace the evolution of the case from the initial hearing to the rehearing. What specific finding of fact was corrected, and why was this correction significant for the legal record, even though it did not change the ultimate outcome for either complaint?

5. Based on the text of A.R.S. § 33-1804(F), discuss the stated policy of the state of Arizona regarding homeowner association meetings. How did the Respondent’s actions, specifically the use of email for unanimous consents, contravene this policy?

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Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

An official who presides over administrative hearings, makes findings of fact and conclusions of law, and issues decisions and orders. In this case, Tammy L. Eigenheer served as the ALJ.

A.R.S. § 10-3821

An Arizona Revised Statute that allows the board of directors of a non-profit corporation to take action without a formal meeting, provided the action is taken by all directors and evidenced by one or more written consents.

A.R.S. § 33-1804

An Arizona Revised Statute, also known as the open meeting law for planned communities, which mandates that all meetings of an HOA board of directors must be open to all members. It requires 48-hour notice and allows for closed “executive sessions” only for specific, limited purposes.

Burden of Proof

The obligation on a party in a legal case to prove their allegations. In this proceeding, the Petitioner bore the burden of proving her claims.

Executive Session

A portion of a meeting that is closed to association members. Under A.R.S. § 33-1804(A), executive sessions are only permitted for specific reasons, such as receiving legal advice, discussing pending litigation, or addressing confidential personal or financial information.

Open Meeting

A meeting of an HOA’s board of directors that, according to A.R.S. § 33-1804, must be open to all members of the association, who must be permitted to attend and speak.

Petitioner

The party who initiates a legal action or petition. In this case, the Petitioner was homeowner Debra K. Morin.

Preponderance of the Evidence

The standard of proof required in this administrative hearing. It is defined as evidence that is of greater weight or more convincing than opposing evidence, showing that the fact sought to be proved is “more probable than not.”

Rehearing

A second hearing of a case to re-examine specific issues or correct errors from an initial decision. A rehearing was granted in this case to clarify how the unanimous written consents were executed.

Respondent

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

Statutory Construction

The process of interpreting and applying legislation. The judge noted that the primary goal is to ascertain the legislature’s intent, first by looking at the statute’s plain language.

Unanimous Written Consent

A procedure, authorized by A.R.S. § 10-3821, where a board takes action without a meeting through written consents signed by all directors. The HOA used this method via individual emails to approve business, which was found to be a violation of HOA open meeting laws.

She Sued Her HOA Over Secret Pandemic Votes—And Won. Here’s What Every Homeowner Needs to Know.

Introduction: The Closed Doors of Your HOA

For many homeowners, it can feel like their Homeowners’ Association (HOA) board makes its most important decisions behind closed doors. You see the results—a new rule, a major repair project, a change in vendors—but the discussion and the vote happen out of sight. While the COVID-19 pandemic forced many organizations to find new ways to operate, for one Arizona HOA, their adaptation to remote work crossed a legal line, sparking a legal challenge from a resident.

The central conflict was straightforward: a homeowner, Debra K. Morin, filed a petition against the Solera Chandler Homeowners’ Association. She alleged they were making official decisions in secret through email, violating state law that guarantees homeowners the right to open meetings. While not all of her claims were affirmed, her primary complaint—that the board was conducting business in secret—led to a landmark decision for homeowner rights. The outcome of her case reveals several surprising and crucial lessons for every person living in an HOA community.

Takeaway 1: An HOA’s Open Meeting Law Trumps General Non-Profit Rules

1. Even a Pandemic Doesn’t Suspend a Homeowner’s Right to an Open Meeting

The Solera Chandler HOA board believed it was acting within the law. They argued that because they were a non-profit corporation, they could make decisions using “unanimous written consents” without a formal meeting. This practice is allowed for many non-profits under a general Arizona statute (A.R.S. § 10-3821). During the pandemic, this seemed like a practical way to conduct business without meeting in person.

However, the Administrative Law Judge ruled against the HOA. The judge’s key finding was that a more specific law takes precedence. The statute governing planned communities, A.R.S. § 33-1804, explicitly requires that all meetings of the board must be open to all members of the association. This is a critical legal lesson: when a specific law exists to govern a specific entity (like the Open Meeting Law for HOAs), it almost always overrides a more general law (like the one for all non-profits).

While the judge acknowledged the challenges of the “unprecedented global pandemic,” this did not excuse the violation, though it was cited as a reason not to issue a civil penalty.

Takeaway 2: “Meeting” by Email Is Still a Secret Meeting

2. A String of Individual Emails Can Constitute an Illegal Meeting

In the initial ruling, the judge found the board conducted business improperly, believing it was done via conference calls. Seizing on this factual error, the HOA challenged the decision and requested a rehearing, arguing their method was different and therefore permissible. In the rehearing, they clarified their actual process: the community management company would email each board member individually to request a ‘yes’ or ‘no’ vote. The HOA argued that because there was no simultaneous group discussion, this process wasn’t technically a “meeting.”

The challenge backfired. The judge’s final decision made it clear that this distinction didn’t matter. Whether by conference call or a series of individual emails, the result was the same: an illegal secret meeting. The method effectively prevented homeowners from observing the board’s process and speaking on agenda items before a vote was taken, as required by law. The HOA won their technical correction but lost the war, as the judge affirmed that the principle of transparency is more important than the specific technology used to circumvent it.

These weren’t minor housekeeping issues. The board was making substantial financial and operational decisions entirely out of public view, including:

• Repair and replacement of the sidewalk and community center entrance.

• Repair and replacement of the cool decking around both pools.

• Appointing new members to the Architectural Review Committee.

• Approving a retention basin project and the purchase of 420 tons of granite.

• Approving the 2020 summer hardwood pruning and removal of trees.

Takeaway 3: The Law Is Built to Favor Transparency

3. The Law Itself Has a Built-in Bias for Openness

The judge’s decision wasn’t just a narrow interpretation; it was guided by a powerful policy statement built directly into the Arizona statute for planned communities. The law itself tells judges, board members, and community managers exactly how it should be interpreted.

The text of A.R.S. § 33-1804(F) leaves no room for doubt:

It is the policy of this state as reflected in this section that all meetings of a planned community, whether meetings of the members’ association or meetings of the board of directors of the association, be conducted openly and that notices and agendas be provided for those meetings that contain the information that is reasonably necessary to inform the members of the matters to be discussed or decided and to ensure that members have the ability to speak after discussion of agenda items, but before a vote of the board of directors or members is taken. Toward this end, any person or entity that is charged with the interpretation of these provisions…shall construe any provision of this section in favor of open meetings.

This is a critical point. The law explicitly directs anyone interpreting it—including an HOA board—to resolve any ambiguity in favor of transparency and homeowner access. The default position is openness.

Takeaway 4: A Single Homeowner Can Force a Change

4. One Determined Homeowner Can Win

This case serves as an empowering lesson for homeowners who feel their board is operating in the shadows. Morin’s persistence paid off, proving that a single homeowner can successfully force a board to follow the law.

Her victory was clear and decisive. The court orders resulted in three key outcomes:

• The judge affirmed her petition, officially recognizing that the HOA had violated the law.

• The HOA was formally ordered to comply with the open meeting requirements of A.R.S. § 33-1804 going forward.

• The HOA was ordered to reimburse Ms. Morin her $500.00 filing fee.

This outcome demonstrates that the system can work. An individual homeowner with a valid complaint can navigate the process and achieve a binding legal victory that forces their HOA board to operate correctly.

Conclusion: Is Your Board Operating in the Open?

The lesson from the Solera Chandler HOA case is simple: transparency in HOA governance is not optional. It is a legal requirement designed to protect the rights of every homeowner to observe and participate in the governance of their community. The convenience of an email vote cannot replace the legal mandate for an open meeting.

Don’t assume your board is operating correctly. Review your meeting minutes. Ask questions about decisions that seem to appear without public discussion. Remember, the law explicitly favors openness, and as Debra Morin proved, it’s an enforceable right.

This case was about secret votes via email, but it highlights a larger principle of transparency. Does your HOA board make it easy for you to know what is being decided and to have your voice heard?

Case Participants

Petitioner Side

  • Debra K. Morin (petitioner)

Respondent Side

  • Lydia A. Peirce Linsmeier (HOA attorney)
    CARPENTER, HAZLEWOOD, DELGADO & BOLEN LLP
    Also cited as Lydia Linsmeier
  • Joshua M. Bolen (HOA attorney)
    CARPENTER, HAZLEWOOD, DELGADO & BOLEN LLP
  • Gail Ryan (board member)
    Solera Chandler Homeowners' Association, Inc.
    President of Board, resigned August 5, 2020
  • Kirk Sandquist (ARC member)
    Solera Chandler Homeowners' Association, Inc.
    Appointment approved April 30, 2020
  • Tom Dusbabek (ARC member)
    Solera Chandler Homeowners' Association, Inc.
    Appointment approved April 30, 2020
  • Ken Eller (contractor)
    Approved to be hired to draft architectural drawings

Neutral Parties

  • Tammy L. Eigenheer (ALJ)
    Office of Administrative Hearings
  • Judy Lowe (Commissioner)
    Arizona Department of Real Estate
    Granted Request for Rehearing
  • f. del sol (Admin staff)
    Transmitted decisions

Nancy L Babington v. Park Scottsdale II Townhouse Corporation

Case Summary

Case ID 20F-H2020064-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2021-03-24
Administrative Law Judge Tammy L. Eigenheer
Outcome full
Filing Fees Refunded $500.00
Civil Penalties $2,500.00

Parties & Counsel

Petitioner Nancy L. Babington Counsel
Respondent Park Scottsdale II Townhouse Corporation Counsel Mark K. Sahl and Scott B. Carpenter

Alleged Violations

A.R.S. § 33-1258(A)

Outcome Summary

Following a rehearing based on newly discovered evidence, the Administrative Law Judge found that Respondent violated A.R.S. § 33-1258(A) by failing to timely provide records it possessed. Respondent was ordered to reimburse the Petitioner $500.00 for the filing fee and pay a $2,500.00 civil penalty to the Department of Real Estate.

Key Issues & Findings

Failure to make association financial and other records reasonably available for examination/provide copies within ten business days.

Petitioner alleged Respondent violated A.R.S. § 33-1258 by failing to provide requested records (including bank statements and contracts) following a formal request on May 1, 2020. The Administrative Law Judge, in the rehearing, found that the evidence showed Respondent was in possession of bank statements and two signed contracts at the time of the request, contradicting prior testimony, thereby establishing a violation of the statute.

Orders: Respondent was ordered to pay Petitioner $500.00 for the filing fee reimbursement and pay a civil penalty of $2,500.00 to the Department of Real Estate, both payments due within 30 days.

Filing fee: $500.00, Fee refunded: Yes, Civil penalty: $2,500.00

Disposition: petitioner_win

Cited:

  • A.R.S. § 33-1258
  • A.R.S. § 32-2199.02
  • A.A.C. R2-19-119

Analytics Highlights

Topics: HOA records request, A.R.S. 33-1258, Rehearing, Civil Penalty, Possession of Records
Additional Citations:

  • A.R.S. § 33-1258
  • A.R.S. § 32-2199.02
  • A.A.C. R2-19-119

Video Overview

Audio Overview

Decision Documents

20F-H2020064-REL Decision – 866802.pdf

Uploaded 2026-04-24T11:28:35 (123.5 KB)

20F-H2020064-REL Decision – 823263.pdf

Uploaded 2026-04-24T11:28:38 (108.6 KB)

Briefing Document: Babington v. Park Scottsdale II Townhouse Corporation

Executive Summary

This document synthesizes the findings from two administrative hearings concerning a records request dispute between homeowner Nancy L. Babington (Petitioner) and the Park Scottsdale II Townhouse Corporation (Respondent). The case, No. 20F-H2020064-REL, culminated in a reversal of an initial ruling, finding the Respondent in violation of Arizona law A.R.S. § 33-1258 for failing to provide association records within the statutory timeframe.

The initial hearing on August 28, 2020, resulted in a denial of the petition. The Respondent successfully argued that it could not produce the requested documents because they were not in its possession, largely due to a dispute with a former management company. However, a rehearing was granted after the Petitioner discovered new evidence.

The rehearing on March 4, 2021, established that the Respondent, through its management company Associa Arizona, was in possession of key requested documents—specifically bank statements and signed contracts—at the time of the initial request. Evidence revealed the bank statements were held at a central corporate office in Texas and were not retrieved, while signed contracts had not been forwarded to the management company by board members. The Administrative Law Judge found this directly contradicted the Respondent’s initial defense.

As a result, the Administrative Law Judge reversed the earlier decision, ordering the Respondent to reimburse the Petitioner’s $500 filing fee and imposing a $2,500 civil penalty payable to the Arizona Department of Real Estate. The case underscores an association’s responsibility to produce all records in its possession, regardless of physical location within the corporate structure, and affirms the court’s authority to levy penalties for violations.

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1. Case Overview

Case Number: 20F-H2020064-REL

Petitioner: Nancy L. Babington

Respondent: Park Scottsdale II Townhouse Corporation

Core Allegation: Violation of A.R.S. § 33-1258, which mandates that a condominium owners’ association must make its financial and other records reasonably available for examination by a member within ten business days of a request.

Hearings Conducted:

◦ Initial Hearing: August 28, 2020

◦ Rehearing: March 4, 2021

Presiding Administrative Law Judge: Tammy L. Eigenheer

2. Chronology of the Dispute

The dispute originated from difficulties following a change in the Respondent’s management company and subsequent records requests by the Petitioner.

June-July 2019: The previous management company, Community Management & Consulting, LLC (CMC), terminated its agreement with the Respondent. A “financial disagreement” led to CMC withholding records, complicating the transition.

Post-July 2019: Respondent hired Associa Arizona as its new management company. Associa and the Respondent’s counsel attempted to obtain the withheld records from CMC.

April 29, 2020: After previous attempts to get information, Petitioner Nancy L. Babington sent a formal email to Associa and the Respondent’s Board of Directors. In the email, she stated:

May 1, 2020: Linda Parker, Director of Client Services with Associa, replied, stating the request was not specific and asked the Petitioner to identify the exact records needed.

May 1, 2020: The Petitioner responded with a detailed list of nine specific items:

1. All bank statements with copies of cancelled checks since Sept 1, 2019.

2. Any and all financial statements since Sept 1, 2019.

3. Any and all 1099s issued for 2019.

4. Any and all Executive Session meeting minutes conducted in 2020 (excluding statutory exemptions).

5. Any and all contracts signed in 2020.

6. Any and all outstanding invoices with a due date over 45 days.

7. Any documentation regarding the legality of the $204.75 maintenance fee.

8. Any proof of Stephen Silberschlag’s liability insurance.

9. Any landscaping plans.

May 4, 2020: Ms. Parker from Associa responded that the company could only provide records within its possession.

May 15, 2020: Following another email from the Petitioner, Ms. Parker stated that Associa had scheduled a meeting with the board on May 20 to discuss the request further.

May 28, 2020: Having not received any of the requested documents, the Petitioner filed a petition with the Arizona Department of Real Estate.

3. The Initial Hearing and Decision (August – September 2020)

The first hearing focused on whether the Respondent had violated the statute by failing to produce the documents.

• The Respondent argued that it was unable to provide documents that were not in its possession.

• Joseph Silberschlag, Secretary of the Board of Directors, testified that issues with the former management company (CMC) meant neither the Respondent nor Associa had possession of many necessary documents.

• Specifically, he stated that without previous financial documents and starting balances from CMC, the association was unable to create current financial statements.

• The Respondent maintained it was under no statutory obligation to create documents to fulfill the Petitioner’s request.

• The Administrative Law Judge (ALJ) concluded that the Petitioner “failed to establish by a preponderance of the evidence that Respondent violated A.R.S. § 33-1258(A).”

• The finding was based on the Respondent’s argument that it did not possess the requested documents at the time of the request.

• On September 17, 2020, the ALJ issued a decision denying the Petitioner’s petition.

4. The Rehearing and Reversal (March 2021)

Following the initial decision, the case was reopened based on new evidence presented by the Petitioner.

• After the September 2020 decision, the Respondent provided some of the requested documents to the Petitioner.

• Upon reviewing these documents, the Petitioner realized that the Respondent had, in fact, been in possession of several key records prior to her May 1, 2020 request.

• She filed a Rehearing Request with the Department of Real Estate, citing “newly discovered material evidence that could not with reasonable diligence have been discovered and produced at the original hearing.” The request was granted.

The rehearing revealed crucial details about the location and accessibility of the requested records.

Record Type

Petitioner’s Evidence

Respondent’s Testimony/Explanation

Bank Statements

The documents received post-hearing showed that bank statements had been sent to Associa starting in August 2019.

Evelyn Shanley, Community Director for Associa, testified that statements for all HOAs were sent to a central office in Richardson, Texas. She admitted she did not contact the Texas office to obtain the statements for the Petitioner’s request. Counsel for the Respondent conceded the statements in Texas were in the possession of Associa.

Contracts

Petitioner presented two contracts signed by Board members on March 27 and March 31, 2020, prior to her request.

Ms. Shanley admitted the two signed contracts existed but stated that the Board of Directors members had not provided them to Associa.

1099 Forms

Petitioner noted a document indicating four vendors were eligible for 1099s.

Ms. Shanley denied that any 1099s had been issued.

• The documents were not in the “immediate possession” of the local Associa office.

• The matter was now moot because the Petitioner had received all requested documents.

• A civil penalty was inappropriate because the Petitioner did not specifically request one on her initial petition form.

• The evidence presented at the rehearing was “directly contradictory” to the representations made by the Respondent at the initial hearing.

• The Petitioner successfully established by a preponderance of the evidence that the Respondent violated A.R.S. § 33-1258(A) by failing to provide documents (bank statements and contracts) that were in its possession.

• The ALJ rejected the Respondent’s argument against a civil penalty, stating that the plain language of A.R.S. § 32-2199.02 allows the judge to levy a penalty for established violations, and “nothing in the statute limits the available remedies to those specifically requested by a petitioner.”

5. Final Order and Penalties

The Administrative Law Judge Decision issued on March 24, 2021, reversed the initial finding and imposed penalties on the Respondent.

IT IS ORDERED that:

1. Respondent must pay the Petitioner her filing fee of $500.00 within 30 days.

2. Respondent must pay to the Department of Real Estate a civil penalty in the amount of $2,500.00 within 30 days.

Study Guide: Babington v. Park Scottsdale II Townhouse Corporation

This study guide provides a review of the administrative case involving Petitioner Nancy L. Babington and Respondent Park Scottsdale II Townhouse Corporation. It includes a short-answer quiz to test factual recall, a separate answer key, a set of essay questions for deeper analysis, and a glossary of key terms and entities involved in the proceedings.

Short-Answer Quiz

Answer each question in 2-3 sentences based on the information provided in the case documents.

1. Who were the primary parties in this case, and what was the Petitioner’s central allegation?

2. What specific Arizona statute was the Respondent accused of violating, and what does this law generally require?

3. What was the Respondent’s main defense during the initial hearing on August 28, 2020, for not providing the requested records?

4. What was the conclusion of the Administrative Law Judge in the first decision, issued on September 17, 2020?

5. On what legal grounds did the Petitioner successfully file for a rehearing of her case?

6. What new evidence regarding bank statements was presented by the Petitioner at the March 4, 2021, rehearing?

7. How did the Respondent’s management company, Associa Arizona, explain its failure to produce the bank statements and signed contracts in response to the initial request?

8. What was the final outcome of the rehearing, and how did it contradict the initial decision?

9. What two financial penalties were imposed upon the Respondent in the final order of March 24, 2021?

10. What was the Respondent’s argument against the imposition of a civil penalty, and why did the Administrative Law Judge reject it?

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Answer Key

1. The primary parties were Petitioner Nancy L. Babington, a property owner, and Respondent Park Scottsdale II Townhouse Corporation, a condominium owners association. The Petitioner alleged that the Respondent failed to provide association records she formally requested, in violation of Arizona law.

2. The Respondent was accused of violating A.R.S. § 33-1258. This statute requires a condominium owners association to make its financial and other records reasonably available for examination by a member and to provide copies of requested records within ten business days.

3. During the initial hearing, the Respondent’s main defense was that it was unable to provide the documents because they were not in its possession. The Respondent claimed its former management company, CMC, was withholding records and that without starting balances, it could not create new financial documents.

4. The Administrative Law Judge denied the Petitioner’s petition in the first decision. The judge concluded that the Petitioner failed to establish by a preponderance of the evidence that the Respondent violated the statute because the Respondent did not possess the documents and was not required to create them.

5. The Petitioner was granted a rehearing based on the discovery of “newly discovered material evidence that could not with reasonable diligence have been discovered and produced at the original hearing.” After the first decision, the Respondent provided documents that proved it had, in fact, been in possession of some of the requested records prior to her request.

6. At the rehearing, the Petitioner testified that after receiving the documents, she realized bank statements had been sent to Associa’s central office in Richardson, Texas, starting in August 2019. This demonstrated that the records were in the management company’s possession when she made her request.

7. Associa’s representative testified that bank statements went to a central office in Texas and were not forwarded to the local office because financial packets could not be prepared without starting balances from the previous management company. Regarding the contracts, Associa claimed that the Board of Directors members who signed them had not provided the contracts to Associa.

8. The final outcome of the rehearing was a ruling in favor of the Petitioner. The judge found that evidence presented at the rehearing directly contradicted the Respondent’s earlier claims, establishing that the Respondent did possess bank statements and contracts and had violated A.R.S. § 33-1258(A).

9. In the final order, the Respondent was ordered to pay the Petitioner’s filing fee of $500.00. Additionally, the Respondent was ordered to pay a civil penalty of $2,500.00 to the Arizona Department of Real Estate.

10. The Respondent argued that a civil penalty was not appropriate because the Petitioner did not specifically request one by checking the box on the petition form. The judge rejected this, stating that the plain language of A.R.S. § 32-2199.02 allows the judge to levy a civil penalty for established violations, and this authority is not limited by the remedies requested by a petitioner.

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Essay Questions

The following questions are designed for analytical and in-depth responses. Answers are not provided.

1. Analyze the concept of “possession” of records as it evolved from the first hearing to the second. How did the Respondent’s initial interpretation of “immediate possession” differ from the Administrative Law Judge’s final conclusion regarding the records held by Associa’s Texas office?

2. Discuss the significance of the “preponderance of the evidence” standard in this case. Explain specifically how the Petitioner failed to meet this standard in the first hearing but succeeded in the second, citing the key pieces of evidence that shifted the outcome.

3. Evaluate the role and responsibilities of the management company, Associa Arizona, in this dispute. To what extent were its internal procedures and actions (or inactions) the primary cause of the Respondent’s violation of A.R.S. § 33-1258?

4. Trace the timeline of communication between Nancy Babington and Associa Arizona from April 29, 2020, to May 15, 2020. Analyze how the responses from Associa may have contributed to the perception that the Respondent was refusing to provide information, ultimately leading to the petition being filed.

5. The Administrative Law Judge has the statutory authority to levy a civil penalty for each violation found. Based on the facts of this case, including the Respondent’s representations at the first hearing and the contradictory evidence presented at the second, construct an argument justifying the imposition of the $2,500 civil penalty.

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Glossary of Key Terms

Term / Entity

Definition

A.R.S. § 32-2199 et seq.

The Arizona Revised Statute cited as giving the Arizona Department of Real Estate jurisdiction to hear disputes between a property owner and a condominium owners association.

A.R.S. § 33-1258

The Arizona Revised Statute at the core of the dispute. It requires that an association’s financial and other records be made “reasonably available” for examination and that the association has ten business days to fulfill a request for examination or to provide copies.

Administrative Law Judge (ALJ)

The official from the Office of Administrative Hearings (Tammy L. Eigenheer in this case) responsible for conducting the hearings, weighing evidence, and issuing a legally binding decision and order.

Associa Arizona

The management company hired by the Respondent to handle its operations after the termination of the previous management agreement. It was the primary point of contact for the Petitioner’s records request.

Civil Penalty

A monetary fine levied by the Administrative Law Judge for a violation of the law. In this case, a $2,500 penalty was ordered to be paid to the Department of Real Estate.

Community Management & Consulting, LLC (CMC)

The Respondent’s former management company. CMC terminated its agreement with the Respondent and was withholding association records due to a financial disagreement, which was a key part of the Respondent’s defense in the initial hearing.

Department of Real Estate (Department)

The Arizona state agency with which the Petitioner filed her petition and which has jurisdiction over such disputes.

A legal argument made by the Respondent’s counsel during the rehearing. Counsel asserted that the matter was moot (no longer relevant or in dispute) because, by the time of the rehearing, the Petitioner had received all the documents she requested.

Newly Discovered Material Evidence

The legal basis upon which the Petitioner was granted a rehearing. It refers to significant evidence that was not available at the time of the original hearing despite reasonable diligence.

Petitioner

The party who initiates a legal action or petition. In this case, Nancy L. Babington, a condominium owner.

Preponderance of the Evidence

The standard of proof required for the Petitioner to win her case. It is defined as evidence that is more convincing and shows that the fact sought to be proved is “more probable than not.”

Rehearing

A second hearing granted by the Commissioner of the Department of Real Estate to re-examine a case, which was held on March 4, 2021, after the Petitioner presented newly discovered evidence.

Respondent

The party against whom a petition is filed. In this case, Park Scottsdale II Townhouse Corporation, the condominium owners association.

Select all sources
823263.pdf
866802.pdf

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20F-H2020064-REL-RHG

2 sources

These two sources are Administrative Law Judge Decisions concerning a dispute between Nancy L. Babington, a homeowner, and the Park Scottsdale II Townhouse Corporation, her condominium owners association, regarding the provision of association records under Arizona statute A.R.S. § 33-1258. The first document details the initial hearing, held in August 2020, where the judge ruled in favor of the association, concluding that the association was not in violation because it lacked possession of the requested documents due to issues with its former management company. The second document outlines the rehearing, granted due to newly discovered evidence suggesting the association or its new management company, Associa Arizona, actually possessed some records, such as bank statements and contracts, despite earlier claims. Based on the rehearing’s findings, the judge determined the association violated the statute by not providing the records within the ten-day requirement and ordered the association to reimburse the petitioner’s filing fee and pay a civil penalty.

2 sources

How did newly discovered evidence lead to reversal of the initial legal decision?
What were the specific consequences for the respondent following the administrative rehearing?
How did the interpretation of statutory record possession requirements change between hearings?

Based on 2 sources

NotebookLM can be inaccurate; please double check its responses.

Case Participants

Petitioner Side

  • Nancy L. Babington (petitioner)

Respondent Side

  • Lydia A. Peirce Linsmeier (HOA attorney)
    CARPENTER, HAZLEWOOD, DELGADO & BOLEN LLP
    Represented Respondent at initial hearing
  • Mark K. Sahl (HOA attorney)
    CARPENTER, HAZLEWOOD, DELGADO & BOLEN LLP
    Represented Respondent at rehearing
  • Scott B. Carpenter (HOA attorney)
    CARPENTER, HAZLEWOOD, DELGADO & BOLEN LLP
    Represented Respondent at rehearing
  • Debbie Schumacher (board member)
    Park Scottsdale II Townhouse Corporation
  • Marty Shuford (board member)
    Park Scottsdale II Townhouse Corporation
  • Joseph Silberschlag (board member)
    Park Scottsdale II Townhouse Corporation
    Secretary; testified
  • Angelina Rajenovich (board member)
    Park Scottsdale II Townhouse Corporation
  • Dermot Brown (board member)
    Park Scottsdale II Townhouse Corporation
  • Lori Nusbaum (board member)
    Park Scottsdale II Townhouse Corporation
  • Linda Parker (HOA staff)
    Associa Arizona
    Director of Client Services for property manager
  • Evelyn Shanley (HOA staff)
    Associa Arizona
    Community Director for property manager; testified at rehearing
  • Laura Smith (HOA staff)
    Associa Arizona

Neutral Parties

  • Tammy L. Eigenheer (ALJ)
    OAH
  • Judy Lowe (Commissioner)
    Arizona Department of Real Estate
  • LDettorre (ADRE staff)
    Arizona Department of Real Estate
  • AHansen (ADRE staff)
    Arizona Department of Real Estate
  • djones (ADRE staff)
    Arizona Department of Real Estate
  • DGardner (ADRE staff)
    Arizona Department of Real Estate
  • ncano (ADRE staff)
    Arizona Department of Real Estate
  • c. serrano (staff)
    Signed order transmission

Other Participants

  • Stephen Silberschlag (unknown)
    Subject of Petitioner's record request

Robert L Greco v. Bellasera Community Association, Inc.

Case Summary

Case ID 20F-H2019018-REL
Agency ADRE
Tribunal OAH
Decision Date 2020-01-29
Administrative Law Judge Tammy L. Eigenheer
Outcome The Administrative Law Judge concluded that Bellasera Community Association, Inc. did not violate A.R.S. § 33-1803(B) because the homeowner received constructive notice of the violation and fine structure, satisfying statutory requirements. The petition was dismissed.
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Robert L Greco Counsel
Respondent Bellasera Community Association, Inc. Counsel Nathan Tennyson

Alleged Violations

A.R.S. § 33-1803(B)

Outcome Summary

The Administrative Law Judge concluded that Bellasera Community Association, Inc. did not violate A.R.S. § 33-1803(B) because the homeowner received constructive notice of the violation and fine structure, satisfying statutory requirements. The petition was dismissed.

Why this result: Petitioner failed to meet the burden of proving Respondent violated A.R.S. § 33-1803(B), as the evidence showed Petitioner received sufficient constructive notice of the alleged violation and had an opportunity to be heard or appeal.

Key Issues & Findings

Whether the HOA violated statutory requirements regarding notice and imposition of monetary penalties/late fees, resulting in suspension of privileges.

Petitioner alleged the HOA violated A.R.S. § 33-1803(B) by imposing fines and suspending gate/clubhouse access without providing adequate (actual) notice of the violation and hearing opportunity, and by improperly imposing late fees. The ALJ found the HOA provided constructive notice, satisfying the statute, and was entitled to impose cumulative fines for the ongoing violation.

Orders: Petitioner’s petition is dismissed.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 33-1803(B)
  • A.R.S. § 32-2199 et seq.
  • A.A.C. R2-19-119
  • BLACK'S LAW DICTIONARY 1220
  • BLACK'S LAW DICTIONARY 1090

Analytics Highlights

Topics: HOA fines, Constructive notice, Statutory violation, Access suspension, Maintenance violation
Additional Citations:

  • A.R.S. § 33-1803(B)
  • A.R.S. § 32-2199 et seq.
  • A.A.C. R2-19-119

Video Overview

Audio Overview

Decision Documents

20F-H2019018-REL Decision – 766844.pdf

Uploaded 2026-01-23T17:30:37 (133.7 KB)

Briefing Document: Greco v. Bellasera Community Association, Inc.

Executive Summary

This document synthesizes the findings and decision in the case of Robert L. Greco (Petitioner) versus the Bellasera Community Association, Inc. (Respondent), heard by the Arizona Office of Administrative Hearings. The Administrative Law Judge dismissed the petition, ruling in favor of the Homeowners Association (HOA).

The core dispute originated from a 2013 violation notice regarding a faded garage door. The Petitioner claimed he did not receive the initial notices and only became aware of the issue upon receiving a letter from the HOA’s attorney. Despite subsequently painting the door, an outstanding balance of $750 in fines remained on his account. For six years, the Petitioner paid his quarterly dues but ignored the outstanding fine balance. In June 2019, after failed settlement negotiations, the HOA deactivated the Petitioner’s security gate fob and clubhouse access, prompting him to file the formal dispute.

The judge’s decision rested on two key legal conclusions. First, the court rejected the Petitioner’s argument that “actual notice” was required for the fines to be valid. It ruled that the multiple notices mailed to the Petitioner’s residence constituted sufficient “constructive notice” under Arizona law, providing both notification of the violation and an opportunity to be heard. Second, the court determined that the $750 charge was not an improper late fee but rather three separate, legitimate fines of $250 each, levied for an ongoing, uncorrected violation as per the HOA’s enforcement policy.

Case Overview

Case Name

Robert L Greco, Petitioner, vs. Bellasera Community Association, Inc., Respondent

Case Number

20F-H2019018-REL

Jurisdiction

Arizona Office of Administrative Hearings

Presiding Judge

Administrative Law Judge Tammy L. Eigenheer

Hearing Date

January 9, 2020

Decision Date

January 29, 2020

Petitioner’s Core Allegation

Respondent violated A.R.S. § 33-1803(B) by imposing penalties and revoking privileges without providing proper notice and an opportunity to be heard.

Core Factual Issue

The denial of automatic gate and clubhouse access to the Petitioner on July 1, 2019, due to unpaid fines from 2013.

Chronology of the Dispute

The conflict between Mr. Greco and the Bellasera Community Association unfolded over six years, escalating from a minor maintenance issue to a formal legal dispute and revocation of privileges.

Initial Violation and Fines (2013)

Details

Feb. 5, 2013

Courtesy Notice

Respondent sent a notice to Petitioner’s address stating his garage door was faded and needed to be repainted, in violation of the Design Guidelines.

Mar. 14, 2013

Final Notice & First Fine

A follow-up notice was sent, stating a $250 fine was posted to Petitioner’s account. It warned that an additional $250 fine would be assessed automatically every 14 days if the violation remained uncorrected.

Apr. 2, 2013

Notice of Remedy & Second Fine

A third notice was sent, posting another $250 fine. This letter explicitly warned that the HOA had the “ability to suspend privileges for use of the Recreational Facilities” and informed the Petitioner of his right to appeal within 14 days.

May 7, 2013

Fourth Notice & Third Fine

A fourth notice was sent, posting another $250 fine to the account. It again noted the right to appeal the fine.

Jun. 5, 2013

Letter from HOA Counsel

Attorney Kelly Oetinger sent a letter demanding the garage door be repainted within 15 days. The letter explicitly stated, “If you do not repaint… the Association may disable the transponder you use to enter the community and may disable the fobs you use for the clubhouse.”

Petitioner’s Response and Aftermath (2013)

July 4, 2013: Petitioner repainted the garage door.

July 5, 2013: Petitioner sent a letter to the HOA stating the attorney’s letter was his “initial alert of the garage door condition.” He explained his delay by stating, “To effectively manage my workload, I dispose of unsolicited mail… In the future, I will exercise greater caution in disposing of unsolicited mail.”

July 5, 2013: The HOA sent a letter acknowledging the repainting and offered to settle the $900 in fines for a payment of $500. The letter reiterated the threat to deactivate gate openers and fobs.

July 17, 2013: The HOA sent a follow-up letter correcting an internal accounting error. The total fines were $750, not $900. A new settlement offer was made: pay $375, and the remaining $375 would be waived.

Period of Inaction (2013 – 2019)

From 2013 to 2019, the Petitioner received quarterly statements from the HOA indicating a $750 balance in addition to current assessments. Each quarter, the Petitioner would physically cross out the $750 balance and pay only the current assessment amount.

Escalation and Revocation of Privileges (2019)

June 2019: Dennis Carson, a friend of the Petitioner serving on the HOA Board of Directors, informed him that his name was on a penalty list and the Board planned to deactivate his security gate and clubhouse access.

June 2019: Settlement negotiations failed. The Petitioner offered $100; the Board countered with $250. The Petitioner then offered $251 ($250 for the fine and $1 to rent the clubhouse), which the Board declined.

July 1, 2019: The Respondent deactivated the Petitioner’s security gate fob and access to the clubhouse.

October 11, 2019: The Petitioner filed the Homeowners Association Dispute Process Petition, initiating the legal proceedings.

Key Arguments and Legal Findings

The Administrative Law Judge’s decision centered on the interpretation of “notice” as required by state law and the legitimacy of the fines imposed by the HOA.

Petitioner’s Position

1. Lack of Proper Notice: The Petitioner argued that he had not received “actual notice” of the violation or the impending fines until the letter from the HOA’s counsel on June 5, 2013. He asserted that because he acted promptly after receiving that letter, the fines were unjust. His argument implied that warnings in mail he did not personally read could not be held against him.

2. Improper Fines: The Petitioner alleged that the additional $500 in charges on the original $250 fine constituted improper late fees.

Administrative Law Judge’s Conclusions of Law

The Judge systematically refuted the Petitioner’s arguments, concluding that the HOA acted within its rights and in accordance with the law.

1. On the Matter of Notice:

• The governing statute, A.R.S. § 33-1803(B), requires “notice and an opportunity to be heard” before imposing penalties.

• The Judge found no legal authority requiring this to be “actual notice.” To accept this argument would create an unworkable standard where a homeowner could “avoid receiving ‘actual notice’ by simply refusing to sign for a certified mailing.”

• The decision established that the Petitioner received constructive notice through the “multiple mailings that were presumably delivered to his residential address.”

• The notices also informed the Petitioner how to appeal the matter, thereby satisfying the requirement for an “opportunity to be heard.”

Conclusion: “Accordingly, Petitioner was provided notice and an opportunity to be heard in accordance with A.R.S. § 33-1803(B).”

2. On the Matter of Fines:

• The Judge differentiated between late fees and fines for an ongoing violation.

• The notices sent by the Respondent “clearly stated that an ongoing failure to remedy the violation would result in additional fines every 14 days.”

• The violation persisted from before March 14, 2013 (first fine) until July 5, 2013 (when the door was confirmed painted).

Conclusion: The Respondent was entitled to impose three separate fines for the “ongoing condition of the garage door,” making the total of $750 legitimate.

Final Order and Implications

Based on the analysis of the evidence and law, the Administrative Law Judge reached a definitive conclusion.

Final Ruling: “This Tribunal concludes that Respondent did not violate the provisions of A.R.S. § 33-1803(B).”

Order: “IT IS ORDERED that Petitioner’s petition is dismissed.”

Binding Nature: The order, dated January 29, 2020, is binding on the parties unless a rehearing is requested with the Commissioner of the Department of Real Estate within 30 days of the service of the order.

Study Guide: Greco v. Bellasera Community Association, Inc.

This guide provides a comprehensive review of the Administrative Law Judge Decision in the case of Robert L. Greco (Petitioner) versus Bellasera Community Association, Inc. (Respondent), Case No. 20F-H2019018-REL. It includes a short-answer quiz to test your knowledge, an answer key for review, a set of essay questions for deeper analysis, and a glossary of key terms.

Short-Answer Quiz

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

1. Who were the Petitioner and Respondent in this case, and what was the Petitioner’s central complaint that initiated the legal action?

2. What specific violation of the community’s rules was the Petitioner initially accused of, and which governing documents were cited as being violated?

3. Describe the timeline of notices and fines issued by the Respondent between February and May 2013.

4. What was the Petitioner’s explanation for not responding to the initial violation notices from the Respondent before receiving a letter from the association’s attorney?

5. What actions did the Respondent take in or around June 2019 that led the Petitioner to file his petition with the Arizona Department of Real Estate?

6. What was the Petitioner’s primary legal argument regarding the “notice” required by the Arizona statute A.R.S. § 33-1803(B)?

7. How did the Administrative Law Judge differentiate between “actual notice” and “constructive notice” in her decision?

8. Why did the judge ultimately conclude that the Respondent had provided the Petitioner with adequate “notice and an opportunity to be heard”?

9. Explain the Petitioner’s allegation about improper late fees and the reason the judge rejected this argument.

10. What was the final order of the Administrative Law Judge in this case, and what recourse was available to the parties?

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Answer Key

1. The Petitioner was homeowner Robert L. Greco, and the Respondent was the Bellasera Community Association, Inc. (the HOA). Greco’s central complaint, filed on October 11, 2019, was that the HOA had denied him automatic gate access and use of clubhouse facilities on July 1, 2019, despite his being a long-term resident with timely payment of all quarterly dues.

2. The Petitioner was accused of having a faded garage door that needed to be repainted. The violation was cited as being contrary to the CC&Rs (Covenants, Conditions and Restrictions), specifically Article V, Section 5.2, and the community’s Design Guidelines, specifically Article III, Section J.

3. The Respondent sent an initial “Courtesy Notice” on February 5, 2013. This was followed by a “Final Notice” with a $250 fine on March 14, a “Notice of Remedy” with another $250 fine on April 2, and a “Fourth Notice of Non-Compliance” with another $250 fine on May 7, 2013.

4. The Petitioner claimed that the attorney’s letter, received around June 5, 2013, was his “initial alert” regarding the garage door condition. He stated that he routinely disposes of unsolicited mail without reading it and had inadvertently discarded the previous notices sent by the Respondent.

5. In June 2019, after failed settlement negotiations over the outstanding $750 in fines from 2013, the Respondent deactivated the Petitioner’s security gate fob and his access to the clubhouse. This action prompted the Petitioner to file his dispute petition.

6. The Petitioner’s primary argument was that he did not receive “actual notice” of the violation until the attorney’s letter. He contended that because he acted promptly to correct the violation after receiving actual notice, he should not have been fined.

7. The judge used definitions from Black’s Law Dictionary. “Actual notice” was defined as notice given directly to, or personally received by, a party. “Constructive notice” was defined as notice arising by presumption of law from facts and circumstances that a party had a duty to take notice of.

8. The judge concluded that the multiple notices mailed to the Petitioner’s residential address constituted “constructive notice” of the violation. Because the relevant statute, A.R.S. § 33-1803(B), does not explicitly require “actual notice,” and the mailings also advised him of his right to appeal, the judge found the Respondent had fulfilled its obligation to provide notice and an opportunity to be heard.

9. The Petitioner alleged that the additional $500 in fines were improper late fees on the original $250 fine. The judge rejected this, clarifying that the Respondent’s notices stated that additional fines would be assessed every 14 days for an ongoing failure to remedy the violation. Therefore, the additional charges were three separate fines for the “ongoing condition of the garage door,” not late fees.

10. The final order was that the Petitioner’s petition be dismissed. The parties were notified that this order was binding unless a request for rehearing was filed with the Commissioner of the Department of Real Estate within 30 days.

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Essay Questions

The following questions are designed for deeper analysis and discussion. No answers are provided.

1. Analyze the Administrative Law Judge’s reasoning for favoring “constructive notice” over “actual notice” in the context of A.R.S. § 33-1803(B). Discuss the potential consequences for homeowners and HOAs if the ruling had required “actual notice.”

2. Trace the negotiation attempts between the Petitioner and the Respondent in 2013 and 2019. Evaluate the effectiveness of these attempts and discuss whether the dispute could have been resolved without formal legal proceedings.

3. The Petitioner argued that the fines imposed after the initial $250 were improper late fees. The judge, however, characterized them as new fines for an “ongoing condition.” Based on the evidence presented in the notices, construct an argument supporting both the Petitioner’s and the judge’s interpretation.

4. Discuss the concept of “burden of proof” in this case. Explain what “preponderance of the evidence” means and identify the key pieces of evidence that allowed the judge to conclude the Respondent did not violate the statute.

5. Examine the roles of the various community governing documents cited in this case (CC&Rs, Design Guidelines, Violation Enforcement policy). Explain how these documents worked together to grant the Respondent the authority to take action against the Petitioner.

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Glossary of Key Terms

Definition

A.R.S. § 33-1803(B)

The Arizona Revised Statute central to this case, which permits an HOA board to impose reasonable monetary penalties for violations after providing “notice and an opportunity to be heard.”

Actual Notice

As defined in the decision, it is “[n]otice given directly to, or received personally by, a party.”

Administrative Law Judge (ALJ)

The official who presides over administrative hearings, makes findings of fact and conclusions of law, and issues a decision. In this case, it was Tammy L. Eigenheer.

Bellasera Community Association, Inc.

The Respondent in the case; the homeowners association (HOA) for the Bellasera Community in Arizona.

An acronym for Declaration of Covenants, Conditions and Restrictions. These are the governing legal documents for the community, which the Petitioner was found to have violated (specifically Article V, Section 5.2).

Constructive Notice

As defined in the decision, it is “[n]otice arising by presumption of law from the existence of facts and circumstances that a party had a duty to take notice of.” The judge ruled that mail sent to a residence constitutes this form of notice.

Design Guidelines

A set of rules established by the HOA governing the aesthetic appearance of properties. The Petitioner was found in violation of Article III, Section J of these guidelines.

Petitioner

The party who initiates a legal action or petition seeking a ruling. In this case, it was the homeowner, Robert L. Greco.

Preponderance of the evidence

The standard of proof required in this hearing. It is defined as “[t]he greater weight of the evidence, not necessarily established by the greater number of witnesses testifying to a fact but by evidence that has the most convincing force.”

Respondent

The party against whom a petition is filed and who must respond to the allegations. In this case, it was the HOA.

He Threw Away His Mail for Years. His HOA’s Response Is a Warning to Every Homeowner.

That official-looking envelope from your Homeowners Association sits on the counter, a silent challenge. It’s easy to dismiss it as a newsletter or a bland reminder, just another piece of paper to be sorted later. But what if it isn’t? What if that envelope is a legal summons in disguise, the first shot in a battle you don’t even know you’re fighting?

For Robert L. Greco, a resident in his community for 17 years, this hypothetical became a harsh reality. He learned that ignoring HOA correspondence can ignite a conflict that smolders for years before erupting into severe consequences. Originating from a maintenance issue as simple as a faded garage door, his case offers a masterclass in the powerful lessons every homeowner should heed.

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1. The “I Didn’t Read It” Defense Doesn’t Work

The central pillar of the homeowner’s defense was disarmingly simple: he claimed he never received the first four violation notices because he habitually throws away what he considers “unsolicited mail.” He argued that without having read the warnings, he couldn’t be held responsible for the fines.

The judge’s ruling, however, invoked a foundational legal concept that extends far beyond HOA disputes into areas like property deeds and public records: the difference between “actual notice” and “constructive notice.” While actual notice means you personally saw the information, constructive notice presumes you have knowledge of something because it was delivered properly—in this case, mailed to the correct address. Whether you open the envelope is irrelevant.

In a July 5, 2013 letter, the homeowner unwittingly sealed his own fate by describing his mail-handling routine:

Routinely, Saturdays are my mail-pick-up days, and invariably, I walk straight to the re-cyclable container, and deposit the mail in the receptacle… I was astonished to learn that my garage door failed inspection. This is my initial alert of the garage door condition.

For homeowners, the takeaway is a stark one: in the eyes of the law, your recycling bin is not a valid legal defense. The burden doesn’t fall on an HOA to ensure you read your mail, only to send it. The responsibility to open and review all official correspondence rests squarely on the homeowner.

2. A Tiny Issue Can Snowball into a Years-Long Standoff

The timeline of this dispute reveals a classic case of conflict avoidance, where a minor, fixable problem was allowed to spiral into a major legal battle. The cost of a can of paint and a Saturday afternoon of work was ultimately dwarfed by a six-year, $750 dispute that cost the homeowner his access to his own community.

February 5, 2013: The HOA sends its first “Courtesy Notice” regarding a faded garage door in need of repainting.

March – May 2013: After no response, the HOA issues three more notices, levying escalating fines that total $750.

2013 to 2019: For six years, the homeowner receives quarterly statements showing the $750 balance. Each time, he would “cross out the $750.00 balance and pay the current assessment.”

June/July 2019: The HOA finally forces the issue by deactivating his security gate fob and his access to the clubhouse.

This progression shows how a simple lack of communication transformed a weekend chore into a years-long standoff. By ignoring the notices and the subsequent fines, the homeowner allowed a molehill to grow into a mountain of conflict.

3. “Continuing Violation” Fines Are Not Late Fees

The homeowner contended that the HOA was improperly stacking late fees on top of an initial $250 penalty. However, the administrative law judge highlighted a critical distinction embedded in the association’s rules.

The HOA wasn’t charging late fees on a single, past-due penalty. It was levying new fines for a “continuing violation.” The notice sent on March 14, 2013, explicitly warned that “an additional fine of $250 will be assessed automatically every 14 days… if the violation remains uncorrected.”

This is a crucial detail found in many HOA bylaws. An unpainted garage door is not a one-time offense; it is an ongoing breach of community standards. A homeowner who thinks they are simply letting a single fine sit unpaid may actually be incurring entirely new violations over time, dramatically increasing their financial liability.

4. Failed Negotiations Can Cost More Than Money

Twice, this dispute could have been resolved. The breakdown in negotiations, however, reveals how ego and principle can prove more costly than the fines themselves.

The first attempt came in 2013, after the homeowner had finally painted the garage. The HOA initially offered to settle a supposed $900 balance for $500. This, however, was based on an “internal accounting error.” In a subsequent letter, the HOA apologized, corrected the record to show the true balance was $750, and made a formal offer: pay half—just $375—and the matter would be closed. The offer was not accepted. Including this error shows the HOA was not infallible, making the subsequent stalemate more complex.

The second negotiation occurred in 2019, prompted by a friend on the Board who urged a settlement. The homeowner offered $100. The Board countered with $250. The homeowner’s final offer was exquisitely specific: “$251.00, $250.00 to settle the outstanding fines and $1.00 to rent the clubhouse on a specific date.”

This offer was a tactical and psychological blunder. That extra dollar wasn’t about money; it was a message. Whether intended as a sarcastic jab or a principled stand to assert his rights as a member, it transformed a financial negotiation into a battle of wills. For a Board of Directors, accepting such an offer could be seen as capitulating to a petty gesture, setting a precedent that defiance works. They declined. Shortly after, the homeowner’s access to community facilities was cut off, leading to the legal petition he ultimately lost.

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Conclusion: A Lesson in Communication

This case serves as a powerful warning. The legal force of “constructive notice” makes you responsible for the mail you receive, not just the mail you read. The six-year standoff over a can of paint shows how inaction can have disproportionate consequences. And the failed $251 offer demonstrates that good-faith negotiation is paramount.

Ultimately, the homeowner was left still owing the money and locked out of his own amenities—a casualty of a battle he prolonged at every turn. It leaves every homeowner with a critical question to consider: in a dispute with your HOA, where is the line between standing on principle and causing yourself unnecessary harm?

Case Participants

Petitioner Side

  • Robert L Greco (petitioner)

Respondent Side

  • Nathan Tennyson (attorney)
    Brown|Olcott, PLLC
  • David Reid (board member)
    Testified for Respondent
  • Annette McCarthy (manager)
    Acting Manager; Testified for Respondent
  • Kelly Oetinger (attorney)
    Counsel for Respondent in 2013
  • Dennis Carson (board member)

Neutral Parties

  • Tammy L. Eigenheer (ALJ)
  • Judy Lowe (Commissioner)
    ADRE

Thomas J Van Dan Elzen v. Carter Ranch Homeowners Association

Case Summary

Case ID 19F-H1919071-REL-RHG
Agency ADRE
Tribunal OAH
Decision Date 2020-01-30
Administrative Law Judge Velva Moses-Thompson
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Thomas J. Van Dan Elzen Counsel
Respondent Carter Ranch Homeowners Association Counsel Augustus H. Shaw IV, Esq.

Alleged Violations

A.R.S. § 33-1808

Outcome Summary

The Administrative Law Judge dismissed the Petitioner's case, finding that the Petitioner failed to meet the burden of proof to establish that the Respondent HOA violated A.R.S. § 33-1808 or improperly adopted its Flag Display Rule.

Why this result: Petitioner failed to establish a violation of A.R.S. § 33-1808 and failed to prove that the HOA's Flag Display Rule was inconsistent with or improperly adopted under the CC&Rs.

Key Issues & Findings

Flags and Sings

Petitioner Thomas J. Van Dan Elzen filed a petition arguing that the HOA violated A.R.S. § 33-1808 after being notified he violated Association Rules by displaying a “Trump 2020” flag. He argued the HOA's Flag Display Rule was invalid because the CC&Rs only defined SIGNS (DCC&R 3.14) and had no reference to Flags whatsoever, thus the rule was inconsistent with the CC&Rs.

Orders: Petitioner Thomas J. Van Dan Elzen’s petition is dismissed. Respondent is deemed to be the prevailing party.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 33-1808
  • A.A.C. R2-19-119
  • BLACK'S LAW DICTIONARY 1182 (6th ed. 1990)
  • 4 United States Code sections 4 through 10
  • ARIZ. REV. STAT. section 32-2199.02(B)
  • ARIZ. REV. STAT. section 12-904(A)

Analytics Highlights

Topics: Flag Display, Political Sign, CC&Rs, Rules & Regulations
Additional Citations:

  • A.R.S. § 33-1808
  • A.A.C. R2-19-119
  • 4 United States Code sections 4 through 10

Video Overview

Audio Overview

Decision Documents

19F-H1919071-REL Decision – 767071.pdf

Uploaded 2026-04-24T11:21:58 (69.0 KB)

19F-H1919071-REL Decision – 741807.pdf

Uploaded 2026-04-24T11:22:08 (78.9 KB)

Administrative Hearing Briefing: Van Dan Elzen v. Carter Ranch HOA

Executive Summary

This document provides a comprehensive analysis of the Administrative Law Judge (ALJ) Decision in the case of Thomas J. Van Dan Elzen versus the Carter Ranch Homeowners Association (HOA), case number 19F-H1919071-REL-RHG. The dispute centered on the HOA’s prohibition of a “Trump 2020” flag displayed by Mr. Van Dan Elzen at his property. The petitioner alleged this prohibition violated Arizona state law.

The ALJ ultimately dismissed the petition, ruling in favor of the Carter Ranch HOA. The decision was based on the petitioner’s failure to prove by a preponderance of the evidence that the HOA’s “Flag Display Rule” was inconsistent with its foundational Covenants, Conditions, and Restrictions (CC&Rs) or that the rule was improperly adopted. Crucially, the ALJ found that the petitioner had not sufficiently alleged a direct violation of the relevant state statute, A.R.S. § 33-1808. The ruling effectively upholds the HOA’s authority, granted by its CC&Rs, to regulate the display of flags not explicitly protected by Arizona law.

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I. Case Overview

Case Name: Thomas J. Van Dan Elzen, Petitioner, vs. Carter Ranch Homeowners Association, Respondent.

Case Number: 19F-H1919071-REL-RHG

Adjudicating Body: Arizona Office of Administrative Hearings

Presiding Judge: Administrative Law Judge Velva Moses-Thompson

Hearing Date: January 10, 2020

Decision Date: January 30, 2020

Subject of Dispute: The validity of an HOA rule prohibiting the display of a “Trump 2020” political flag, which the petitioner claimed violated A.R.S. § 33-1808.

II. Chronology of Key Events

May 21, 2019: Carter Ranch HOA notifies petitioner Thomas J. Van Dan Elzen that his “Trump 2020” flag violates Association Rules.

June 14, 2019: Mr. Van Dan Elzen files a petition with the Arizona Department of Real Estate, alleging the HOA violated A.R.S. § 33-1808.

November 18, 2019: The Department of Real Estate issues an order setting the matter for a rehearing.

January 10, 2020: The rehearing is held before an Administrative Law Judge.

III. Petitioner’s Position (Thomas J. Van Dan Elzen)

Mr. Van Dan Elzen’s case was predicated on the argument that the HOA’s rules regarding flags were inconsistent with its own governing documents, specifically the Covenants, Conditions, and Restrictions (CC&Rs).

Core Allegation: The HOA’s enforcement action violated A.R.S. § 33-1808, which governs flags and signs.

Primary Argument: Mr. Van Dan Elzen contended that the HOA’s “Flag Display Rule” was invalid because the CC&Rs do not explicitly mention the word “flag.” He argued that the relevant section of the governing documents, DCC&R 3.14, only defines “SIGNS.”

Direct Quotation from Petition: The petition stated the following, highlighting the perceived discrepancy:

IV. Respondent’s Position (Carter Ranch HOA)

The Carter Ranch HOA maintained that its “Flag Display Rule” was valid, properly enacted, and did not violate state law or its own governing documents.

The “Flag Display Rule”: The HOA’s rules explicitly prohibit flying any flag other than those on an approved list, which includes:

◦ The American Flag

◦ Official flags of the U.S. Army, Navy, Air Force, Marine Corps, or Coast Guard

◦ A POW/MIA flag

◦ An Arizona Indian National flag

◦ The Arizona State flag

◦ The Gadsden Flag

Authority to Regulate: The HOA asserted its authority to create this rule stemmed from Article V, Section 5.3 of its CC&Rs. This section grants the Board the power to adopt, amend, and repeal rules pertaining to “the health, safety or welfare of the owners… or restrictions on the use of Lots.” It also specifies that such rules are “enforceable in the same manner” as the CC&Rs themselves.

Defense Arguments: The HOA contended that the petition should be dismissed because:

1. The Flag Display Rule was not inconsistent with the CC&Rs.

2. The rule was properly adopted under the authority granted in the CC&Rs.

3. The petitioner failed to allege that the HOA had actually violated a specific statute or provision of its governing documents.

V. Analysis of Governing Law: A.R.S. § 33-1808

This Arizona Revised Statute was central to the dispute. It places specific limitations on an HOA’s ability to regulate the display of certain flags and political signs.

Provision

Description of Regulation

Subsection A: Protected Flags

An HOA cannot prohibit the outdoor display of: The American flag (if displayed consistent with federal code), official U.S. military flags, the POW/MIA flag, the Arizona state flag, an Arizona Indian nations flag, or the Gadsden flag.

Subsection C: Political Signs

An HOA cannot prohibit the display of political signs on a member’s property, but may regulate them. Permissible regulations include:
Time: Prohibiting display earlier than 71 days before an election and later than 3 days after an election.
Size & Number: Regulations must be no more restrictive than applicable city/county ordinances. If no such ordinance exists, the HOA cannot limit the number of signs, but can cap the maximum aggregate dimensions at nine square feet.

Definition of “Political Sign”: The statute defines a political sign as “a sign that attempts to influence the outcome of an election.”

VI. Administrative Law Judge’s Decision and Order

The ALJ concluded that the petitioner failed to meet the required burden of proof, which is to prove a violation by a preponderance of the evidence.

1. Rule Consistency: The ALJ concluded that the “Petitioner has not established that the Flag Display Rule was inconsistent with the CC&Rs.”

2. Rule Adoption: The ALJ found that the “Petitioner has not established that the Association improperly adopted the Flag Display Rule under its CC&Rs.”

3. Failure to Allege Violation: The judge noted that the “Petitioner has not alleged that Carter Ranch violated A.R.S. § 33-1808.” This indicates a failure in the petition’s framing to connect the HOA’s actions to a specific statutory prohibition.

4. Final Determination: Based on these conclusions, the judge determined that “Mr. Van Dan Elzen’s petition should be dismissed and the Respondent be deemed to be the prevailing party in this matter.”

Dismissal: “IT IS ORDERED that Petitioner Thomas J. Van Dan Elzen’s petition is dismissed.”

Binding Nature: The order is binding on the parties as it resulted from a rehearing.

Appeal Rights: Any appeal must be filed with the superior court within 35 days from the date the order was served.

Study Guide: Van Dan Elzen v. Carter Ranch Homeowners Association

This study guide provides a detailed review of the Administrative Law Judge Decision in the case of Thomas J. Van Dan Elzen versus the Carter Ranch Homeowners Association (No. 19F-H1919071-REL-RHG). The guide includes a short-answer quiz with an answer key, a set of essay questions for deeper analysis, and a comprehensive glossary of key terms found within the legal decision.

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Quiz: Test Your Understanding

Answer the following questions in two to three sentences each, based on the information in the provided source text.

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

2. What specific action taken by Thomas J. Van Dan Elzen initiated the dispute with the Carter Ranch Homeowners Association?

3. What was Mr. Van Dan Elzen’s central argument for why the HOA’s Flag Display Rule was invalid?

4. On what authority did the Carter Ranch HOA claim it had the right to create and enforce its Flag Display Rule?

5. According to the HOA’s “Flag Display Rule,” which specific flags are homeowners permitted to fly?

6. What is the legal standard of proof the petitioner was required to meet in this hearing, and how is it defined in the decision?

7. What protection does Arizona Revised Statutes (A.R.S.) § 33-1808(C) provide for “political signs”?

8. What were the two key failures of the petitioner’s case, as identified in the Administrative Law Judge’s conclusions of law?

9. What was the final ruling, or “Order,” issued by the Administrative Law Judge in this case?

10. What are the next steps for a party wishing to challenge the Administrative Law Judge’s order?

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Quiz Answer Key

1. The primary parties were the Petitioner, Thomas J. Van Dan Elzen, who brought the complaint, and the Respondent, Carter Ranch Homeowners Association, which was defending its actions. Mr. Van Dan Elzen represented himself, while the HOA was represented by its attorney, Augustus H. Shaw IV, Esq.

2. The dispute began on or about May 21, 2019, when the Carter Ranch HOA notified Mr. Van Dan Elzen that he had violated its rules by displaying a “Trump 2020” flag in his front yard. This notice of violation prompted Mr. Van Dan Elzen to file a petition with the Arizona Department of Real Estate.

3. Mr. Van Dan Elzen’s central argument was that the Flag Display Rule was inconsistent with the community’s Covenants, Conditions and Restrictions (CC&Rs). He contended that because CC&R section 3.14 only defines “SIGNS” and makes no reference to “Flags,” the HOA had no basis in the CC&Rs to regulate his flag.

4. The Carter Ranch HOA asserted its authority based on Article V, Section 5.3 of its CC&Rs. This section grants the HOA Board the power to adopt, amend, and repeal rules and regulations pertaining to the health, safety, or welfare of the owners and restrictions on the use of Lots.

5. The HOA’s Flag Display Rule prohibits flying any flag other than the American Flag, an official replica of a U.S. military flag (Army, Navy, Air Force, Marine Corps, or Coast Guard), a POW/MIA flag, an Arizona Indian National flag, the Arizona State flag, and the Gadsden Flag.

6. The petitioner was required to prove his case by a “preponderance of the evidence.” The decision defines this as “Evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.”

7. A.R.S. § 33-1808(C) prevents an HOA from prohibiting the display of political signs on a member’s property, although it allows for regulation. An HOA cannot prohibit political signs earlier than 71 days before an election or later than three days after, and its rules on size and number can be no more restrictive than applicable city or county ordinances.

8. The Judge concluded that the petitioner failed to establish that the Flag Display Rule was improperly adopted or inconsistent with the CC&Rs. Furthermore, the Judge concluded that the petitioner had not actually alleged that Carter Ranch violated the specific statute he cited, A.R.S. § 33-1808.

9. The final Order was that Petitioner Thomas J. Van Dan Elzen’s petition is dismissed. The Judge also deemed the Respondent, Carter Ranch HOA, to be the prevailing party in the matter.

10. A party wishing to appeal the order must seek judicial review by filing an appeal with the superior court. This appeal must be filed within thirty-five days from the date the order was served upon the parties, as prescribed by state statutes.

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Essay Questions for Deeper Analysis

The following questions are designed to encourage a more in-depth analysis of the case. No answers are provided.

1. Analyze the petitioner’s argument that the Flag Display Rule was invalid because the word “flag” does not appear in the CC&Rs. Why was this argument ultimately unconvincing to the Administrative Law Judge?

2. Explain the legal distinction between a “flag” and a “political sign” as presented in A.R.S. § 33-1808. How might the petitioner’s case have differed if he had argued his “Trump 2020” flag was a “political sign” instead of a flag?

3. Discuss the authority granted to the Carter Ranch HOA Board by Article V, Section 5.3 of its CC&Rs. How did the HOA use this section to justify its Flag Display Rule, and why was this justification accepted by the court?

4. Evaluate the Administrative Law Judge’s conclusion that the petitioner “has not alleged that Carter Ranch violated A.R.S. § 33-1808.” How can this be true when the petitioner’s initial filing explicitly cited this statute?

5. Based on the provided text of A.R.S. § 33-1808, under what specific circumstances could a homeowner in Carter Ranch successfully challenge the HOA’s rules on outdoor displays?

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Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

A judge who presides over administrative hearings. In this case, Velva Moses-Thompson served as the ALJ in the Office of Administrative Hearings.

A.R.S. (Arizona Revised Statutes)

The codified collection of laws for the state of Arizona. The case centered on an alleged violation of A.R.S. § 33-1808.

CC&Rs (Covenants, Conditions and Restrictions)

The governing legal documents that set up the guidelines for a planned community or subdivision. The Carter Ranch CC&Rs grant the HOA Board the authority to adopt rules and regulations.

Department

Refers to the Arizona Department of Real Estate, the state agency authorized to receive and decide petitions from members of homeowners’ associations.

Flag Display Rule

The specific rule created by the Carter Ranch HOA that prohibits flying any flag other than the American, military, POW/MIA, Arizona Indian National, Arizona State, and Gadsden flags.

Homeowners’ Association (HOA)

An organization in a subdivision, planned community, or condominium that makes and enforces rules for the properties and its residents. The Carter Ranch Homeowners Association is the Respondent in this case.

Petitioner

The party who files a petition or brings a legal action against another party. In this case, the petitioner is Thomas J. Van Dan Elzen.

Political Sign

Defined by A.R.S. § 33-1808(C) as “a sign that attempts to influence the outcome of an election.” HOAs are restricted in their ability to prohibit the display of such signs.

Preponderance of the evidence

The burden of proof required in this proceeding. It is defined as “Evidence which is of greater weight or more convincing than the evidence which is offered in opposition to it,” meaning the fact is more probable than not.

Prevailing Party

The party who wins the legal case. The Administrative Law Judge deemed the Respondent (Carter Ranch HOA) to be the prevailing party.

Rehearing

A second hearing of a case to reconsider the issues. This case was decided as a result of a rehearing held on January 10, 2020.

Respondent

The party against whom a petition is filed; the party who must respond to the complaint. In this case, the respondent is the Carter Ranch Homeowners Association.

He Fought the HOA Over a Political Flag—And Lost. Here Are 3 Surprising Reasons Why.

Introduction: The Pride and the Problem

Imagine this: You want to display a flag on your own property to support a political candidate. It feels like a fundamental right, an expression of free speech on your home turf. But then, a letter arrives from your Homeowners Association (HOA) citing you for a violation. This exact scenario happened to Thomas J. Van Dan Elzen, who displayed a “Trump 2020” flag and promptly received a violation notice from the Carter Ranch HOA in Arizona.

Believing the HOA was overstepping its authority, Mr. Van Dan Elzen took them to court. He lost. The outcome might seem counter-intuitive, but the court’s decision reveals crucial lessons for any homeowner living under an HOA. Here are the three surprising legal reasons why the HOA won.

1. The Power of the Fine Print: Why a “Loophole” Wasn’t Enough

Mr. Van Dan Elzen built his case on a clever textual argument. He alleged that the HOA’s rule against his flag was invalid because the section of the master community documents—the Covenants, Conditions, and Restrictions (CC&Rs)—he believed it was based on only regulated “SIGNS” and made no mention of “FLAGS.” He argued that since the document didn’t explicitly prohibit flags, the rule against his was unenforceable.

This seemingly logical “loophole” argument failed. The HOA countered by pointing to a different, much broader clause in their CC&Rs. Article V, Section 5.3, gave the HOA board expansive power to create new rules.

The Board may, from time to time, adopt, amend and repeal rules and regulations pertaining to: … (iii) the health, safety or welfare of the owners, Lessees and Residence, or (iv) restrictions on the use of Lots…

This general power to create rules for the “welfare of the owners” was enough to give the HOA the legal authority to regulate flags, even if the word “flag” wasn’t in the specific section the homeowner cited. The broad power to govern trumped the narrow, semantic argument.

2. A Flag Is Not a Sign (At Least, Not According to the Law)

While the homeowner’s flag was political in nature, it did not receive the legal protections granted to “political signs” under Arizona law. This distinction proved fatal to his case.

The relevant statute, A.R.S. § 33-1808, is highly specific about which flags an HOA is forbidden from prohibiting. The protected list includes: the American flag, official military branch flags, the POW/MIA flag, the Arizona state flag, Arizona Indian nations flags, and the Gadsden flag. Critically, the Carter Ranch HOA’s own Flag Display Rule mirrored this state-approved list exactly, demonstrating they had aligned their regulations with the law. A political campaign flag, like “Trump 2020,” is not on this protected list.

The same law does protect political signs, but it defines them very precisely:

“political sign” means a sign that attempts to influence the outcome of an election, including supporting or opposing the recall of a public officer or supporting or opposing the circulation of a petition for a ballot measure, question or proposition or the recall of a public officer.

The key takeaway is that the law treats a political flag differently from a political sign. Because the “Trump 2020” item was a flag and not on the state’s protected flag list, the HOA was well within its rights to restrict its display based on its own community rules.

3. A Critical Misstep: Arguing the Wrong Point

The most decisive reason for the loss was not a procedural error, but a substantive legal failure. Mr. Van Dan Elzen filed his petition with the state on the grounds that the HOA had violated a specific state law, A.R.S. § 33-1808, which governs flags and political signs.

However, his entire case was built on arguing that the HOA’s internal rules were inconsistent with its own CC&Rs—the “sign” versus “flag” argument. This was the wrong legal target. To win, he had to prove that the HOA had violated the state statute. But the statute explicitly allows an HOA to regulate any flag not on the protected list. By regulating his “Trump 2020” flag, the HOA was doing exactly what the state law permitted. His argument about internal documents, even if correct, did not add up to a violation of the state law he sued under.

The Administrative Law Judge recognized this fundamental flaw, concluding that the homeowner hadn’t actually made a case for a statutory violation at all.

Moreover, Petitioner has not alleged that Carter Ranch violated A.R.S. § 33-1808.

This is a crucial lesson: it’s not enough to feel wronged. Your argument must directly prove that the specific law you cite in your complaint has actually been broken. The homeowner’s claim was dismissed because his central argument was irrelevant to the law he needed to prove was violated.

Conclusion: Know Your Rights, and Your Rules

The case of the “Trump 2020” flag is a powerful illustration for homeowners everywhere. It highlights three critical realities of living in an HOA: the broad rule-making power granted by community documents can override perceived loopholes; state laws make very specific and narrow distinctions between protected items like signs and flags; and a sound legal strategy is paramount.

This case is a stark reminder that in an HOA, your property rights are defined not by what you feel is right, but by what is written down. Before you make a stand, are you certain you’re fighting the right battle on the right legal ground?

Case Participants

Petitioner Side

  • Thomas J. Van Dan Elzen (petitioner)
    Appeared and testified on his own behalf

Respondent Side

  • Augustus H. Shaw IV (attorney)
    Shaw & Lines LLC
    Appeared for Carter Ranch Homeowners Association

Neutral Parties

  • Velva Moses-Thompson (ALJ)
  • Judy Lowe (commissioner)
    Arizona Department of Real Estate

Other Participants

  • Dustin Snow (property manager)
    SNOW PROPERTY SERVICES
    Recipient of order transmission