Sally Magana v. Wynstone Park Homeowners Association

Case Summary

Case ID 25F-H070-REL
Agency ADRE
Tribunal OAH
Decision Date 2025-10-29
Administrative Law Judge Velva Moses-Thompson
Outcome none
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Sally Magana Counsel
Respondent Wynstone Park Homeowners Association Counsel Ashley Turner

Alleged Violations

Title 8, Chapter 6, Article I – 8-6-3(T)
CC&Rs Section 7.1

Outcome Summary

The Administrative Law Judge dismissed the Petitioner's two-issue petition. The OAH lacked jurisdiction over the alleged violation of the City of Mesa Code Ordinance (parking/nuisance). On the CC&R violation claim (mischaracterizing maintenance), Petitioner failed to prove the HOA violated CC&Rs Section 7.1, as the evidence established that Petitioner made unapproved changes/alterations to the driveway extension.

Why this result: Petitioner failed to meet the burden of proof that the Respondent HOA violated CC&Rs, and the tribunal lacked jurisdiction to hear the municipal code violation claim.

Key Issues & Findings

HOA assessed a fine for public nuisances for parking on approved driveway extension

Petitioner alleged the HOA violated the Mesa City Ordinance by fining her for parking on her approved driveway extension. The extension approval dated back to 1998 and 2018.

Orders: Petition dismissed. The OAH determined it lacked jurisdiction to rule on alleged violations of City of Mesa Code Ordinances.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • Title 8, Chapter 6, Article I – 8-6-3(T)
  • A.R.S. § 32-2199(B)
  • A.R.S. § 32-2199.01(A)
  • A.R.S. § 33-1803

HOA mischaracterizing maintenance as an unauthorized modification

Petitioner claimed the work performed (lifting pavers, replacing sand with gravel/decomposed granite, and altering slope) was routine maintenance. Respondent argued this constituted an exterior change or alteration requiring prior written architectural approval, which Petitioner failed to obtain.

Orders: Petition dismissed. Petitioner failed to establish Respondent violated CC&Rs 7.1. Evidence showed Petitioner made changes to the surface under the pavers and the slope of the driveway extension without prior approval.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • CC&Rs Section 7.1
  • CC&Rs Section 10.1
  • Powell v. Washburn
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs.
  • A.R.S. § 41-1092.07(G)(2)

Analytics Highlights

Topics: HOA Enforcement, Architectural Review, Maintenance vs Modification, Jurisdiction, Mesa Code Ordinance, Pavers, Driveway Extension
Additional Citations:

  • Title 8, Chapter 6, Article I – 8-6-3(T)
  • CC&Rs Section 7.1
  • CC&Rs Section 10.1
  • A.R.S. § 32-2199(B)
  • A.R.S. § 32-2199.01(A)
  • A.R.S. § 33-1803
  • A.R.S. § 41-1092.07(G)(2)
  • A.A.C. R2-19-119(A) and (B)(1)
  • A.A.C. R2-19-119(B)(2)
  • MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960)
  • BLACK’S LAW DICTIONARY at page 1220 (8th ed. 1999)
  • Powell v. Washburn
  • Lookout Mountain Paradise Hills Homeowners’ Ass’n v. Viewpoint Assocs.

Audio Overview

Decision Documents

25F-H070-REL Decision – 1350920.pdf

Uploaded 2026-01-23T18:26:35 (50.9 KB)

25F-H070-REL Decision – 1352025.pdf

Uploaded 2026-01-23T18:26:40 (48.7 KB)

25F-H070-REL Decision – 1355826.pdf

Uploaded 2026-01-23T18:26:45 (59.1 KB)

25F-H070-REL Decision – 1363586.pdf

Uploaded 2026-01-23T18:26:50 (144.5 KB)





Briefing Doc – 25F-H070-REL


Briefing Document: Magana v. Wynstone Park Homeowners Association

Executive Summary

This document provides a comprehensive analysis of the administrative hearing and final decision in case number 25F-H070-REL, Sally Magana v. Wynstone Park Homeowners Association. The petitioner, Sally Magana, filed a two-issue petition alleging the Homeowners Association (HOA) improperly fined her for a public nuisance related to parking and mischaracterized necessary property maintenance as an unauthorized architectural modification.

The respondent, Wynstone Park HOA, countered that the Office of Administrative Hearings (OAH) lacked jurisdiction over the alleged city ordinance violation and that the work performed by the petitioner was, in fact, an unapproved “alteration” under the community’s Covenants, Conditions, and Restrictions (CC&Rs). The HOA maintained its enforcement actions were authorized and appropriate.

The Administrative Law Judge (ALJ) ultimately dismissed the petitioner’s case in its entirety. The decision was based on two key findings: 1) The OAH does not have the jurisdiction to rule on violations of a municipal (City of Mesa) ordinance, and 2) The petitioner failed to meet her burden of proof to establish that the HOA violated its own governing documents. The ALJ concluded that the work performed—which included removing the original paver base, installing a new gravel surface, and altering the slope of the driveway—constituted a “change or alteration” requiring prior approval under CC&R Section 7.1, which the petitioner did not obtain.

Case Overview

Entity / Individual

Petitioner

Sally Magana (Homeowner)

Respondent

Wynstone Park Homeowners Association (HOA)

Presiding Judge

Velva Moses-Thompson, Administrative Law Judge (ALJ)

Case Number

25F-H070-REL

Hearing Date

October 9, 2025

Decision Date

October 29, 2025

Timeline of Key Events

July 3, 2019

HOA granted a variance allowing Ms. Magana to park anywhere on her driveway extension.

Feb 26, 2021

HOA sent a notice to Ms. Magana for parking past the garage, citing nuisance under CC&R Section 8.4.

Jan 27, 2025

Ms. Magana submitted a Design Review Application to modify drainage under her paver extension.

Feb 11, 2025

HOA’s Architectural Review Committee (ARC) disapproved the application, citing the 50% lot coverage rule and nuisance complaints from a neighbor.

March 12, 2025

The HOA Board met with Ms. Magana at her property to discuss the matter.

May/June 2025

Ms. Magana proceeded with work on the pavers without ARC approval.

June 2, 2025

HOA issued a courtesy notice for an unapproved architectural change under CC&R Section 7.1.

June 11, 2025

HOA issued a Violation Notice with a $25 fine for the unapproved change.

July 14, 2025

HOA issued a second Violation Notice with a $50 fine.

July 17, 2025

Ms. Magana filed her petition with the Arizona Department of Real Estate.

Oct 29, 2025

The ALJ issued a decision dismissing the petition.

Petitioner’s Allegations and Arguments

Ms. Magana’s case was centered on two primary allegations:

1. Violation of Public Nuisance Ordinance: The petitioner alleged the HOA violated “Title 8, Chapter 6, Article I, 8-6-3: PUBLIC NUISANCES PROHIBITED” of the City of Mesa code by fining her for parking on her driveway extension. She argued that the extension was approved in 1998 and reaffirmed by an HOA variance in 2019, making the fine improper.

2. Violation of CC&R Section 7.1 (Architectural Approval): The petitioner contended that the HOA mischaracterized routine maintenance as an “unauthorized modification.” She argued the work was necessary to correct a drainage issue causing water pooling against her foundation and creating a risk of termites. Her position was that since no new pavers were installed and the layout was not changed, the work did not constitute an architectural change requiring ARC approval. She also raised the issue of selective enforcement, providing photos of other homes with alleged violations that had not been cited.

Respondent’s Position and Defense

The HOA’s defense, presented by attorney Ashley Turner and Board President Andrew Hancock, rested on the following points:

1. Jurisdictional Challenge: The HOA argued that the OAH does not have jurisdiction to decide whether the association violated a City of Mesa ordinance, and that this issue should be dismissed on that basis alone.

2. The Work Was an “Alteration,” Not “Maintenance”: The HOA asserted that the work performed went beyond simple maintenance. Testimony revealed that the original play sand base was removed, a new decomposed granite base was installed, and the grade of the surface was altered to change the slope and water flow. The HOA considered these actions a “change or alteration” as defined in CC&R Section 7.1, which explicitly requires prior written approval from the ARC.

3. Proper Denial and Enforcement: The HOA’s denial of Ms. Magana’s initial application was based on established Design Guidelines, specifically that the total parking area “may not exceed… fifty percent (50%) of the lot width.” The denial also cited ongoing nuisance complaints from a neighbor regarding noise and access issues caused by vehicles parked on the extension. The subsequent fines were issued in accordance with the HOA’s enforcement policy after Ms. Magana completed the work without approval.

4. Authority to Enforce: The HOA cited CC&R Section 10.1, which grants it the right to enforce all covenants and restrictions in the governing documents.

Key Testimonies and Evidence

Witness Testimony

Rita Elizalde (Petitioner’s Witness; Owner, JLE Heartscape and Design):

◦ Testified that the initial proposal, which included drains, was not executed due to the HOA’s denial.

◦ Characterized the work performed as “a maintenance on what you already had” to correct sinking pavers and water pooling against the foundation.

◦ Confirmed that the previous installer had used an improper “play sand base,” which her company removed.

◦ Stated they installed a new base of “decomposite granite,” replaced the original pavers in the same design, and added polymeric sand to lock them in.

◦ Confirmed the ground “had to be sloped back a little bit” to ensure water ran toward the street and not toward the neighbor’s property or the house foundation.

Andrew Hancock (Respondent’s Witness; HOA Board President):

◦ Testified that the board considered the work a “change to the design of the pavers” because it addressed slope and drainage issues, which is more than basic maintenance.

◦ Stated that the board denied the initial application due to the 50% lot coverage rule and nuisance complaints from the neighbor, which included “the sound of the vehicle’s wake child” and the car blocking the neighbor’s access for taking out trash cans.

◦ Clarified that the board offered Ms. Magana two potential compromises: stopping the pavers at the garage line or bringing her fence/gate forward to be in line with the garage.

◦ Testified that photos of the work in progress (Exhibit G) showed all pavers removed and the base grading “manipulated.” He also noted what appeared to be new PVC piping.

◦ Referencing a photo of the pre-maintenance water pooling (Exhibit E), he testified that it showed water flowing “over the end border into the gravel and the neighbor’s yard.”

Key Exhibits

Exhibit #

Description & Significance

Respondent

The HOA’s CC&Rs, establishing the rules for architectural approval (Sec 7.1) and enforcement (Sec 10.1).

Respondent

Ms. Magana’s initial Design Review Application (denied) and a photo showing significant water pooling on the pavers and onto the neighboring lot.

Petitioner

Before and after photos of the paver extension, intended to show no visual change in design.

Respondent

Photos taken during the project showing all pavers removed, piled up, and the underlying base exposed and re-graded.

H, I, K

Respondent

The series of enforcement letters: Courtesy Notice (June 2), $25 Fine (June 11), and $50 Fine (July 14) for the unapproved alteration.

Petitioner

The HOA’s Design Guidelines, which include the 50% lot width limitation for parking areas.

Administrative Law Judge’s Decision and Rationale

The ALJ’s final decision dismissed Ms. Magana’s petition. The ruling was grounded in the following conclusions of law:

Lack of Jurisdiction over Municipal Ordinance: The ALJ determined that “The OAH does not have jurisdiction to determine whether a planned community organization has violated a City of Mesa Code Ordinance.” This effectively dismissed the first issue of the petition without ruling on its merits.

Petitioner’s Failure to Meet Burden of Proof: For the second issue, the ALJ found that the petitioner bore the burden of proving the HOA violated its CC&Rs and failed to do so. The decision noted:

◦ CC&R Section 7.1 regulates homeowners, requiring them to obtain prior approval for any “exterior addition, change, or alteration.”

◦ The preponderance of evidence, including testimony from the petitioner’s own witness (Ms. Elizalde), showed that changes were made to the surface under the pavers and to the slope of the driveway.

◦ These actions constitute an “alteration” under the CC&Rs.

◦ Because Ms. Magana made these changes without prior approval, she did not establish that the HOA mischaracterized her actions or violated Section 7.1.

HOA’s Authority to Enforce: The decision affirmed that CC&R Section 10.1 authorizes the respondent to enforce its governing documents.

The final order concluded: “Petitioner has failed to meet her burden to establish that Respondent violated Respondent’s CC&Rs, governing document, or any statutes that regulate planned communities. Petitioner’s petition should be dismissed.”


Case Participants

Petitioner Side

  • Sally Magana (petitioner)
    Also referred to as Complainant
  • Rita Elizalde (witness)
    JLE Heartscape and Design
    Also referred to as Rita Estelle
  • Jesus Ortiz (witness)
  • Adeline Escudero-Mendoza (witness)
    Also referred to as Adeline Escudero

Respondent Side

  • Ashley Turner (HOA attorney)
    CHDB Law
  • Andrew Hancock (board president/witness)
    Wynstone Park Homeowners Association
    President of Respondent's Board
  • Jennifer Irving (board member)
    Wynstone Park Homeowners Association
    Vice President of the HOA Board
  • Dawn Feigert (property manager)
    Trestle Management Group
    Community Manager
  • Lea Austin (property manager)
    Trestle Management Group
    Community Manager

Neutral Parties

  • Velva Moses-Thompson (ALJ)
    Office of Administrative Hearings
  • Susan Nicolson (Commissioner)
    Arizona Department of Real Estate

David Y. Samuels v. The Concorde Condominium Home Owners Association

Case Summary

Case ID 24F-H025-REL
Agency ADRE
Tribunal OAH
Decision Date 2024-04-18
Administrative Law Judge Amy M. Haley
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner David Y. Samuels Counsel
Respondent The Concorde Condominium Home Owners Association Counsel Ashley N. Turner

Alleged Violations

A.R.S. § 33-1803

Outcome Summary

The petition filed by David Y. Samuels against The Concorde Condominium Home Owners Association was dismissed. The Tribunal found that Samuels lacked standing to bring the action as an individual, and the cited statute, A.R.S. § 33-1803 (Planned Community Act), was improper for this condominium dispute.

Why this result: Petitioner lacked standing because the property was owned by Daso Properties, LLC, not by David Y. Samuels individually. Additionally, the Petitioner brought the action under the incorrect statute, A.R.S. § 33-1803, which governs planned communities, not condominiums.

Key Issues & Findings

Alleged violation concerning late fees, collection fees, and attorney fees for delinquent assessment payments

Petitioner alleged Respondent violated A.R.S. § 33-1803 by charging unwarranted late fees, collection fees, and attorney fees for delinquent assessments.

Orders: Petitioner's petition is dismissed because Petitioner lacked standing as an individual owner, and the cause of action was brought under the improper statute (Planned Community Act) for a condominium property.

Filing fee: $0.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 33-1803
  • A.R.S. § 32-2199.01(A)
  • A.R.S. § 33-1801(A)
  • A.R.S. § 32-2199 et seq.
  • A.R.S. § 41-1092.09

Analytics Highlights

Topics: standing, condominium, planned community act, statutory violation, late fees, collection fees, attorney fees, jurisdiction, dismissal
Additional Citations:

  • A.R.S. § 33-1803
  • A.R.S. § 32-2199.01(A)
  • A.R.S. § 33-1801(A)
  • A.R.S. § 32-2199 et seq.
  • A.R.S. § 41-1092.09
  • A.A.C. R2-19-106(D)

Video Overview

Audio Overview

Decision Documents

24F-H025-REL Decision – 1124651.pdf

Uploaded 2026-01-23T18:03:59 (48.4 KB)

24F-H025-REL Decision – 1133120.pdf

Uploaded 2026-01-23T18:04:01 (39.9 KB)

24F-H025-REL Decision – 1134423.pdf

Uploaded 2026-01-23T18:04:05 (48.2 KB)

24F-H025-REL Decision – 1139633.pdf

Uploaded 2026-01-23T18:04:08 (55.7 KB)

24F-H025-REL Decision – 1139646.pdf

Uploaded 2026-01-23T18:04:12 (7.6 KB)

24F-H025-REL Decision – 1157271.pdf

Uploaded 2026-01-23T18:04:17 (47.1 KB)

24F-H025-REL Decision – 1168680.pdf

Uploaded 2026-01-23T18:04:22 (86.1 KB)

Questions

Question

If my property is owned by an LLC, can I file a petition against the HOA in my own name as the managing member?

Short Answer

No. The petition must be filed by the legal owner (the LLC), not an individual member, or it will be dismissed for lack of standing.

Detailed Answer

The ALJ determined that an individual managing member of an LLC does not have standing to bring an action on behalf of the property owned by the LLC. The dispute statute specifically applies to 'owners' and 'associations'.

Alj Quote

The Tribunal finds that, after taking testimony, Petitioner, as an individual, did not have standing to bring this action… The proper party to bring the action would have been Daso Properties, LLC.

Legal Basis

A.R.S. § 32-2199.01(A)

Topic Tags

  • standing
  • LLC ownership
  • procedural requirements

Question

Can I use laws meant for Planned Communities (A.R.S. § 33-1803) to dispute charges if I live in a Condominium?

Short Answer

No. Condominiums are governed by a different set of statutes (Chapter 9) than Planned Communities (Chapter 16).

Detailed Answer

The ALJ dismissed the claim because the homeowner cited the Planned Community Act (A.R.S. § 33-1803) while the property was legally a condominium. Condominiums are not subject to the Planned Community Act.

Alj Quote

However, the Property is a condominium; therefore, Respondent is not subject to the Planned Community Act. … Chapter 9 governs condominiums.

Legal Basis

A.R.S. § 33-1801(A)

Topic Tags

  • jurisdiction
  • condominium vs planned community
  • statutory application

Question

Does the Department of Real Estate have jurisdiction to hear a dispute if I am not the legal owner of the property?

Short Answer

No. The Department's jurisdiction is limited to disputes specifically between an owner and an association.

Detailed Answer

The decision clarifies that the administrative hearing process is strictly for disputes involving an 'owner' or 'association'. If the petitioner is not the legal owner (even if they manage the LLC that owns it), the Department lacks jurisdiction.

Alj Quote

The department does not have jurisdiction to hear a dispute that does not involve an owner or an association.

Legal Basis

A.R.S. § 32-2199.01(A)

Topic Tags

  • jurisdiction
  • standing
  • homeowner rights

Question

Who has the burden of proof when a homeowner claims an HOA violated state laws?

Short Answer

The homeowner (Petitioner) has the burden of proving the violation by a preponderance of the evidence.

Detailed Answer

In these administrative hearings, it is the responsibility of the person bringing the complaint to provide sufficient evidence to prove their claims.

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated A.R.S. § 33-1803 as alleged in his petition.

Legal Basis

Preponderance of Evidence

Topic Tags

  • burden of proof
  • evidence
  • legal standards

Question

What happens if I base my entire petition on a statute that doesn't apply to my type of property?

Short Answer

The petition will be dismissed because you have stated no claim upon which relief can be granted.

Detailed Answer

Because the petitioner cited the wrong statute (Planned Community Act for a Condominium), the judge ruled that there was no valid legal claim to rule on, resulting in dismissal.

Alj Quote

As such, Petitioner has stated no claim upon which relief can be granted under A.R.S. § 33-1801.

Legal Basis

A.R.S. § 33-1801

Topic Tags

  • dismissal
  • legal procedure
  • condominium act

Case

Docket No
24F-H025-REL
Case Title
David Y. Samuels vs The Concorde Condominium Home Owners Association
Decision Date
2024-04-18
Alj Name
Amy M. Haley
Tribunal
OAH
Agency
ADRE

Questions

Question

If my property is owned by an LLC, can I file a petition against the HOA in my own name as the managing member?

Short Answer

No. The petition must be filed by the legal owner (the LLC), not an individual member, or it will be dismissed for lack of standing.

Detailed Answer

The ALJ determined that an individual managing member of an LLC does not have standing to bring an action on behalf of the property owned by the LLC. The dispute statute specifically applies to 'owners' and 'associations'.

Alj Quote

The Tribunal finds that, after taking testimony, Petitioner, as an individual, did not have standing to bring this action… The proper party to bring the action would have been Daso Properties, LLC.

Legal Basis

A.R.S. § 32-2199.01(A)

Topic Tags

  • standing
  • LLC ownership
  • procedural requirements

Question

Can I use laws meant for Planned Communities (A.R.S. § 33-1803) to dispute charges if I live in a Condominium?

Short Answer

No. Condominiums are governed by a different set of statutes (Chapter 9) than Planned Communities (Chapter 16).

Detailed Answer

The ALJ dismissed the claim because the homeowner cited the Planned Community Act (A.R.S. § 33-1803) while the property was legally a condominium. Condominiums are not subject to the Planned Community Act.

Alj Quote

However, the Property is a condominium; therefore, Respondent is not subject to the Planned Community Act. … Chapter 9 governs condominiums.

Legal Basis

A.R.S. § 33-1801(A)

Topic Tags

  • jurisdiction
  • condominium vs planned community
  • statutory application

Question

Does the Department of Real Estate have jurisdiction to hear a dispute if I am not the legal owner of the property?

Short Answer

No. The Department's jurisdiction is limited to disputes specifically between an owner and an association.

Detailed Answer

The decision clarifies that the administrative hearing process is strictly for disputes involving an 'owner' or 'association'. If the petitioner is not the legal owner (even if they manage the LLC that owns it), the Department lacks jurisdiction.

Alj Quote

The department does not have jurisdiction to hear a dispute that does not involve an owner or an association.

Legal Basis

A.R.S. § 32-2199.01(A)

Topic Tags

  • jurisdiction
  • standing
  • homeowner rights

Question

Who has the burden of proof when a homeowner claims an HOA violated state laws?

Short Answer

The homeowner (Petitioner) has the burden of proving the violation by a preponderance of the evidence.

Detailed Answer

In these administrative hearings, it is the responsibility of the person bringing the complaint to provide sufficient evidence to prove their claims.

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated A.R.S. § 33-1803 as alleged in his petition.

Legal Basis

Preponderance of Evidence

Topic Tags

  • burden of proof
  • evidence
  • legal standards

Question

What happens if I base my entire petition on a statute that doesn't apply to my type of property?

Short Answer

The petition will be dismissed because you have stated no claim upon which relief can be granted.

Detailed Answer

Because the petitioner cited the wrong statute (Planned Community Act for a Condominium), the judge ruled that there was no valid legal claim to rule on, resulting in dismissal.

Alj Quote

As such, Petitioner has stated no claim upon which relief can be granted under A.R.S. § 33-1801.

Legal Basis

A.R.S. § 33-1801

Topic Tags

  • dismissal
  • legal procedure
  • condominium act

Case

Docket No
24F-H025-REL
Case Title
David Y. Samuels vs The Concorde Condominium Home Owners Association
Decision Date
2024-04-18
Alj Name
Amy M. Haley
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • David Y. Samuels (petitioner)
    Daso Properties, LLC
    Managing member of the property owner (Daso Properties, LLC); Appeared on his own behalf.

Respondent Side

  • Ashley N. Turner (HOA attorney)
    Goodman Law Group
    Council for respondent; Also appeared as Ashley N. Moscarello in earlier filings.
  • Alyssa Butler (community manager)
    The Management Trust (TMT)
    Witness for the association.
  • Stephanie Beck (HOA staff)
    Involved in prior HOA correspondence regarding fines.
  • Catherine Green (HOA staff)
    Involved in prior HOA correspondence regarding fines.

Neutral Parties

  • Amy M. Haley (ALJ)
    OAH
    Conducted the hearing and issued the final decision.
  • Susan Nicolson (Commissioner)
    Arizona Department of Real Estate
  • Tammy L. Eigenheer (ALJ)
    OAH
    Issued an order on March 19, 2024.
  • A. Hansen (ADRE staff)
    Arizona Department of Real Estate
    Recipient of transmission via email [email protected].
  • V. Nunez (ADRE staff)
    Arizona Department of Real Estate
    Recipient of transmission via email [email protected].
  • D. Jones (ADRE staff)
    Arizona Department of Real Estate
    Recipient of transmission via email [email protected].
  • L. Abril (ADRE staff)
    Arizona Department of Real Estate
    Recipient of transmission via email [email protected].
  • M. Neat (ADRE staff)
    Arizona Department of Real Estate
    Recipient of transmission via email [email protected].
  • A. Kowaleski (ADRE staff)
    Arizona Department of Real Estate
    Recipient of transmission via email [email protected].
  • G. Osborn (ADRE staff)
    Arizona Department of Real Estate
    Recipient of transmission via email [email protected].

Charlotte Tande v. Wintergardens Co-Operative

Case Summary

Case ID 23F-H059-REL
Agency ADRE
Tribunal OAH
Decision Date 2023-09-05
Administrative Law Judge Tammy L. Eigenheer
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Charlotte Tande Counsel
Respondent Wintergardens Co-Operative Counsel Beth Mulcahy, Esq.

Alleged Violations

A.R.S. § 33-1804
A.R.S. § 33-1810

Outcome Summary

The case was dismissed because the Administrative Law Judge determined the Wintergardens Co-Operative, a cooperative mobile home park, did not qualify as a 'planned community' or 'condominium association' under Title 33, Chapter 9 or 16, thus the Arizona Department of Real Estate lacked jurisdiction to hear the dispute.

Why this result: The Respondent was found not to be a 'Planned Community' because its shareholders were lessees, not owners of 'separately owned lots, parcels or units' as required by A.R.S. § 33-1802(4).

Key Issues & Findings

Open Meeting Requirements

Petitioner alleged Respondent failed to comply with the open meeting requirements of A.R.S. § 33-1804.

Orders: The case was dismissed after Respondent's Motion to Dismiss was granted.

Filing fee: $0.00

Disposition: petitioner_loss

Cited:

  • A.R.S. § 33-1804
  • A.R.S. § 33-1802(4)
  • A.R.S. § 32-2199.01(A)

Financial Records Provision

Petitioner alleged Respondent failed to provide certain financial records as required by A.R.S. § 33-1810.

Orders: The case was dismissed after Respondent's Motion to Dismiss was granted.

Filing fee: $0.00

Disposition: petitioner_loss

Cited:

  • A.R.S. § 33-1810
  • A.R.S. § 33-1802(4)
  • A.R.S. § 32-2199.01(A)

Video Overview

Audio Overview

Decision Documents

23F-H059-REL Decision – 1074375.pdf

Uploaded 2026-01-23T17:59:07 (45.4 KB)

23F-H059-REL Decision – 1089824.pdf

Uploaded 2026-01-23T17:59:10 (83.6 KB)

23F-H059-REL Decision – 1089829.pdf

Uploaded 2026-01-23T17:59:13 (40.0 KB)

23F-H059-REL Decision – 1091579.pdf

Uploaded 2026-01-23T17:59:17 (38.0 KB)





Study Guide – 23F-H059-REL


{ “case”: { “docket_no”: “23F-H059-REL”, “case_title”: “Charlotte Tande vs. Wintergardens Co-Operative”, “decision_date”: “2023-09-05”, “alj_name”: “Tammy L. Eigenheer”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “Does the Arizona Department of Real Estate have jurisdiction to hear disputes regarding housing cooperatives?”, “short_answer”: “No, not if the cooperative does not meet the legal definition of a ‘planned community’ or ‘condominium.'”, “detailed_answer”: “The Department only has jurisdiction over disputes involving condominium associations or planned community associations. If a housing cooperative does not fit the statutory definition of these entities (e.g., shareholders are lessees rather than owners of separate lots), the Department cannot hear the dispute.”, “alj_quote”: “Therefore, because Respondent does not fall within the definition of a planned community, the Department does not have jurisdiction to hear a dispute between Petitioner and Respondent.”, “legal_basis”: “A.R.S. § 32-2199.01(A); A.R.S. § 33-1802(4)”, “topic_tags”: [ “Jurisdiction”, “Cooperatives”, “Planned Community Definition” ] }, { “question”: “If I have a proprietary lease in a cooperative, am I considered an ‘owner’ for the purpose of filing an HOA dispute?”, “short_answer”: “Likely not, unless you hold title to a separately owned lot, parcel, or unit.”, “detailed_answer”: “Even if you own a share of the cooperative corporation, if you are a lessee under a proprietary lease and do not own a separate lot or unit, you may not meet the definition of an owner required to classify the community as a ‘planned community’ under Arizona law.”, “alj_quote”: “While the shareholders may be owners of a share of Respondent as an entity, nothing in any of the pleadings indicated that the shareholders were owners of any ‘separately owned lots, parcels or units.'”, “legal_basis”: “A.R.S. § 33-1802(4)”, “topic_tags”: [ “Ownership Status”, “Lease vs Ownership”, “Definitions” ] }, { “question”: “What is the legal definition of a ‘Planned Community’ in Arizona?”, “short_answer”: “It is a development where owners of separately owned lots are mandatory members of an association and must pay assessments.”, “detailed_answer”: “A planned community is defined as a real estate development managed by a nonprofit corporation where the declaration states that owners of separately owned lots, parcels, or units are mandatory members and are required to pay assessments.”, “alj_quote”: ““Planned community” means a real estate development… in which the declaration expressly states both that the owners of separately owned lots, parcels or units are mandatory members and that the owners are required to pay assessments to the association for these purposes.“, “legal_basis”: “A.R.S. § 33-1802(4)”, “topic_tags”: [ “Definitions”, “Planned Community” ] }, { “question”: “Can the Administrative Law Judge give me legal advice if I am representing myself?”, “short_answer”: “No, the Office of Administrative Hearings cannot provide legal advice to parties.”, “detailed_answer”: “The ALJ must remain neutral and cannot offer guidance or legal advice to either party involved in the dispute.”, “alj_quote”: “To the extent Petitioner was asking the Administrative Law Judge for guidance, the Office of Administrative Hearings cannot provide parties with legal advice.”, “legal_basis”: “Procedural Rule”, “topic_tags”: [ “Procedural”, “Legal Advice”, “OAH Role” ] }, { “question”: “What happens to my hearing if the judge determines the community is not a planned community?”, “short_answer”: “The case will be dismissed and the hearing vacated.”, “detailed_answer”: “If the judge finds that the community does not meet the statutory definition of a planned community or condominium, the ADRE/OAH lacks subject matter jurisdiction, and the motion to dismiss will be granted.”, “alj_quote”: “IT IS ORDERED granting Respondent’s Motion to Dismiss. The hearing in this matter is vacated from the calendar of the Office of Administrative Hearings.”, “legal_basis”: “Jurisdiction”, “topic_tags”: [ “Dismissal”, “Hearing Process”, “Jurisdiction” ] } ] }






Blog Post – 23F-H059-REL


{ “case”: { “docket_no”: “23F-H059-REL”, “case_title”: “Charlotte Tande vs. Wintergardens Co-Operative”, “decision_date”: “2023-09-05”, “alj_name”: “Tammy L. Eigenheer”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “Does the Arizona Department of Real Estate have jurisdiction to hear disputes regarding housing cooperatives?”, “short_answer”: “No, not if the cooperative does not meet the legal definition of a ‘planned community’ or ‘condominium.'”, “detailed_answer”: “The Department only has jurisdiction over disputes involving condominium associations or planned community associations. If a housing cooperative does not fit the statutory definition of these entities (e.g., shareholders are lessees rather than owners of separate lots), the Department cannot hear the dispute.”, “alj_quote”: “Therefore, because Respondent does not fall within the definition of a planned community, the Department does not have jurisdiction to hear a dispute between Petitioner and Respondent.”, “legal_basis”: “A.R.S. § 32-2199.01(A); A.R.S. § 33-1802(4)”, “topic_tags”: [ “Jurisdiction”, “Cooperatives”, “Planned Community Definition” ] }, { “question”: “If I have a proprietary lease in a cooperative, am I considered an ‘owner’ for the purpose of filing an HOA dispute?”, “short_answer”: “Likely not, unless you hold title to a separately owned lot, parcel, or unit.”, “detailed_answer”: “Even if you own a share of the cooperative corporation, if you are a lessee under a proprietary lease and do not own a separate lot or unit, you may not meet the definition of an owner required to classify the community as a ‘planned community’ under Arizona law.”, “alj_quote”: “While the shareholders may be owners of a share of Respondent as an entity, nothing in any of the pleadings indicated that the shareholders were owners of any ‘separately owned lots, parcels or units.'”, “legal_basis”: “A.R.S. § 33-1802(4)”, “topic_tags”: [ “Ownership Status”, “Lease vs Ownership”, “Definitions” ] }, { “question”: “What is the legal definition of a ‘Planned Community’ in Arizona?”, “short_answer”: “It is a development where owners of separately owned lots are mandatory members of an association and must pay assessments.”, “detailed_answer”: “A planned community is defined as a real estate development managed by a nonprofit corporation where the declaration states that owners of separately owned lots, parcels, or units are mandatory members and are required to pay assessments.”, “alj_quote”: ““Planned community” means a real estate development… in which the declaration expressly states both that the owners of separately owned lots, parcels or units are mandatory members and that the owners are required to pay assessments to the association for these purposes.“, “legal_basis”: “A.R.S. § 33-1802(4)”, “topic_tags”: [ “Definitions”, “Planned Community” ] }, { “question”: “Can the Administrative Law Judge give me legal advice if I am representing myself?”, “short_answer”: “No, the Office of Administrative Hearings cannot provide legal advice to parties.”, “detailed_answer”: “The ALJ must remain neutral and cannot offer guidance or legal advice to either party involved in the dispute.”, “alj_quote”: “To the extent Petitioner was asking the Administrative Law Judge for guidance, the Office of Administrative Hearings cannot provide parties with legal advice.”, “legal_basis”: “Procedural Rule”, “topic_tags”: [ “Procedural”, “Legal Advice”, “OAH Role” ] }, { “question”: “What happens to my hearing if the judge determines the community is not a planned community?”, “short_answer”: “The case will be dismissed and the hearing vacated.”, “detailed_answer”: “If the judge finds that the community does not meet the statutory definition of a planned community or condominium, the ADRE/OAH lacks subject matter jurisdiction, and the motion to dismiss will be granted.”, “alj_quote”: “IT IS ORDERED granting Respondent’s Motion to Dismiss. The hearing in this matter is vacated from the calendar of the Office of Administrative Hearings.”, “legal_basis”: “Jurisdiction”, “topic_tags”: [ “Dismissal”, “Hearing Process”, “Jurisdiction” ] } ] }


Case Participants

Petitioner Side

  • Charlotte Tande (petitioner)

Respondent Side

  • Beth Mulcahy (attorney)
    Mulcahy Law Firm, PC
    Esq.

Neutral Parties

  • Tammy L. Eigenheer (ALJ)
    Office of Administrative Hearings
    Signed Orders dated July 18, 2023 and September 5, 2023
  • Susan Nicolson (Commissioner)
    Arizona Department of Real Estate
  • Alyssa Leverette (ALJ)
    Office of Administrative Hearings
    Signed Minute Entry granting continuance dated September 5, 2023
  • AHansen (staff)
    Arizona Department of Real Estate
    Listed as contact/recipient for transmissions
  • vnunez (staff)
    Arizona Department of Real Estate
    Listed as contact/recipient for transmissions
  • djones (staff)
    Arizona Department of Real Estate
    Listed as contact/recipient for transmissions
  • labril (staff)
    Arizona Department of Real Estate
    Listed as contact/recipient for transmissions

Thomas P. Hommrich v. The Lakewood Community Association

Case Summary

Case ID 23F-H048-REL
Agency ADRE
Tribunal OAH
Decision Date 2023-05-19
Administrative Law Judge Velva Moses-Thompson
Outcome total_loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Thomas P. Hommrich Counsel
Respondent The Lakewood Community Association Counsel Quinten Cupps, Esq.

Alleged Violations

Article lV, Section 4.2(t) of the CC&R's

Outcome Summary

Order Granting Respondent’s Motion to Dismiss the Petition on jurisdictional grounds.

Why this result: The Administrative Law Judge ruled that the Office of Administrative Hearings (OAH) lacked jurisdiction to hear the case because the petition challenged the Association’s power to act (A.R.S. § 10-3304), which requires injunctive relief in a court of law, and did not concern a violation of community documents or statute (A.R.S. § 32-2199.01(A)).

Key Issues & Findings

Authority to enforce parking rule on residential public streets

Petitioner sought an order prohibiting the Respondent from restricting parking access on public residential streets, alleging the Association breached the CC&Rs by misapplying Article IV, Section 4.2(t).

Orders: The petition was dismissed because OAH lacked jurisdiction as the case challenged the Association's power to act under A.R.S. § 10-3304, rather than alleging a violation of community documents or statute under A.R.S. § 32-2199.01(A).

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 32-2199.01(A)
  • A.R.S. § 10-3304
  • A.R.S. § 10-3304(B)(2)

Analytics Highlights

Topics: Parking Restrictions, Jurisdiction, Motion to Dismiss, CC&Rs
Additional Citations:

  • A.R.S. § 32-2199.01(A)
  • A.R.S. § 10-3304
  • A.R.S. § 10-3304(B)(2)
  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 32-2199.04
  • A.R.S. § 41-1092.09

Video Overview

Audio Overview

Decision Documents

23F-H048-REL Decision – 1057905.pdf

Uploaded 2026-01-23T17:57:20 (71.7 KB)

23F-H048-REL Decision – 1059621.pdf

Uploaded 2026-01-23T17:57:22 (44.2 KB)

Questions

Question

Can I use the administrative hearing process to challenge my HOA's legal authority or power to enforce a specific rule?

Short Answer

No. Challenges to an Association's corporate power to act must be brought in a court of law, not the administrative tribunal.

Detailed Answer

The Administrative Law Judge ruled that the tribunal does not have jurisdiction to hear challenges regarding the Association's 'power to act' (such as whether they have the authority to restrict parking). Under Arizona statute A.R.S. § 10-3304, these specific legal challenges regarding corporate authority must be addressed in a court of law.

Alj Quote

Petitioner may not challenge the Association’s power to act in this tribunal under A.R.S. § 10-3304. Petitioner may seek injunctive relief regarding the Association’s power to act in a court of law.

Legal Basis

A.R.S. § 10-3304

Topic Tags

  • jurisdiction
  • corporate power
  • HOA authority

Question

If I disagree with a decision, can I file a motion to amend my petition after the order has been issued?

Short Answer

No. Once a decision is rendered, the Office of Administrative Hearings cannot consider motions to amend.

Detailed Answer

The ALJ clarified that once a decision is finalized, the OAH loses the ability to take further action on the matter, meaning a Motion to Amend filed after the decision cannot be considered.

Alj Quote

The Motion to Amend the Petition cannot not be considered by the Office of Administrative Hearings (OAH) as this tribunal’s decision has already been rendered and, because of that, OAH can take no further action on the matter.

Legal Basis

Procedural Rule

Topic Tags

  • procedure
  • appeals
  • amendments

Question

Where must I file a request for a rehearing if I lose my case?

Short Answer

You must file the request with the Commissioner of the Department of Real Estate (ADRE), not the hearing office.

Detailed Answer

While the hearing takes place at the Office of Administrative Hearings (OAH), a request for a rehearing must be directed to the Arizona Department of Real Estate within 30 days of the order.

Alj Quote

Pursuant to A.R.S. § 41-1092.09, a request for rehearing in this matter must be filed with the Commissioner of the Department of Real Estate within 30 days of the service of this Order upon the parties.

Legal Basis

A.R.S. § 41-1092.09

Topic Tags

  • rehearing
  • procedure
  • ADRE

Question

Can the administrative tribunal issue an injunction preventing the HOA from enforcing parking restrictions on public streets?

Short Answer

Likely no, if the claim is based on the HOA lacking the 'power to act'.

Detailed Answer

The petitioner sought an order prohibiting the HOA from restricting parking on public streets. The ALJ dismissed this because the claim was fundamentally about the Association's authority (power to act), which falls outside the tribunal's jurisdiction.

Alj Quote

Petitioner asks this Court to issue an order that prohibits the Respondent from restricting parking access on public residential streets… Petitioner may seek injunctive relief regarding the Association’s power to act in a court of law.

Legal Basis

A.R.S. § 10-3304

Topic Tags

  • parking
  • injunctions
  • jurisdiction

Question

Does a petition challenging an HOA rule have to allege a specific violation of the community documents or statutes?

Short Answer

Yes. If the petition does not concern a violation of documents or statutes, it may be dismissed.

Detailed Answer

The HOA successfully argued that the petition should be dismissed because it did not allege that the HOA violated community documents or statutes, but rather challenged the HOA's authority to make rules.

Alj Quote

Therefore, the petition does not concern a violation of community documents or of any statute… IT IS ORDERED that the petition is dismissed.

Legal Basis

A.R.S. § 32-2199.01(A)

Topic Tags

  • petition requirements
  • dismissal
  • violations

Case

Docket No
23F-H048-REL
Case Title
Thomas P. Hommrich vs. The Lakewood Community Association
Decision Date
2023-05-19
Alj Name
Velva Moses-Thompson
Tribunal
OAH
Agency
ADRE

Questions

Question

Can I use the administrative hearing process to challenge my HOA's legal authority or power to enforce a specific rule?

Short Answer

No. Challenges to an Association's corporate power to act must be brought in a court of law, not the administrative tribunal.

Detailed Answer

The Administrative Law Judge ruled that the tribunal does not have jurisdiction to hear challenges regarding the Association's 'power to act' (such as whether they have the authority to restrict parking). Under Arizona statute A.R.S. § 10-3304, these specific legal challenges regarding corporate authority must be addressed in a court of law.

Alj Quote

Petitioner may not challenge the Association’s power to act in this tribunal under A.R.S. § 10-3304. Petitioner may seek injunctive relief regarding the Association’s power to act in a court of law.

Legal Basis

A.R.S. § 10-3304

Topic Tags

  • jurisdiction
  • corporate power
  • HOA authority

Question

If I disagree with a decision, can I file a motion to amend my petition after the order has been issued?

Short Answer

No. Once a decision is rendered, the Office of Administrative Hearings cannot consider motions to amend.

Detailed Answer

The ALJ clarified that once a decision is finalized, the OAH loses the ability to take further action on the matter, meaning a Motion to Amend filed after the decision cannot be considered.

Alj Quote

The Motion to Amend the Petition cannot not be considered by the Office of Administrative Hearings (OAH) as this tribunal’s decision has already been rendered and, because of that, OAH can take no further action on the matter.

Legal Basis

Procedural Rule

Topic Tags

  • procedure
  • appeals
  • amendments

Question

Where must I file a request for a rehearing if I lose my case?

Short Answer

You must file the request with the Commissioner of the Department of Real Estate (ADRE), not the hearing office.

Detailed Answer

While the hearing takes place at the Office of Administrative Hearings (OAH), a request for a rehearing must be directed to the Arizona Department of Real Estate within 30 days of the order.

Alj Quote

Pursuant to A.R.S. § 41-1092.09, a request for rehearing in this matter must be filed with the Commissioner of the Department of Real Estate within 30 days of the service of this Order upon the parties.

Legal Basis

A.R.S. § 41-1092.09

Topic Tags

  • rehearing
  • procedure
  • ADRE

Question

Can the administrative tribunal issue an injunction preventing the HOA from enforcing parking restrictions on public streets?

Short Answer

Likely no, if the claim is based on the HOA lacking the 'power to act'.

Detailed Answer

The petitioner sought an order prohibiting the HOA from restricting parking on public streets. The ALJ dismissed this because the claim was fundamentally about the Association's authority (power to act), which falls outside the tribunal's jurisdiction.

Alj Quote

Petitioner asks this Court to issue an order that prohibits the Respondent from restricting parking access on public residential streets… Petitioner may seek injunctive relief regarding the Association’s power to act in a court of law.

Legal Basis

A.R.S. § 10-3304

Topic Tags

  • parking
  • injunctions
  • jurisdiction

Question

Does a petition challenging an HOA rule have to allege a specific violation of the community documents or statutes?

Short Answer

Yes. If the petition does not concern a violation of documents or statutes, it may be dismissed.

Detailed Answer

The HOA successfully argued that the petition should be dismissed because it did not allege that the HOA violated community documents or statutes, but rather challenged the HOA's authority to make rules.

Alj Quote

Therefore, the petition does not concern a violation of community documents or of any statute… IT IS ORDERED that the petition is dismissed.

Legal Basis

A.R.S. § 32-2199.01(A)

Topic Tags

  • petition requirements
  • dismissal
  • violations

Case

Docket No
23F-H048-REL
Case Title
Thomas P. Hommrich vs. The Lakewood Community Association
Decision Date
2023-05-19
Alj Name
Velva Moses-Thompson
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • Thomas P. Hommrich (petitioner)

Respondent Side

  • Quinten Cupps (respondent attorney)
    vf-law.com
    Esq.

Neutral Parties

  • Velva Moses-Thompson (ALJ)
  • Susan Nicolson (Commissioner)
    Arizona Department of Real Estate
  • AHansen (ADRE staff)
    Arizona Department of Real Estate
    Recipient of transmittal
  • vnunez (ADRE staff)
    Arizona Department of Real Estate
    Recipient of transmittal
  • djones (ADRE staff)
    Arizona Department of Real Estate
    Recipient of transmittal
  • labril (ADRE staff)
    Arizona Department of Real Estate
    Recipient of transmittal

Elizabeth, Flint v. Citation Gardens Cooperative #1

Case Summary

Case ID 23F-H026-REL
Agency ADRE
Tribunal OAH
Decision Date 2023-04-04
Administrative Law Judge Sondra J. Vanella
Outcome loss
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Elizabeth Flint Counsel
Respondent Citation Gardens Cooperative #1 Counsel Andrew Vizcarra

Alleged Violations

A.R.S. § 33-1816(A)

Outcome Summary

The Administrative Law Judge dismissed the petition, finding that the Respondent, Citation Gardens Cooperative #1, does not meet the statutory definition of a planned community, and therefore, the statute prohibiting the denial of solar panels (A.R.S. § 33-1816) does not apply.

Why this result: Petitioner failed to establish by a preponderance of the evidence that Respondent violated A.R.S. § 33-1816, as the ALJ determined a cooperative's purposes and functions are separate and distinct from those of a planned community, excluding it from the planned community definition.

Key Issues & Findings

Denial of request to install solar panels

Petitioner alleged Respondent violated A.R.S. § 33-1816(A) by prohibiting the installation of a solar energy device, arguing the Cooperative qualifies as a planned community. Respondent argued it was a Cooperative Corporation, not a planned community, and the statute did not apply.

Orders: No action is required of Respondent in this matter, and the petition is dismissed.

Filing fee: $500.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 33-1816
  • A.R.S. § 33-1802
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)

Analytics Highlights

Topics: Solar Energy Device, Planned Community Definition, Cooperative Housing, Statutory Applicability, Burden of Proof
Additional Citations:

  • A.R.S. § 33-1816
  • A.R.S. § 33-1802
  • A.R.S. § 32-2199.01(A)

Video Overview

Audio Overview

https://open.spotify.com/episode/51A2icH0TP8dmKblCZUFAY

Decision Documents

23F-H026-REL Decision – 1030738.pdf

Uploaded 2026-01-23T17:53:11 (53.2 KB)

23F-H026-REL Decision – 1046844.pdf

Uploaded 2026-01-23T17:53:15 (104.2 KB)

Questions

Question

Does the Arizona law protecting a homeowner's right to install solar panels apply to housing cooperatives?

Short Answer

No. The ALJ ruled that housing cooperatives do not fit the legal definition of a 'planned community,' so the solar protection statute (A.R.S. § 33-1816) does not apply to them.

Detailed Answer

In this case, a member of a cooperative sought to install solar panels, citing A.R.S. § 33-1816, which prevents planned communities from prohibiting solar devices. The judge determined that while the definition of a planned community does not explicitly list cooperatives as an exclusion, the nature and purpose of a cooperative are distinct enough that they do not fall under the planned community statutes. Therefore, the cooperative was not legally required to permit the installation.

Alj Quote

Although the definition of a planned community does not expressly exclude a cooperative, the Administrative Law Judge concludes that a cooperative does not fall within the definition of a planned community, as their purposes and functions are separate and distinct.

Legal Basis

A.R.S. § 33-1802; A.R.S. § 33-1816

Topic Tags

  • solar panels
  • cooperatives
  • planned community definition

Question

What happens if the HOA or respondent fails to attend the administrative hearing?

Short Answer

The hearing proceeds without them.

Detailed Answer

If the respondent (the HOA or Cooperative) has been properly notified of the hearing time and date but fails to appear or request a continuance, the Administrative Law Judge will conduct the hearing in their absence. The petitioner will still present their case, but the respondent loses the opportunity to defend themselves in person.

Alj Quote

Consequently, given that Respondent was properly noticed of the hearing, the hearing proceeded in Respondent’s absence.

Legal Basis

Procedural Due Process

Topic Tags

  • hearing procedure
  • attendance
  • default

Question

Who is responsible for proving that a violation occurred in an HOA dispute?

Short Answer

The petitioner (typically the homeowner) bears the burden of proof.

Detailed Answer

The person bringing the complaint must provide sufficient evidence to prove their claims. It is not up to the HOA to disprove the claims initially; the homeowner must affirmatively establish that the HOA violated the governing documents or statutes.

Alj Quote

Petitioner bears the burden of proof to establish that Respondent violated applicable statutes, CC&Rs, and/or Bylaws by a preponderance of the evidence.

Legal Basis

A.A.C. R2-19-119(A)

Topic Tags

  • burden of proof
  • legal standards

Question

Is a housing cooperative considered a 'planned community' under Arizona law?

Short Answer

No, a cooperative is legally distinct from a planned community.

Detailed Answer

The decision clarifies that a planned community generally involves real estate owned/operated by a nonprofit where owners are mandatory members. A cooperative, however, is formed to acquire, own, and operate a housing project where members hold shares. The judge ruled that these are separate legal concepts with different purposes, meaning statutes specific to 'planned communities' do not automatically apply to cooperatives.

Alj Quote

Respondent is a nonprofit corporation that was formed for the purpose of acquiring, owning and operating a cooperative housing project… the Administrative Law Judge concludes that a cooperative does not fall within the definition of a planned community…

Legal Basis

A.R.S. § 33-1802

Topic Tags

  • definitions
  • cooperatives
  • planned community

Question

What is the standard of evidence required to win a hearing against an HOA?

Short Answer

Preponderance of the evidence.

Detailed Answer

To win, the evidence must show that the claim is 'more probably true than not.' This is a lower standard than 'beyond a reasonable doubt' used in criminal cases. It means the evidence must incline a fair mind to one side even slightly more than the other.

Alj Quote

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

Legal Basis

Common Law / A.A.C. R2-19-119

Topic Tags

  • evidence
  • legal standards

Case

Docket No
23F-H026-REL
Case Title
Elizabeth Flint v. Citation Gardens Cooperative #1
Decision Date
2023-04-04
Alj Name
Sondra J. Vanella
Tribunal
OAH
Agency
ADRE

Questions

Question

Does the Arizona law protecting a homeowner's right to install solar panels apply to housing cooperatives?

Short Answer

No. The ALJ ruled that housing cooperatives do not fit the legal definition of a 'planned community,' so the solar protection statute (A.R.S. § 33-1816) does not apply to them.

Detailed Answer

In this case, a member of a cooperative sought to install solar panels, citing A.R.S. § 33-1816, which prevents planned communities from prohibiting solar devices. The judge determined that while the definition of a planned community does not explicitly list cooperatives as an exclusion, the nature and purpose of a cooperative are distinct enough that they do not fall under the planned community statutes. Therefore, the cooperative was not legally required to permit the installation.

Alj Quote

Although the definition of a planned community does not expressly exclude a cooperative, the Administrative Law Judge concludes that a cooperative does not fall within the definition of a planned community, as their purposes and functions are separate and distinct.

Legal Basis

A.R.S. § 33-1802; A.R.S. § 33-1816

Topic Tags

  • solar panels
  • cooperatives
  • planned community definition

Question

What happens if the HOA or respondent fails to attend the administrative hearing?

Short Answer

The hearing proceeds without them.

Detailed Answer

If the respondent (the HOA or Cooperative) has been properly notified of the hearing time and date but fails to appear or request a continuance, the Administrative Law Judge will conduct the hearing in their absence. The petitioner will still present their case, but the respondent loses the opportunity to defend themselves in person.

Alj Quote

Consequently, given that Respondent was properly noticed of the hearing, the hearing proceeded in Respondent’s absence.

Legal Basis

Procedural Due Process

Topic Tags

  • hearing procedure
  • attendance
  • default

Question

Who is responsible for proving that a violation occurred in an HOA dispute?

Short Answer

The petitioner (typically the homeowner) bears the burden of proof.

Detailed Answer

The person bringing the complaint must provide sufficient evidence to prove their claims. It is not up to the HOA to disprove the claims initially; the homeowner must affirmatively establish that the HOA violated the governing documents or statutes.

Alj Quote

Petitioner bears the burden of proof to establish that Respondent violated applicable statutes, CC&Rs, and/or Bylaws by a preponderance of the evidence.

Legal Basis

A.A.C. R2-19-119(A)

Topic Tags

  • burden of proof
  • legal standards

Question

Is a housing cooperative considered a 'planned community' under Arizona law?

Short Answer

No, a cooperative is legally distinct from a planned community.

Detailed Answer

The decision clarifies that a planned community generally involves real estate owned/operated by a nonprofit where owners are mandatory members. A cooperative, however, is formed to acquire, own, and operate a housing project where members hold shares. The judge ruled that these are separate legal concepts with different purposes, meaning statutes specific to 'planned communities' do not automatically apply to cooperatives.

Alj Quote

Respondent is a nonprofit corporation that was formed for the purpose of acquiring, owning and operating a cooperative housing project… the Administrative Law Judge concludes that a cooperative does not fall within the definition of a planned community…

Legal Basis

A.R.S. § 33-1802

Topic Tags

  • definitions
  • cooperatives
  • planned community

Question

What is the standard of evidence required to win a hearing against an HOA?

Short Answer

Preponderance of the evidence.

Detailed Answer

To win, the evidence must show that the claim is 'more probably true than not.' This is a lower standard than 'beyond a reasonable doubt' used in criminal cases. It means the evidence must incline a fair mind to one side even slightly more than the other.

Alj Quote

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

Legal Basis

Common Law / A.A.C. R2-19-119

Topic Tags

  • evidence
  • legal standards

Case

Docket No
23F-H026-REL
Case Title
Elizabeth Flint v. Citation Gardens Cooperative #1
Decision Date
2023-04-04
Alj Name
Sondra J. Vanella
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • Elizabeth Flint (petitioner)
    Appeared on her own behalf and testified.

Respondent Side

  • Andrew Vizcarra (respondent representative)
    Tucson Realty & Trust Co. Management Services, L.L.C.
    Did not appear at the hearing; also referenced verbally as 'Andrew Biscara'.

Neutral Parties

  • Sondra J. Vanella (ALJ)
    Office of Administrative Hearings

Other Participants

  • James Knupp (Acting Commissioner)
    Arizona Department of Real Estate
    Listed on the service list for the Order Setting Hearing dated Feb 2, 2023.
  • Susan Nicolson (Commissioner)
    Arizona Department of Real Estate
    Listed on the service list for the Decision dated April 4, 2023.
  • AHansen (ADRE Staff)
    Arizona Department of Real Estate
    Recipient of case documents via email address.
  • vnunez (ADRE Staff)
    Arizona Department of Real Estate
    Recipient of case documents via email address.
  • djones (ADRE Staff)
    Arizona Department of Real Estate
    Recipient of case documents via email address.
  • labril (ADRE Staff)
    Arizona Department of Real Estate
    Recipient of case documents via email address.

Kurt Gronlund vs. Cottonfields Community Association

Case Summary

Case ID 17F-H1716024-REL
Agency ADRE
Tribunal OAH
Decision Date 2017-05-11
Administrative Law Judge Diane Mihalsky
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Kurt Gronlund Counsel
Respondent Cottonfields Community Association Counsel Troy B. Stratman, Esq.

Alleged Violations

A.R.S. § 32-2199.01(A)

Outcome Summary

The Commissioner accepted the ALJ decision granting the Respondent's Motion for Summary Judgment, recommending dismissal of the petition due to the Department's lack of statutory jurisdiction over the dispute, which involved a Reciprocal Easement and Maintenance Agreement (REMA) and the rights of a third-party Golf Course Owner.

Why this result: The Department lacked jurisdiction to resolve the dispute because the REMA was not considered a 'community document' under A.R.S. § 33-1802(2) and the requested relief implicated the rights of a non-party (the Golf Course Owner) over whom the Department has no jurisdiction.

Key Issues & Findings

Jurisdiction over REMA Amendment Dispute

Petitioner sought a finding that REMA Amendments 2 and 3 were void because the HOA board unilaterally amended the REMA without the required member vote (two-thirds majority) as specified in the CC&Rs and REMA, and sought an order for the removal of the amendments from the record.

Orders: The Administrative Law Judge recommended granting Respondent's Motion for Summary Judgment and dismissing the Complaint.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 32-2199.01(A)
  • A.R.S. § 33-1802(2)
  • CC&Rs 14.2
  • REMA Article 12

Analytics Highlights

Topics: jurisdiction, summary judgment, golf course, REMA, third party
Additional Citations:

  • A.R.S. § 32-2199.01(A)
  • A.R.S. § 33-1802(2)
  • A.R.S. § 32-2199.02(A)
  • CC&Rs 14.2
  • REMA 5.1
  • REMA Article 12

Video Overview

Audio Overview

Decision Documents

17F-H1716024-REL Decision – 563660.pdf

Uploaded 2026-01-23T17:19:21 (99.8 KB)

17F-H1716024-REL Decision – 568840.pdf

Uploaded 2026-01-23T17:19:24 (854.5 KB)





Briefing Doc – 17F-H1716024-REL


Briefing Document: Gronlund vs. Cottonfields Community Association (Case No. 17F-H1716024-REL)

Executive Summary

This document synthesizes the legal proceedings and decision in the case of Kurt Gronlund versus the Cottonfields Community Association, adjudicated by the Arizona Office of Administrative Hearings. The core of the dispute centers on the petitioner’s allegation that the Homeowners Association (HOA) board improperly amended a critical land-use agreement in 2011 without a required vote of the membership, ultimately enabling the commercial rezoning of an adjacent golf course.

The Administrative Law Judge (ALJ) granted the HOA’s motion for summary judgment, and the Commissioner of the Arizona Department of Real Estate adopted this decision, dismissing the petition. The dismissal was not based on the merits of the petitioner’s claim but on a crucial lack of jurisdiction. The ALJ determined that the Department of Real Estate could not rule on the matter for two primary reasons:

1. The governing agreement in question (the REMA) is not a “community document” as defined by the relevant Arizona statute, placing it outside the Department’s purview.

2. The relief sought by the petitioner would directly implicate the property rights of a third party (the Golf Course Owner) and a prior legal settlement, which exceeds the Department’s statutory authority.

While acknowledging the petitioner’s concerns about the golf course development may be “well-founded,” the decision concluded that the petitioner’s available remedies lie in electing a new HOA board, filing a lawsuit in a judicial forum, or seeking legislative change.

Case Overview

This case involves a dispute between a homeowner and his HOA regarding the amendment of a land-use agreement governing a golf course property.

Parties Involved

Name / Entity

Description

Petitioner

Kurt Gronlund

A homeowner within the Cottonfields community and a member of the Respondent association.

Respondent

Cottonfields Community Association

The Homeowners Association (HOA) for the Cottonfields development.

Third Party

The Golf Course Owner

A separate legal entity that owns the golf course property adjacent to the community.

Case Chronology

December 11, 2001: The developer records both the Reciprocal Easement and Maintenance Agreement (REMA) and the community’s CC&Rs.

March 2011: The Cottonfields HOA board votes 3-2 to amend the REMA.

March 3 & May 16, 2011: Amendments 2 and 3 to the REMA, which alter the legal description of the golf course property, are officially recorded.

2014: Litigation (Case No. CV2014-000639) begins in Maricopa County Superior Court between the HOA and the Golf Course Owner regarding the REMA and its amendments.

July 2015: The HOA and the Golf Course Owner execute a settlement agreement.

August 7, 2015: The superior court lawsuit is dismissed with prejudice.

October 5, 2016: The HOA president represents to the City Council that homeowners favor rezoning the golf course. The Council approves a rezone from “GC” (Golf Course) to Commercial, relying on the 2011 REMA amendments.

February 3, 2017: Kurt Gronlund files a Homeowners Association Dispute Process Petition with the Arizona Department of Real Estate.

April 27, 2017: The HOA files a Motion for Summary Judgment, arguing a lack of jurisdiction.

May 10, 2017: Oral arguments on the motion are held.

May 11, 2017: The Administrative Law Judge issues a decision recommending dismissal.

May 11, 2017: The Commissioner of the Department of Real Estate issues a Final Order adopting the ALJ’s decision and dismissing the case.

Core Dispute: Unilateral Amendment of the REMA

The petitioner’s case is founded on the claim that the HOA board acted in violation of its own governing documents when it facilitated changes to the REMA without consulting the community’s homeowners.

Petitioner’s Allegations

On February 3, 2017, Kurt Gronlund filed a petition asserting that the HOA board’s actions in 2011 were illegal and directly led to the loss of protection for homeowner property values.

The Unilateral Action: The petition states, “[In] March 2011 the HOA board voted 3-2 to unilaterally amend REMA 5.1’s use restriction on the golf course property without the required vote of the approximately 450 eligible class members…”

The Consequence: These amendments were used as justification for the HOA president to support a commercial rezoning of the golf course property before the City Council on October 5, 2016. The petitioner argues this “stripped away that last layer of protection” for homeowners who believed the golf course could not be developed without their approval.

Homeowner Reliance: During oral arguments, the petitioner testified that members relied on the protections within the CC&Rs and REMA when purchasing their homes, believing development required a two-thirds majority vote.

Petitioner’s Requested Relief

The petitioner respectfully requested that the Administrative Court issue the following orders:

1. Find that REMA Section 5.1 may not be amended without the member vote required by REMA Article 12 and CC&Rs Section 14.2.

2. Find that Amendments 2 and 3 to the REMA are void and unenforceable.

3. Order the HOA Board to remove Amendments 2 and 3 from the public record.

Analysis of Governing Document Provisions

The dispute hinges on the interpretation of and interaction between two key legal documents: the REMA and the HOA’s CC&Rs.

Document

Section

Description

Key Language

Section 5.1

Use Restriction: Restricts the golf course property’s use to either a golf course or open space.

“The Golf Course Property shall be used solely and exclusively for Golf Course Use or as open space, and for no other purposes.”

Article 12

Amendment Procedure: Stipulates that changes to Section 5.1 require the same member vote as an amendment to the HOA’s Declaration (CC&Rs).

“…no termination, cancellation, change, modification or amendment of paragraph 5.1… shall be made without the written approval thereof by the number of Members… required to amend the Declaration pursuant to Section 13.2 thereof.”

Section 14.2

Member Vote Requirement: Defines the threshold for amending the CC&Rs.

“…may be amended only by the affirmative vote (in person or by proxy) or written consent of: (a) Members holding not less than two-thirds (2/3) of all Class A votes then entitled to be cast; and (b) Members holding not less than two thirds (2/3) of all Class B votes…”

Section 14.17

Third-Party Rights: Protects the rights of the Golf Course Owner, stating that provisions benefiting them cannot be amended without their written consent.

“…no provision of this Declaration… which grants to or confers upon the Golf Course Owner or the Golf Course Property any rights… shall be modified, amended or revoked in any way without the express written consent of the Golf Course Owner.”

Jurisdictional Challenge and Legal Rationale for Dismissal

The HOA’s defense focused not on the factual allegations but on the argument that the Department of Real Estate was the improper forum for this dispute. The ALJ ultimately agreed with this position.

Respondent’s Motion for Summary Judgment

The Cottonfields Community Association argued that the Department could not grant the petitioner’s requested relief because:

1. The REMA is not a “community document” as defined under Arizona law (A.R.S. § 32-2199.01(A)).

2. The Golf Course Owner is a third party over whom the Department lacks jurisdiction.

3. Any ruling would affect the rights of this third party and could impact the 2015 settlement agreement from the superior court case.

Administrative Law Judge’s Conclusions of Law

The ALJ’s decision was based on a strict interpretation of the Department’s statutory authority.

REMA is Not a “Community Document”: The judge found that although the REMA references the CC&Rs, it does not meet the legal definition of a community document under A.R.S. § 33-1802(2), which defines them as “the declaration, bylaws, articles of incorporation, if any, and rules, if any.” The Department’s authority under A.R.S. § 32-2199.01(A) is limited to violations of these specific documents.

Implication of Third-Party Rights: The decision states that the petitioner’s request to void the amendments “implicates the Golf Course Owner’s interests in its property and may affect the settlement that the Golf Course Owner entered into with Respondent.” The law does not grant the Department “jurisdiction over disputes that implicate the rights of third parties.”

Petitioner’s Available Remedies: While validating the petitioner’s underlying worries, the judge outlined specific alternative courses of action. The decision states: “Petitioner’s concerns about development of the golf course may be well-founded. However, under applicable statutes, at this time, his available remedies are to elect a board that will better protect members’ interest in maintaining the golf course, to file suit in a judicial forum against Respondent and the Golf Course Owner, or to ask the legislature to amend A.R.S. §§ 33-1802(2) and 32-2199.01(A).”

Final Order and Disposition

Based on the legal conclusions regarding jurisdiction, the case was dismissed.

ALJ Recommendation: On May 11, 2017, Administrative Law Judge Diane Mihalsky recommended that the complaint be dismissed.

Commissioner’s Final Order: On May 11, 2017, Judy Lowe, Commissioner for the Arizona Department of Real Estate, issued a Final Order stating: “The Commissioner accepts the ALJ decision that the petition in this matter be dismissed.”

Further Action: The Final Order noted that a party may file for a rehearing or review within thirty days, or may appeal the final administrative decision by filing a complaint for judicial review.






Study Guide – 17F-H1716024-REL


Study Guide: Gronlund v. Cottonfields Community Association

This guide provides a detailed review of the administrative case Kurt Gronlund v. Cottonfields Community Association (No. 17F-H1716024-REL), focusing on the key legal arguments, governing documents, and the court’s final decision regarding jurisdiction.

Short-Answer Quiz

Answer the following questions in 2-3 sentences based on the provided legal documents.

1. Who are the Petitioner and Respondent in this case, and what is their relationship?

2. What central allegation did the Petitioner make regarding the HOA board’s actions in March 2011?

3. What specific relief did the Petitioner request from the Administrative Court in his petition?

4. Identify the two key legal documents at the heart of the dispute and briefly explain their respective roles.

5. According to REMA Article 12 and CC&Rs Section 14.2, what was the required procedure to amend the use restriction on the golf course property?

6. On what primary grounds did the Respondent, Cottonfields Community Association, file a motion for summary judgment?

7. What was the Administrative Law Judge’s key legal conclusion regarding the status of the Reciprocal Easement and Maintenance Agreement (REMA)?

8. Why did the Administrative Law Judge ultimately find that the Arizona Department of Real Estate lacked the jurisdiction to grant the Petitioner’s requested relief?

9. What alternative remedies did the Administrative Law Judge suggest were available to the Petitioner?

10. What was the final outcome of the case as determined by the Commissioner of the Department of Real Estate?

——————————————————————————–

Answer Key

1. The Petitioner is Kurt Gronlund, a homeowner and member of the Cottonfields Community Association. The Respondent is the Cottonfields Community Association, which is the Homeowners Association (HOA) for the residential development where the Petitioner owns a home.

2. The Petitioner alleged that the HOA board voted 3-2 to unilaterally amend REMA Section 5.1’s use restriction on the golf course property. This action was allegedly taken without the required vote of the approximately 450 eligible class members, which constituted a violation of the governing documents.

3. The Petitioner requested that the court find Amendments 2 and 3 to the REMA to be void and unenforceable, order the HOA Board to remove these amendments from the public record, and issue a finding that REMA 5.1 may not be amended without the member vote required by the CC&Rs.

4. The key documents are the Declaration of Covenants, Conditions and Restrictions (CC&Rs) and the Reciprocal Easement and Maintenance Agreement (REMA). The CC&Rs are the primary governing documents for the HOA, while the REMA is a separate agreement between the developer/HOA and the Golf Course Owner specifically governing the use of the golf course property.

5. REMA Article 12 required that any amendment to Section 5.1 (the use restriction) receive written approval from the number of Members specified in the CC&Rs. CC&Rs Section 14.2 stipulates this requires an affirmative vote or written consent of members holding at least two-thirds (2/3) of all Class A and Class B votes.

6. The Respondent argued that the Department of Real Estate lacked jurisdiction to rule on the matter. This argument was based on two points: the REMA was not a “community document” as defined by Arizona statute, and the dispute involved the rights of the Golf Course Owner, a third party over whom the Department had no authority.

7. The Judge concluded that although the REMA references the CC&Rs, it is not a “community document” as defined in A.R.S. § 33-1802(2). This determination was central to the case, as the Department’s jurisdiction is limited to disputes concerning community documents.

8. The Department’s jurisdiction under A.R.S. § 32-2199.01(A) does not extend to disputes that implicate the rights of third parties. Because the Petitioner’s request would affect the property interests of the Golf Course Owner and a 2015 legal settlement, the Department was not statutorily authorized to resolve the issue.

9. The Judge suggested three potential remedies: elect a new HOA board that will better protect members’ interests, file a lawsuit in a judicial forum against both the HOA and the Golf Course Owner, or ask the state legislature to amend the relevant statutes governing HOAs and community documents.

10. The Commissioner of the Department of Real Estate adopted the Administrative Law Judge’s recommendation in a Final Order dated May 11, 2017. The Commissioner accepted the decision that the Department lacked jurisdiction and ordered that the Petitioner’s complaint be dismissed.

——————————————————————————–

Essay Questions

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

1. Analyze the distinction between a “community document” and the REMA as presented in this case. Why was this distinction the pivotal point in the Administrative Law Judge’s decision to recommend dismissal for lack of jurisdiction?

2. Discuss the procedural history of the dispute over the golf course property, beginning with the REMA amendments in 2011 and including the 2014 litigation, the 2015 settlement, and the 2016 rezoning. How did these prior events impact the arguments and outcome of Gronlund’s 2017 petition?

3. Explain the conflict between the powers granted to the HOA Board and Golf Course Owner in REMA Article 12 and the protections afforded to homeowners in the same article’s reference to CC&Rs Section 14.2. How did the Petitioner and Respondent interpret these clauses differently?

4. Evaluate the legal reasoning behind the Administrative Law Judge’s conclusion that the Department of Real Estate lacked jurisdiction over third parties like the Golf Course Owner. Why would resolving Gronlund’s petition necessarily implicate the rights of this third party?

5. The Judge outlines three potential remedies for the Petitioner: electoral, judicial, and legislative. Describe each of these remedies and discuss the potential challenges and benefits of each path in seeking to protect the golf course from development.

——————————————————————————–

Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

A judge who presides over administrative hearings at a government agency, in this case, the Office of Administrative Hearings (OAH). The ALJ in this matter was Diane Mihalsky.

A.R.S. (Arizona Revised Statutes)

The collection of all the laws passed by the Arizona state legislature. Specific statutes, such as A.R.S. § 32-2199.01(A) and § 33-1802(2), were central to this case.

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

The primary governing legal documents for a planned community or homeowners’ association that outline the rules and member obligations.

Commissioner

The head of a government department. In this case, Judy Lowe, the Commissioner of the Arizona Department of Real Estate, issued the Final Order.

Community Documents

As defined by A.R.S. § 33-1802(2), these include a planned community’s declaration (CC&Rs), bylaws, articles of incorporation, and rules. The REMA was determined not to fall under this definition.

Dismissed with Prejudice

A legal term for a final judgment that prevents the plaintiff from filing another case on the same claim. The 2014 lawsuit between the HOA and the Golf Course Owner was dismissed with prejudice.

Golf Course Owner

A separate legal entity that owned the golf course property and was a primary party to the REMA, but was not a party to this administrative case.

HOA (Homeowners Association) | An organization in a subdivision or planned community that creates and enforces rules for the properties within its jurisdiction. In this case, the Cottonfields Community Association. | | Jurisdiction | The official power to make legal decisions and judgments. The central legal issue of the case was whether the Arizona Department of Real Estate had jurisdiction over the dispute. | | Motion for Summary Judgment | A request made by a party asking the court to decide a case in their favor without a full trial, arguing that there are no material facts in dispute and that they are entitled to win as a matter of law. | | Office of Administrative Hearings (OAH) | An independent Arizona state agency that conducts evidentiary hearings for other state agencies to ensure fair and impartial decisions. | | Petitioner | The party who files a petition or brings an action before a court or administrative body. In this case, Kurt Gronlund. | | REMA (Reciprocal Easement and Maintenance Agreement) | A recorded legal agreement between the original developer/HOA and the Golf Course Owner that established mutual rights, easements, and obligations, including the critical use restriction on the golf course property. | | Respondent | The party against whom a petition is filed or an appeal is brought. In this case, the Cottonfields Community Association. |






Blog Post – 17F-H1716024-REL



⚖️

17F-H1716024-REL

2 sources

The provided sources consist of an Administrative Law Judge Decision and a subsequent Final Order from the Arizona Department of Real Estate concerning a dispute between homeowner Kurt Gronlund, the Petitioner, and the Cottonfields Community Association, the Respondent. The administrative law judge recommended granting the Association’s motion for summary judgment because the Department of Real Estate lacked jurisdiction over the matter, a recommendation which the Commissioner ultimately accepted. The core of the conflict was Gronlund’s petition challenging the Association’s 2011 amendments to a Reciprocal Easement and Maintenance Agreement (REMA), which governed the use of a golf course adjacent to the community. The decision clarified that the REMA was not classified as a “community document” under the relevant statutes, and furthermore, the requested relief would improperly implicate the rights of the Golf Course Owner, a third party over whom the Department had no authority. The final ruling therefore dismissed the petition, suggesting judicial action or legislative change as alternative remedies for the petitioner.



Case Participants

Petitioner Side

  • Kurt Gronlund (petitioner)

Respondent Side

  • Troy B. Stratman (attorney)
    Stratman Law Firm, PLC

Neutral Parties

  • Diane Mihalsky (ALJ)
  • Judy Lowe (Commissioner)
    Arizona Department of Real Estate
  • Abby Hansen (HOA Coordinator)
    Arizona Department of Real Estate
    Responsible for processing rehearing requests and listed on ADRE service email list.
  • LDettorre (administrative staff)
    Arizona Department of Real Estate
    Email contact listed ([email protected])
  • djones (administrative staff)
    Arizona Department of Real Estate
    Email contact listed ([email protected])
  • jmarshall (administrative staff)
    Arizona Department of Real Estate
    Email contact listed ([email protected])
  • ncano (administrative staff)
    Arizona Department of Real Estate
    Email contact listed ([email protected])

Kurt Gronlund vs. Cottonfields Community Association

Case Summary

Case ID 17F-H1716024-REL
Agency ADRE
Tribunal OAH
Decision Date 2017-05-11
Administrative Law Judge Diane Mihalsky
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Kurt Gronlund Counsel
Respondent Cottonfields Community Association Counsel Troy B. Stratman, Esq.

Alleged Violations

A.R.S. § 32-2199.01(A)

Outcome Summary

The Commissioner accepted the ALJ decision granting the Respondent's Motion for Summary Judgment, recommending dismissal of the petition due to the Department's lack of statutory jurisdiction over the dispute, which involved a Reciprocal Easement and Maintenance Agreement (REMA) and the rights of a third-party Golf Course Owner.

Why this result: The Department lacked jurisdiction to resolve the dispute because the REMA was not considered a 'community document' under A.R.S. § 33-1802(2) and the requested relief implicated the rights of a non-party (the Golf Course Owner) over whom the Department has no jurisdiction.

Key Issues & Findings

Jurisdiction over REMA Amendment Dispute

Petitioner sought a finding that REMA Amendments 2 and 3 were void because the HOA board unilaterally amended the REMA without the required member vote (two-thirds majority) as specified in the CC&Rs and REMA, and sought an order for the removal of the amendments from the record.

Orders: The Administrative Law Judge recommended granting Respondent's Motion for Summary Judgment and dismissing the Complaint.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 32-2199.01(A)
  • A.R.S. § 33-1802(2)
  • CC&Rs 14.2
  • REMA Article 12

Analytics Highlights

Topics: jurisdiction, summary judgment, golf course, REMA, third party
Additional Citations:

  • A.R.S. § 32-2199.01(A)
  • A.R.S. § 33-1802(2)
  • A.R.S. § 32-2199.02(A)
  • CC&Rs 14.2
  • REMA 5.1
  • REMA Article 12

Audio Overview

Decision Documents

17F-H1716024-REL Decision – 563660.pdf

Uploaded 2025-10-08T06:57:25 (99.8 KB)

17F-H1716024-REL Decision – 568840.pdf

Uploaded 2025-10-08T06:57:26 (854.5 KB)





Briefing Doc – 17F-H1716024-REL


Briefing Document: Gronlund vs. Cottonfields Community Association (Case No. 17F-H1716024-REL)

Executive Summary

This document synthesizes the legal proceedings and decision in the case of Kurt Gronlund versus the Cottonfields Community Association, adjudicated by the Arizona Office of Administrative Hearings. The core of the dispute centers on the petitioner’s allegation that the Homeowners Association (HOA) board improperly amended a critical land-use agreement in 2011 without a required vote of the membership, ultimately enabling the commercial rezoning of an adjacent golf course.

The Administrative Law Judge (ALJ) granted the HOA’s motion for summary judgment, and the Commissioner of the Arizona Department of Real Estate adopted this decision, dismissing the petition. The dismissal was not based on the merits of the petitioner’s claim but on a crucial lack of jurisdiction. The ALJ determined that the Department of Real Estate could not rule on the matter for two primary reasons:

1. The governing agreement in question (the REMA) is not a “community document” as defined by the relevant Arizona statute, placing it outside the Department’s purview.

2. The relief sought by the petitioner would directly implicate the property rights of a third party (the Golf Course Owner) and a prior legal settlement, which exceeds the Department’s statutory authority.

While acknowledging the petitioner’s concerns about the golf course development may be “well-founded,” the decision concluded that the petitioner’s available remedies lie in electing a new HOA board, filing a lawsuit in a judicial forum, or seeking legislative change.

Case Overview

This case involves a dispute between a homeowner and his HOA regarding the amendment of a land-use agreement governing a golf course property.

Parties Involved

Name / Entity

Description

Petitioner

Kurt Gronlund

A homeowner within the Cottonfields community and a member of the Respondent association.

Respondent

Cottonfields Community Association

The Homeowners Association (HOA) for the Cottonfields development.

Third Party

The Golf Course Owner

A separate legal entity that owns the golf course property adjacent to the community.

Case Chronology

December 11, 2001: The developer records both the Reciprocal Easement and Maintenance Agreement (REMA) and the community’s CC&Rs.

March 2011: The Cottonfields HOA board votes 3-2 to amend the REMA.

March 3 & May 16, 2011: Amendments 2 and 3 to the REMA, which alter the legal description of the golf course property, are officially recorded.

2014: Litigation (Case No. CV2014-000639) begins in Maricopa County Superior Court between the HOA and the Golf Course Owner regarding the REMA and its amendments.

July 2015: The HOA and the Golf Course Owner execute a settlement agreement.

August 7, 2015: The superior court lawsuit is dismissed with prejudice.

October 5, 2016: The HOA president represents to the City Council that homeowners favor rezoning the golf course. The Council approves a rezone from “GC” (Golf Course) to Commercial, relying on the 2011 REMA amendments.

February 3, 2017: Kurt Gronlund files a Homeowners Association Dispute Process Petition with the Arizona Department of Real Estate.

April 27, 2017: The HOA files a Motion for Summary Judgment, arguing a lack of jurisdiction.

May 10, 2017: Oral arguments on the motion are held.

May 11, 2017: The Administrative Law Judge issues a decision recommending dismissal.

May 11, 2017: The Commissioner of the Department of Real Estate issues a Final Order adopting the ALJ’s decision and dismissing the case.

Core Dispute: Unilateral Amendment of the REMA

The petitioner’s case is founded on the claim that the HOA board acted in violation of its own governing documents when it facilitated changes to the REMA without consulting the community’s homeowners.

Petitioner’s Allegations

On February 3, 2017, Kurt Gronlund filed a petition asserting that the HOA board’s actions in 2011 were illegal and directly led to the loss of protection for homeowner property values.

The Unilateral Action: The petition states, “[In] March 2011 the HOA board voted 3-2 to unilaterally amend REMA 5.1’s use restriction on the golf course property without the required vote of the approximately 450 eligible class members…”

The Consequence: These amendments were used as justification for the HOA president to support a commercial rezoning of the golf course property before the City Council on October 5, 2016. The petitioner argues this “stripped away that last layer of protection” for homeowners who believed the golf course could not be developed without their approval.

Homeowner Reliance: During oral arguments, the petitioner testified that members relied on the protections within the CC&Rs and REMA when purchasing their homes, believing development required a two-thirds majority vote.

Petitioner’s Requested Relief

The petitioner respectfully requested that the Administrative Court issue the following orders:

1. Find that REMA Section 5.1 may not be amended without the member vote required by REMA Article 12 and CC&Rs Section 14.2.

2. Find that Amendments 2 and 3 to the REMA are void and unenforceable.

3. Order the HOA Board to remove Amendments 2 and 3 from the public record.

Analysis of Governing Document Provisions

The dispute hinges on the interpretation of and interaction between two key legal documents: the REMA and the HOA’s CC&Rs.

Document

Section

Description

Key Language

Section 5.1

Use Restriction: Restricts the golf course property’s use to either a golf course or open space.

“The Golf Course Property shall be used solely and exclusively for Golf Course Use or as open space, and for no other purposes.”

Article 12

Amendment Procedure: Stipulates that changes to Section 5.1 require the same member vote as an amendment to the HOA’s Declaration (CC&Rs).

“…no termination, cancellation, change, modification or amendment of paragraph 5.1… shall be made without the written approval thereof by the number of Members… required to amend the Declaration pursuant to Section 13.2 thereof.”

Section 14.2

Member Vote Requirement: Defines the threshold for amending the CC&Rs.

“…may be amended only by the affirmative vote (in person or by proxy) or written consent of: (a) Members holding not less than two-thirds (2/3) of all Class A votes then entitled to be cast; and (b) Members holding not less than two thirds (2/3) of all Class B votes…”

Section 14.17

Third-Party Rights: Protects the rights of the Golf Course Owner, stating that provisions benefiting them cannot be amended without their written consent.

“…no provision of this Declaration… which grants to or confers upon the Golf Course Owner or the Golf Course Property any rights… shall be modified, amended or revoked in any way without the express written consent of the Golf Course Owner.”

Jurisdictional Challenge and Legal Rationale for Dismissal

The HOA’s defense focused not on the factual allegations but on the argument that the Department of Real Estate was the improper forum for this dispute. The ALJ ultimately agreed with this position.

Respondent’s Motion for Summary Judgment

The Cottonfields Community Association argued that the Department could not grant the petitioner’s requested relief because:

1. The REMA is not a “community document” as defined under Arizona law (A.R.S. § 32-2199.01(A)).

2. The Golf Course Owner is a third party over whom the Department lacks jurisdiction.

3. Any ruling would affect the rights of this third party and could impact the 2015 settlement agreement from the superior court case.

Administrative Law Judge’s Conclusions of Law

The ALJ’s decision was based on a strict interpretation of the Department’s statutory authority.

REMA is Not a “Community Document”: The judge found that although the REMA references the CC&Rs, it does not meet the legal definition of a community document under A.R.S. § 33-1802(2), which defines them as “the declaration, bylaws, articles of incorporation, if any, and rules, if any.” The Department’s authority under A.R.S. § 32-2199.01(A) is limited to violations of these specific documents.

Implication of Third-Party Rights: The decision states that the petitioner’s request to void the amendments “implicates the Golf Course Owner’s interests in its property and may affect the settlement that the Golf Course Owner entered into with Respondent.” The law does not grant the Department “jurisdiction over disputes that implicate the rights of third parties.”

Petitioner’s Available Remedies: While validating the petitioner’s underlying worries, the judge outlined specific alternative courses of action. The decision states: “Petitioner’s concerns about development of the golf course may be well-founded. However, under applicable statutes, at this time, his available remedies are to elect a board that will better protect members’ interest in maintaining the golf course, to file suit in a judicial forum against Respondent and the Golf Course Owner, or to ask the legislature to amend A.R.S. §§ 33-1802(2) and 32-2199.01(A).”

Final Order and Disposition

Based on the legal conclusions regarding jurisdiction, the case was dismissed.

ALJ Recommendation: On May 11, 2017, Administrative Law Judge Diane Mihalsky recommended that the complaint be dismissed.

Commissioner’s Final Order: On May 11, 2017, Judy Lowe, Commissioner for the Arizona Department of Real Estate, issued a Final Order stating: “The Commissioner accepts the ALJ decision that the petition in this matter be dismissed.”

Further Action: The Final Order noted that a party may file for a rehearing or review within thirty days, or may appeal the final administrative decision by filing a complaint for judicial review.


Kurt Gronlund vs. Cottonfields Community Association

Case Summary

Case ID 17F-H1716024-REL
Agency ADRE
Tribunal OAH
Decision Date 2017-05-11
Administrative Law Judge Diane Mihalsky
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Kurt Gronlund Counsel
Respondent Cottonfields Community Association Counsel Troy B. Stratman, Esq.

Alleged Violations

A.R.S. § 32-2199.01(A)

Outcome Summary

The Commissioner accepted the ALJ decision granting the Respondent's Motion for Summary Judgment, recommending dismissal of the petition due to the Department's lack of statutory jurisdiction over the dispute, which involved a Reciprocal Easement and Maintenance Agreement (REMA) and the rights of a third-party Golf Course Owner.

Why this result: The Department lacked jurisdiction to resolve the dispute because the REMA was not considered a 'community document' under A.R.S. § 33-1802(2) and the requested relief implicated the rights of a non-party (the Golf Course Owner) over whom the Department has no jurisdiction.

Key Issues & Findings

Jurisdiction over REMA Amendment Dispute

Petitioner sought a finding that REMA Amendments 2 and 3 were void because the HOA board unilaterally amended the REMA without the required member vote (two-thirds majority) as specified in the CC&Rs and REMA, and sought an order for the removal of the amendments from the record.

Orders: The Administrative Law Judge recommended granting Respondent's Motion for Summary Judgment and dismissing the Complaint.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 32-2199.01(A)
  • A.R.S. § 33-1802(2)
  • CC&Rs 14.2
  • REMA Article 12

Analytics Highlights

Topics: jurisdiction, summary judgment, golf course, REMA, third party
Additional Citations:

  • A.R.S. § 32-2199.01(A)
  • A.R.S. § 33-1802(2)
  • A.R.S. § 32-2199.02(A)
  • CC&Rs 14.2
  • REMA 5.1
  • REMA Article 12

Audio Overview

Decision Documents

17F-H1716024-REL Decision – 563660.pdf

Uploaded 2025-10-08T07:01:37 (99.8 KB)

17F-H1716024-REL Decision – 568840.pdf

Uploaded 2025-10-08T07:01:38 (854.5 KB)





Briefing Doc – 17F-H1716024-REL


Briefing Document: Gronlund vs. Cottonfields Community Association (Case No. 17F-H1716024-REL)

Executive Summary

This document synthesizes the legal proceedings and decision in the case of Kurt Gronlund versus the Cottonfields Community Association, adjudicated by the Arizona Office of Administrative Hearings. The core of the dispute centers on the petitioner’s allegation that the Homeowners Association (HOA) board improperly amended a critical land-use agreement in 2011 without a required vote of the membership, ultimately enabling the commercial rezoning of an adjacent golf course.

The Administrative Law Judge (ALJ) granted the HOA’s motion for summary judgment, and the Commissioner of the Arizona Department of Real Estate adopted this decision, dismissing the petition. The dismissal was not based on the merits of the petitioner’s claim but on a crucial lack of jurisdiction. The ALJ determined that the Department of Real Estate could not rule on the matter for two primary reasons:

1. The governing agreement in question (the REMA) is not a “community document” as defined by the relevant Arizona statute, placing it outside the Department’s purview.

2. The relief sought by the petitioner would directly implicate the property rights of a third party (the Golf Course Owner) and a prior legal settlement, which exceeds the Department’s statutory authority.

While acknowledging the petitioner’s concerns about the golf course development may be “well-founded,” the decision concluded that the petitioner’s available remedies lie in electing a new HOA board, filing a lawsuit in a judicial forum, or seeking legislative change.

Case Overview

This case involves a dispute between a homeowner and his HOA regarding the amendment of a land-use agreement governing a golf course property.

Parties Involved

Name / Entity

Description

Petitioner

Kurt Gronlund

A homeowner within the Cottonfields community and a member of the Respondent association.

Respondent

Cottonfields Community Association

The Homeowners Association (HOA) for the Cottonfields development.

Third Party

The Golf Course Owner

A separate legal entity that owns the golf course property adjacent to the community.

Case Chronology

December 11, 2001: The developer records both the Reciprocal Easement and Maintenance Agreement (REMA) and the community’s CC&Rs.

March 2011: The Cottonfields HOA board votes 3-2 to amend the REMA.

March 3 & May 16, 2011: Amendments 2 and 3 to the REMA, which alter the legal description of the golf course property, are officially recorded.

2014: Litigation (Case No. CV2014-000639) begins in Maricopa County Superior Court between the HOA and the Golf Course Owner regarding the REMA and its amendments.

July 2015: The HOA and the Golf Course Owner execute a settlement agreement.

August 7, 2015: The superior court lawsuit is dismissed with prejudice.

October 5, 2016: The HOA president represents to the City Council that homeowners favor rezoning the golf course. The Council approves a rezone from “GC” (Golf Course) to Commercial, relying on the 2011 REMA amendments.

February 3, 2017: Kurt Gronlund files a Homeowners Association Dispute Process Petition with the Arizona Department of Real Estate.

April 27, 2017: The HOA files a Motion for Summary Judgment, arguing a lack of jurisdiction.

May 10, 2017: Oral arguments on the motion are held.

May 11, 2017: The Administrative Law Judge issues a decision recommending dismissal.

May 11, 2017: The Commissioner of the Department of Real Estate issues a Final Order adopting the ALJ’s decision and dismissing the case.

Core Dispute: Unilateral Amendment of the REMA

The petitioner’s case is founded on the claim that the HOA board acted in violation of its own governing documents when it facilitated changes to the REMA without consulting the community’s homeowners.

Petitioner’s Allegations

On February 3, 2017, Kurt Gronlund filed a petition asserting that the HOA board’s actions in 2011 were illegal and directly led to the loss of protection for homeowner property values.

The Unilateral Action: The petition states, “[In] March 2011 the HOA board voted 3-2 to unilaterally amend REMA 5.1’s use restriction on the golf course property without the required vote of the approximately 450 eligible class members…”

The Consequence: These amendments were used as justification for the HOA president to support a commercial rezoning of the golf course property before the City Council on October 5, 2016. The petitioner argues this “stripped away that last layer of protection” for homeowners who believed the golf course could not be developed without their approval.

Homeowner Reliance: During oral arguments, the petitioner testified that members relied on the protections within the CC&Rs and REMA when purchasing their homes, believing development required a two-thirds majority vote.

Petitioner’s Requested Relief

The petitioner respectfully requested that the Administrative Court issue the following orders:

1. Find that REMA Section 5.1 may not be amended without the member vote required by REMA Article 12 and CC&Rs Section 14.2.

2. Find that Amendments 2 and 3 to the REMA are void and unenforceable.

3. Order the HOA Board to remove Amendments 2 and 3 from the public record.

Analysis of Governing Document Provisions

The dispute hinges on the interpretation of and interaction between two key legal documents: the REMA and the HOA’s CC&Rs.

Document

Section

Description

Key Language

Section 5.1

Use Restriction: Restricts the golf course property’s use to either a golf course or open space.

“The Golf Course Property shall be used solely and exclusively for Golf Course Use or as open space, and for no other purposes.”

Article 12

Amendment Procedure: Stipulates that changes to Section 5.1 require the same member vote as an amendment to the HOA’s Declaration (CC&Rs).

“…no termination, cancellation, change, modification or amendment of paragraph 5.1… shall be made without the written approval thereof by the number of Members… required to amend the Declaration pursuant to Section 13.2 thereof.”

Section 14.2

Member Vote Requirement: Defines the threshold for amending the CC&Rs.

“…may be amended only by the affirmative vote (in person or by proxy) or written consent of: (a) Members holding not less than two-thirds (2/3) of all Class A votes then entitled to be cast; and (b) Members holding not less than two thirds (2/3) of all Class B votes…”

Section 14.17

Third-Party Rights: Protects the rights of the Golf Course Owner, stating that provisions benefiting them cannot be amended without their written consent.

“…no provision of this Declaration… which grants to or confers upon the Golf Course Owner or the Golf Course Property any rights… shall be modified, amended or revoked in any way without the express written consent of the Golf Course Owner.”

Jurisdictional Challenge and Legal Rationale for Dismissal

The HOA’s defense focused not on the factual allegations but on the argument that the Department of Real Estate was the improper forum for this dispute. The ALJ ultimately agreed with this position.

Respondent’s Motion for Summary Judgment

The Cottonfields Community Association argued that the Department could not grant the petitioner’s requested relief because:

1. The REMA is not a “community document” as defined under Arizona law (A.R.S. § 32-2199.01(A)).

2. The Golf Course Owner is a third party over whom the Department lacks jurisdiction.

3. Any ruling would affect the rights of this third party and could impact the 2015 settlement agreement from the superior court case.

Administrative Law Judge’s Conclusions of Law

The ALJ’s decision was based on a strict interpretation of the Department’s statutory authority.

REMA is Not a “Community Document”: The judge found that although the REMA references the CC&Rs, it does not meet the legal definition of a community document under A.R.S. § 33-1802(2), which defines them as “the declaration, bylaws, articles of incorporation, if any, and rules, if any.” The Department’s authority under A.R.S. § 32-2199.01(A) is limited to violations of these specific documents.

Implication of Third-Party Rights: The decision states that the petitioner’s request to void the amendments “implicates the Golf Course Owner’s interests in its property and may affect the settlement that the Golf Course Owner entered into with Respondent.” The law does not grant the Department “jurisdiction over disputes that implicate the rights of third parties.”

Petitioner’s Available Remedies: While validating the petitioner’s underlying worries, the judge outlined specific alternative courses of action. The decision states: “Petitioner’s concerns about development of the golf course may be well-founded. However, under applicable statutes, at this time, his available remedies are to elect a board that will better protect members’ interest in maintaining the golf course, to file suit in a judicial forum against Respondent and the Golf Course Owner, or to ask the legislature to amend A.R.S. §§ 33-1802(2) and 32-2199.01(A).”

Final Order and Disposition

Based on the legal conclusions regarding jurisdiction, the case was dismissed.

ALJ Recommendation: On May 11, 2017, Administrative Law Judge Diane Mihalsky recommended that the complaint be dismissed.

Commissioner’s Final Order: On May 11, 2017, Judy Lowe, Commissioner for the Arizona Department of Real Estate, issued a Final Order stating: “The Commissioner accepts the ALJ decision that the petition in this matter be dismissed.”

Further Action: The Final Order noted that a party may file for a rehearing or review within thirty days, or may appeal the final administrative decision by filing a complaint for judicial review.


Kurt Gronlund vs. Cottonfields Community Association

Case Summary

Case ID 17F-H1716024-REL
Agency ADRE
Tribunal OAH
Decision Date 2017-05-11
Administrative Law Judge Diane Mihalsky
Outcome loss
Filing Fees Refunded $0.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Kurt Gronlund Counsel
Respondent Cottonfields Community Association Counsel Troy B. Stratman, Esq.

Alleged Violations

A.R.S. § 32-2199.01(A)

Outcome Summary

The Commissioner accepted the ALJ decision granting the Respondent's Motion for Summary Judgment, recommending dismissal of the petition due to the Department's lack of statutory jurisdiction over the dispute, which involved a Reciprocal Easement and Maintenance Agreement (REMA) and the rights of a third-party Golf Course Owner.

Why this result: The Department lacked jurisdiction to resolve the dispute because the REMA was not considered a 'community document' under A.R.S. § 33-1802(2) and the requested relief implicated the rights of a non-party (the Golf Course Owner) over whom the Department has no jurisdiction.

Key Issues & Findings

Jurisdiction over REMA Amendment Dispute

Petitioner sought a finding that REMA Amendments 2 and 3 were void because the HOA board unilaterally amended the REMA without the required member vote (two-thirds majority) as specified in the CC&Rs and REMA, and sought an order for the removal of the amendments from the record.

Orders: The Administrative Law Judge recommended granting Respondent's Motion for Summary Judgment and dismissing the Complaint.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 32-2199.01(A)
  • A.R.S. § 33-1802(2)
  • CC&Rs 14.2
  • REMA Article 12

Analytics Highlights

Topics: jurisdiction, summary judgment, golf course, REMA, third party
Additional Citations:

  • A.R.S. § 32-2199.01(A)
  • A.R.S. § 33-1802(2)
  • A.R.S. § 32-2199.02(A)
  • CC&Rs 14.2
  • REMA 5.1
  • REMA Article 12

Video Overview

Audio Overview

Decision Documents

17F-H1716024-REL Decision – 563660.pdf

Uploaded 2025-10-09T03:31:21 (99.8 KB)

17F-H1716024-REL Decision – 568840.pdf

Uploaded 2025-10-09T03:31:21 (854.5 KB)





Briefing Doc – 17F-H1716024-REL


Briefing Document: Gronlund vs. Cottonfields Community Association (Case No. 17F-H1716024-REL)

Executive Summary

This document synthesizes the legal proceedings and decision in the case of Kurt Gronlund versus the Cottonfields Community Association, adjudicated by the Arizona Office of Administrative Hearings. The core of the dispute centers on the petitioner’s allegation that the Homeowners Association (HOA) board improperly amended a critical land-use agreement in 2011 without a required vote of the membership, ultimately enabling the commercial rezoning of an adjacent golf course.

The Administrative Law Judge (ALJ) granted the HOA’s motion for summary judgment, and the Commissioner of the Arizona Department of Real Estate adopted this decision, dismissing the petition. The dismissal was not based on the merits of the petitioner’s claim but on a crucial lack of jurisdiction. The ALJ determined that the Department of Real Estate could not rule on the matter for two primary reasons:

1. The governing agreement in question (the REMA) is not a “community document” as defined by the relevant Arizona statute, placing it outside the Department’s purview.

2. The relief sought by the petitioner would directly implicate the property rights of a third party (the Golf Course Owner) and a prior legal settlement, which exceeds the Department’s statutory authority.

While acknowledging the petitioner’s concerns about the golf course development may be “well-founded,” the decision concluded that the petitioner’s available remedies lie in electing a new HOA board, filing a lawsuit in a judicial forum, or seeking legislative change.

Case Overview

This case involves a dispute between a homeowner and his HOA regarding the amendment of a land-use agreement governing a golf course property.

Parties Involved

Name / Entity

Description

Petitioner

Kurt Gronlund

A homeowner within the Cottonfields community and a member of the Respondent association.

Respondent

Cottonfields Community Association

The Homeowners Association (HOA) for the Cottonfields development.

Third Party

The Golf Course Owner

A separate legal entity that owns the golf course property adjacent to the community.

Case Chronology

December 11, 2001: The developer records both the Reciprocal Easement and Maintenance Agreement (REMA) and the community’s CC&Rs.

March 2011: The Cottonfields HOA board votes 3-2 to amend the REMA.

March 3 & May 16, 2011: Amendments 2 and 3 to the REMA, which alter the legal description of the golf course property, are officially recorded.

2014: Litigation (Case No. CV2014-000639) begins in Maricopa County Superior Court between the HOA and the Golf Course Owner regarding the REMA and its amendments.

July 2015: The HOA and the Golf Course Owner execute a settlement agreement.

August 7, 2015: The superior court lawsuit is dismissed with prejudice.

October 5, 2016: The HOA president represents to the City Council that homeowners favor rezoning the golf course. The Council approves a rezone from “GC” (Golf Course) to Commercial, relying on the 2011 REMA amendments.

February 3, 2017: Kurt Gronlund files a Homeowners Association Dispute Process Petition with the Arizona Department of Real Estate.

April 27, 2017: The HOA files a Motion for Summary Judgment, arguing a lack of jurisdiction.

May 10, 2017: Oral arguments on the motion are held.

May 11, 2017: The Administrative Law Judge issues a decision recommending dismissal.

May 11, 2017: The Commissioner of the Department of Real Estate issues a Final Order adopting the ALJ’s decision and dismissing the case.

Core Dispute: Unilateral Amendment of the REMA

The petitioner’s case is founded on the claim that the HOA board acted in violation of its own governing documents when it facilitated changes to the REMA without consulting the community’s homeowners.

Petitioner’s Allegations

On February 3, 2017, Kurt Gronlund filed a petition asserting that the HOA board’s actions in 2011 were illegal and directly led to the loss of protection for homeowner property values.

The Unilateral Action: The petition states, “[In] March 2011 the HOA board voted 3-2 to unilaterally amend REMA 5.1’s use restriction on the golf course property without the required vote of the approximately 450 eligible class members…”

The Consequence: These amendments were used as justification for the HOA president to support a commercial rezoning of the golf course property before the City Council on October 5, 2016. The petitioner argues this “stripped away that last layer of protection” for homeowners who believed the golf course could not be developed without their approval.

Homeowner Reliance: During oral arguments, the petitioner testified that members relied on the protections within the CC&Rs and REMA when purchasing their homes, believing development required a two-thirds majority vote.

Petitioner’s Requested Relief

The petitioner respectfully requested that the Administrative Court issue the following orders:

1. Find that REMA Section 5.1 may not be amended without the member vote required by REMA Article 12 and CC&Rs Section 14.2.

2. Find that Amendments 2 and 3 to the REMA are void and unenforceable.

3. Order the HOA Board to remove Amendments 2 and 3 from the public record.

Analysis of Governing Document Provisions

The dispute hinges on the interpretation of and interaction between two key legal documents: the REMA and the HOA’s CC&Rs.

Document

Section

Description

Key Language

Section 5.1

Use Restriction: Restricts the golf course property’s use to either a golf course or open space.

“The Golf Course Property shall be used solely and exclusively for Golf Course Use or as open space, and for no other purposes.”

Article 12

Amendment Procedure: Stipulates that changes to Section 5.1 require the same member vote as an amendment to the HOA’s Declaration (CC&Rs).

“…no termination, cancellation, change, modification or amendment of paragraph 5.1… shall be made without the written approval thereof by the number of Members… required to amend the Declaration pursuant to Section 13.2 thereof.”

Section 14.2

Member Vote Requirement: Defines the threshold for amending the CC&Rs.

“…may be amended only by the affirmative vote (in person or by proxy) or written consent of: (a) Members holding not less than two-thirds (2/3) of all Class A votes then entitled to be cast; and (b) Members holding not less than two thirds (2/3) of all Class B votes…”

Section 14.17

Third-Party Rights: Protects the rights of the Golf Course Owner, stating that provisions benefiting them cannot be amended without their written consent.

“…no provision of this Declaration… which grants to or confers upon the Golf Course Owner or the Golf Course Property any rights… shall be modified, amended or revoked in any way without the express written consent of the Golf Course Owner.”

Jurisdictional Challenge and Legal Rationale for Dismissal

The HOA’s defense focused not on the factual allegations but on the argument that the Department of Real Estate was the improper forum for this dispute. The ALJ ultimately agreed with this position.

Respondent’s Motion for Summary Judgment

The Cottonfields Community Association argued that the Department could not grant the petitioner’s requested relief because:

1. The REMA is not a “community document” as defined under Arizona law (A.R.S. § 32-2199.01(A)).

2. The Golf Course Owner is a third party over whom the Department lacks jurisdiction.

3. Any ruling would affect the rights of this third party and could impact the 2015 settlement agreement from the superior court case.

Administrative Law Judge’s Conclusions of Law

The ALJ’s decision was based on a strict interpretation of the Department’s statutory authority.

REMA is Not a “Community Document”: The judge found that although the REMA references the CC&Rs, it does not meet the legal definition of a community document under A.R.S. § 33-1802(2), which defines them as “the declaration, bylaws, articles of incorporation, if any, and rules, if any.” The Department’s authority under A.R.S. § 32-2199.01(A) is limited to violations of these specific documents.

Implication of Third-Party Rights: The decision states that the petitioner’s request to void the amendments “implicates the Golf Course Owner’s interests in its property and may affect the settlement that the Golf Course Owner entered into with Respondent.” The law does not grant the Department “jurisdiction over disputes that implicate the rights of third parties.”

Petitioner’s Available Remedies: While validating the petitioner’s underlying worries, the judge outlined specific alternative courses of action. The decision states: “Petitioner’s concerns about development of the golf course may be well-founded. However, under applicable statutes, at this time, his available remedies are to elect a board that will better protect members’ interest in maintaining the golf course, to file suit in a judicial forum against Respondent and the Golf Course Owner, or to ask the legislature to amend A.R.S. §§ 33-1802(2) and 32-2199.01(A).”

Final Order and Disposition

Based on the legal conclusions regarding jurisdiction, the case was dismissed.

ALJ Recommendation: On May 11, 2017, Administrative Law Judge Diane Mihalsky recommended that the complaint be dismissed.

Commissioner’s Final Order: On May 11, 2017, Judy Lowe, Commissioner for the Arizona Department of Real Estate, issued a Final Order stating: “The Commissioner accepts the ALJ decision that the petition in this matter be dismissed.”

Further Action: The Final Order noted that a party may file for a rehearing or review within thirty days, or may appeal the final administrative decision by filing a complaint for judicial review.






Study Guide – 17F-H1716024-REL


Study Guide: Gronlund v. Cottonfields Community Association

This guide provides a detailed review of the administrative case Kurt Gronlund v. Cottonfields Community Association (No. 17F-H1716024-REL), focusing on the key legal arguments, governing documents, and the court’s final decision regarding jurisdiction.

Short-Answer Quiz

Answer the following questions in 2-3 sentences based on the provided legal documents.

1. Who are the Petitioner and Respondent in this case, and what is their relationship?

2. What central allegation did the Petitioner make regarding the HOA board’s actions in March 2011?

3. What specific relief did the Petitioner request from the Administrative Court in his petition?

4. Identify the two key legal documents at the heart of the dispute and briefly explain their respective roles.

5. According to REMA Article 12 and CC&Rs Section 14.2, what was the required procedure to amend the use restriction on the golf course property?

6. On what primary grounds did the Respondent, Cottonfields Community Association, file a motion for summary judgment?

7. What was the Administrative Law Judge’s key legal conclusion regarding the status of the Reciprocal Easement and Maintenance Agreement (REMA)?

8. Why did the Administrative Law Judge ultimately find that the Arizona Department of Real Estate lacked the jurisdiction to grant the Petitioner’s requested relief?

9. What alternative remedies did the Administrative Law Judge suggest were available to the Petitioner?

10. What was the final outcome of the case as determined by the Commissioner of the Department of Real Estate?

——————————————————————————–

Answer Key

1. The Petitioner is Kurt Gronlund, a homeowner and member of the Cottonfields Community Association. The Respondent is the Cottonfields Community Association, which is the Homeowners Association (HOA) for the residential development where the Petitioner owns a home.

2. The Petitioner alleged that the HOA board voted 3-2 to unilaterally amend REMA Section 5.1’s use restriction on the golf course property. This action was allegedly taken without the required vote of the approximately 450 eligible class members, which constituted a violation of the governing documents.

3. The Petitioner requested that the court find Amendments 2 and 3 to the REMA to be void and unenforceable, order the HOA Board to remove these amendments from the public record, and issue a finding that REMA 5.1 may not be amended without the member vote required by the CC&Rs.

4. The key documents are the Declaration of Covenants, Conditions and Restrictions (CC&Rs) and the Reciprocal Easement and Maintenance Agreement (REMA). The CC&Rs are the primary governing documents for the HOA, while the REMA is a separate agreement between the developer/HOA and the Golf Course Owner specifically governing the use of the golf course property.

5. REMA Article 12 required that any amendment to Section 5.1 (the use restriction) receive written approval from the number of Members specified in the CC&Rs. CC&Rs Section 14.2 stipulates this requires an affirmative vote or written consent of members holding at least two-thirds (2/3) of all Class A and Class B votes.

6. The Respondent argued that the Department of Real Estate lacked jurisdiction to rule on the matter. This argument was based on two points: the REMA was not a “community document” as defined by Arizona statute, and the dispute involved the rights of the Golf Course Owner, a third party over whom the Department had no authority.

7. The Judge concluded that although the REMA references the CC&Rs, it is not a “community document” as defined in A.R.S. § 33-1802(2). This determination was central to the case, as the Department’s jurisdiction is limited to disputes concerning community documents.

8. The Department’s jurisdiction under A.R.S. § 32-2199.01(A) does not extend to disputes that implicate the rights of third parties. Because the Petitioner’s request would affect the property interests of the Golf Course Owner and a 2015 legal settlement, the Department was not statutorily authorized to resolve the issue.

9. The Judge suggested three potential remedies: elect a new HOA board that will better protect members’ interests, file a lawsuit in a judicial forum against both the HOA and the Golf Course Owner, or ask the state legislature to amend the relevant statutes governing HOAs and community documents.

10. The Commissioner of the Department of Real Estate adopted the Administrative Law Judge’s recommendation in a Final Order dated May 11, 2017. The Commissioner accepted the decision that the Department lacked jurisdiction and ordered that the Petitioner’s complaint be dismissed.

——————————————————————————–

Essay Questions

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

1. Analyze the distinction between a “community document” and the REMA as presented in this case. Why was this distinction the pivotal point in the Administrative Law Judge’s decision to recommend dismissal for lack of jurisdiction?

2. Discuss the procedural history of the dispute over the golf course property, beginning with the REMA amendments in 2011 and including the 2014 litigation, the 2015 settlement, and the 2016 rezoning. How did these prior events impact the arguments and outcome of Gronlund’s 2017 petition?

3. Explain the conflict between the powers granted to the HOA Board and Golf Course Owner in REMA Article 12 and the protections afforded to homeowners in the same article’s reference to CC&Rs Section 14.2. How did the Petitioner and Respondent interpret these clauses differently?

4. Evaluate the legal reasoning behind the Administrative Law Judge’s conclusion that the Department of Real Estate lacked jurisdiction over third parties like the Golf Course Owner. Why would resolving Gronlund’s petition necessarily implicate the rights of this third party?

5. The Judge outlines three potential remedies for the Petitioner: electoral, judicial, and legislative. Describe each of these remedies and discuss the potential challenges and benefits of each path in seeking to protect the golf course from development.

——————————————————————————–

Glossary of Key Terms

Definition

Administrative Law Judge (ALJ)

A judge who presides over administrative hearings at a government agency, in this case, the Office of Administrative Hearings (OAH). The ALJ in this matter was Diane Mihalsky.

A.R.S. (Arizona Revised Statutes)

The collection of all the laws passed by the Arizona state legislature. Specific statutes, such as A.R.S. § 32-2199.01(A) and § 33-1802(2), were central to this case.

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

The primary governing legal documents for a planned community or homeowners’ association that outline the rules and member obligations.

Commissioner

The head of a government department. In this case, Judy Lowe, the Commissioner of the Arizona Department of Real Estate, issued the Final Order.

Community Documents

As defined by A.R.S. § 33-1802(2), these include a planned community’s declaration (CC&Rs), bylaws, articles of incorporation, and rules. The REMA was determined not to fall under this definition.

Dismissed with Prejudice

A legal term for a final judgment that prevents the plaintiff from filing another case on the same claim. The 2014 lawsuit between the HOA and the Golf Course Owner was dismissed with prejudice.

Golf Course Owner

A separate legal entity that owned the golf course property and was a primary party to the REMA, but was not a party to this administrative case.

HOA (Homeowners Association) | An organization in a subdivision or planned community that creates and enforces rules for the properties within its jurisdiction. In this case, the Cottonfields Community Association. | | Jurisdiction | The official power to make legal decisions and judgments. The central legal issue of the case was whether the Arizona Department of Real Estate had jurisdiction over the dispute. | | Motion for Summary Judgment | A request made by a party asking the court to decide a case in their favor without a full trial, arguing that there are no material facts in dispute and that they are entitled to win as a matter of law. | | Office of Administrative Hearings (OAH) | An independent Arizona state agency that conducts evidentiary hearings for other state agencies to ensure fair and impartial decisions. | | Petitioner | The party who files a petition or brings an action before a court or administrative body. In this case, Kurt Gronlund. | | REMA (Reciprocal Easement and Maintenance Agreement) | A recorded legal agreement between the original developer/HOA and the Golf Course Owner that established mutual rights, easements, and obligations, including the critical use restriction on the golf course property. | | Respondent | The party against whom a petition is filed or an appeal is brought. In this case, the Cottonfields Community Association. |






Blog Post – 17F-H1716024-REL



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17F-H1716024-REL

2 sources

The provided sources consist of an Administrative Law Judge Decision and a subsequent Final Order from the Arizona Department of Real Estate concerning a dispute between homeowner Kurt Gronlund, the Petitioner, and the Cottonfields Community Association, the Respondent. The administrative law judge recommended granting the Association’s motion for summary judgment because the Department of Real Estate lacked jurisdiction over the matter, a recommendation which the Commissioner ultimately accepted. The core of the conflict was Gronlund’s petition challenging the Association’s 2011 amendments to a Reciprocal Easement and Maintenance Agreement (REMA), which governed the use of a golf course adjacent to the community. The decision clarified that the REMA was not classified as a “community document” under the relevant statutes, and furthermore, the requested relief would improperly implicate the rights of the Golf Course Owner, a third party over whom the Department had no authority. The final ruling therefore dismissed the petition, suggesting judicial action or legislative change as alternative remedies for the petitioner.



Case Participants

Petitioner Side

  • Kurt Gronlund (petitioner)

Respondent Side

  • Troy B. Stratman (attorney)
    Stratman Law Firm, PLC

Neutral Parties

  • Diane Mihalsky (ALJ)
  • Judy Lowe (Commissioner)
    Arizona Department of Real Estate
  • Abby Hansen (HOA Coordinator)
    Arizona Department of Real Estate
    Responsible for processing rehearing requests and listed on ADRE service email list.
  • LDettorre (administrative staff)
    Arizona Department of Real Estate
    Email contact listed ([email protected])
  • djones (administrative staff)
    Arizona Department of Real Estate
    Email contact listed ([email protected])
  • jmarshall (administrative staff)
    Arizona Department of Real Estate
    Email contact listed ([email protected])
  • ncano (administrative staff)
    Arizona Department of Real Estate
    Email contact listed ([email protected])