VVE-Casa Grande Home Owners Association v. Duane S & Mary L Eitel

Case Summary

Case ID 24F-H003-REL
Agency ADRE
Tribunal OAH
Decision Date 2024-02-22
Administrative Law Judge Jenna Clark
Outcome Petitioner sustained its burden of proof establishing that Respondents violated CC&Rs sections 7.2, 7.3, 7.25, 7.26, 7.28, and 7.31 by operating a cat rescue business (VKNR) from their residence, which involved unauthorized commercial activity, excessive non-pet animals, and creating a nuisance. Violation of 7.29 was not established. The petition was granted.
Filing Fees Refunded $1,000.00
Civil Penalties $0.00

Parties & Counsel

Petitioner VVE-Casa Grande Home Owners Association Counsel Anthony Rossetti, Esq.
Respondent Duane Eitel & Mary Eitel Counsel Kevin Harper, Esq.

Alleged Violations

CC&Rs Article VII, sections 7.2, 7.3, 7.25, 7.26, 7.28, 7.29, and 7.31

Outcome Summary

Petitioner sustained its burden of proof establishing that Respondents violated CC&Rs sections 7.2, 7.3, 7.25, 7.26, 7.28, and 7.31 by operating a cat rescue business (VKNR) from their residence, which involved unauthorized commercial activity, excessive non-pet animals, and creating a nuisance. Violation of 7.29 was not established. The petition was granted.

Key Issues & Findings

Violation of CC&Rs by operating an unauthorized business out of their home and housing dozens of cats in excess of a reasonable number of household pets, creating a nuisance.

Respondents operated a nonprofit cat rescue (VKNR) from their single-family residence, housing 50+ cats in a 3-car garage, which constituted an unauthorized commercial use, exceeded a reasonable number of pets, and created traffic and waste nuisances.

Orders: Petitioner's petition is granted. Respondents must henceforth abide by CC&Rs sections 7.2, 7.3, 7.25, 7.26, 7.28, and 7.31.

Filing fee: $1,000.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • CC&Rs section 7.2
  • CC&Rs section 7.3
  • CC&Rs section 7.25
  • CC&Rs section 7.26
  • CC&Rs section 7.28
  • CC&Rs section 7.31

Analytics Highlights

Topics: Home Business, Pets/Animals, Nuisance, CC&Rs, Enforcement, HOA
Additional Citations:

  • ARIZ. REV. STAT. §§ 32-2102
  • ARIZ. REV. STAT. §§ 32-2199 et seq.
  • ARIZ. REV. STAT. § 32-2199.05
  • ARIZ. REV. STAT. § 32-2199(2)
  • ARIZ. REV. STAT. § 32-2199.01(A)
  • ARIZ. REV. STAT. § 32-2199.01(D)
  • ARIZ. REV. STAT. § 32-2199.02
  • ARIZ. REV. STAT. §§ 41-1092 et seq.
  • ARIZ. REV. STAT. § 32-2199.04
  • ARIZ. REV. STAT. § 41-1092.09
  • ARIZ. ADMIN. CODE R2-19-119
  • Tierra Ranchos Homeowners Ass'n v. Kitchukov, 216 Ariz. 195, 165 P.3d 173 (App. 2007)

Video Overview

Audio Overview

Decision Documents

24F-H003-REL Decision – 1094853.pdf

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24F-H003-REL Decision – 1113338.pdf

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24F-H003-REL Decision – 1125372.pdf

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24F-H003-REL Decision – 1147484.pdf

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24F-H003-REL Decision – 1094853.pdf

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24F-H003-REL Decision – 1113338.pdf

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24F-H003-REL Decision – 1125372.pdf

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24F-H003-REL Decision – 1147484.pdf

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This case, *VVE-Casa Grande Home Owners Association v. Duane S & Mary L Eitel* (No. 24F-H003-REL), was heard before Administrative Law Judge (ALJ) Jenna Clark at the Office of Administrative Hearings (OAH).

Key Facts and Issues

The Petitioner, VVE-Casa Grande Home Owners Association (the Association), filed a petition alleging that the Respondents, Duane S. Eitel and Mary L. Eitel, violated several Covenants, Conditions, and Restrictions (CC&Rs) by operating an unauthorized business out of their home and housing cats far in excess of a "reasonable number of household pets".

The primary CC&R sections alleged to be violated were:

  1. 7.2 (Residential Use) & 7.3 (No Commercial Use): Prohibiting commercial use, manufacturing, storing, or vending on the lot.
  2. 7.25 (Animals): Limiting animals to a reasonable number of generally recognized household pets, and stating that state and county laws govern pet numbers, noise, and nuisance.
  3. 7.26, 7.28, 7.29, and 7.31: Related to nuisance, garbage, debris, diseases, and maintaining a safe and orderly condition.

The core factual dispute centered on the operation of Valley Kitten Nursery & Rescue Inc. (VKNR), a 501(c)(3) nonprofit. Respondents historically stored over fifty (50) cats/kittens in their three-car garage pending private adoption. Pinal County had previously determined the operation was an unauthorized use subject to a zoning violation in 2017.

Hearing Proceedings and Arguments

The evidentiary hearing took place on November 14, 2023.

Petitioner's Argument: The Association argued that Respondents were unequivocally running a business. This assertion was supported by evidence that VKNR has an Employer Identification Number (EIN), charges adoption fees ($125 for kittens, $95 for adult cats), and handles cats as "a product," not pets. Furthermore, housing 50+ non-pet animals in the garage was unreasonable and violated residential use restrictions. Petitioner’s witness testified to observing cars, deliveries, and volunteers cleaning cages in the driveway, creating concerns about debris, waste runoff, and biohazardous materials.

Respondent's Argument: Respondents argued that VKNR is a volunteer nonprofit and therefore not a "commercial business" prohibited by CC&R 7.3. They asserted they were fostering animals and that adoption fees merely covered costs. Respondent Duane Eitel (DE) testified that the operation was run so that adopters did not pick up cats at the residence (with limited exceptions), and that the cleaning processes had been moved to the rear yard in response to earlier complaints. They noted that Pinal County had never issued a final violation regarding the number of cats.

Procedural Outcome and Final Decision

Following the presentation of evidence, the ALJ recessed the hearing to encourage settlement, placing the matter in "Status". The status period was extended until February 2, 2024. As the parties were unable to settle, they requested the ALJ issue a decision based on the hearing record.

The ALJ issued the Administrative Law Judge Decision on February 22, 2024, finding that the Petitioner sustained its burden of proof by a preponderance of the evidence.

Key Legal Findings:

  • The ALJ concluded that Respondents' operation of VKNR constituted a "clear business model". The assertion that VKNR is not a "business" because it is a nonprofit was deemed "both technically and legally inaccurate".
  • Respondent DE admitted that the 50+ animals housed in the garage were not pets.
  • The continued operation, including visible debris and the scope of the operation, created a nuisance and traffic issues.
  • The ALJ found violations of CC&R sections 7.2, 7.3, 7.25, 7.26, 7.28, and 7.31 were established. (A violation of 7.29 was not established).

Final Order: The Association's petition was granted. Respondents were ordered to **henceforth abide by CC&R sections 7.2,

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24F-H003-REL

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In a legal dispute before the Arizona Department of Real Estate, the VVE-Casa Grande Home Owners Association alleged that residents Duane and Mary Eitel violated community CC&Rs by operating an unauthorized cat rescue from their garage. The association contended that housing dozens of animals constituted an illegal business and a nuisance that impacted the neighborhood’s residential character. While the homeowners argued their nonprofit fostering was a charitable endeavor rather than a commercial enterprise, the Administrative Law Judge ruled that the large-scale operation exceeded the “reasonable number of pets” allowed. Evidence from Pinal County inspections and neighbor testimony confirmed that the garage held over 50 cats, leading to concerns over traffic, sanitation, and debris. Ultimately, the judge found the homeowners in violation of multiple governing documents and ordered them to cease operations.

What were the main legal arguments regarding the cat rescue?
How did the court define a home-based business versus a nonprofit?
What specific HOA rules were the homeowners found to have violated?

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24F-H003-REL

7 sources

In a legal dispute before the Arizona Department of Real Estate, the VVE-Casa Grande Home Owners Association alleged that residents Duane and Mary Eitel violated community CC&Rs by operating an unauthorized cat rescue from their garage. The association contended that housing dozens of animals constituted an illegal business and a nuisance that impacted the neighborhood’s residential character. While the homeowners argued their nonprofit fostering was a charitable endeavor rather than a commercial enterprise, the Administrative Law Judge ruled that the large-scale operation exceeded the “reasonable number of pets” allowed. Evidence from Pinal County inspections and neighbor testimony confirmed that the garage held over 50 cats, leading to concerns over traffic, sanitation, and debris. Ultimately, the judge found the homeowners in violation of multiple governing documents and ordered them to cease operations.

What were the main legal arguments regarding the cat rescue?
How did the court define a home-based business versus a nonprofit?
What specific HOA rules were the homeowners found to have violated?

Thursday, February 12

Save to note

Today • 3:04 PM

7 sources

Video Overview

Mind Map

Reports

Flashcards

Quiz

Infographic

Slide Deck

Data Table

NotebookLM can be inaccurate; please double check its responses.

Case Participants

Petitioner Side

  • Anthony Rossetti (petitioner attorney, property manager)
    Rossetti Management & Realty Services
    Represented Petitioner and owned the newly hired management company.
  • Douglas Karolak (witness, homeowner)
    VVE-Casa Grande HOA Member
    Testified on behalf of Petitioner.
  • Nicole Elliot (property manager)
    Norris Management
    Former HOA management committee/manager who issued warning letters.
  • CD Mai (homeowner/neighbor)
    VVE-Casa Grande HOA Member
    Mentioned by Karolak as a vocal opponent/adjacent neighbor to the Eitels.

Respondent Side

  • Duane Eitel (respondent, witness)
    VVE-Casa Grande HOA Member
    Referred to as Duane S Eitel in earlier documents; DE in the decision.
  • Mary Eitel (respondent)
    VVE-Casa Grande HOA Member, CEO/Director of Valley Kitten Nursery & Rescue Inc.
    Referred to as Mary L Eitel in earlier documents.
  • Kevin Harper (respondent attorney)
    Harper Law, PLC

Neutral Parties

  • Jenna Clark (ALJ)
    Office of Administrative Hearings
  • Susan Nicolson (commissioner)
    Arizona Department of Real Estate
  • AHansen (ADRE staff)
    Arizona Department of Real Estate
  • vnunez (ADRE staff)
    Arizona Department of Real Estate
  • djones (ADRE staff)
    Arizona Department of Real Estate
  • labril (ADRE staff)
    Arizona Department of Real Estate
  • Christopher Sinco (code compliance officer)
    Pinal County Animal Control
    Involved in the 2017/2018 county inspection.

Other Participants

  • Scott Lenderman (property manager)
    HOA management administrator (prior to Rossetti)
    Mentioned as the first HOA management administrator.

George Holub v. 3 Canyons Ranch Master

Case Summary

Case ID 24F-H021-REL
Agency ADRE
Tribunal OAH
Decision Date 2024-02-12
Administrative Law Judge Adam D. Stone
Outcome Petitioner's petition alleging violations of ARIZ. REV. STAT. § 33-1803 regarding assessment increase and fine imposition was denied in its entirety. The Administrative Law Judge found Petitioner failed to meet the burden of proof, concluding the HOA did not violate the statute.
Filing Fees Refunded $1,000.00
Civil Penalties $0.00

Parties & Counsel

Petitioner George Holub Counsel
Respondent 3 Canyons Ranch Master Homeowners’ Association Counsel Marcus Martinez, Esq.

Alleged Violations

ARIZ. REV. STAT. § 33-1803(A)
ARIZ. REV. STAT. § 33-1803(B), (C), (D), (E)

Outcome Summary

Petitioner's petition alleging violations of ARIZ. REV. STAT. § 33-1803 regarding assessment increase and fine imposition was denied in its entirety. The Administrative Law Judge found Petitioner failed to meet the burden of proof, concluding the HOA did not violate the statute.

Why this result: Petitioner did not meet the burden of proving by a preponderance of the evidence that the Association violated ARIZ. REV. STAT. § 33-1803, as the assessment error was corrected and the notice requirements for the fine were met.

Key Issues & Findings

Assessment Increase

Petitioner alleged the yearly assessment increased from $525.00 to $1,010.00, violating ARS § 33-1803(A). The HOA claimed this was a clerical error that was promptly corrected to $525.00.

Orders: Petitioner failed to meet the burden of proof, as the evidence showed the assessment error was immediately corrected, resulting in no statutory violation.

Filing fee: $1,000.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • ARIZ. REV. STAT. § 33-1803(A)
  • ARIZ. REV. STAT. § 33-1803

Imposition of fine without proper notice

Petitioner challenged a $500 fine for commencing construction of a courtyard wall without prior approval. Petitioner claimed insufficient notice, while the HOA asserted notice was provided via email, satisfying statutory requirements.

Orders: Petitioner failed to meet the burden of proof. The email notice complied with statutory requirements. The Association was ordered not to reimburse the filing fee.

Filing fee: $1,000.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • ARIZ. REV. STAT. § 33-1803(B)
  • ARIZ. REV. STAT. § 33-1803(C)
  • ARIZ. REV. STAT. § 33-1803(D)
  • ARIZ. REV. STAT. § 33-1803(E)
  • ARIZ. REV. STAT. § 33-1803

Video Overview

Audio Overview

Decision Documents

24F-H021-REL Decision – 1114406.pdf

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24F-H021-REL Decision – 1114407.pdf

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24F-H021-REL Decision – 1135788.pdf

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24F-H021-REL Decision – 1143255.pdf

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24F-H021-REL Decision – 1114406.pdf

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24F-H021-REL Decision – 1114407.pdf

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24F-H021-REL Decision – 1135788.pdf

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24F-H021-REL Decision – 1143255.pdf

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The hearing summary for *George Holub v. 3 Canyons Ranch Master Homeowners’ Association* (No. 24F-H021-REL) addresses allegations that the Homeowners’ Association (HOA) violated the Arizona Planned Communities Act regarding assessments and fines.

Case Overview and Key Issues

The case was heard by Administrative Law Judge (ALJ) Adam D. Stone at the Office of Administrative Hearings (OAH) on January 26, 2024. Petitioner George Holub filed a two-issue petition, alleging the Respondent HOA violated ARIZ. REV. STAT. § 33-1803.

The main issues were:

  1. Assessment Increase: The HOA allegedly "nearly doubled the assessment amount from previous year," violating the statutory limit that prevents increases over twenty percent without a majority member vote (ARS 33-1803(A)).
  2. Improper Fine: The HOA allegedly "imposed violation fee without first discussing the violation with [Petitioner] in front of the board members". This concerned a $500 fine levied for unapproved construction.

Key Arguments and Proceedings

Petitioner's Argument (George Holub):

Petitioner testified that in July 2023, he received a statement showing his annual assessment increased from $525.00 (or $540.00) to $1,010.00 (or $1,495.00 in one statement). He argued this substantial increase was illegal. Regarding the violation, Holub admitted commencing construction of a courtyard and a 5.5-foot wall without prior HOA approval. He asserted he never received the initial Notice of Violation (NOV) via certified mail. He confirmed the certified mail NOV was returned as undeliverable. Holub also argued the subsequent fine letter (January 2023) was sent to a wrong, outdated address for his property-owning entity, Jolly Acres LLC.

Respondent's Argument (Marcus Martinez, Esq. and Mike Needham, Board President):

Respondent argued that there was no assessment increase. Board President Mike Needham testified that the high assessment amount was a clerical error made by the managing agent. This error was immediately corrected after Petitioner inquired, and a new ledger reflecting the correct $525.00 annual assessment was generated on July 7, 2023.

Concerning the fine, Respondent acknowledged the initial certified NOV (September 15, 2022) was returned undeliverable. However, the Board re-sent the NOV via e-mail on October 24, 2022, which Petitioner acknowledged receiving. The $500 fine was subsequently approved at the January 2023 board meeting for failure to seek approval for the construction. Respondent maintained that its procedures strictly adhered to Arizona law.

Final Decision and Legal Points

The ALJ issued a decision on February 12, 2024, denying the petition. The ALJ found that Petitioner failed to meet the burden of proof.

Assessment Ruling:

The ALJ concluded that the assessment issue was merely a clerical error that was promptly corrected. The evidence showed the annual assessment remained $525.00, meaning the Respondent did not violate ARS § 33-1803(A) by illegally increasing dues.

Fine Ruling:

The ALJ held that nothing in the relevant statute requires the association to send the Notice of Violation via certified mail. Although the mail was returned, Petitioner did receive the NOV via email on October 24, 2022. Since the fine was not imposed until the January 2023 board meeting (two and a half months later), Petitioner was given ample time to respond. Furthermore, the ALJ found Petitioner’s claim regarding failure to receive the fine letter to be "disingenuous," as Petitioner had failed to update a corrected address for the property-owning LLC with the Association after being notified of the requirement.

The Petitioner’s petition was denied in its entirety, and the HOA was not required to reimburse the filing fee.

Questions

Question

Is an HOA required to send a Notice of Violation via certified mail?

Short Answer

No, Arizona statute does not require the initial Notice of Violation to be sent via certified mail.

Detailed Answer

The ALJ determined that while homeowners often expect certified mail, the relevant statute (A.R.S. § 33-1803) does not mandate it for the initial notice. As long as the homeowner actually receives the notice (even via email) and it contains the required statutory information, it is considered valid.

Alj Quote

As to the fine, nothing in the statute requires the Association to send the notice via certified mail.

Legal Basis

A.R.S. § 33-1803

Topic Tags

  • violations
  • notices
  • procedural requirements

Question

Does a clerical error on a ledger count as an illegal assessment increase?

Short Answer

No, if the error is corrected and the homeowner is not actually forced to pay the incorrect amount, it is not a violation.

Detailed Answer

In this case, the HOA's management company sent a ledger showing an incorrect assessment amount that appeared to double the fees. However, because the HOA acknowledged the mistake, corrected the ledger to the proper amount, and communicated the correction to the homeowner, the ALJ ruled that the HOA did not violate the statute regarding assessment increases.

Alj Quote

The testimony provided, demonstrated that there was an error in the ledger Petitioner received initially, but that was corrected as evidenced by the July 7, 2023 ledger… Petitioner has not met its burden to prove that the Association violated the statute.

Legal Basis

A.R.S. § 33-1803(A)

Topic Tags

  • assessments
  • billing errors
  • fees

Question

Whose responsibility is it to ensure the HOA has the correct mailing address?

Short Answer

It is the homeowner's responsibility to update their address with the HOA.

Detailed Answer

The ALJ ruled that a homeowner cannot claim they didn't receive notice if they failed to provide the HOA with their current address. Even if the homeowner informs a board member verbally or via email of a change in ownership entity, they must explicitly provide the correct mailing address to the Association.

Alj Quote

While Petitioner informed Mr. Needham that Jolly Acres was now the owner and to mail all community documents to them, he did not provide an address nor update a corrected address with the Association. Thus, this was not the Association’s fault that he did not receive notice of the fine.

Legal Basis

N/A

Topic Tags

  • homeowner obligations
  • notices
  • mailing address

Question

Can an HOA send a Notice of Violation via email?

Short Answer

Yes, if the homeowner receives it.

Detailed Answer

The decision validated a Notice of Violation sent via email because the homeowner acknowledged receiving it. Since the homeowner received actual notice and the content of the email met statutory requirements, the notice was deemed valid despite not being mailed initially.

Alj Quote

Therefore, although Petitioner never received the Notice of Violation via mail, he did receive the same on October 24, 2022. From the evidence provided, the Notice complied with all of the statutory requirements

Legal Basis

A.R.S. § 33-1803

Topic Tags

  • violations
  • email
  • notices

Question

Who has the burden of proof in an administrative hearing against an HOA?

Short Answer

The homeowner (Petitioner) bears the burden of proof.

Detailed Answer

The homeowner filing the petition must prove that the HOA violated the law by a 'preponderance of the evidence,' which means showing that their claims are more likely true than not.

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated ARIZ. REV. STAT. § 33-1803.

Legal Basis

A.R.S. § 41-1092

Topic Tags

  • hearings
  • legal standards
  • burden of proof

Question

Can a homeowner respond to a violation notice to contest it?

Short Answer

Yes, a homeowner has 21 days to respond via certified mail.

Detailed Answer

Statute allows a member to provide a written response to a violation notice. This response must be sent by certified mail within 21 calendar days of the notice date.

Alj Quote

A member who receives a written notice that the condition of the property owned by the member is in violation of the community documents… may provide the association with a written response by sending the response by certified mail within twenty-one calendar days after the date of the notice.

Legal Basis

A.R.S. § 33-1803(C)

Topic Tags

  • violations
  • due process
  • homeowner rights

Question

If a homeowner makes a partial payment on a debt, how must the HOA apply the money?

Short Answer

Payments must be applied to the principal debt first, then to accrued interest.

Detailed Answer

Arizona law mandates that any monies paid by a member for an unpaid penalty or assessment must be applied first to the principal amount unpaid and then to the interest accrued.

Alj Quote

Any monies paid by a member for an unpaid penalty shall be applied first to the principal amount unpaid and then to the interest accrued.

Legal Basis

A.R.S. § 33-1803(B)

Topic Tags

  • payments
  • accounting
  • penalties

Question

Will the filing fee for the hearing be refunded if the homeowner loses?

Short Answer

No, the filing fee is not reimbursed if the petition is denied.

Detailed Answer

The ALJ ordered that because the petition was denied, the Respondent (HOA) was not required to reimburse the Petitioner's filing fee.

Alj Quote

IT IS FURTHER ORDERED pursuant to ARIZ. REV. STAT. § 32-2199.02(A), Respondent shall not reimburse Petitioner’s filing fee as required by ARIZ. REV. STAT. § 32-2199.01.

Legal Basis

A.R.S. § 32-2199.02(A)

Topic Tags

  • hearings
  • fees
  • costs

Case

Docket No
24F-H021-REL
Case Title
George Holub v 3 Canyons Ranch Master Homeowners’ Association
Decision Date
2024-02-12
Alj Name
Adam D. Stone
Tribunal
OAH
Agency
ADRE

Questions

Question

Is an HOA required to send a Notice of Violation via certified mail?

Short Answer

No, Arizona statute does not require the initial Notice of Violation to be sent via certified mail.

Detailed Answer

The ALJ determined that while homeowners often expect certified mail, the relevant statute (A.R.S. § 33-1803) does not mandate it for the initial notice. As long as the homeowner actually receives the notice (even via email) and it contains the required statutory information, it is considered valid.

Alj Quote

As to the fine, nothing in the statute requires the Association to send the notice via certified mail.

Legal Basis

A.R.S. § 33-1803

Topic Tags

  • violations
  • notices
  • procedural requirements

Question

Does a clerical error on a ledger count as an illegal assessment increase?

Short Answer

No, if the error is corrected and the homeowner is not actually forced to pay the incorrect amount, it is not a violation.

Detailed Answer

In this case, the HOA's management company sent a ledger showing an incorrect assessment amount that appeared to double the fees. However, because the HOA acknowledged the mistake, corrected the ledger to the proper amount, and communicated the correction to the homeowner, the ALJ ruled that the HOA did not violate the statute regarding assessment increases.

Alj Quote

The testimony provided, demonstrated that there was an error in the ledger Petitioner received initially, but that was corrected as evidenced by the July 7, 2023 ledger… Petitioner has not met its burden to prove that the Association violated the statute.

Legal Basis

A.R.S. § 33-1803(A)

Topic Tags

  • assessments
  • billing errors
  • fees

Question

Whose responsibility is it to ensure the HOA has the correct mailing address?

Short Answer

It is the homeowner's responsibility to update their address with the HOA.

Detailed Answer

The ALJ ruled that a homeowner cannot claim they didn't receive notice if they failed to provide the HOA with their current address. Even if the homeowner informs a board member verbally or via email of a change in ownership entity, they must explicitly provide the correct mailing address to the Association.

Alj Quote

While Petitioner informed Mr. Needham that Jolly Acres was now the owner and to mail all community documents to them, he did not provide an address nor update a corrected address with the Association. Thus, this was not the Association’s fault that he did not receive notice of the fine.

Legal Basis

N/A

Topic Tags

  • homeowner obligations
  • notices
  • mailing address

Question

Can an HOA send a Notice of Violation via email?

Short Answer

Yes, if the homeowner receives it.

Detailed Answer

The decision validated a Notice of Violation sent via email because the homeowner acknowledged receiving it. Since the homeowner received actual notice and the content of the email met statutory requirements, the notice was deemed valid despite not being mailed initially.

Alj Quote

Therefore, although Petitioner never received the Notice of Violation via mail, he did receive the same on October 24, 2022. From the evidence provided, the Notice complied with all of the statutory requirements

Legal Basis

A.R.S. § 33-1803

Topic Tags

  • violations
  • email
  • notices

Question

Who has the burden of proof in an administrative hearing against an HOA?

Short Answer

The homeowner (Petitioner) bears the burden of proof.

Detailed Answer

The homeowner filing the petition must prove that the HOA violated the law by a 'preponderance of the evidence,' which means showing that their claims are more likely true than not.

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated ARIZ. REV. STAT. § 33-1803.

Legal Basis

A.R.S. § 41-1092

Topic Tags

  • hearings
  • legal standards
  • burden of proof

Question

Can a homeowner respond to a violation notice to contest it?

Short Answer

Yes, a homeowner has 21 days to respond via certified mail.

Detailed Answer

Statute allows a member to provide a written response to a violation notice. This response must be sent by certified mail within 21 calendar days of the notice date.

Alj Quote

A member who receives a written notice that the condition of the property owned by the member is in violation of the community documents… may provide the association with a written response by sending the response by certified mail within twenty-one calendar days after the date of the notice.

Legal Basis

A.R.S. § 33-1803(C)

Topic Tags

  • violations
  • due process
  • homeowner rights

Question

If a homeowner makes a partial payment on a debt, how must the HOA apply the money?

Short Answer

Payments must be applied to the principal debt first, then to accrued interest.

Detailed Answer

Arizona law mandates that any monies paid by a member for an unpaid penalty or assessment must be applied first to the principal amount unpaid and then to the interest accrued.

Alj Quote

Any monies paid by a member for an unpaid penalty shall be applied first to the principal amount unpaid and then to the interest accrued.

Legal Basis

A.R.S. § 33-1803(B)

Topic Tags

  • payments
  • accounting
  • penalties

Question

Will the filing fee for the hearing be refunded if the homeowner loses?

Short Answer

No, the filing fee is not reimbursed if the petition is denied.

Detailed Answer

The ALJ ordered that because the petition was denied, the Respondent (HOA) was not required to reimburse the Petitioner's filing fee.

Alj Quote

IT IS FURTHER ORDERED pursuant to ARIZ. REV. STAT. § 32-2199.02(A), Respondent shall not reimburse Petitioner’s filing fee as required by ARIZ. REV. STAT. § 32-2199.01.

Legal Basis

A.R.S. § 32-2199.02(A)

Topic Tags

  • hearings
  • fees
  • costs

Case

Docket No
24F-H021-REL
Case Title
George Holub v 3 Canyons Ranch Master Homeowners’ Association
Decision Date
2024-02-12
Alj Name
Adam D. Stone
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • George Holub (petitioner)
    Jolly Acres LLC (Owner Entity)
    Appeared on his own behalf
  • Emily Holub (Petitioner's Wife)
    Involved in communications with the HOA regarding assessment

Respondent Side

  • Marcus Martinez (HOA attorney)
    3 Canyons Ranch Master Homeowners’ Association
    Represented Respondent
  • Mike Needham (Board President)
    3 Canyons Ranch Master Homeowners’ Association
    President of the Board of Directors, testified as a witness
  • Nicholas Nogami (Attorney)
    Carpenter Hazlewood
    Listed in service transmission
  • Sarah Malovich (HOA Agent)
  • David Roberts (HOA Agent)
    Provided statement
  • Mrs. Turka (HOA contact)
    Gate person contact
  • Mr. Plat (MDC Chairman)
    3 Canyons Ranch Master Homeowners’ Association
    Chairman of the Master Design Committee
  • Donna (HOA Agent)
    Platinum Management
    HOA/Accounting contact
  • Stacy Smith (board member)
    3 Canyons Ranch Master Homeowners’ Association
    Board member who made a motion regarding the fine

Neutral Parties

  • Adam D. Stone (ALJ)
    OAH
  • Susan Nicolson (Commissioner)
    ADRE
  • AHansen (ADRE Staff)
    ADRE
    Listed in service transmission email list
  • vnunez (ADRE Staff)
    ADRE
    Listed in service transmission email list
  • djones (ADRE Staff)
    ADRE
    Listed in service transmission email list
  • labril (ADRE Staff)
    ADRE
    Listed in service transmission email list

Other Participants

  • Dimitry Wilker (Neighbor)

Keith W. Cunningham v. The Residences at 2211 Camelback Condominium

Case Summary

Case ID 24F-H008-REL
Agency ADRE
Tribunal OAH
Decision Date 2024-01-11
Administrative Law Judge Tammy L. Eigenheer
Outcome Petitioner's petition is granted. Respondent violated A.R.S. § 33-1258 by failing to provide requested records within 10 business days. Respondent violated CC&Rs Section 8.1.1 by failing to maintain insurance coverage equal to 100% of the replacement cost and failing to meet specific liability limits. Respondent is ordered to reimburse Petitioner's $1,000.00 filing fee and comply with the statute and CC&Rs going forward.
Filing Fees Refunded $1,000.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Keith W. Cunningham Counsel
Respondent The Residences at 2211 Camelback Condominium Association, INC Counsel Allison Preston

Alleged Violations

A.R.S. § 33-1258
CC&Rs Section 8.1.1

Outcome Summary

Petitioner's petition is granted. Respondent violated A.R.S. § 33-1258 by failing to provide requested records within 10 business days. Respondent violated CC&Rs Section 8.1.1 by failing to maintain insurance coverage equal to 100% of the replacement cost and failing to meet specific liability limits. Respondent is ordered to reimburse Petitioner's $1,000.00 filing fee and comply with the statute and CC&Rs going forward.

Key Issues & Findings

Records Request

Petitioner alleged Respondent failed to provide financial records and vendor contracts (Epic Valet, FirstService Residential, landscaping) within the statutory timeframe. The ALJ found Respondent failed to provide the documents within 10 business days of the July 10, 2023 request and subsequent July 24, 2023 request.

Orders: Respondent shall comply with A.R.S. § 33-1258 going forward.

Filing fee: $1,000.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • A.R.S. § 33-1258

Insurance Coverage

Petitioner alleged Respondent failed to maintain required insurance coverage. The ALJ found Respondent's property insurance coverage ($59M) was below the appraised replacement cost ($73M) and the general liability limits did not strictly comply with CC&Rs requirements despite an umbrella policy.

Orders: Respondent shall comply with Section 8.1.1 of the CC&Rs going forward.

Filing fee: $0.00, Fee refunded: No

Disposition: petitioner_win

Cited:

  • CC&Rs Section 8.1.1

Analytics Highlights

Topics: Records Request, Insurance Coverage, Condominium, Contracts, Vendor Contracts, Replacement Cost
Additional Citations:

  • A.R.S. § 33-1258
  • CC&Rs Section 8.1.1

Video Overview

Audio Overview

Decision Documents

24F-H008-REL Decision – 1099767.pdf

Uploaded 2026-04-24T12:14:44 (46.1 KB)

24F-H008-REL Decision – 1101587.pdf

Uploaded 2026-04-24T12:14:47 (49.0 KB)

24F-H008-REL Decision – 1119643.pdf

Uploaded 2026-04-24T12:14:51 (47.5 KB)

24F-H008-REL Decision – 1121917.pdf

Uploaded 2026-04-24T12:14:55 (39.3 KB)

24F-H008-REL Decision – 1132963.pdf

Uploaded 2026-04-24T12:14:58 (188.5 KB)

24F-H008-REL Decision – 1149691.pdf

Uploaded 2026-04-24T12:15:04 (39.1 KB)

24F-H008-REL Decision – 1099767.pdf

Uploaded 2026-02-12T19:18:01 (46.1 KB)

24F-H008-REL Decision – 1101587.pdf

Uploaded 2026-02-12T19:18:03 (49.0 KB)

24F-H008-REL Decision – 1119643.pdf

Uploaded 2026-02-12T19:18:04 (47.5 KB)

24F-H008-REL Decision – 1121917.pdf

Uploaded 2026-02-12T19:18:06 (39.3 KB)

24F-H008-REL Decision – 1132963.pdf

Uploaded 2026-02-12T19:18:07 (188.5 KB)

24F-H008-REL Decision – 1149691.pdf

Uploaded 2026-02-12T19:18:08 (39.1 KB)

{
“case”: {
“docket_no”: “24F-H008-REL”,
“case_title”: “In the Matter of Keith W. Cunningham v The Residences at 2211 Camelback Condominium Association, INC”,
“decision_date”: “2024-01-11”,
“tribunal”: “OAH”,
“agency”: “ADRE”
},
“individuals”: [
{
“name”: “Keith W. Cunningham”,
“role”: “petitioner”,
“side”: “petitioner”,
“affiliation”: null,
“notes”: null
},
{
“name”: “Allison Preston”,
“role”: “HOA attorney”,
“side”: “respondent”,
“affiliation”: “Carpenter Hazlewood Delgado & Bolen LLP”,
“notes”: “Represented The Residences at 2211 Camelback Condominium Association, INC”
},
{
“name”: “Kyle von Johnson”,
“role”: “HOA attorney”,
“side”: “respondent”,
“affiliation”: null,
“notes”: “Represented The Residences at 2211 Camelback Condominium Association, INC”
},
{
“name”: “Mark Teman”,
“role”: “board member”,
“side”: “respondent”,
“affiliation”: null,
“notes”: “Association President, witness”
},
{
“name”: “Allison Renow”,
“role”: “property manager”,
“side”: “respondent”,
“affiliation”: “First Service Residential”,
“notes”: “General Manager (GM) on site”
},
{
“name”: “Frank Durso”,
“role”: “regional manager”,
“side”: “respondent”,
“affiliation”: “First Service Residential”,
“notes”: null
},
{
“name”: “Jamie George”,
“role”: “VP of Insurance”,
“side”: “respondent”,
“affiliation”: “First Service Financial”,
“notes”: “Assists with association insurance policies”
},
{
“name”: “Holly McNelte”,
“role”: “management staff”,
“side”: “respondent”,
“affiliation”: “First Service Residential”,
“notes”: “FSR team member who managed documents/files”
},
{
“name”: “Jonathan Henley”,
“role”: “insurance broker”,
“side”: “neutral”,
“affiliation”: “Gallagher”,
“notes”: null
},
{
“name”: “Brian Del Vecchio”,
“role”: “ALJ”,
“side”: “neutral”,
“affiliation”: “OAH”,
“notes”: “Administrative Law Judge who conducted the hearing (12/8/23)”
},
{
“name”: “Tammy L. Eigenheer”,
“role”: “ALJ”,
“side”: “neutral”,
“affiliation”: “OAH”,
“notes”: “Administrative Law Judge who wrote the decision”
},
{
“name”: “Susan Nicolson”,
“role”: “Commissioner”,
“side”: “neutral”,
“affiliation”: “Arizona Department of Real Estate”,
“notes”: null
},
{
“name”: “AHansen”,
“role”: “ADRE staff”,
“side”: “unknown”,
“affiliation”: “Arizona Department of Real Estate”,
“notes”: “Transmission recipient”
},
{
“name”: “vnunez”,
“role”: “ADRE staff”,
“side”: “unknown”,
“affiliation”: “Arizona Department of Real Estate”,
“notes”: “Transmission recipient”
},
{
“name”: “djones”,
“role”: “ADRE staff”,
“side”: “unknown”,
“affiliation”: “Arizona Department of Real Estate”,
“notes”: “Transmission recipient”
},
{
“name”: “labril”,
“role”: “ADRE staff”,
“side”: “unknown”,
“affiliation”: “Arizona Department of Real Estate”,
“notes”: “Transmission recipient”
},
{
“name”: “mneat”,
“role”: “ADRE staff”,
“side”: “unknown”,
“affiliation”: “Arizona Department of Real Estate”,
“notes”: “Transmission recipient”
},
{
“name”: “akowaleski”,
“role”: “ADRE staff”,
“side”: “unknown”,
“affiliation”: “Arizona Department of Real Estate”,
“notes”: “Transmission recipient”
},
{
“name”: “gosborn”,
“role”: “ADRE staff”,
“side”: “unknown”,
“affiliation”: “Arizona Department of Real Estate”,
“notes”: “Transmission recipient”
}
]
}

{ “case”: { “agency”: “ADRE”, “tribunal”: “OAH”, “docket_no”: “24F-H008-REL”, “case_title”: “In the Matter of Keith W. Cunningham v The Residences at 2211 Camelback Condominium Association, INC”, “decision_date”: “2024-01-11”, “alj_name”: “Tammy L. Eigenheer” }, “parties”: [ { “party_id”: “P1”, “role”: “petitioner”, “name”: “Keith W. Cunningham”, “party_type”: “homeowner”, “email”: “[email protected]”, “phone”: null, “attorney_name”: null, “attorney_firm”: null, “attorney_email”: null, “attorney_phone”: null }, { “party_id”: “R1”, “role”: “respondent”, “name”: “The Residences at 2211 Camelback Condominium Association, INC”, “party_type”: “HOA”, “email”: null, “phone”: null, “attorney_name”: “Allison Preston”, “attorney_firm”: “Carpenter Hazlewood Delgado & Bolen LLP”, “attorney_email”: “[email protected]”, “attorney_phone”: null } ], “issues”: [ { “issue_id”: “ISS-001”, “type”: “statute”, “citation”: “A.R.S. § 33-1258”, “caption”: “Records Request”, “violation(s)”: “Failure to provide requested financial records and contracts within 10 business days”, “summary”: “Petitioner alleged Respondent failed to provide financial records and vendor contracts (Epic Valet, FirstService Residential, landscaping) within the statutory timeframe. The ALJ found Respondent failed to provide the documents within 10 business days of the July 10, 2023 request and subsequent July 24, 2023 request.”, “outcome”: “petitioner_win”, “filing_fee_paid”: 1000.0, “filing_fee_refunded”: true, “civil_penalty_amount”: 0.0, “orders_summary”: “Respondent shall comply with A.R.S. § 33-1258 going forward.”, “why_the_loss”: null, “cited”: [“A.R.S. § 33-1258”] }, { “issue_id”: “ISS-002”, “type”: “governing_documents”, “citation”: “CC&Rs Section 8.1.1”, “caption”: “Insurance Coverage”, “violation(s)”: “Failure to maintain property insurance equal to 100% of replacement cost and general liability insurance limits as required”, “summary”: “Petitioner alleged Respondent failed to maintain required insurance coverage. The ALJ found Respondent’s property insurance coverage (59M)wasbelowtheappraisedreplacementcost(73M) and the general liability limits did not strictly comply with CC&Rs requirements despite an umbrella policy.”, “outcome”: “petitioner_win”, “filing_fee_paid”: 0.0, “filing_fee_refunded”: false, “civil_penalty_amount”: 0.0, “orders_summary”: “Respondent shall comply with Section 8.1.1 of the CC&Rs going forward.”, “why_the_loss”: null, “cited”: [“CC&Rs Section 8.1.1”] } ], “money_summary”: { “issues_count”: 2, “total_filing_fees_paid”: 1000.0, “total_filing_fees_refunded”: 1000.0, “total_civil_penalties”: 0.0 }, “outcomes”: { “petitioner_is_hoa”: false, “petitioner_win”: “yes”, “summarize_judgement”: “Petitioner’s petition is granted. Respondent violated A.R.S. § 33-1258 by failing to provide requested records within 10 business days. Respondent violated CC&Rs Section 8.1.1 by failing to maintain insurance coverage equal to 100% of the replacement cost and failing to meet specific liability limits. Respondent is ordered to reimburse Petitioner’s $1,000.00 filing fee and comply with the statute and CC&Rs going forward.”, “why_the_loss”: null }, “analytics”: { “cited”: [“A.R.S. § 33-1258”, “CC&Rs Section 8.1.1”], “tags”: [“Records Request”, “Insurance Coverage”, “Condominium”, “Contracts”, “Vendor Contracts”, “Replacement Cost”] } }

{ “case”: { “docket_no”: “24F-H008-REL”, “case_title”: “Keith W. Cunningham v The Residences at 2211 Camelback Condominium Association, INC”, “decision_date”: “2024-01-11”, “alj_name”: “Tammy L. Eigenheer”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “How many days does my HOA have to provide records after I request them?”, “short_answer”: “The HOA has 10 business days to fulfill a request for examination of records.”, “detailed_answer”: “According to Arizona law cited in the decision, an association must make financial and other records reasonably available for examination within ten business days of a member’s request.”, “alj_quote”: “The association shall have ten business days to fulfill a request for examination.”, “legal_basis”: “A.R.S. § 33-1258(A)”, “topic_tags”: [ “records request”, “deadlines”, “A.R.S. § 33-1258” ] }, { “question”: “Can my HOA claim they don’t have to provide specific contracts if they are not uploaded to the web portal?”, “short_answer”: “No. If the records exist and aren’t privileged, the HOA must make them available for examination, regardless of whether they are on a portal.”, “detailed_answer”: “In this case, the HOA failed to provide signed vendor contracts that existed, claiming they provided what was on the portal. The ALJ found that failing to provide these specific requested documents constituted a violation.”, “alj_quote”: “Respondent did not assert or establish that any of the requested documents were subject to any of the exceptions provided for in statute. Accordingly, Petitioner was entitled to examine those documents.”, “legal_basis”: “A.R.S. § 33-1258”, “topic_tags”: [ “records request”, “contracts”, “online portal” ] }, { “question”: “If my CC&Rs require specific insurance liability limits, does an umbrella policy count towards meeting them?”, “short_answer”: “Not necessarily. The ALJ ruled that a base policy lower than the CC&R requirement was non-compliant, even with a large umbrella policy.”, “detailed_answer”: “The CC&Rs required $3,000,000 per occurrence. The HOA had $1,000,000 coverage plus a $50,000,000 umbrella. The ALJ ruled the general liability insurance was not in compliance because the specific base limit was not met.”, “alj_quote”: “While Respondent had an umbrella policy in addition to the general liability insurance, Respondent’s general liability insurance was not in compliance with the applicable CC&Rs.”, “legal_basis”: “CC&Rs Section 8.1.1”, “topic_tags”: [ “insurance”, “compliance”, “CC&Rs” ] }, { “question”: “Must the HOA insure the building for its full replacement cost?”, “short_answer”: “Yes, if the CC&Rs state the insurance must equal 100% of the current replacement cost.”, “detailed_answer”: “The HOA obtained an appraisal showing a replacement cost of $73 million but maintained coverage of only $59 million. The ALJ found this violated the CC&Rs requirement for 100% replacement cost coverage.”, “alj_quote”: “Accordingly, Respondent’s property insurance was not in compliance with the applicable CC&Rs at the time the petition was filed.”, “legal_basis”: “CC&Rs Section 8.1.1”, “topic_tags”: [ “insurance”, “property value”, “CC&Rs” ] }, { “question”: “Will I get my filing fee back if I win the hearing?”, “short_answer”: “The ALJ has the authority to order the HOA to reimburse the filing fee if the petition is granted.”, “detailed_answer”: “After granting the petition and finding the HOA in violation, the judge specifically ordered the respondent to pay back the petitioner’s filing fee.”, “alj_quote”: “IT IS FURTHER ORDERED that Respondent reimburse Petitioner his $1,000.00 filing fee.”, “legal_basis”: “Order”, “topic_tags”: [ “remedies”, “filing fees”, “costs” ] }, { “question”: “What happens if I accidentally cite the wrong statute number in my complaint?”, “short_answer”: “It may not be dismissed if the context of your complaint makes it clear what you are disputing.”, “detailed_answer”: “The HOA tried to dismiss the case because the homeowner cited the Planned Community statute instead of the Condominium statute. The judge denied this because the checkboxes and narrative provided sufficient notice of the claim.”, “alj_quote”: “While it may be true Petitioner hand wrote A.R.S. §33-1805… the context surrounding Petitioner’s hand written statute provides adequate notice.”, “legal_basis”: “Due Process / Notice”, “topic_tags”: [ “procedure”, “complaint forms”, “legal error” ] }, { “question”: “What is the standard of proof I need to meet to win against my HOA?”, “short_answer”: “You must prove your case by a “preponderance of the evidence.””, “detailed_answer”: “The homeowner bears the burden of proof. This standard means showing that the fact sought to be proved is more probable than not.”, “alj_quote”: “In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated A.R.S. § 33-1258 and the Association’s governing documents.”, “legal_basis”: “A.A.C. R2-19-119”, “topic_tags”: [ “burden of proof”, “legal standard”, “evidence” ] }, { “question”: “Will the HOA be fined a civil penalty if I prove they violated the law?”, “short_answer”: “Not automatically. The ALJ decides if a penalty is appropriate based on the facts.”, “detailed_answer”: “Even though the HOA was found to have violated record laws and insurance requirements, the judge decided not to assess a civil penalty in this specific instance.”, “alj_quote”: “Based on the facts presented, the Administrative Law Judge finds no civil penalty is appropriate in this matter.”, “legal_basis”: “Judicial Discretion”, “topic_tags”: [ “penalties”, “fines”, “enforcement” ] } ] }

{ “case”: { “docket_no”: “24F-H008-REL”, “case_title”: “Keith W. Cunningham v The Residences at 2211 Camelback Condominium Association, INC”, “decision_date”: “2024-01-11”, “alj_name”: “Tammy L. Eigenheer”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “How many days does my HOA have to provide records after I request them?”, “short_answer”: “The HOA has 10 business days to fulfill a request for examination of records.”, “detailed_answer”: “According to Arizona law cited in the decision, an association must make financial and other records reasonably available for examination within ten business days of a member’s request.”, “alj_quote”: “The association shall have ten business days to fulfill a request for examination.”, “legal_basis”: “A.R.S. § 33-1258(A)”, “topic_tags”: [ “records request”, “deadlines”, “A.R.S. § 33-1258” ] }, { “question”: “Can my HOA claim they don’t have to provide specific contracts if they are not uploaded to the web portal?”, “short_answer”: “No. If the records exist and aren’t privileged, the HOA must make them available for examination, regardless of whether they are on a portal.”, “detailed_answer”: “In this case, the HOA failed to provide signed vendor contracts that existed, claiming they provided what was on the portal. The ALJ found that failing to provide these specific requested documents constituted a violation.”, “alj_quote”: “Respondent did not assert or establish that any of the requested documents were subject to any of the exceptions provided for in statute. Accordingly, Petitioner was entitled to examine those documents.”, “legal_basis”: “A.R.S. § 33-1258”, “topic_tags”: [ “records request”, “contracts”, “online portal” ] }, { “question”: “If my CC&Rs require specific insurance liability limits, does an umbrella policy count towards meeting them?”, “short_answer”: “Not necessarily. The ALJ ruled that a base policy lower than the CC&R requirement was non-compliant, even with a large umbrella policy.”, “detailed_answer”: “The CC&Rs required $3,000,000 per occurrence. The HOA had $1,000,000 coverage plus a $50,000,000 umbrella. The ALJ ruled the general liability insurance was not in compliance because the specific base limit was not met.”, “alj_quote”: “While Respondent had an umbrella policy in addition to the general liability insurance, Respondent’s general liability insurance was not in compliance with the applicable CC&Rs.”, “legal_basis”: “CC&Rs Section 8.1.1”, “topic_tags”: [ “insurance”, “compliance”, “CC&Rs” ] }, { “question”: “Must the HOA insure the building for its full replacement cost?”, “short_answer”: “Yes, if the CC&Rs state the insurance must equal 100% of the current replacement cost.”, “detailed_answer”: “The HOA obtained an appraisal showing a replacement cost of $73 million but maintained coverage of only $59 million. The ALJ found this violated the CC&Rs requirement for 100% replacement cost coverage.”, “alj_quote”: “Accordingly, Respondent’s property insurance was not in compliance with the applicable CC&Rs at the time the petition was filed.”, “legal_basis”: “CC&Rs Section 8.1.1”, “topic_tags”: [ “insurance”, “property value”, “CC&Rs” ] }, { “question”: “Will I get my filing fee back if I win the hearing?”, “short_answer”: “The ALJ has the authority to order the HOA to reimburse the filing fee if the petition is granted.”, “detailed_answer”: “After granting the petition and finding the HOA in violation, the judge specifically ordered the respondent to pay back the petitioner’s filing fee.”, “alj_quote”: “IT IS FURTHER ORDERED that Respondent reimburse Petitioner his $1,000.00 filing fee.”, “legal_basis”: “Order”, “topic_tags”: [ “remedies”, “filing fees”, “costs” ] }, { “question”: “What happens if I accidentally cite the wrong statute number in my complaint?”, “short_answer”: “It may not be dismissed if the context of your complaint makes it clear what you are disputing.”, “detailed_answer”: “The HOA tried to dismiss the case because the homeowner cited the Planned Community statute instead of the Condominium statute. The judge denied this because the checkboxes and narrative provided sufficient notice of the claim.”, “alj_quote”: “While it may be true Petitioner hand wrote A.R.S. §33-1805… the context surrounding Petitioner’s hand written statute provides adequate notice.”, “legal_basis”: “Due Process / Notice”, “topic_tags”: [ “procedure”, “complaint forms”, “legal error” ] }, { “question”: “What is the standard of proof I need to meet to win against my HOA?”, “short_answer”: “You must prove your case by a “preponderance of the evidence.””, “detailed_answer”: “The homeowner bears the burden of proof. This standard means showing that the fact sought to be proved is more probable than not.”, “alj_quote”: “In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated A.R.S. § 33-1258 and the Association’s governing documents.”, “legal_basis”: “A.A.C. R2-19-119”, “topic_tags”: [ “burden of proof”, “legal standard”, “evidence” ] }, { “question”: “Will the HOA be fined a civil penalty if I prove they violated the law?”, “short_answer”: “Not automatically. The ALJ decides if a penalty is appropriate based on the facts.”, “detailed_answer”: “Even though the HOA was found to have violated record laws and insurance requirements, the judge decided not to assess a civil penalty in this specific instance.”, “alj_quote”: “Based on the facts presented, the Administrative Law Judge finds no civil penalty is appropriate in this matter.”, “legal_basis”: “Judicial Discretion”, “topic_tags”: [ “penalties”, “fines”, “enforcement” ] } ] }

Case Participants

Petitioner Side

  • Keith W. Cunningham (petitioner)

Respondent Side

  • Allison Preston (HOA attorney)
    Carpenter Hazlewood Delgado & Bolen LLP
    Represented The Residences at 2211 Camelback Condominium Association, INC
  • Kyle von Johnson (HOA attorney)
    Represented The Residences at 2211 Camelback Condominium Association, INC
  • Mark Teman (board member)
    Association President, witness
  • Allison Renow (property manager)
    First Service Residential
    General Manager (GM) on site
  • Frank Durso (regional manager)
    First Service Residential
  • Jamie George (VP of Insurance)
    First Service Financial
    Assists with association insurance policies
  • Holly McNelte (management staff)
    First Service Residential
    FSR team member who managed documents/files

Neutral Parties

  • Jonathan Henley (insurance broker)
    Gallagher
  • Brian Del Vecchio (ALJ)
    OAH
    Administrative Law Judge who conducted the hearing (12/8/23)
  • Tammy L. Eigenheer (ALJ)
    OAH
    Administrative Law Judge who wrote the decision
  • Susan Nicolson (Commissioner)
    Arizona Department of Real Estate

Other Participants

  • AHansen (ADRE staff)
    Arizona Department of Real Estate
    Transmission recipient
  • vnunez (ADRE staff)
    Arizona Department of Real Estate
    Transmission recipient
  • djones (ADRE staff)
    Arizona Department of Real Estate
    Transmission recipient
  • labril (ADRE staff)
    Arizona Department of Real Estate
    Transmission recipient
  • mneat (ADRE staff)
    Arizona Department of Real Estate
    Transmission recipient
  • akowaleski (ADRE staff)
    Arizona Department of Real Estate
    Transmission recipient
  • gosborn (ADRE staff)
    Arizona Department of Real Estate
    Transmission recipient

Teri S. Morcomb & J. Ted Morcomb v. Sierra Tortuga Homeowner’s

Case Summary

Case ID 24F-H015-REL
Agency ADRE
Tribunal OAH
Decision Date 2024-01-03
Administrative Law Judge Adam D. Stone
Outcome Petitioner met the burden of proof for both alleged violations: violation of the Declaration (not enforcing the 25ft setback) and violation of A.R.S. § 33-1805 (failing to provide documents). The petition was granted, and Respondent was ordered to reimburse the $1,000.00 filing fee.
Filing Fees Refunded $1,000.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Teri S. Morcomb & J. Ted Morcomb Counsel Jeffrey Brie, Esq.
Respondent Sierra Tortuga Homeowner’s Association Counsel Phillip Brown, Esq. and Kelly Oetinger, Esq.

Alleged Violations

ARIZ. REV. STAT. § 33-1805

Outcome Summary

Petitioner met the burden of proof for both alleged violations: violation of the Declaration (not enforcing the 25ft setback) and violation of A.R.S. § 33-1805 (failing to provide documents). The petition was granted, and Respondent was ordered to reimburse the $1,000.00 filing fee.

Key Issues & Findings

Failure to provide documents

Respondent failed to produce documents requested by Petitioner, specifically meeting minutes discussing the investigative report, within the statutory timeframe, violating A.R.S. § 33-1805.

Orders: Respondent was found in violation of A.R.S. § 33-1805 and Declaration Section F. Respondent shall reimburse Petitioner’s filing fee of $1,000.00.

Filing fee: $1,000.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • ARIZ. REV. STAT. § 33-1805
  • Declaration Section F

Analytics Highlights

Topics: setback enforcement, document request, HOA governance, filing fee refund, A.R.S. 33-1805
Additional Citations:

  • ARIZ. REV. STAT. § 32-2102
  • ARIZ. REV. STAT. § 32-2199 et al.
  • ARIZ. REV. STAT. § 32-2199.05
  • ARIZ. REV. STAT. § 32-2199(2)
  • ARIZ. REV. STAT. § 32-2199.01(D)
  • ARIZ. REV. STAT. § 32-2199.02
  • ARIZ. REV. STAT. § 33-1805
  • ARIZ. ADMIN. CODE R2-19-119
  • ARIZ. REV. STAT. § 41-1092
  • ARIZ. REV. STAT. § 41-1092.09
  • ARIZ. REV. STAT. § 32-2199.02(A)
  • ARIZ. REV. STAT. § 32-2199.04
  • ARIZ. REV. STAT. § 33-1804
  • Declaration Section F

Video Overview

Audio Overview

Decision Documents

24F-H015-REL Decision – 1102948.pdf

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24F-H015-REL Decision – 1116083.pdf

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24F-H015-REL Decision – 1129495.pdf

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This summary addresses the administrative hearing (No. 24F-H015-REL) involving Petitioners Teri S. Morcomb & J. Ted Morcomb and Respondent Sierra Tortuga Homeowner’s Association (HOA). The hearing was conducted by Administrative Law Judge (ALJ) Adam D. Stone on November 22 and December 20, 2023, concerning alleged violations of the community's governing documents and Arizona statutes.

Key Facts and Main Issues

The Petitioners filed a two-issue petition with the Arizona Department of Real Estate:

  1. Setback Enforcement: Violation of the Declaration of Restrictions (specifically Item F of the Second Declaration) by the HOA "not enforcing the 25ft setback provision".
  2. Document Disclosure: Violation of A.R.S. § 33-1805 by failing "to provide documents" requested by the Petitioners.

The central factual dispute revolved around Lot 9 (owned by Marcella Aguilar and Abel Sodto), which shares a property line with the Petitioners' Lot 8. Petitioners alleged that the Lot 9 owners made unapproved improvements—including grading, removal of native vegetation, and placement of large boulders—within the mandatory 25-foot setback. The Declaration requires Architectural Committee (ARC) approval for all improvements and any removal of native growth. An HOA investigation in September 2020 concluded that the Lot 9 improvements were neither submitted nor approved by the ARC, and Lot 9 was directed to submit plans within 30 days. Petitioners testified that Lot 9 failed to comply.

Key Arguments

  • Petitioner's Argument: The Association failed its mandatory duty to enforce the CC&Rs for over three years, particularly since the Lot 9 owner (Mr. Sodto) held influential positions (Director, President, ARC member) during the relevant period. Petitioners sought an order requiring the HOA to remedy the violation (remove boulders, revegetate). Petitioners' civil engineer, Tracy Bogardus, testified that Lot 8 did not cause Lot 9's drainage issues, invalidating the Lot 9 owners’ justification for the grading.
  • Respondent's Argument (HOA): The HOA denied the claims, arguing that Lot 9’s modification (referred to as a "driveway turnaround") was necessary for safety due to the steep lot configuration. The HOA asserted that the board has discretion to grant variances. The HOA also argued that selective enforcement against Lot 9 was inconsistent, as six of the seven built-out lots had similar unapproved turnarounds or improvements in setbacks. The HOA later approved the Lot 9 turnaround retroactively during the hearing proceedings.
  • Document Disclosure: HOA President Robert Lewin testified he did not provide the specific documents (Lot 9 submissions) because they did not exist. However, he admitted he failed to provide the meeting minutes discussing the investigative report.

Final Decision and Outcome

The ALJ found that the Petitioners met the burden of proof by a preponderance of the evidence.

The ALJ issued the following key conclusions:

  • Setback Violation: Lot 9 failed to submit the required improvement request, violating the Declaration. However, the ALJ emphasized that the relevant section of the Declaration (Section H) states the ARC "shall have the right to clear such lot," meaning the ultimate action to remedy the lot remains within the HOA’s discretion, not an obligation.
  • Document Disclosure Violation (A.R.S. § 33-1805): The Respondent violated the statute by failing to produce a copy of the meeting minutes discussing the investigative report. Although no Lot 9 application documents existed, the minutes did.

Order: Petitioner's petition was granted. Pursuant to A.R.S. § 32-2199.02(A), the Respondent HOA was ordered to reimburse Petitioner’s filing fee of $1,000.00.

{ “case”: { “docket_no”: “24F-H015-REL”, “case_title”: “Teri S. Morcomb & J. Ted Morcomb v. Sierra Tortuga Homeowner’s Association”, “decision_date”: “2024-01-03”, “alj_name”: “Adam D. Stone”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “If I win my case against the HOA, can I get my filing fee reimbursed?”, “short_answer”: “Yes, the ALJ can order the HOA to reimburse the filing fee if the petition is granted.”, “detailed_answer”: “Under Arizona law, if a homeowner prevails in their petition against the association, the Administrative Law Judge has the authority to order the respondent (HOA) to reimburse the petitioner’s filing fee.”, “alj_quote”: “IT IS FURTHER ORDERED pursuant to ARIZ. REV. STAT. § 32-2199.02(A), Respondent shall reimburse Petitioner’s filing fee of $1,000.00 as required by ARIZ. REV. STAT. § 32-2199.01.”, “legal_basis”: “A.R.S. § 32-2199.02(A)”, “topic_tags”: [ “filing fees”, “reimbursement”, “penalties” ] }, { “question”: “What is the timeline for an HOA to provide records after a homeowner requests them?”, “short_answer”: “The HOA has ten business days to fulfill a request for examination or provide copies of records.”, “detailed_answer”: “Arizona statute requires that an association make financial and other records reasonably available for examination. When a member requests to examine or purchase copies of records, the association must comply within ten business days.”, “alj_quote”: “The association shall have ten business days to fulfill a request for examination. … On request for purchase of copies of records … the association shall have ten business days to provide copies of the requested records.”, “legal_basis”: “A.R.S. § 33-1805(A)”, “topic_tags”: [ “records request”, “deadlines”, “homeowner rights” ] }, { “question”: “Can an HOA refuse to provide meeting minutes by claiming other documents regarding a specific issue don’t exist?”, “short_answer”: “No, even if specific architectural files don’t exist, the HOA must still provide related meeting minutes if requested.”, “detailed_answer”: “In this case, while the HOA claimed no documents existed regarding a specific architectural submission (because none was made), they were still found in violation for failing to produce the meeting minutes where the issue and an investigative report were discussed.”, “alj_quote”: “From the evidence presented, and Mr. Lewin admitted, that Respondent failed to produce a copy of the meeting minutes discussing the investigative report.”, “legal_basis”: “A.R.S. § 33-1805”, “topic_tags”: [ “meeting minutes”, “records access”, “HOA obligations” ] }, { “question”: “Does the ALJ have the authority to order the HOA to physically clear a violation from a neighbor’s lot?”, “short_answer”: “Not necessarily, if the CC&Rs grant the HOA the ‘right’ rather than the ‘duty’ to clear the lot, it remains a discretionary action.”, “detailed_answer”: “Although the ALJ found the HOA in violation of the CC&Rs for the setback issue, the judge disagreed that the HOA must clear the lot. The specific language of the governing documents gave the Architectural Committee the ‘right’ to clear the lot, which the judge interpreted as discretionary.”, “alj_quote”: “However, the tribunal disagrees with Petitioner that Respondent must clear the lot. Section H of the Declaration merely states that the Architectural Committee ‘shall have the right to clear such lot’. Thus, it is still within the Architectural Committee’s discretion to act on that right.”, “legal_basis”: “CC&Rs Interpretation”, “topic_tags”: [ “enforcement”, “remedies”, “CC&Rs” ] }, { “question”: “What is the burden of proof in an HOA administrative hearing?”, “short_answer”: “The petitioner must prove their case by a ‘preponderance of the evidence’.”, “detailed_answer”: “The homeowner bringing the complaint bears the burden of proving that the HOA violated the community documents or statutes. The standard is a ‘preponderance of the evidence,’ meaning the contention is more probably true than not.”, “alj_quote”: “In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated the item F of the Declarations and ARIZ. REV. STAT. § 33-1805.”, “legal_basis”: “A.A.C. R2-19-119”, “topic_tags”: [ “burden of proof”, “legal standards”, “procedure” ] }, { “question”: “Can the HOA be found in violation for a neighbor’s unapproved improvements?”, “short_answer”: “Yes, if the HOA fails to enforce setback requirements against unapproved improvements.”, “detailed_answer”: “The ALJ found the Board in violation of the Declaration (setback rules) because the neighbor never submitted a request for the improvements, the improvements did not comply with setbacks, and the Board failed to enforce the requirement.”, “alj_quote”: “Petitioner has met the burden of proof in demonstrating that the Board was in violation of Section F of the Declaration and ARIZ. REV. STAT. § 33-1805.”, “legal_basis”: “CC&Rs (Section F)”, “topic_tags”: [ “architectural control”, “setbacks”, “violations” ] }, { “question”: “Do HOA directors have the right to inspect association records?”, “short_answer”: “Yes, directors generally have an absolute right to inspect all books and records at any reasonable time.”, “detailed_answer”: “The decision cites the Association Bylaws which grant every Director the absolute right to inspect all books, records, documents, and physical properties of the Association.”, “alj_quote”: “Every Director shall have the absolute right at any reasonable time to inspect all books, records, and documents of the Association and the physical properties owned or controlled by the Association.”, “legal_basis”: “Association Bylaws Article 11.3”, “topic_tags”: [ “board members”, “records inspection”, “bylaws” ] } ] }

{ “case”: { “docket_no”: “24F-H015-REL”, “case_title”: “Teri S. Morcomb & J. Ted Morcomb v. Sierra Tortuga Homeowner’s Association”, “decision_date”: “2024-01-03”, “alj_name”: “Adam D. Stone”, “tribunal”: “OAH”, “agency”: “ADRE” }, “questions”: [ { “question”: “If I win my case against the HOA, can I get my filing fee reimbursed?”, “short_answer”: “Yes, the ALJ can order the HOA to reimburse the filing fee if the petition is granted.”, “detailed_answer”: “Under Arizona law, if a homeowner prevails in their petition against the association, the Administrative Law Judge has the authority to order the respondent (HOA) to reimburse the petitioner’s filing fee.”, “alj_quote”: “IT IS FURTHER ORDERED pursuant to ARIZ. REV. STAT. § 32-2199.02(A), Respondent shall reimburse Petitioner’s filing fee of $1,000.00 as required by ARIZ. REV. STAT. § 32-2199.01.”, “legal_basis”: “A.R.S. § 32-2199.02(A)”, “topic_tags”: [ “filing fees”, “reimbursement”, “penalties” ] }, { “question”: “What is the timeline for an HOA to provide records after a homeowner requests them?”, “short_answer”: “The HOA has ten business days to fulfill a request for examination or provide copies of records.”, “detailed_answer”: “Arizona statute requires that an association make financial and other records reasonably available for examination. When a member requests to examine or purchase copies of records, the association must comply within ten business days.”, “alj_quote”: “The association shall have ten business days to fulfill a request for examination. … On request for purchase of copies of records … the association shall have ten business days to provide copies of the requested records.”, “legal_basis”: “A.R.S. § 33-1805(A)”, “topic_tags”: [ “records request”, “deadlines”, “homeowner rights” ] }, { “question”: “Can an HOA refuse to provide meeting minutes by claiming other documents regarding a specific issue don’t exist?”, “short_answer”: “No, even if specific architectural files don’t exist, the HOA must still provide related meeting minutes if requested.”, “detailed_answer”: “In this case, while the HOA claimed no documents existed regarding a specific architectural submission (because none was made), they were still found in violation for failing to produce the meeting minutes where the issue and an investigative report were discussed.”, “alj_quote”: “From the evidence presented, and Mr. Lewin admitted, that Respondent failed to produce a copy of the meeting minutes discussing the investigative report.”, “legal_basis”: “A.R.S. § 33-1805”, “topic_tags”: [ “meeting minutes”, “records access”, “HOA obligations” ] }, { “question”: “Does the ALJ have the authority to order the HOA to physically clear a violation from a neighbor’s lot?”, “short_answer”: “Not necessarily, if the CC&Rs grant the HOA the ‘right’ rather than the ‘duty’ to clear the lot, it remains a discretionary action.”, “detailed_answer”: “Although the ALJ found the HOA in violation of the CC&Rs for the setback issue, the judge disagreed that the HOA must clear the lot. The specific language of the governing documents gave the Architectural Committee the ‘right’ to clear the lot, which the judge interpreted as discretionary.”, “alj_quote”: “However, the tribunal disagrees with Petitioner that Respondent must clear the lot. Section H of the Declaration merely states that the Architectural Committee ‘shall have the right to clear such lot’. Thus, it is still within the Architectural Committee’s discretion to act on that right.”, “legal_basis”: “CC&Rs Interpretation”, “topic_tags”: [ “enforcement”, “remedies”, “CC&Rs” ] }, { “question”: “What is the burden of proof in an HOA administrative hearing?”, “short_answer”: “The petitioner must prove their case by a ‘preponderance of the evidence’.”, “detailed_answer”: “The homeowner bringing the complaint bears the burden of proving that the HOA violated the community documents or statutes. The standard is a ‘preponderance of the evidence,’ meaning the contention is more probably true than not.”, “alj_quote”: “In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated the item F of the Declarations and ARIZ. REV. STAT. § 33-1805.”, “legal_basis”: “A.A.C. R2-19-119”, “topic_tags”: [ “burden of proof”, “legal standards”, “procedure” ] }, { “question”: “Can the HOA be found in violation for a neighbor’s unapproved improvements?”, “short_answer”: “Yes, if the HOA fails to enforce setback requirements against unapproved improvements.”, “detailed_answer”: “The ALJ found the Board in violation of the Declaration (setback rules) because the neighbor never submitted a request for the improvements, the improvements did not comply with setbacks, and the Board failed to enforce the requirement.”, “alj_quote”: “Petitioner has met the burden of proof in demonstrating that the Board was in violation of Section F of the Declaration and ARIZ. REV. STAT. § 33-1805.”, “legal_basis”: “CC&Rs (Section F)”, “topic_tags”: [ “architectural control”, “setbacks”, “violations” ] }, { “question”: “Do HOA directors have the right to inspect association records?”, “short_answer”: “Yes, directors generally have an absolute right to inspect all books and records at any reasonable time.”, “detailed_answer”: “The decision cites the Association Bylaws which grant every Director the absolute right to inspect all books, records, documents, and physical properties of the Association.”, “alj_quote”: “Every Director shall have the absolute right at any reasonable time to inspect all books, records, and documents of the Association and the physical properties owned or controlled by the Association.”, “legal_basis”: “Association Bylaws Article 11.3”, “topic_tags”: [ “board members”, “records inspection”, “bylaws” ] } ] }

Case Participants

Petitioner Side

  • Teri S. Morcomb (petitioner)
    Lot 8 owner, testified
  • J. Ted Morcomb (petitioner)
    Lot 8 owner
  • Jeffrey T. Brei (petitioner attorney)
  • Tracy Allen Bogardis (witness)
    Civil Engineer
    Testified regarding drainage/hydrology

Respondent Side

  • Phillip Brown (HOA attorney)
  • Kelly Oetinger (HOA attorney)
  • Robert Leuen (board president)
    Sierra Tortuga HOA
    Testified
  • Marcella Bernadette Aguilar (witness)
    Sierra Tortuga HOA
    Lot 9 owner, testified
  • Abel Sodto (lot owner)
    Sierra Tortuga HOA
    Lot 9 owner, former Board/ARC member, subject of violation
  • Clint Stoddard (board member)
    Sierra Tortuga HOA
    Investigator
  • Benny Medina (board member)
    Sierra Tortuga HOA
    Investigator, former president
  • Joseph D. Martino (ARC member)
    Sierra Tortuga HOA
    Former Architectural Committee Head
  • Chris Stler (board member)
    Sierra Tortuga HOA
    Vice President of HOA
  • Yvon Posche (board member)
    Sierra Tortuga HOA
    Secretary of HOA
  • Steve Brockam (board member)
    Sierra Tortuga HOA
    Board Director
  • Perry Terren (ARC chair)
    Sierra Tortuga HOA
    ARC Chairman and Board Director
  • Jeremy Thompson (law clerk)
    HOA Attorney's office
  • Mike Shupe (former HOA attorney)

Neutral Parties

  • Adam D. Stone (ALJ)
    OAH
  • Tim Ross (board member)
    Sierra Tortuga HOA
    Former board/investigator, criticized current board actions
  • Susan Nicolson (Commissioner)
    ADRE
  • A. Hansen (ADRE staff)
    ADRE
  • V. Nunez (ADRE staff)
    ADRE
  • D. Jones (ADRE staff)
    ADRE
  • L. Abril (ADRE staff)
    ADRE

Schafer, Kevin W. & Lawton, Patricia A. v. Sycamore Springs

Case Summary

Case ID 24F-H019-REL
Agency ADRE
Tribunal OAH
Decision Date 2024-01-01
Administrative Law Judge Brian Del Vecchio
Outcome Petitioners prevailed on both filed issues: the Respondent's conditional approval of the flagpole violated CC&Rs and statute, and the Violation Notice regarding the building envelope was improper as Petitioners were found to be in compliance (17,451 sq ft vs. 22,000 sq ft maximum). Respondent was ordered to reimburse the $1,000 filing fee. Request for civil penalties was denied.
Filing Fees Refunded $1,000.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Kevin W. Schafer & Patricia A. Lawton Counsel Craig L. Cline
Respondent Sycamore Springs Homeowners Association, INC. Counsel Edith I. Rudder & Eden G. Cohen

Alleged Violations

ARIZ. REV. STAT. § 33-1808(B) & CC&Rs Design Guidelines Section II(O)
CC&Rs Design Guidelines Section III(A)

Outcome Summary

Petitioners prevailed on both filed issues: the Respondent's conditional approval of the flagpole violated CC&Rs and statute, and the Violation Notice regarding the building envelope was improper as Petitioners were found to be in compliance (17,451 sq ft vs. 22,000 sq ft maximum). Respondent was ordered to reimburse the $1,000 filing fee. Request for civil penalties was denied.

Key Issues & Findings

Conditional approval of portable flagpole

Respondent conditionally approved Petitioners' DMR for a portable flagpole, but the conditions placed (limiting height, restricting mobility, and requiring placement on the side of the house) were outside the authority granted by the CC&Rs and violated ARIZ. REV. STAT. § 33-1808, which protects the display of the American flag in front or back yards. Petitioner sustained burden of proof.

Orders: Respondent must abide by the statute; civil penalty denied.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • ARIZ. REV. STAT. § 33-1808(B)
  • CC&Rs Design Guidelines Section II(O)

Violation Notice regarding Building Envelope compliance

Respondent sent a Violation Notice claiming Petitioners' building envelope was 38,000 square feet, exceeding the 22,000 square foot maximum limit defined in DG § III(A). The evidence established Petitioners' actual building envelope was 17,451 square feet, based on a superior 'boots on the ground' survey, proving no violation occurred. Petitioner sustained burden of proof.

Orders: Petitioners' building envelope did not violate the CC&Rs maximum limit; civil penalty denied.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • CC&Rs Design Guidelines Section III(A)

Analytics Highlights

Topics: homeowner dispute, flagpole, building envelope, selective enforcement allegation, CC&R violation, statute violation
Additional Citations:

  • ARIZ. REV. STAT. § 32-2199 et seq.
  • ARIZ. REV. STAT. § 33-1808
  • ARIZ. REV. STAT. § 32-2199.02(A)

Video Overview

Audio Overview

Decision Documents

24F-H019-REL Decision – 1117050.pdf

Uploaded 2026-04-30T10:19:44 (47.1 KB)

24F-H019-REL Decision – 1121577.pdf

Uploaded 2026-04-30T10:19:48 (52.0 KB)

24F-H019-REL Decision – 1122554.pdf

Uploaded 2026-04-30T10:19:52 (46.1 KB)

24F-H019-REL Decision – 1128513.pdf

Uploaded 2026-04-30T10:19:57 (40.1 KB)

24F-H019-REL Decision – 1128831.pdf

Uploaded 2026-04-30T10:20:04 (149.8 KB)

24F-H019-REL Decision – 1117050.pdf

Uploaded 2026-01-23T18:02:47 (47.1 KB)

24F-H019-REL Decision – 1121577.pdf

Uploaded 2026-01-23T18:02:50 (52.0 KB)

24F-H019-REL Decision – 1122554.pdf

Uploaded 2026-01-23T18:02:53 (46.1 KB)

24F-H019-REL Decision – 1128513.pdf

Uploaded 2026-01-23T18:02:57 (40.1 KB)

24F-H019-REL Decision – 1128831.pdf

Uploaded 2026-01-23T18:03:02 (149.8 KB)

This summary pertains to the administrative hearing in the matter of Schafer, Kevin W. & Lawton, Patricia A. v Sycamore Springs Homeowners Association, INC. (Case No. 24F-H019-REL), held before the Office of Administrative Hearings (OAH) on December 7 and December 12, 2023.

Key Facts and Main Issues

The Petitioners (Schafer and Lawton), who are property owners and members of the Association, challenged the Respondent HOA on two issues raised in a September 8, 2023, petition:

  1. Flagpole Conditional Approval: Petitioners challenged the conditional approval of their portable flagpole Design Modification Request (DMR), arguing the conditions violated the community documents (CC&Rs) and Arizona Revised Statutes (ARIZ. REV. STAT.) § 33-1808(B).
  2. Building Envelope Violation: Petitioners challenged the HOA's Notice of Violation, which alleged their building envelope exceeded the 22,000 square foot maximum limit by measuring approximately 38,000 square feet. Petitioners contended the enforcement action was retaliatory due to an ongoing Superior Court lawsuit they filed against the HOA.

Hearing Proceedings and Key Arguments

Building Envelope Dispute:

The core disagreement centered on the methodology and findings of two land surveyors regarding the 22,000 square foot building envelope maximum.

  • Petitioners' Evidence: Licensed land surveyor Stephen McLain, who conducted a "boots on the ground" survey in 2020, testified that the Petitioners' building envelope was 17,451 square feet, which is well below the maximum limit.
  • Respondent's Evidence: Licensed land surveyor J.O. Teague, hired by the HOA, calculated the area including the house and the "yard to the east" to be approximately 38,000 square feet, based primarily on aerial imagery.
  • Key Legal Point: During testimony, Mr. Teague admitted he did not make a determination as to whether the building envelope had been exceeded. He clarified his role was only to establish the area measurements, not to determine compliance, particularly given potential exemptions under the 4th Amendment to the Design Guidelines concerning maintenance (e.g., removing pack rat nests or excessive weeds). Both surveyors agreed that a "boots on the ground" assessment (like McLain’s) is superior to an aerial-only survey.

Flagpole Dispute:

Petitioners challenged conditional approval stipulations that limited the flag's height, restricted placement to the "side of the house," and prohibited moving it.

  • Key Legal Point: The HOA President, Kristen Rawlette, admitted that the Management Company erred in drafting the conditional approval letter. She conceded that the restrictions on height and mobility were inappropriate, as the CC&Rs did not grant the HOA authority for such limits. Crucially, she admitted that restricting the American flag's placement to the side yard violated ARIZ. REV. STAT. § 33-1808, which guarantees the right to display the flag in the outdoor front or back yard.

Final Decision and Outcome

The Administrative Law Judge (ALJ) decision, issued January 1, 2024, affirmed Petitioners’ petition.

  • Building Envelope Ruling: The ALJ found Petitioners sustained their burden of proof. Based on the consistent expert testimony that Petitioners’ building envelope (17,451 square feet) was below the 22,000 square foot maximum, the ALJ concluded that Petitioners did not violate the CC&Rs.
  • Flagpole Ruling: The ALJ found Petitioners sustained their burden of proof, concluding that the Respondent violated the CC&Rs and ARIZ. REV. STAT. § 33-1808.
  • Civil Penalties: Petitioners' request to levy civil penalties against the Respondent was denied. The ALJ determined the flag pole issue was a "miscommunication" and the building envelope letter was sent for the purpose of defense in the Superior Court lawsuit, not intentional retaliation.
  • Reimbursement: Respondent was ordered to **reimburse

Questions

Question

Can my HOA prohibit me from displaying the American flag in my front or back yard?

Short Answer

No. Arizona law prevents HOAs from prohibiting the outdoor display of the American flag in front or back yards, regardless of what community documents say.

Detailed Answer

The decision affirms that notwithstanding community documents, an association cannot prohibit the display of the American flag in the front or backyard. In this case, the HOA's attempt to restrict the flag to the side of the house was found to violate state statute.

Alj Quote

Notwithstanding any provision in the community documents, an association shall not prohibit the outdoor front yard or backyard display of . . . [t]he American flag.

Legal Basis

ARIZ. REV. STAT. § 33-1808(A)

Topic Tags

  • flags
  • federal/state rights
  • homeowner rights

Question

Can the HOA restrict the height or mobility of my flagpole if the CC&Rs don't specifically allow them to?

Short Answer

No. If the CC&Rs do not grant the authority to restrict flagpole height or mobility, the HOA cannot impose those conditions.

Detailed Answer

The ALJ found that the HOA violated the CC&Rs by placing conditions on a flagpole approval—specifically height limits and mobility restrictions—that were not authorized by the governing documents.

Alj Quote

Ms. Rawlette admitted the flag pole height and mobility restrictions were inappropriate because the CC&Rs do not grant Respondent authority to restrict flag poles in this manner.

Legal Basis

CC&Rs Interpretation

Topic Tags

  • architectural control
  • CC&Rs
  • flags

Question

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

Short Answer

Yes. If the petitioner prevails in the hearing, the judge is required to order the HOA to reimburse the filing fee.

Detailed Answer

The decision explicitly states that if a petitioner prevails, the administrative law judge shall order the respondent (HOA) to pay the petitioner the filing fee required by statute.

Alj Quote

If the petitioner prevails, the administrative law judge shall order the respondent to pay to the petitioner the filing fee required by section 32-2199.01.

Legal Basis

ARIZ. REV. STAT. § 32-2199.02(A)

Topic Tags

  • fees
  • reimbursement
  • prevailing party

Question

Will the judge automatically fine the HOA (civil penalties) if they are found to have violated the rules?

Short Answer

No. Civil penalties may be denied if the violation was due to miscommunication or lack of malicious intent rather than ongoing harassment.

Detailed Answer

Even though the HOA violated the statute regarding flags, the judge denied civil penalties because the violation resulted from a miscommunication by the management company rather than a malicious harassment campaign.

Alj Quote

Petitioner failed to provide sufficient evidence that Respondent’s actions warranted the issuance of civil penalties. The flag pole issue was not an ongoing repetitive harassment campaign, rather, it was miscommunication between the Management Company and Respondent.

Legal Basis

ARIZ. REV. STAT. § 32-2199.02(A)

Topic Tags

  • civil penalties
  • fines
  • harassment

Question

In a dispute over land measurements (like a building envelope), is an aerial survey or an in-person survey better?

Short Answer

An in-person ('boots on the ground') survey is considered superior to an aerial-only survey.

Detailed Answer

When determining if a homeowner exceeded a building envelope, the ALJ found that an in-person survey was more reliable than an analysis based solely on aerial imagery.

Alj Quote

Mr. McLain and Mr. Teague agreed Mr. McLain’s “boots on the ground” survey is superior to an aerial only survey.

Legal Basis

Evidentiary Standards

Topic Tags

  • evidence
  • property disputes
  • surveys

Question

Who has the burden of proof in an administrative hearing against an HOA?

Short Answer

The homeowner (Petitioner) has the burden to prove the HOA violated the statute or documents by a preponderance of the evidence.

Detailed Answer

The decision clarifies that the party bringing the case bears the burden of proof. This means the homeowner must show that their claims are more likely true than not.

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated ARIZ. REV. STAT. § 33-1805.

Legal Basis

ARIZ. ADMIN. CODE R2-19-119

Topic Tags

  • burden of proof
  • legal procedure

Question

What types of disputes can the Arizona Department of Real Estate hear?

Short Answer

Disputes between owners and associations concerning violations of community documents or statutes regulating planned communities.

Detailed Answer

The Department has jurisdiction to hear petitions from owners or associations regarding violations of CC&Rs or state statutes, provided the proper filing procedures are followed.

Alj Quote

The owner or association may petition the department for a hearing concerning violations of community documents or violations of the statutes that regulate planned communities

Legal Basis

ARIZ. REV. STAT. § 32-2199

Topic Tags

  • jurisdiction
  • ADRE authority

Case

Docket No
24F-H019-REL
Case Title
Schafer, Kevin W. & Lawton, Patricia A. v Sycamore Springs Homeowners Association, INC.
Decision Date
2024-01-01
Alj Name
Brian Del Vecchio
Tribunal
OAH
Agency
ADRE

Questions

Question

Can my HOA prohibit me from displaying the American flag in my front or back yard?

Short Answer

No. Arizona law prevents HOAs from prohibiting the outdoor display of the American flag in front or back yards, regardless of what community documents say.

Detailed Answer

The decision affirms that notwithstanding community documents, an association cannot prohibit the display of the American flag in the front or backyard. In this case, the HOA's attempt to restrict the flag to the side of the house was found to violate state statute.

Alj Quote

Notwithstanding any provision in the community documents, an association shall not prohibit the outdoor front yard or backyard display of . . . [t]he American flag.

Legal Basis

ARIZ. REV. STAT. § 33-1808(A)

Topic Tags

  • flags
  • federal/state rights
  • homeowner rights

Question

Can the HOA restrict the height or mobility of my flagpole if the CC&Rs don't specifically allow them to?

Short Answer

No. If the CC&Rs do not grant the authority to restrict flagpole height or mobility, the HOA cannot impose those conditions.

Detailed Answer

The ALJ found that the HOA violated the CC&Rs by placing conditions on a flagpole approval—specifically height limits and mobility restrictions—that were not authorized by the governing documents.

Alj Quote

Ms. Rawlette admitted the flag pole height and mobility restrictions were inappropriate because the CC&Rs do not grant Respondent authority to restrict flag poles in this manner.

Legal Basis

CC&Rs Interpretation

Topic Tags

  • architectural control
  • CC&Rs
  • flags

Question

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

Short Answer

Yes. If the petitioner prevails in the hearing, the judge is required to order the HOA to reimburse the filing fee.

Detailed Answer

The decision explicitly states that if a petitioner prevails, the administrative law judge shall order the respondent (HOA) to pay the petitioner the filing fee required by statute.

Alj Quote

If the petitioner prevails, the administrative law judge shall order the respondent to pay to the petitioner the filing fee required by section 32-2199.01.

Legal Basis

ARIZ. REV. STAT. § 32-2199.02(A)

Topic Tags

  • fees
  • reimbursement
  • prevailing party

Question

Will the judge automatically fine the HOA (civil penalties) if they are found to have violated the rules?

Short Answer

No. Civil penalties may be denied if the violation was due to miscommunication or lack of malicious intent rather than ongoing harassment.

Detailed Answer

Even though the HOA violated the statute regarding flags, the judge denied civil penalties because the violation resulted from a miscommunication by the management company rather than a malicious harassment campaign.

Alj Quote

Petitioner failed to provide sufficient evidence that Respondent’s actions warranted the issuance of civil penalties. The flag pole issue was not an ongoing repetitive harassment campaign, rather, it was miscommunication between the Management Company and Respondent.

Legal Basis

ARIZ. REV. STAT. § 32-2199.02(A)

Topic Tags

  • civil penalties
  • fines
  • harassment

Question

In a dispute over land measurements (like a building envelope), is an aerial survey or an in-person survey better?

Short Answer

An in-person ('boots on the ground') survey is considered superior to an aerial-only survey.

Detailed Answer

When determining if a homeowner exceeded a building envelope, the ALJ found that an in-person survey was more reliable than an analysis based solely on aerial imagery.

Alj Quote

Mr. McLain and Mr. Teague agreed Mr. McLain’s “boots on the ground” survey is superior to an aerial only survey.

Legal Basis

Evidentiary Standards

Topic Tags

  • evidence
  • property disputes
  • surveys

Question

Who has the burden of proof in an administrative hearing against an HOA?

Short Answer

The homeowner (Petitioner) has the burden to prove the HOA violated the statute or documents by a preponderance of the evidence.

Detailed Answer

The decision clarifies that the party bringing the case bears the burden of proof. This means the homeowner must show that their claims are more likely true than not.

Alj Quote

In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated ARIZ. REV. STAT. § 33-1805.

Legal Basis

ARIZ. ADMIN. CODE R2-19-119

Topic Tags

  • burden of proof
  • legal procedure

Question

What types of disputes can the Arizona Department of Real Estate hear?

Short Answer

Disputes between owners and associations concerning violations of community documents or statutes regulating planned communities.

Detailed Answer

The Department has jurisdiction to hear petitions from owners or associations regarding violations of CC&Rs or state statutes, provided the proper filing procedures are followed.

Alj Quote

The owner or association may petition the department for a hearing concerning violations of community documents or violations of the statutes that regulate planned communities

Legal Basis

ARIZ. REV. STAT. § 32-2199

Topic Tags

  • jurisdiction
  • ADRE authority

Case

Docket No
24F-H019-REL
Case Title
Schafer, Kevin W. & Lawton, Patricia A. v Sycamore Springs Homeowners Association, INC.
Decision Date
2024-01-01
Alj Name
Brian Del Vecchio
Tribunal
OAH
Agency
ADRE

Case Participants

Petitioner Side

  • Schafer, Kevin W. (petitioner)
  • Lawton, Patricia A. (petitioner/witness)
  • Cline, Craig L. (petitioner attorney)
    Udall Law
  • Mlan, Steven Wallace (witness/surveyor)
    Tucson Surveying and Mapping
    Expert witness for Petitioners

Respondent Side

  • Rudder, Edith I. (HOA attorney)
    Carpenter, Hazelwood, Delgado & Bolen
  • Cohen, Eden G. (HOA attorney)
    Carpenter, Hazelwood, Delgado & Bolen
  • Rowlette, Kristen (board member/witness)
    Sycamore Springs Homeowners Association, INC.
    HOA President
  • Leech, Herbert (board member/witness)
    Sycamore Springs Homeowners Association, INC.
    HOA Vice President
  • Teague, J.O. (witness/surveyor)
    Southern Arizona Land Survey Associates
    Expert witness for Respondent
  • Jennifer (property manager)
    Mission Management
    Sent conditional flag approval letter

Neutral Parties

  • Del Vecchio, Brian (ALJ)
    OAH
    ALJ for December 7 & 12 hearings and final decision
  • Eigenheer, Tammy L. (ALJ)
    OAH
    Signed November 27, 2023 Order
  • Jacio (ALJ)
    OAH
    Identified as ALJ on December 7, 2023
  • Nicolson, Susan (ADRE commissioner)
    ADRE
  • Hansen, A. (ADRE official)
    ADRE
  • Nunez, V. (ADRE official)
    ADRE
  • Jones, D. (ADRE official)
    ADRE
  • Abril, L. (ADRE official)
    ADRE

Other Participants

  • Andrews, Tom (former board member)
    Mentioned in board minutes and testimony regarding past ACC actions
  • Tantis, Pam (former board member)
    Mentioned in board minutes
  • Bloodcot, GMA (resident)
    Recipient of email regarding flag rules