George Wolchko v. Victoria Manor Management & Property Owners

Case Summary

Case ID 25F-H025-REL
Agency ADRE
Tribunal OAH
Decision Date 2025-05-05
Administrative Law Judge Samuel Fox
Outcome partial
Filing Fees Refunded $2,000.00
Civil Penalties $150.00

Parties & Counsel

Petitioner George Wolchko Counsel
Respondent Victoria Manor Management & Property Owners Association Counsel Christopher Duren

Alleged Violations

A.R.S. § 33-1805
Bylaws, Article III, Section 4
CC&Rs, Section 4.04
Bylaws, Article IV, Section 1

Outcome Summary

The Petitioner prevailed on three of the four issues: Violation of AZ Law on Delivery of Community Documents (A.R.S. § 33-1805), Failure to Uphold CCRs Regarding Common Wall Repairs (Bylaws/CC&R violation), and operating with fewer than the minimum required number of board members (Bylaws violation). The Petitioner did not prevail on the issue regarding the Failure to Hold a Special HOA Meeting.

Why this result: Petitioner's request for an “emergency meeting” regarding the wall repair was deemed technically insufficient to qualify as a formal 'special meeting' petition under the Bylaws.

Key Issues & Findings

Violation of AZ Law on Delivery of Community Documents

The HOA failed to provide the Kachina Management contract within the required ten business days for examination or copies, despite numerous requests.

Orders: Respondent failed to comply with A.R.S. § 33-1805 by not making documents available for examination within ten business days of request.

Filing fee: $500.00, Fee refunded: Yes, Civil penalty: $50.00

Disposition: petitioner_win

Cited:

  • A.R.S. § 33-1805
  • Bylaws, Article X
  • CC&Rs, Section 9.07

Failure to Hold a Special HOA Meeting

The HOA failed to hold a special meeting requested by a valid petition signed by 25% of members, concerning common wall damage.

Filing fee: $500.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 33-1804(A)
  • Bylaws, Article III, Section 4

Failure to Uphold CCRs Regarding Common Wall Repairs

The HOA refused to repair a common wall designated as a Common Element after damage was caused by an HOA-sanctioned electrician, failing their maintenance obligation.

Orders: The Board failed to maintain a Common Element (electrical conduit/wall area) in good repair after its hired contractor caused damage, violating Bylaws and CC&R obligations.

Filing fee: $500.00, Fee refunded: Yes, Civil penalty: $50.00

Disposition: petitioner_win

Cited:

  • CC&Rs, Section 4.04
  • Bylaws, Article IV, Section 3
  • A.R.S. § 33-1803(A)

Violations of HOA Elections Procedures and Community Documents (Failure to seat required number of board members)

The HOA Board violated governing documents by operating with only two members, failing to maintain the minimum required number of three directors.

Orders: Respondent violated Bylaws Article IV, Section 1 by not maintaining a Board of Directors composed of no fewer than three persons.

Filing fee: $500.00, Fee refunded: Yes, Civil penalty: $50.00

Disposition: petitioner_win

Cited:

  • Bylaws, Article IV, Section 1
  • CC&Rs, Section 5.03

Analytics Highlights

Topics: HOA governance, Document request, Board composition, Common elements maintenance, Filing fee refund, Civil penalty
Additional Citations:

  • A.R.S. § 33-1805
  • Bylaws, Article IV, Section 1
  • CC&Rs, Section 4.04
  • Bylaws, Article IV, Section 3
  • A.R.S. § 33-1804(A)

Audio Overview

Decision Documents

25F-H025-REL Decision – 1268559.pdf

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25F-H025-REL Decision – 1276022.pdf

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25F-H025-REL Decision – 1276027.pdf

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25F-H025-REL Decision – 1282178.pdf

Uploaded 2026-01-23T18:16:05 (49.3 KB)

25F-H025-REL Decision – 1288973.pdf

Uploaded 2026-01-23T18:16:09 (52.0 KB)

25F-H025-REL Decision – 1290761.pdf

Uploaded 2026-01-23T18:16:13 (50.5 KB)

25F-H025-REL Decision – 1301417.pdf

Uploaded 2026-01-23T18:16:17 (224.5 KB)





Briefing Doc – 25F-H025-REL


Briefing Document: Wolchko v. Victoria Manor Management & Property Owners Association

Executive Summary

This document synthesizes the key proceedings, arguments, and outcomes of the administrative case George Wolchko v. Victoria Manor Management & Property Owners Association, Case No. 25F-H025-REL, adjudicated by the Arizona Office of Administrative Hearings. The Petitioner, George Wolchko, a homeowner, filed a four-issue petition against the Respondent, his Homeowners Association (HOA), alleging violations of Arizona statutes and the community’s governing documents.

The hearing, held on April 14, 2025, resulted in a mixed but largely favorable outcome for the Petitioner. The Administrative Law Judge (ALJ) found the HOA in violation on three of the four claims:

1. Failure to Provide Documents: The HOA violated A.R.S. § 33-1805 by not making its management contract with Kachina Management available within the legally mandated ten-business-day period.

2. Failure to Repair Common Wall: The HOA violated its own Bylaws and CC&Rs by failing its duty to maintain and repair a common element (an exterior wall and electrical conduit) after its hired contractor performed improper work, leaving a hole that was not weatherproof.

3. Failure to Fill Board Vacancy: The HOA violated its Bylaws, which mandate a board of no fewer than three members, by operating with only two directors since October 2024.

The HOA prevailed on one claim, Failure to Hold a Special Meeting, as the ALJ determined the Petitioner’s request, while clear in intent, was technically deficient under the Bylaws. The final order deemed Mr. Wolchko the prevailing party on three issues, ordering the HOA to reimburse him $1,500.00 in filing fees, to comply with community documents going forward, and levying a civil penalty of $150.00 against the Association.

Case Overview

Case Number

25F-H025-REL

Jurisdiction

Arizona Office of Administrative Hearings (OAH)

Presiding Judge

Administrative Law Judge Samuel Fox

Hearing Date

April 14, 2025

Petitioner

George Wolchko

Respondent

Victoria Manor Management & Property Owners Association

Respondent’s Counsel

Christopher Duren (of Gottlieb Law, PLC)

Key Parties and Witnesses

George Wolchko: The Petitioner, owner of a home in the Victoria Manor community since 2018 and a former board member (2018-2023). Testified on his own behalf.

Victoria Manor Management & Property Owners Association: The Respondent, a planned community in Mesa, Arizona, consisting of eight units and seven owners.

Joseph Kidd: A current HOA board member, serving since November 2022. Testified for the Respondent.

Michael Mott: A current HOA board member. Was present at the hearing but did not testify.

Kachina Management, Inc.: The HOA’s management company, contracted in April 2024.

Chris Jones: Elected to the board in September 2024 but resigned shortly thereafter, creating the board vacancy at the heart of Claim 4.

Analysis of Claims, Evidence, and Findings

Claim 1: Violation of AZ Law on Delivery of Community Documents

Petitioner’s Allegation: The HOA violated A.R.S. § 33-1805 and its governing documents by failing to provide a copy of the Kachina Management contract despite numerous requests beginning in May 2024.

Petitioner’s Testimony & Evidence (Wolchko):

◦ Made his first formal email request for the contract on May 6, 2024. He followed up on May 12 and May 26.

◦ The management company, Kachina, responded on May 29, offering an in-person review on June 3 or 4.

◦ Wolchko testified that driving 45 minutes each way was not a “reasonably available” means of access, especially when a digital copy existed and he travels internationally. He noted the CC&Rs explicitly allow for delivery by mail.

◦ After canceling an in-person appointment due to an emergency, his repeated requests for a digital or mailed copy were met with insistence on in-person review.

◦ The contract was finally produced in February 2025, nearly a year after the initial request and only after the petition was filed.

Respondent’s Position:

◦ Argued that by offering in-person inspection at their office, they fulfilled their statutory obligation to make records “reasonably available for examination.”

◦ Emails from Kachina Management to Wolchko confirmed they had prepared the documents for his review on the dates offered. They stated Wolchko canceled the appointment and never rescheduled.

ALJ’s Finding: Violation Found. The ALJ concluded that more than ten business days passed between the initial request on May 6, 2024, and the date the documents were made available for examination on June 3, 2024. This delay constituted a failure to comply with A.R.S. § 33-1805.

Claim 2: Failure to Hold a Special HOA Meeting

Petitioner’s Allegation: The HOA violated A.R.S. § 33-1804(A) and its Bylaws by failing to hold a special meeting requested via a valid petition signed by 25% of the members (Wolchko and Terrance Greer).

Petitioner’s Testimony & Evidence (Wolchko):

◦ Submitted a formal, signed request on June 19, 2024, to hold an “emergency HOA meeting to address repairs on a community common wall.”

◦ He argued this was a valid petition for a special meeting and that the Board ignored it.

◦ The Respondent falsely claimed the meeting was held during the September annual meeting, but the annual meeting notice and minutes contained no mention of the special meeting’s purpose.

Respondent’s Position:

◦ Argued the request was for an “emergency meeting,” which, under statute, can only be called by the Board of Directors, not by member petition.

◦ Contended there is no provision in the governing documents for 25% of members to call an emergency meeting.

◦ Noted that at the annual meeting in September, Wolchko was explicitly asked if he had any issues to discuss and he declined.

ALJ’s Finding: No Violation. The ALJ found that although the intent was clearly to request a special meeting, the petition was technically deficient. It used the term “emergency meeting,” did not include a place for the meeting, and did not use the phrase “special meeting.” While a “mere technicality,” this was sufficient to deem the petition ineffective. The Respondent was deemed the prevailing party on this issue.

Claim 3: Failure to Uphold CCRs Regarding Common Wall Repairs

Petitioner’s Allegation: The HOA failed its duty to repair a common wall damaged by its own electrician in February 2024.

Petitioner’s Testimony & Evidence (Wolchko):

◦ In February 2024, an HOA-hired contractor, Blue State Electric, performed work on an electrical conduit on his building’s exterior wall, which the board had previously designated a “true common area” with shared 50/50 maintenance costs.

◦ The work left a hole filled with foam that was not watertight. His immediate notification on March 15, 2024, was dismissed by board member Joseph Kidd, who claimed the hole was a pre-existing condition exposed by the work and therefore not the HOA’s responsibility.

◦ After months of the board refusing to act, he investigated the box himself, discovering an HOA wire running through his wall. He stated he only touched the box to prove it was an HOA issue after being told to “deal with it myself.”

◦ He disputed the validity of an $1,867 invoice from a second contractor (Canyon State), stating it was solicited by the board to blame him for damage he did not cause.

Respondent’s Testimony & Evidence (Kidd):

◦ The electrical box and conduit are common elements that serve four buildings.

◦ Wolchko is not a licensed Arizona electrician and had no authorization to touch the common element.

◦ Kidd testified that after Wolchko sent a video of himself pulling the box out, the board hired Canyon State to inspect it.

◦ He acknowledged offering to help Wolchko patch the stucco but denied authorizing any electrical work.

ALJ’s Finding: Violation Found. The ALJ determined that the preponderance of evidence supported that the “Board-hired electrician installed the wrong kind of box and left a section of the wall exposed without proper weather proofing.” Because the wall and electrical conduit were common elements, the board had a duty to maintain them in good repair. The board “declined to correct the problem its contractor caused,” thus violating the Bylaws and CC&Rs.

Claim 4: Failure to Maintain Required Number of Board Members

Petitioner’s Allegation: The HOA violated its Bylaws (Article IV, Section 1), which require a board of “no less than three (3) persons,” by operating with only two members.

Petitioner’s Testimony & Evidence (Wolchko):

◦ Following the September 19, 2024 election, three members were elected: Joseph Kidd, Michael Mott, and Chris Jones.

◦ Chris Jones resigned almost immediately, leaving the board with two members.

◦ He argued that while the bylaws state a vacancy “may be filled” by the remaining directors, this grants authority, it does not waive the fundamental requirement of having at least three members.

◦ He noted that two other owners (himself and Terrance Greer), representing 25% of the HOA, were willing to serve, so the vacancy could be filled.

Respondent’s Testimony & Evidence (Kidd):

◦ Confirmed Jones resigned by early October 2024.

◦ Stated the board reached out to other members who expressed no interest in serving.

◦ Testified that Kachina Management advised them that filling the seat was at their discretion.

◦ The Respondent’s legal argument was that the Bylaw’s use of the word “may” (“may be filled”) makes filling the vacancy optional, not mandatory.

ALJ’s Finding: Violation Found. The ALJ was “not persuasive” by the Respondent’s argument. The decision states: “This provision allows for the appointment, rather than the election, of a Director to a vacant seat. It does not absolve the Board from having the minimum number of Directors.” The preponderance of evidence established that the HOA violated its Bylaws by not having enough Board members.

Final Decision and Order

Prevailing Party: George Wolchko was deemed the prevailing party on Petition Issues 1, 3, and 4. Victoria Manor was deemed the prevailing party on Issue 2.

Reimbursement: The Respondent was ordered to pay the Petitioner $1,500.00 for filing fees within thirty days.

Compliance: The Respondent was directed to “comply with the requirements of its Community Documents going forward.”

Civil Penalty: A civil penalty of $150.00 was levied against the Respondent.

Decision Date: May 5, 2025.






Study Guide – 25F-H025-REL


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In this case, a petition for an ’emergency meeting’ was deemed ineffective because that specific type of meeting is a Board function, whereas homeowners are authorized to request ‘special meetings’.”, “alj_quote”: “In the context of the communications about this meeting, it is clear that Petitioner was requesting a ‘special meeting’ not an ’emergency meeting,’ which can only be called by the Board.”, “legal_basis”: “Bylaws”, “topic_tags”: [ “meetings”, “procedure”, “homeowner rights” ] }, { “question”: “What specific details must be included in a petition for a special meeting?”, “short_answer”: “The petition must usually include the date, hour, place of the meeting, and the specific purpose or topic.”, “detailed_answer”: “Failure to include all technical details required by the Bylaws—such as the specific place of the meeting or the correct label (‘special meeting’)—can render a petition invalid, even if it has the required number of signatures.”, “alj_quote”: “The petition did not include a place for the meeting, the topic to be discussed, or the phrase ‘special meeting.’ … Petitioner’s special meeting request did not fully comply with the requirements of the Bylaws. 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In this case, operating with two directors when the Bylaws required a minimum of three was a violation.”, “alj_quote”: “Article IV, section 1 of the Bylaws require a Board of no fewer than three people. The preponderance of the evidence established that the Board has consisted of two people for some time… The preponderance of the evidence supports that Respondent violated the Bylaws by not having enough Board members.”, “legal_basis”: “Bylaws Article IV, Section 1”, “topic_tags”: [ “board composition”, “bylaws”, “vacancies” ] }, { “question”: “Does a Bylaw saying a vacancy ‘may be filled’ mean the Board can choose to leave a seat empty?”, “short_answer”: “No. That language typically describes the method of filling the seat (appointment) rather than permission to leave it vacant below the required minimum.”, “detailed_answer”: “HOAs cannot use the word ‘may’ in vacancy provisions to justify ignoring minimum board size requirements. The provision allows for appointment rather than election to fill the spot, but does not absolve the Board of the duty to have the required number of members.”, “alj_quote”: “Respondent argued that Section 5, Vacancies does not require the Board to fill a vacant position… This argument was not persuasive. This provision allows for the appointment, rather than the election, of a Director to a vacant seat. It does not absolve the Board from having the minimum number of Directors.”, “legal_basis”: “Bylaws”, “topic_tags”: [ “legal interpretation”, “board vacancies”, “bylaws” ] }, { “question”: “If I win my hearing against the HOA, can I get my filing fee back?”, “short_answer”: “Yes, the Administrative Law Judge can order the HOA to reimburse the petitioner for the filing fee.”, “detailed_answer”: “In this decision, the HOA was ordered to pay the $1,500.00 filing fee directly to the homeowners within 30 days because the homeowners prevailed on the majority of their issues.”, “alj_quote”: “IT IS ORDERED that Respondent pay Petitioners the filing fee of $1,500.00, to be paid directly to Petitioners within thirty (30) days of this Order.”, “legal_basis”: “Administrative Order”, “topic_tags”: [ “reimbursement”, “fees”, “penalties” ] }, { “question”: “Can the HOA be fined for these violations?”, “short_answer”: “Yes, a civil penalty may be levied, though it may be a nominal amount compared to the filing fees.”, “detailed_answer”: “The ALJ has the authority to levy civil penalties for violations of statutes or community documents. In this specific case, a penalty of $150.00 was deemed appropriate.”, “alj_quote”: “A Civil Penalty of $150.00 is found to be appropriate in this matter.”, “legal_basis”: “A.R.S. § 32-2199.02”, “topic_tags”: [ “fines”, “civil penalty”, “enforcement” ] } ] }






Blog Post – 25F-H025-REL


{ “case”: { “docket_no”: “25F-H025-REL”, “case_title”: “George Wolchko v. Victoria Manor Management & Property Owners Association”, “decision_date”: “2025-05-05”, “alj_name”: “Samuel Fox”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “How long does the HOA have to provide records after I request them?”, “short_answer”: “The HOA has ten business days to fulfill a request to examine or provide copies of records.”, “detailed_answer”: “Under A.R.S. § 33-1805, an association must strictly adhere to a ten-business-day timeframe. In this case, providing access nearly a month after the initial request was found to be a violation of state law.”, “alj_quote”: “A.R.S. § 33-1805 provides an association ‘ten business days to fulfill a request for examination’ or ‘to provide copies of the requested records.’ … More than ten business days passed between May 6, 2024, and June 3, 2024. Petitioner demonstrated by a preponderance of the evidence that Respondent, through Kachina, failed to comply with A.R.S. § 33-1805.”, “legal_basis”: “A.R.S. § 33-1805”, “topic_tags”: [ “records request”, “deadlines”, “HOA obligations” ] }, { “question”: “Can homeowners call an ’emergency meeting’ regarding repairs?”, “short_answer”: “Generally, no. Homeowners should request a ‘special meeting’ instead, as ’emergency meetings’ are typically reserved for the Board.”, “detailed_answer”: “While homeowners may petition for a meeting, using the correct terminology is critical. In this case, a petition for an ’emergency meeting’ was deemed ineffective because that specific type of meeting is a Board function, whereas homeowners are authorized to request ‘special meetings’.”, “alj_quote”: “In the context of the communications about this meeting, it is clear that Petitioner was requesting a ‘special meeting’ not an ’emergency meeting,’ which can only be called by the Board.”, “legal_basis”: “Bylaws”, “topic_tags”: [ “meetings”, “procedure”, “homeowner rights” ] }, { “question”: “What specific details must be included in a petition for a special meeting?”, “short_answer”: “The petition must usually include the date, hour, place of the meeting, and the specific purpose or topic.”, “detailed_answer”: “Failure to include all technical details required by the Bylaws—such as the specific place of the meeting or the correct label (‘special meeting’)—can render a petition invalid, even if it has the required number of signatures.”, “alj_quote”: “The petition did not include a place for the meeting, the topic to be discussed, or the phrase ‘special meeting.’ … Petitioner’s special meeting request did not fully comply with the requirements of the Bylaws. Although it is a mere technicality, it is sufficient to deem the petition for a special meeting ineffective.”, “legal_basis”: “Bylaws Article III, Section 4”, “topic_tags”: [ “meetings”, “petitions”, “technicalities” ] }, { “question”: “Is the HOA responsible if a contractor they hired does poor work on a common element?”, “short_answer”: “Yes. The HOA has a duty to maintain common elements and correct problems caused by their contractors.”, “detailed_answer”: “If an HOA-hired contractor installs incorrect equipment or leaves a common element exposed to damage (like weather), the Board cannot decline to fix it. They retain the obligation to maintain the area in good repair.”, “alj_quote”: “The preponderance of the evidence supports that the Board-hired electrician installed the wrong kind of box and left a section of the wall exposed without proper weather proofing… The Board declined to correct the problem its contractor caused… The preponderance of the evidence supports that the Board failed to maintain this area in good repair in violation of the Bylaws and CC&R.”, “legal_basis”: “Bylaws Article IV, Section 3; CC&R Section 4.05(2)”, “topic_tags”: [ “maintenance”, “common elements”, “contractors” ] }, { “question”: “Can the HOA Board operate with fewer members than the Bylaws require?”, “short_answer”: “No. If the Bylaws state a minimum number of directors, the Board must maintain that number.”, “detailed_answer”: “The Board cannot choose to operate with fewer directors than mandated. In this case, operating with two directors when the Bylaws required a minimum of three was a violation.”, “alj_quote”: “Article IV, section 1 of the Bylaws require a Board of no fewer than three people. The preponderance of the evidence established that the Board has consisted of two people for some time… The preponderance of the evidence supports that Respondent violated the Bylaws by not having enough Board members.”, “legal_basis”: “Bylaws Article IV, Section 1”, “topic_tags”: [ “board composition”, “bylaws”, “vacancies” ] }, { “question”: “Does a Bylaw saying a vacancy ‘may be filled’ mean the Board can choose to leave a seat empty?”, “short_answer”: “No. That language typically describes the method of filling the seat (appointment) rather than permission to leave it vacant below the required minimum.”, “detailed_answer”: “HOAs cannot use the word ‘may’ in vacancy provisions to justify ignoring minimum board size requirements. The provision allows for appointment rather than election to fill the spot, but does not absolve the Board of the duty to have the required number of members.”, “alj_quote”: “Respondent argued that Section 5, Vacancies does not require the Board to fill a vacant position… This argument was not persuasive. This provision allows for the appointment, rather than the election, of a Director to a vacant seat. It does not absolve the Board from having the minimum number of Directors.”, “legal_basis”: “Bylaws”, “topic_tags”: [ “legal interpretation”, “board vacancies”, “bylaws” ] }, { “question”: “If I win my hearing against the HOA, can I get my filing fee back?”, “short_answer”: “Yes, the Administrative Law Judge can order the HOA to reimburse the petitioner for the filing fee.”, “detailed_answer”: “In this decision, the HOA was ordered to pay the $1,500.00 filing fee directly to the homeowners within 30 days because the homeowners prevailed on the majority of their issues.”, “alj_quote”: “IT IS ORDERED that Respondent pay Petitioners the filing fee of $1,500.00, to be paid directly to Petitioners within thirty (30) days of this Order.”, “legal_basis”: “Administrative Order”, “topic_tags”: [ “reimbursement”, “fees”, “penalties” ] }, { “question”: “Can the HOA be fined for these violations?”, “short_answer”: “Yes, a civil penalty may be levied, though it may be a nominal amount compared to the filing fees.”, “detailed_answer”: “The ALJ has the authority to levy civil penalties for violations of statutes or community documents. In this specific case, a penalty of $150.00 was deemed appropriate.”, “alj_quote”: “A Civil Penalty of $150.00 is found to be appropriate in this matter.”, “legal_basis”: “A.R.S. § 32-2199.02”, “topic_tags”: [ “fines”, “civil penalty”, “enforcement” ] } ] }


Case Participants

Petitioner Side

  • George Wolchko (petitioner)
  • Terrance Greer (owner/petitioner supporter)
    Signed special meeting petition

Respondent Side

  • Christopher Duren (HOA attorney)
    GOTTLIEB LAW, PLC
    Appeared as counsel for Respondent; referenced as Mr. Duran/Durham
  • Joseph Kidd (board member/witness)
    Victoria Manor Management & Property Owners Association
  • Michael Mott (board member)
    Victoria Manor Management & Property Owners Association
  • Benjamin L. Gottlieb (HOA attorney)
    GOTTLIEB LAW, PLC
  • Mark Rounsaville (HOA representative)
    Kachina Management
    Also referred to as R. Mark Rounsaville; filed written answer for Respondent
  • Chris Jones (former board member)
    Victoria Manor Management & Property Owners Association
    Elected September 2024, resigned shortly thereafter
  • Ashley Love (property manager)
    Tri City Property Management
  • Deja Rabone (property manager)
    Tri City Property Management
  • Amy (law firm staff)
    GOTTLIEB LAW, PLC
  • Joshua (law firm staff)
    GOTTLIEB LAW, PLC
  • Chris (law firm staff)
    GOTTLIEB LAW, PLC
    Distinct from Christopher Duren
  • Karen F. (law firm staff)
    GOTTLIEB LAW, PLC

Neutral Parties

  • Samuel Fox (ALJ)
    OAH
  • Susan Nicolson (Commissioner)
    Arizona Department of Real Estate
  • Alexis Madrid (ALJ)
    OAH

Other Participants

  • Ron Owen (former board member)
    Victoria Manor Management & Property Owners Association
  • V. Nunez (ADRE staff)
    Arizona Department of Real Estate
  • D. Jones (ADRE staff)
    Arizona Department of Real Estate
  • L. Abril (ADRE staff)
    Arizona Department of Real Estate
  • M. Neat (ADRE staff)
    Arizona Department of Real Estate
  • L. Recchia (ADRE staff)
    Arizona Department of Real Estate
  • G. Osborn (ADRE staff)
    Arizona Department of Real Estate

George Wolchko v. Victoria Manor Management & Property Owners Association

Case Summary

Case ID 25F-H025-REL
Agency ADRE
Tribunal OAH
Decision Date 2025-05-05
Administrative Law Judge Samuel Fox
Outcome partial
Filing Fees Refunded $2,000.00
Civil Penalties $150.00

Parties & Counsel

Petitioner George Wolchko Counsel
Respondent Victoria Manor Management & Property Owners Association Counsel Christopher Duren

Alleged Violations

A.R.S. § 33-1805
Bylaws, Article III, Section 4
CC&Rs, Section 4.04
Bylaws, Article IV, Section 1

Outcome Summary

The Petitioner prevailed on three of the four issues: Violation of AZ Law on Delivery of Community Documents (A.R.S. § 33-1805), Failure to Uphold CCRs Regarding Common Wall Repairs (Bylaws/CC&R violation), and operating with fewer than the minimum required number of board members (Bylaws violation). The Petitioner did not prevail on the issue regarding the Failure to Hold a Special HOA Meeting.

Why this result: Petitioner's request for an “emergency meeting” regarding the wall repair was deemed technically insufficient to qualify as a formal 'special meeting' petition under the Bylaws.

Key Issues & Findings

Violation of AZ Law on Delivery of Community Documents

The HOA failed to provide the Kachina Management contract within the required ten business days for examination or copies, despite numerous requests.

Orders: Respondent failed to comply with A.R.S. § 33-1805 by not making documents available for examination within ten business days of request.

Filing fee: $500.00, Fee refunded: Yes, Civil penalty: $50.00

Disposition: petitioner_win

Cited:

  • A.R.S. § 33-1805
  • Bylaws, Article X
  • CC&Rs, Section 9.07

Failure to Hold a Special HOA Meeting

The HOA failed to hold a special meeting requested by a valid petition signed by 25% of members, concerning common wall damage.

Filing fee: $500.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • A.R.S. § 33-1804(A)
  • Bylaws, Article III, Section 4

Failure to Uphold CCRs Regarding Common Wall Repairs

The HOA refused to repair a common wall designated as a Common Element after damage was caused by an HOA-sanctioned electrician, failing their maintenance obligation.

Orders: The Board failed to maintain a Common Element (electrical conduit/wall area) in good repair after its hired contractor caused damage, violating Bylaws and CC&R obligations.

Filing fee: $500.00, Fee refunded: Yes, Civil penalty: $50.00

Disposition: petitioner_win

Cited:

  • CC&Rs, Section 4.04
  • Bylaws, Article IV, Section 3
  • A.R.S. § 33-1803(A)

Violations of HOA Elections Procedures and Community Documents (Failure to seat required number of board members)

The HOA Board violated governing documents by operating with only two members, failing to maintain the minimum required number of three directors.

Orders: Respondent violated Bylaws Article IV, Section 1 by not maintaining a Board of Directors composed of no fewer than three persons.

Filing fee: $500.00, Fee refunded: Yes, Civil penalty: $50.00

Disposition: petitioner_win

Cited:

  • Bylaws, Article IV, Section 1
  • CC&Rs, Section 5.03

Analytics Highlights

Topics: HOA governance, Document request, Board composition, Common elements maintenance, Filing fee refund, Civil penalty
Additional Citations:

  • A.R.S. § 33-1805
  • Bylaws, Article IV, Section 1
  • CC&Rs, Section 4.04
  • Bylaws, Article IV, Section 3
  • A.R.S. § 33-1804(A)




Briefing Doc – 25F-H025-REL


Briefing Document: Wolchko v. Victoria Manor Management & Property Owners Association

Executive Summary

This document synthesizes the key proceedings, arguments, and outcomes of the administrative case George Wolchko v. Victoria Manor Management & Property Owners Association, Case No. 25F-H025-REL, adjudicated by the Arizona Office of Administrative Hearings. The Petitioner, George Wolchko, a homeowner, filed a four-issue petition against the Respondent, his Homeowners Association (HOA), alleging violations of Arizona statutes and the community’s governing documents.

The hearing, held on April 14, 2025, resulted in a mixed but largely favorable outcome for the Petitioner. The Administrative Law Judge (ALJ) found the HOA in violation on three of the four claims:

1. Failure to Provide Documents: The HOA violated A.R.S. § 33-1805 by not making its management contract with Kachina Management available within the legally mandated ten-business-day period.

2. Failure to Repair Common Wall: The HOA violated its own Bylaws and CC&Rs by failing its duty to maintain and repair a common element (an exterior wall and electrical conduit) after its hired contractor performed improper work, leaving a hole that was not weatherproof.

3. Failure to Fill Board Vacancy: The HOA violated its Bylaws, which mandate a board of no fewer than three members, by operating with only two directors since October 2024.

The HOA prevailed on one claim, Failure to Hold a Special Meeting, as the ALJ determined the Petitioner’s request, while clear in intent, was technically deficient under the Bylaws. The final order deemed Mr. Wolchko the prevailing party on three issues, ordering the HOA to reimburse him $1,500.00 in filing fees, to comply with community documents going forward, and levying a civil penalty of $150.00 against the Association.

Case Overview

Case Number

25F-H025-REL

Jurisdiction

Arizona Office of Administrative Hearings (OAH)

Presiding Judge

Administrative Law Judge Samuel Fox

Hearing Date

April 14, 2025

Petitioner

George Wolchko

Respondent

Victoria Manor Management & Property Owners Association

Respondent’s Counsel

Christopher Duren (of Gottlieb Law, PLC)

Key Parties and Witnesses

George Wolchko: The Petitioner, owner of a home in the Victoria Manor community since 2018 and a former board member (2018-2023). Testified on his own behalf.

Victoria Manor Management & Property Owners Association: The Respondent, a planned community in Mesa, Arizona, consisting of eight units and seven owners.

Joseph Kidd: A current HOA board member, serving since November 2022. Testified for the Respondent.

Michael Mott: A current HOA board member. Was present at the hearing but did not testify.

Kachina Management, Inc.: The HOA’s management company, contracted in April 2024.

Chris Jones: Elected to the board in September 2024 but resigned shortly thereafter, creating the board vacancy at the heart of Claim 4.

Analysis of Claims, Evidence, and Findings

Claim 1: Violation of AZ Law on Delivery of Community Documents

Petitioner’s Allegation: The HOA violated A.R.S. § 33-1805 and its governing documents by failing to provide a copy of the Kachina Management contract despite numerous requests beginning in May 2024.

Petitioner’s Testimony & Evidence (Wolchko):

◦ Made his first formal email request for the contract on May 6, 2024. He followed up on May 12 and May 26.

◦ The management company, Kachina, responded on May 29, offering an in-person review on June 3 or 4.

◦ Wolchko testified that driving 45 minutes each way was not a “reasonably available” means of access, especially when a digital copy existed and he travels internationally. He noted the CC&Rs explicitly allow for delivery by mail.

◦ After canceling an in-person appointment due to an emergency, his repeated requests for a digital or mailed copy were met with insistence on in-person review.

◦ The contract was finally produced in February 2025, nearly a year after the initial request and only after the petition was filed.

Respondent’s Position:

◦ Argued that by offering in-person inspection at their office, they fulfilled their statutory obligation to make records “reasonably available for examination.”

◦ Emails from Kachina Management to Wolchko confirmed they had prepared the documents for his review on the dates offered. They stated Wolchko canceled the appointment and never rescheduled.

ALJ’s Finding: Violation Found. The ALJ concluded that more than ten business days passed between the initial request on May 6, 2024, and the date the documents were made available for examination on June 3, 2024. This delay constituted a failure to comply with A.R.S. § 33-1805.

Claim 2: Failure to Hold a Special HOA Meeting

Petitioner’s Allegation: The HOA violated A.R.S. § 33-1804(A) and its Bylaws by failing to hold a special meeting requested via a valid petition signed by 25% of the members (Wolchko and Terrance Greer).

Petitioner’s Testimony & Evidence (Wolchko):

◦ Submitted a formal, signed request on June 19, 2024, to hold an “emergency HOA meeting to address repairs on a community common wall.”

◦ He argued this was a valid petition for a special meeting and that the Board ignored it.

◦ The Respondent falsely claimed the meeting was held during the September annual meeting, but the annual meeting notice and minutes contained no mention of the special meeting’s purpose.

Respondent’s Position:

◦ Argued the request was for an “emergency meeting,” which, under statute, can only be called by the Board of Directors, not by member petition.

◦ Contended there is no provision in the governing documents for 25% of members to call an emergency meeting.

◦ Noted that at the annual meeting in September, Wolchko was explicitly asked if he had any issues to discuss and he declined.

ALJ’s Finding: No Violation. The ALJ found that although the intent was clearly to request a special meeting, the petition was technically deficient. It used the term “emergency meeting,” did not include a place for the meeting, and did not use the phrase “special meeting.” While a “mere technicality,” this was sufficient to deem the petition ineffective. The Respondent was deemed the prevailing party on this issue.

Claim 3: Failure to Uphold CCRs Regarding Common Wall Repairs

Petitioner’s Allegation: The HOA failed its duty to repair a common wall damaged by its own electrician in February 2024.

Petitioner’s Testimony & Evidence (Wolchko):

◦ In February 2024, an HOA-hired contractor, Blue State Electric, performed work on an electrical conduit on his building’s exterior wall, which the board had previously designated a “true common area” with shared 50/50 maintenance costs.

◦ The work left a hole filled with foam that was not watertight. His immediate notification on March 15, 2024, was dismissed by board member Joseph Kidd, who claimed the hole was a pre-existing condition exposed by the work and therefore not the HOA’s responsibility.

◦ After months of the board refusing to act, he investigated the box himself, discovering an HOA wire running through his wall. He stated he only touched the box to prove it was an HOA issue after being told to “deal with it myself.”

◦ He disputed the validity of an $1,867 invoice from a second contractor (Canyon State), stating it was solicited by the board to blame him for damage he did not cause.

Respondent’s Testimony & Evidence (Kidd):

◦ The electrical box and conduit are common elements that serve four buildings.

◦ Wolchko is not a licensed Arizona electrician and had no authorization to touch the common element.

◦ Kidd testified that after Wolchko sent a video of himself pulling the box out, the board hired Canyon State to inspect it.

◦ He acknowledged offering to help Wolchko patch the stucco but denied authorizing any electrical work.

ALJ’s Finding: Violation Found. The ALJ determined that the preponderance of evidence supported that the “Board-hired electrician installed the wrong kind of box and left a section of the wall exposed without proper weather proofing.” Because the wall and electrical conduit were common elements, the board had a duty to maintain them in good repair. The board “declined to correct the problem its contractor caused,” thus violating the Bylaws and CC&Rs.

Claim 4: Failure to Maintain Required Number of Board Members

Petitioner’s Allegation: The HOA violated its Bylaws (Article IV, Section 1), which require a board of “no less than three (3) persons,” by operating with only two members.

Petitioner’s Testimony & Evidence (Wolchko):

◦ Following the September 19, 2024 election, three members were elected: Joseph Kidd, Michael Mott, and Chris Jones.

◦ Chris Jones resigned almost immediately, leaving the board with two members.

◦ He argued that while the bylaws state a vacancy “may be filled” by the remaining directors, this grants authority, it does not waive the fundamental requirement of having at least three members.

◦ He noted that two other owners (himself and Terrance Greer), representing 25% of the HOA, were willing to serve, so the vacancy could be filled.

Respondent’s Testimony & Evidence (Kidd):

◦ Confirmed Jones resigned by early October 2024.

◦ Stated the board reached out to other members who expressed no interest in serving.

◦ Testified that Kachina Management advised them that filling the seat was at their discretion.

◦ The Respondent’s legal argument was that the Bylaw’s use of the word “may” (“may be filled”) makes filling the vacancy optional, not mandatory.

ALJ’s Finding: Violation Found. The ALJ was “not persuasive” by the Respondent’s argument. The decision states: “This provision allows for the appointment, rather than the election, of a Director to a vacant seat. It does not absolve the Board from having the minimum number of Directors.” The preponderance of evidence established that the HOA violated its Bylaws by not having enough Board members.

Final Decision and Order

Prevailing Party: George Wolchko was deemed the prevailing party on Petition Issues 1, 3, and 4. Victoria Manor was deemed the prevailing party on Issue 2.

Reimbursement: The Respondent was ordered to pay the Petitioner $1,500.00 for filing fees within thirty days.

Compliance: The Respondent was directed to “comply with the requirements of its Community Documents going forward.”

Civil Penalty: A civil penalty of $150.00 was levied against the Respondent.

Decision Date: May 5, 2025.


Questions

Question

How long does the HOA have to provide records after I request them?

Short Answer

The HOA has ten business days to fulfill a request to examine or provide copies of records.

Detailed Answer

Under A.R.S. § 33-1805, an association must strictly adhere to a ten-business-day timeframe. In this case, providing access nearly a month after the initial request was found to be a violation of state law.

Alj Quote

A.R.S. § 33-1805 provides an association 'ten business days to fulfill a request for examination' or 'to provide copies of the requested records.' … More than ten business days passed between May 6, 2024, and June 3, 2024. Petitioner demonstrated by a preponderance of the evidence that Respondent, through Kachina, failed to comply with A.R.S. § 33-1805.

Legal Basis

A.R.S. § 33-1805

Topic Tags

  • records request
  • deadlines
  • HOA obligations

Question

Can homeowners call an 'emergency meeting' regarding repairs?

Short Answer

Generally, no. Homeowners should request a 'special meeting' instead, as 'emergency meetings' are typically reserved for the Board.

Detailed Answer

While homeowners may petition for a meeting, using the correct terminology is critical. In this case, a petition for an 'emergency meeting' was deemed ineffective because that specific type of meeting is a Board function, whereas homeowners are authorized to request 'special meetings'.

Alj Quote

In the context of the communications about this meeting, it is clear that Petitioner was requesting a 'special meeting' not an 'emergency meeting,' which can only be called by the Board.

Legal Basis

Bylaws

Topic Tags

  • meetings
  • procedure
  • homeowner rights

Question

What specific details must be included in a petition for a special meeting?

Short Answer

The petition must usually include the date, hour, place of the meeting, and the specific purpose or topic.

Detailed Answer

Failure to include all technical details required by the Bylaws—such as the specific place of the meeting or the correct label ('special meeting')—can render a petition invalid, even if it has the required number of signatures.

Alj Quote

The petition did not include a place for the meeting, the topic to be discussed, or the phrase 'special meeting.' … Petitioner’s special meeting request did not fully comply with the requirements of the Bylaws. Although it is a mere technicality, it is sufficient to deem the petition for a special meeting ineffective.

Legal Basis

Bylaws Article III, Section 4

Topic Tags

  • meetings
  • petitions
  • technicalities

Question

Is the HOA responsible if a contractor they hired does poor work on a common element?

Short Answer

Yes. The HOA has a duty to maintain common elements and correct problems caused by their contractors.

Detailed Answer

If an HOA-hired contractor installs incorrect equipment or leaves a common element exposed to damage (like weather), the Board cannot decline to fix it. They retain the obligation to maintain the area in good repair.

Alj Quote

The preponderance of the evidence supports that the Board-hired electrician installed the wrong kind of box and left a section of the wall exposed without proper weather proofing… The Board declined to correct the problem its contractor caused… The preponderance of the evidence supports that the Board failed to maintain this area in good repair in violation of the Bylaws and CC&R.

Legal Basis

Bylaws Article IV, Section 3; CC&R Section 4.05(2)

Topic Tags

  • maintenance
  • common elements
  • contractors

Question

Can the HOA Board operate with fewer members than the Bylaws require?

Short Answer

No. If the Bylaws state a minimum number of directors, the Board must maintain that number.

Detailed Answer

The Board cannot choose to operate with fewer directors than mandated. In this case, operating with two directors when the Bylaws required a minimum of three was a violation.

Alj Quote

Article IV, section 1 of the Bylaws require a Board of no fewer than three people. The preponderance of the evidence established that the Board has consisted of two people for some time… The preponderance of the evidence supports that Respondent violated the Bylaws by not having enough Board members.

Legal Basis

Bylaws Article IV, Section 1

Topic Tags

  • board composition
  • bylaws
  • vacancies

Question

Does a Bylaw saying a vacancy 'may be filled' mean the Board can choose to leave a seat empty?

Short Answer

No. That language typically describes the method of filling the seat (appointment) rather than permission to leave it vacant below the required minimum.

Detailed Answer

HOAs cannot use the word 'may' in vacancy provisions to justify ignoring minimum board size requirements. The provision allows for appointment rather than election to fill the spot, but does not absolve the Board of the duty to have the required number of members.

Alj Quote

Respondent argued that Section 5, Vacancies does not require the Board to fill a vacant position… This argument was not persuasive. This provision allows for the appointment, rather than the election, of a Director to a vacant seat. It does not absolve the Board from having the minimum number of Directors.

Legal Basis

Bylaws

Topic Tags

  • legal interpretation
  • board vacancies
  • bylaws

Question

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

Short Answer

Yes, the Administrative Law Judge can order the HOA to reimburse the petitioner for the filing fee.

Detailed Answer

In this decision, the HOA was ordered to pay the $1,500.00 filing fee directly to the homeowners within 30 days because the homeowners prevailed on the majority of their issues.

Alj Quote

IT IS ORDERED that Respondent pay Petitioners the filing fee of $1,500.00, to be paid directly to Petitioners within thirty (30) days of this Order.

Legal Basis

Administrative Order

Topic Tags

  • reimbursement
  • fees
  • penalties

Question

Can the HOA be fined for these violations?

Short Answer

Yes, a civil penalty may be levied, though it may be a nominal amount compared to the filing fees.

Detailed Answer

The ALJ has the authority to levy civil penalties for violations of statutes or community documents. In this specific case, a penalty of $150.00 was deemed appropriate.

Alj Quote

A Civil Penalty of $150.00 is found to be appropriate in this matter.

Legal Basis

A.R.S. § 32-2199.02

Topic Tags

  • fines
  • civil penalty
  • enforcement

Case

Docket No

25F-H025-REL

Case Title

George Wolchko v. Victoria Manor Management & Property Owners Association

Decision Date

2025-05-05

Alj Name

Samuel Fox

Tribunal

OAH

Agency

ADRE

Questions

Question

How long does the HOA have to provide records after I request them?

Short Answer

The HOA has ten business days to fulfill a request to examine or provide copies of records.

Detailed Answer

Under A.R.S. § 33-1805, an association must strictly adhere to a ten-business-day timeframe. In this case, providing access nearly a month after the initial request was found to be a violation of state law.

Alj Quote

A.R.S. § 33-1805 provides an association 'ten business days to fulfill a request for examination' or 'to provide copies of the requested records.' … More than ten business days passed between May 6, 2024, and June 3, 2024. Petitioner demonstrated by a preponderance of the evidence that Respondent, through Kachina, failed to comply with A.R.S. § 33-1805.

Legal Basis

A.R.S. § 33-1805

Topic Tags

  • records request
  • deadlines
  • HOA obligations

Question

Can homeowners call an 'emergency meeting' regarding repairs?

Short Answer

Generally, no. Homeowners should request a 'special meeting' instead, as 'emergency meetings' are typically reserved for the Board.

Detailed Answer

While homeowners may petition for a meeting, using the correct terminology is critical. In this case, a petition for an 'emergency meeting' was deemed ineffective because that specific type of meeting is a Board function, whereas homeowners are authorized to request 'special meetings'.

Alj Quote

In the context of the communications about this meeting, it is clear that Petitioner was requesting a 'special meeting' not an 'emergency meeting,' which can only be called by the Board.

Legal Basis

Bylaws

Topic Tags

  • meetings
  • procedure
  • homeowner rights

Question

What specific details must be included in a petition for a special meeting?

Short Answer

The petition must usually include the date, hour, place of the meeting, and the specific purpose or topic.

Detailed Answer

Failure to include all technical details required by the Bylaws—such as the specific place of the meeting or the correct label ('special meeting')—can render a petition invalid, even if it has the required number of signatures.

Alj Quote

The petition did not include a place for the meeting, the topic to be discussed, or the phrase 'special meeting.' … Petitioner’s special meeting request did not fully comply with the requirements of the Bylaws. Although it is a mere technicality, it is sufficient to deem the petition for a special meeting ineffective.

Legal Basis

Bylaws Article III, Section 4

Topic Tags

  • meetings
  • petitions
  • technicalities

Question

Is the HOA responsible if a contractor they hired does poor work on a common element?

Short Answer

Yes. The HOA has a duty to maintain common elements and correct problems caused by their contractors.

Detailed Answer

If an HOA-hired contractor installs incorrect equipment or leaves a common element exposed to damage (like weather), the Board cannot decline to fix it. They retain the obligation to maintain the area in good repair.

Alj Quote

The preponderance of the evidence supports that the Board-hired electrician installed the wrong kind of box and left a section of the wall exposed without proper weather proofing… The Board declined to correct the problem its contractor caused… The preponderance of the evidence supports that the Board failed to maintain this area in good repair in violation of the Bylaws and CC&R.

Legal Basis

Bylaws Article IV, Section 3; CC&R Section 4.05(2)

Topic Tags

  • maintenance
  • common elements
  • contractors

Question

Can the HOA Board operate with fewer members than the Bylaws require?

Short Answer

No. If the Bylaws state a minimum number of directors, the Board must maintain that number.

Detailed Answer

The Board cannot choose to operate with fewer directors than mandated. In this case, operating with two directors when the Bylaws required a minimum of three was a violation.

Alj Quote

Article IV, section 1 of the Bylaws require a Board of no fewer than three people. The preponderance of the evidence established that the Board has consisted of two people for some time… The preponderance of the evidence supports that Respondent violated the Bylaws by not having enough Board members.

Legal Basis

Bylaws Article IV, Section 1

Topic Tags

  • board composition
  • bylaws
  • vacancies

Question

Does a Bylaw saying a vacancy 'may be filled' mean the Board can choose to leave a seat empty?

Short Answer

No. That language typically describes the method of filling the seat (appointment) rather than permission to leave it vacant below the required minimum.

Detailed Answer

HOAs cannot use the word 'may' in vacancy provisions to justify ignoring minimum board size requirements. The provision allows for appointment rather than election to fill the spot, but does not absolve the Board of the duty to have the required number of members.

Alj Quote

Respondent argued that Section 5, Vacancies does not require the Board to fill a vacant position… This argument was not persuasive. This provision allows for the appointment, rather than the election, of a Director to a vacant seat. It does not absolve the Board from having the minimum number of Directors.

Legal Basis

Bylaws

Topic Tags

  • legal interpretation
  • board vacancies
  • bylaws

Question

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

Short Answer

Yes, the Administrative Law Judge can order the HOA to reimburse the petitioner for the filing fee.

Detailed Answer

In this decision, the HOA was ordered to pay the $1,500.00 filing fee directly to the homeowners within 30 days because the homeowners prevailed on the majority of their issues.

Alj Quote

IT IS ORDERED that Respondent pay Petitioners the filing fee of $1,500.00, to be paid directly to Petitioners within thirty (30) days of this Order.

Legal Basis

Administrative Order

Topic Tags

  • reimbursement
  • fees
  • penalties

Question

Can the HOA be fined for these violations?

Short Answer

Yes, a civil penalty may be levied, though it may be a nominal amount compared to the filing fees.

Detailed Answer

The ALJ has the authority to levy civil penalties for violations of statutes or community documents. In this specific case, a penalty of $150.00 was deemed appropriate.

Alj Quote

A Civil Penalty of $150.00 is found to be appropriate in this matter.

Legal Basis

A.R.S. § 32-2199.02

Topic Tags

  • fines
  • civil penalty
  • enforcement

Case

Docket No

25F-H025-REL

Case Title

George Wolchko v. Victoria Manor Management & Property Owners Association

Decision Date

2025-05-05

Alj Name

Samuel Fox

Tribunal

OAH

Agency

ADRE

Kenneth W Zablotny v. Sycamore Hills Estates, Inc.

Case Summary

Case ID 20F-H2019022-REL
Agency ADRE
Tribunal OAH
Decision Date 2020-03-03
Administrative Law Judge Antara Nath Rivera
Outcome yes
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Kenneth W Zablotny Counsel
Respondent Sycamore Hills Estates, Inc. Counsel

Alleged Violations

A.R.S. § 33-1805

Outcome Summary

The Administrative Law Judge ruled in favor of the Petitioner, finding that the Respondent violated state statute and community bylaws by failing to allow inspection of books and records. The Respondent was ordered to provide the records and refund the filing fee.

Key Issues & Findings

Failure to make books and records reasonably available

Petitioner requested access to the Association's books and records multiple times between 2017 and 2019 to review financial information and other member dues status. The Respondent failed to respond or provide access to the records.

Orders: Respondent shall supply Petitioner with the relevant documents within ten (10) days; Respondent shall pay Petitioner his filing fee of $500.00 within thirty (30) days.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • A.R.S. § 33-1805
  • Bylaws Article X

Decision Documents

20F-H2019022-REL Decision – 773049.pdf

Uploaded 2026-02-11T06:43:22 (90.9 KB)

**Case Summary: Kenneth W. Zablotny vs. Sycamore Hills Estates, Inc.**
**Case Number:** 20F-H2019022-REL
**Hearing Date:** February 13, 2020
**Administrative Law Judge:** Antara Nath Rivera

**Proceedings**
The hearing was convened by the Arizona Department of Real Estate to address a dispute between Petitioner Kenneth W. Zablotny and Respondent Sycamore Hills Estates, Inc. The Petitioner appeared on his own behalf. The Respondent failed to appear, despite receiving proper notice, and the hearing proceeded in their absence.

**Key Facts**
The Petitioner, a homeowner in the community since 2012, sought access to the Association's books and records following discrepancies regarding homeowner dues and foreclosure statuses.
* **Repeated Requests:** Between December 2017 and December 2019, the Petitioner made numerous requests (via certified mail, website, and in-person attempts) to inspect financial records.
* **Respondent's Failure to Comply:** The Respondent’s manager and board consistently ignored requests, refused access, or provided incomplete and illegible documents. The Petitioner testified that he was refused access to books involving multiple accounts.

**Legal Issues**
The primary legal issue was whether the Respondent’s actions violated state law and community bylaws regarding member access to records.
* **A.R.S. § 33-1805:** This statute mandates that association financial records be made "reasonably available for examination" by any member. It grants associations ten business days to fulfill examination requests.
* **Bylaws Article X:** The community's bylaws state that books and records shall be subject to inspection by any member "at all times, during reasonable business hours".

**Findings and Conclusions**
The Administrative Law Judge found that the Department had jurisdiction over the dispute pursuant to A.R.S. § 41-2198.01(B). The Judge concluded that the Petitioner met the burden of proof by a preponderance of the evidence.
* **Violation Established:** The evidence demonstrated that the Respondent failed to provide dates and times for inspection and did not grant access to the records despite the Petitioner's repeated attempts, constituting a violation of both A.R.S. § 33-1805 and Article X of the Bylaws.

**Final Order**
The Judge ordered the following relief:
1. **Petition Upheld:** The Petitioner was deemed the prevailing party.
2. **Production of Records:** The Respondent was ordered to supply the relevant documents to the Petitioner within 10 days of the Order.
3. **Reimbursement:** The Respondent was ordered to pay the Petitioner the $500.00 filing fee within 30 days.
4. **Civil Penalty:** No civil penalty was assessed.

Case Participants

Petitioner Side

  • Kenneth W Zablotny (petitioner)
    Appeared on his own behalf; real estate agent

Respondent Side

  • Char DuFresne (property manager)
    Sycamore Hills Estates, Inc.
    Respondent's manager

Neutral Parties

  • Antara Nath Rivera (ALJ)
    Office of Administrative Hearings
  • Judy Lowe (Commissioner)
    Arizona Department of Real Estate
    Recipient of transmitted order

Kayser, William W. -v- Barclay Place Homeowners Association

Case Summary

Case ID 08F-H088006-BFS
Agency DFBLS
Tribunal OAH
Decision Date 2008-05-30
Administrative Law Judge Lewis D. Kowal
Outcome partial
Filing Fees Refunded $2,000.00
Civil Penalties $0.00

Parties & Counsel

Petitioner William W. Kayser Counsel
Respondent Barclay Place Homeowners Association Counsel Heather A. Fazio

Alleged Violations

Bylaws Article VII, Section 8(d)
A.R.S. § 33-1805
A.R.S. § 33-1805
Bylaws Article III, Section 3

Outcome Summary

Petitioner prevailed on claims regarding failure to conduct outside audits, failure to provide records timely, and failure to provide proper meeting notice. Petitioner lost on claims regarding assessment notices and meeting quorums. Respondent ordered to provide records and refund full filing fee.

Key Issues & Findings

Failure to accomplish annual audit of 2006

Petitioner alleged the Association failed to conduct annual audits. The ALJ found the Association violated the Bylaws requiring an annual audit by an outside firm, although it complied with statutory monthly compilation requirements.

Orders: Association ordered to comply with Bylaws regarding audits.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • A.R.S. § 33-1810
  • Bylaws Article VII, Section 8(d)

Failure to retain and provide Association records

Petitioner requested various financial records and minutes. The Association failed to provide them within the statutory 10-day timeframe and failed to maintain complete records as required by Bylaws.

Orders: Association ordered to provide all existing requested documents at no expense to Petitioner.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • A.R.S. § 33-1805
  • Bylaws Article VII, Section 2(a)
  • Bylaws Article X

Failure to give 30 day notice of assessment

Petitioner alleged failure to receive notice of assessment increases. Respondent provided evidence that notices were sent.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_lose

Cited:

  • CC&Rs Article IV, Section 3
  • CC&Rs Article IV, Section 6

Failure to provide proper notice for special meeting

Petitioner challenged the notice for the Nov 23, 2007 meeting. ALJ found posting at mailboxes did not satisfy Bylaw notice requirements for a special meeting of members.

Orders: Association ordered to comply with notice provisions.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • Bylaws Article III, Section 3

Decision Documents

08F-H088006-BFS Decision – 191832.pdf

Uploaded 2026-02-11T05:32:19 (113.1 KB)





Briefing Doc – 08F-H088006-BFS


Briefing Document: Kayser v. Barclay Place Homeowners Association (No. 08F-H088006-BFS)

Executive Summary

This briefing document summarizes the administrative law decision regarding a dispute between William W. Kayser (Petitioner) and the Barclay Place Homeowners Association (Respondent). The case centered on allegations of financial mismanagement, failure to provide corporate records, and violations of meeting notice and quorum procedures.

The Administrative Law Judge (ALJ) concluded that while the Petitioner did not prevail on every specific count, he succeeded on the “most substantial issues.” Specifically, the Association was found in violation of its Bylaws for failing to conduct an annual audit by an outside public accounting firm and failing to maintain and provide complete corporate records within the statutory timeframe. Consequently, the Petitioner was deemed the prevailing party and awarded a reimbursement of his $2,000.00 filing fee. The Association was ordered to provide all requested documents and comply with governing documents and state statutes moving forward.

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Procedural Context and Scope

The hearing was conducted on May 12, 2008, under the jurisdiction of the Arizona Office of Administrative Hearings. The scope of the hearing was limited by the effective date of A.R.S. § 41-2198.01 et seq., the enabling legislation for this administrative process.

Excluded Items: Claims regarding real estate conveyances prior to the statute’s effective date and bank statements lacking specific dates were ruled outside the scope of the hearing.

Timeframe of Focus: The analysis was limited to acts occurring on or after September 21, 2006, as well as specific events in 2007 and 2008.

Burden of Proof: The Petitioner bore the burden of proving violations by a “preponderance of the evidence,” defined as evidence showing the fact is more probable than not.

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Analysis of Key Themes and Findings

1. Financial Accountability and Auditing Requirements

The dispute involved a distinction between internal financial management and formal auditing requirements mandated by the Association’s governing documents.

Current Practice: R & R Management Company, which manages the Association’s records, performs monthly financial compilations. Testimony indicated that a certified public accountant reviews these records monthly.

The Violation: The ALJ found that while the Association complied with A.R.S. § 33-1810 regarding monthly financial compilations, it violated Bylaws, Article VII, Section 8 (d). This provision requires an annual audit to be performed by an outside public accounting firm.

Admission: The management company admitted that while they follow internal processes, they do not have annual audits performed by an independent public accounting firm.

2. Record Retention and Member Access

A central theme of the petition was the Association’s failure to provide documents requested by the Petitioner in a timely and complete manner.

Legal Requirement

Finding

Response Time

A.R.S. § 33-1805 requires records be provided within 10 business days.

Violation: Evidence established documents were not provided within the 10-day window.

Record Maintenance

Bylaws Article VII & X require a complete record of Association acts and corporate affairs.

Violation: The Association failed to maintain complete records. A Board member testified that previous documents were boxed up and could not be located.

Annual Statements

Bylaws Article VII, Section 2(a) requires a statement at annual meetings.

No Violation: Testimony established that statements were provided at the 2006 and 2007 annual meetings.

3. Governance: Meetings, Notices, and Assessments

The Petitioner challenged the validity of assessment increases and the legality of a specific meeting held on November 23, 2007.

Assessment Increases: The Association’s Board has the authority to increase annual assessments by up to 5% without a vote from the membership. The ALJ found the 2007 and 2008 increases were within this 5% limit; therefore, no membership vote was required.

The November 23, 2007 Meeting: This meeting was a “rescheduled” meeting due to a lack of quorum at a November 12 meeting.

Nature of the Meeting: The ALJ determined this was a “special meeting of members.”

Notice Violation: The Association posted notice at mailboxes. The ALJ ruled that mailbox postings do not satisfy the notice requirements for a special meeting of members as defined in Bylaws, Article III, Section 3.

Quorum: Despite the notice issue, the action taken (the assessment increase) was valid because it was accomplished by a quorum of the Board of Directors, which did not require a member vote for a sub-5% increase.

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Conclusion of Law and Final Order

The ALJ reached the following conclusions regarding the prevailing party and required remedies:

Determination of Prevailing Party

Although the Association prevailed on several individual counts (such as the 30-day notice of assessment and the 5% cap on increases), the Petitioner was designated the prevailing party. The ALJ cited the Petitioner’s success on “substantial issues,” specifically:

1. The failure to perform mandatory independent annual audits.

2. The failure to provide access to records within the statutory 10-day timeframe.

3. The failure to maintain complete corporate records.

Mandatory Relief

Under A.R.S. § 41-2198.02, the Association was ordered to:

Document Production: Provide, at no expense to the Petitioner, copies of all previously requested documents within 10 days of the order.

Reimbursement: Pay the Petitioner $2,000.00 to reimburse his filing fee within 40 days.

Statutory Compliance: Comply with all provisions of the CC&Rs, Bylaws, and state statutes previously found to be in violation.

Civil Penalties and Administrative Limits

The ALJ declined to impose civil penalties, stating they were not warranted by the particular facts of the case. Furthermore, the ALJ noted that specific directives requested by the Petitioner regarding how the Association should act in the future were outside the scope of the ALJ’s authority.






Study Guide – 08F-H088006-BFS


Study Guide: Administrative Law Case No. 08F-H088006-BFS

This study guide examines the administrative law proceedings and ultimate decision regarding the dispute between William W. Kayser and the Barclay Place Homeowners Association. The document focuses on the legal standards, findings of fact, and conclusions of law presented during the May 2008 hearing.

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Part 1: Short-Answer Quiz

Instructions: Answer the following questions using 2-3 sentences based on the information provided in the source text.

1. What was the primary conflict regarding the Association’s 2006 annual audit?

2. Why were Items 1 and 2 of the original Petition ruled to be outside the scope of the hearing?

3. What did the Administrative Law Judge (ALJ) conclude regarding the HOA’s obligation to provide documents within a specific timeframe?

4. How did the management company, R & R Management, define its responsibility toward non-financial Association records?

5. What was the finding regarding the 30-day notice of annual assessments for 2006 and 2007?

6. Explain the dispute regarding the meeting held on November 23, 2007, at Robb & Stucky.

7. Under what conditions can the Association’s Board of Directors increase annual assessments without a vote from the general membership?

8. Why did the ALJ determine that the posting of meeting notices at mailboxes was legally insufficient for the November 23 meeting?

9. What was the legal definition of “preponderance of the evidence” used to decide this case?

10. Despite not prevailing on every item in his petition, why was William Kayser designated the “prevailing party”?

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Part 2: Answer Key

1. While the Association conducted monthly financial reviews, the Petitioner argued that the By-Laws required an audit by an outside public accounting firm. The ALJ found that the Association violated Article VII, Section 8(d) of the By-Laws by failing to secure this external audit.

2. These items pertained to a real estate conveyance that took place before the effective date of the enabling legislation (A.R.S. § 41-2198.01 et seq.). Consequently, the ALJ did not have the statutory authority to address those specific historical claims.

3. The ALJ ruled that the Association violated A.R.S. § 33-1805 by failing to provide certain requested financial documents within ten business days. It was established that unapproved copies were eventually provided, but the delay exceeded the legal requirement.

4. R & R Management stated it was contractually obligated to maintain financial records but was not required to keep a complete set of records for all other Association activities. They provided other documents to homeowners only as a “courtesy” rather than a contractual duty.

5. The ALJ found that the Petitioner failed to prove a violation of the notice requirements. Evidence from R & R Management’s records indicated that notice was sent, and the ALJ concluded the Association had indeed provided the required 30-day notice for those years.

6. The Petitioner claimed he saw a meeting notice that later disappeared and that there was no record of a meeting at the venue; however, a Board member testified the meeting did occur with a quorum present. The ALJ eventually concluded it was a “special meeting of members” rather than an annual or regular meeting.

7. The Board of Directors has the authority to set an assessment increase as long as the amount does not exceed 5% of the previous assessment. If the increase is within this 5% threshold, no vote of the Association members is required.

8. The ALJ found that while mailboxes were used for posting, this method did not satisfy the specific notice requirements for a “special meeting of members” as dictated by Article III, Section 3 of the By-Laws. The judge noted that special meetings have stricter procedural notice standards.

9. According to Black’s Law Dictionary, as cited in the case, it is evidence that is of “greater weight or more convincing” than the opposing evidence. It effectively means the facts sought to be proved are “more probable than not.”

10. The ALJ determined that Kayser prevailed on the “most substantial issues,” including the requirement for an annual audit and the failure of the Association to maintain and provide complete records. Because these issues were central to the dispute, he was entitled to a reimbursement of his $2,000 filing fee.

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Part 3: Essay Questions

Instructions: Use the case details to develop comprehensive responses to the following prompts.

1. Statutory vs. Internal Governance: Analyze the differences between the Association’s violations of Arizona Revised Statutes (A.R.S.) and violations of its own By-Laws and CC&Rs. How did the ALJ distinguish between these different legal authorities in his decision?

2. The Role of Management Companies: Discuss the complexities of Association record-keeping as evidenced by the testimony of R & R Management and the “lost boxes” mentioned by the Board of Directors. What are the potential legal risks when an HOA delegates record-keeping to a third party?

3. Quorum and Notice Procedures: Evaluate the procedural confusion surrounding the November 2007 meetings. Contrast the requirements for a “regular meeting,” a “special meeting,” and a “Board of Directors meeting” as they apply to member rights and Association authority.

4. Burden of Proof in Administrative Hearings: Examine the Petitioner’s burden to prove allegations by a “preponderance of the evidence.” Which claims did the Petitioner fail to prove, and what specific evidence (or lack thereof) led to those failures?

5. Administrative Remedies and Limitations: Discuss the limits of the ALJ’s authority regarding the relief requested by the Petitioner. Why were specific directions and civil penalties denied despite the findings of certain violations?

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Part 4: Glossary of Key Terms

Definition

A.A.C.

Arizona Administrative Code; the rules governing administrative proceedings.

A.R.S.

Arizona Revised Statutes; the state laws cited as the basis for many of the legal obligations in the case.

Administrative Law Judge; the official presiding over the hearing and issuing the decision.

Annual Audit

A formal examination of the Association’s financial records, required by the By-Laws to be performed by an outside public accounting firm.

Declaration of Covenants, Conditions and Restrictions; the primary governing documents that define the rights and obligations of Community members and the Association.

Enabling Legislation

The specific statutes (A.R.S. § 41-2198.01 et seq.) that grant the Office of Administrative Hearings the power to hear HOA disputes.

Financial Compilation

The monthly process of organizing financial records, performed by R & R Management, which the ALJ distinguished from a formal annual audit.

Petitioner

The party who files the petition or complaint; in this case, William W. Kayser.

Preponderance of the Evidence

The legal standard of proof in civil and administrative cases, meaning the evidence is more convincing than the opposition’s.

Prevailing Party

The participant in a legal proceeding who “wins” on the most substantial issues and may be entitled to fee reimbursements.

Quorum

The minimum number of members or directors required to be present at a meeting to make the proceedings and decisions valid.

Respondent

The party against whom a petition or complaint is filed; in this case, Barclay Place Homeowners Association.

Special Meeting

A meeting called for a specific purpose that is not part of the regular meeting schedule, often requiring more formal notice to members.

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End of Study Guide






Blog Post – 08F-H088006-BFS


The $2,000 Paper Trail: 5 Surprising Lessons from One Homeowner’s Fight Against His HOA

Living in a Homeowners Association (HOA) often feels like navigating a shadow government where transparency is treated as a nuisance rather than a mandate. For many, the governing documents are a dense thicket of “shalls” and “musts” that only seem to apply to the residents, while the Board operates behind a veil of opacity.

The case of William Kayser vs. Barclay Place Homeowners Association serves as a definitive David-vs-Goliath narrative, proving that a single homeowner armed with the law can force an association into compliance. When Mr. Kayser challenged his HOA before the Arizona Office of Administrative Hearings, Administrative Law Judge (ALJ) Lewis D. Kowal issued a decision that pulled back the curtain on the hidden legal obligations of these organizations. Here are five surprising lessons from that $2,000 legal victory—lessons that every homeowner should memorize.

1. “Lost in Boxes” is Not a Legal Defense

One of the most persistent excuses used to dodge transparency is the claim that records have simply vanished during leadership transitions. In this case, Board member Jack Van Royen testified that a previous Association president had “boxed up documents” and the current leadership was unable to locate them.

As a matter of corporate governance, this is an unacceptable breach of fiduciary continuity. An HOA is a legal entity with a statutory mandate to maintain a historical record of its operations, regardless of who occupies the Board seats. Leadership changes do not reset the clock on these obligations. It was only after the legal pressure of a hearing that the Association suddenly promised to make a “concerted effort” to find the missing files—a clear admission that accountability only arrives when a judge is watching.

2. When an “Audit” Isn’t Actually an Audit

There is a massive distinction between internal financial “compilations” and a true independent audit. Kevin Young of R&R Management testified that his firm prepared monthly financial records and that a CPA, Andrew Carr, reviewed them. However, Young’s testimony was riddled with contradictions regarding whether Carr was an “in-house” accountant or a truly independent third party.

ALJ Kowal’s ruling sharpened the focus on Bylaws, Article VII, Section 8(d), which requires an annual audit to be performed by an “outside public accounting firm.” The Association’s attempt to blur the lines by presenting management-led compilations as a substitute for professional oversight was a failure of transparency. For homeowners, the lesson is clear: internal reviews by the very people managing the money are not a substitute for the procedural safeguards of an external audit.

3. The 10-Day Clock for Transparency

Under A.R.S. § 33-1805, Arizona associations have a strict 10-business-day window to provide requested documents to members. In this case, Mr. Kayser’s requests for bank statements and corporate records were met with delays and excuses.

Perhaps the most common stall tactic used by HOAs is the claim that financial records cannot be shared because they are “unapproved” by the Board. ALJ Kowal effectively dismantled this defense. The statutory right to inspect records is not contingent upon the Board’s final “stamp of approval.” Transparency laws are designed to grant members access to the raw data of their community’s operations, not just the sanitized versions the Board chooses to release.

4. Mailbox Postings Don’t Equal Legal Notice

A central dispute in this case involved a November 23, 2007 meeting where the Board acted to increase assessments. The Association claimed they satisfied notice requirements by posting announcements at the community mailboxes 48 hours in advance.

ALJ Kowal ruled this was legally insufficient. Because a previous meeting lacked a quorum, the November 23 gathering was classified as a “special meeting of members” under Bylaws, Article III, Section 3. This classification carries specific notice requirements that a mere mailbox posting cannot satisfy. Furthermore, the “scavenger hunt” nature of this meeting was highlighted by the fact that it was held at a Robb & Stucky conference room in Scottsdale, yet Mr. Kayser testified that the store had no record of the meeting and he saw no evidence of it occurring when he arrived. Strict adherence to notice procedures is a protection for the members, not a suggestion for the Board.

5. You Don’t Have to Win Every Count to Win the Case

The most significant takeaway for any homeowner considering legal action is the definition of a “prevailing party.” Numerically, Mr. Kayser lost a majority of his claims. For instance, the ALJ found the Association did not violate CC&R Article IV, Section 3 because the assessment increase remained under the 5% threshold that would have required a member vote.

However, ALJ Kowal ruled that winning on “substantial issues”—specifically the failure to conduct an outside audit and the failure to provide record access—outweighed the losses on minor technicalities. This is a critical distinction: you don’t need a perfect scorecard to hold your HOA accountable.

The court ordered the Association to reimburse that $2,000 fee within 40 days. This serves as a powerful deterrent against HOA non-compliance, proving that a Board’s refusal to follow its own Bylaws can be an expensive mistake.

Conclusion: The Power of Accountability

The Kayser vs. Barclay Place case proves that Bylaws and State Statutes are the bedrock of community governance, not mere “best practices” to be ignored when convenient. When a Board fails in its fiduciary duty to maintain records or follow notice procedures, it isn’t just a clerical error—it is a violation of the law.

Real accountability begins when homeowners demand the transparency they are legally owed. Your governing documents are your greatest weapon in ensuring your Association serves its members rather than its own interests.

Final Ponder Point: If you asked for your community’s last external audit tomorrow, would your board provide a report or an excuse?


Case Participants

Petitioner Side

  • William W. Kayser (Petitioner)
    Barclay Place Community
    Appeared on his own behalf

Respondent Side

  • Heather A. Fazio (Respondent Attorney)
    Doyle, Berman, Murdy, P.C.
  • Kevin Young (Property Manager/Witness)
    R & R Management Company
    Testified regarding financial records and association management
  • Denise Lehn (Accountant)
    R & R Management Company
    Oversees financials for the Association
  • Andrew Carr (CPA)
    Reviews and audits financial records monthly
  • Jack Van Royen (Board Member/Witness)
    Barclay Place Homeowners Association Board
  • Bonnie Braun (Board Member)
    Barclay Place Homeowners Association Board
    Present at Nov 23, 2007 meeting
  • Pamela Nicita (Board Member)
    Barclay Place Homeowners Association Board
    Present at Nov 23, 2007 meeting

Neutral Parties

  • Lewis D. Kowal (ALJ)
    Office of Administrative Hearings
  • Robert Barger (Agency Director)
    Department of Fire, Building and Life Safety
    Listed on mailing distribution
  • Debra Blake (Agency Staff)
    Department of Fire, Building and Life Safety
    Listed on mailing distribution