{ “case”: { “docket_no”: “22F-H2222036-REL”, “case_title”: “Camelback Del Este Homeowners Association, Inc. vs. Green Elephant Development LLC”, “decision_date”: “2022-04-29”, “alj_name”: “Jenna Clark”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “Does the Arizona Department of Real Estate have jurisdiction over every type of homeowner association dispute?”, “short_answer”: “No, the Department only has jurisdiction over disputes involving a “planned community” as defined by statute.”, “detailed_answer”: “The ALJ decision clarifies that the Department’s jurisdiction is limited to disputes between an owner and a “planned community” association. If an association does not meet the statutory definition of a planned community, the administrative court cannot hear the case.”, “alj_quote”: “This matter falls outside the Department’s jurisdiction pursuant to ARIZ. REV. STAT. §§ 32-2102 and 32-2199 et seq., regarding a dispute between an owner and a planned community association.”, “legal_basis”: “ARIZ. REV. STAT. §§ 32-2102, 32-2199”, “topic_tags”: [ “jurisdiction”, “planned community definition”, “administrative authority” ] }, { “question”: “What are the specific requirements for an association to be legally considered a ‘planned community’?”, “short_answer”: “A planned community must own/operate real estate (or maintain roadways) and have a declaration mandating membership and assessments.”, “detailed_answer”: “According to Arizona statute cited in the decision, a planned community requires three elements: 1) The association owns/operates real estate or holds easements to maintain roadways; 2) The declaration explicitly states owners are mandatory members; and 3) The declaration explicitly states owners are required to pay assessments.”, “alj_quote”: “a real estate development that includes real estate owned and operated by or real estate on which an easement to maintain roadways or a covenant to maintain roadways is held by a nonprofit corporation… and 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”: “ARIZ. REV. STAT. § 33-1802(4)”, “topic_tags”: [ “legal definitions”, “planned community”, “assessments”, “mandatory membership” ] }, { “question”: “If my HOA membership is voluntary, can the HOA take me to an administrative hearing?”, “short_answer”: “No, the Office of Administrative Hearings lacks authority over voluntary associations.”, “detailed_answer”: “If the evidence shows that membership is voluntary rather than mandatory, the association does not qualify as a planned community. Consequently, the administrative law judge must dismiss the case for lack of authority.”, “alj_quote”: “Because the evidence failed to establish, at a minimum, that the Association is a planned community, OAH does not have any authority to consider a dispute between the Association and Respondent”, “legal_basis”: “ARIZ. REV. STAT. §§ 32-2199(2), 41-1092”, “topic_tags”: [ “voluntary membership”, “jurisdiction”, “dismissal” ] }, { “question”: “Who has the burden of proof in a hearing regarding an alleged violation?”, “short_answer”: “The Petitioner (the party filing the complaint) bears the burden of proof.”, “detailed_answer”: “The party bringing the action must prove their case by a preponderance of the evidence. This includes proving that the tribunal has jurisdiction and that the specific violation occurred.”, “alj_quote”: “In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence first that this matter is properly before the OAH and then that Respondent violated Section 5 of the DECLARATION.”, “legal_basis”: “ARIZ. ADMIN. CODE R2-19-119”, “topic_tags”: [ “burden of proof”, “legal standards”, “procedure” ] }, { “question”: “Does an HOA need to provide actual measurements to prove a setback violation?”, “short_answer”: “Yes, specific evidence of the actual construction dimensions is required.”, “detailed_answer”: “The ALJ noted that the HOA failed to provide evidence that construction had factually taken place that exceeded the specific setback requirements (e.g., 7ft side, 20ft front). Without measurements or factual proof of the construction’s location relative to property lines, the violation cannot be established.”, “alj_quote”: “[N]o evidence was submitted to establish… that any construction has factually taken place… which exceeds the DECLARATION’S 7ft side setback and 20ft front setback property requirements.”, “legal_basis”: “Preponderance of the Evidence”, “topic_tags”: [ “evidence”, “setbacks”, “violations” ] }, { “question”: “Is an HOA considered a ‘planned community’ if it does not own any common areas?”, “short_answer”: “No, the association must own real estate or hold easements for maintaining roadways.”, “detailed_answer”: “A critical component of the legal definition of a planned community is that the association must own and operate real estate or hold specific maintenance easements. Failure to prove this ownership prevents the association from being classified as a planned community under the statute.”, “alj_quote”: “Petitioner failed to present any evidence that it owns and operates any real estate, or that it has an easement or covenant to maintain roadways.”, “legal_basis”: “ARIZ. REV. STAT. § 33-1802(4)”, “topic_tags”: [ “common areas”, “property ownership”, “planned community definition” ] }, { “question”: “What is the standard of proof used in these administrative hearings?”, “short_answer”: “Preponderance of the evidence.”, “detailed_answer”: “The standard is whether the contention is more probably true than not. This is described as the greater weight of the evidence or superior evidentiary weight.”, “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”: “MORRIS K. UDALL, ARIZONA LAW OF EVIDENCE § 5 (1960)”, “topic_tags”: [ “legal standards”, “preponderance of evidence” ] } ] }