{
“case”: {
“docket_no”: “25F-H017-REL-RHG”,
“case_title”: “Samantha and Millard C. Finch, Petitioners, v. Mountain Gate Community aka Copper Canyon Ranch, Respondent.”,
“decision_date”: “2025-07-03”,
“tribunal”: “OAH”,
“agency”: “ADRE”
},
“individuals”: [
{
“name”: “Millard C. Finch”,
“role”: “petitioner”,
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“notes”: null
},
{
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“role”: “petitioner”,
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“notes”: null
},
{
“name”: “B. Austin Baillio”,
“role”: “attorney”,
“side”: “respondent”,
“affiliation”: “Maxwell & Morgan, P.C.”,
“notes”: null
},
{
“name”: “Samuel Fox”,
“role”: “ALJ”,
“side”: “neutral”,
“affiliation”: null,
“notes”: “ALJ for initial hearing”
},
{
“name”: “Kay A. Abramsohn”,
“role”: “ALJ”,
“side”: “neutral”,
“affiliation”: null,
“notes”: “ALJ for rehearing”
},
{
“name”: “Jonathan Sweat”,
“role”: “witness”,
“side”: “respondent”,
“affiliation”: null,
“notes”: “Former Community Manager”
},
{
“name”: “Melinda Montoya”,
“role”: “witness”,
“side”: “respondent”,
“affiliation”: “First Service Residential”,
“notes”: “Accounts Receivable Manager”
},
{
“name”: “Susan Nicolson”,
“role”: “Commissioner”,
“side”: “neutral”,
“affiliation”: “Arizona Department of Real Estate”,
“notes”: null
}
]
}

{
“case”: {
“docket_no”: “25F-H017-REL-RHG”,
“case_title”: “Samantha and Millard C. Finch, Petitioners, v. Mountain Gate Community aka Copper Canyon Ranch, Respondent.”,
“decision_date”: “2025-07-03”,
“tribunal”: “OAH”,
“agency”: “ADRE”
},
“individuals”: [
{
“name”: “Millard C. Finch”,
“role”: “petitioner”,
“side”: “petitioner”,
“affiliation”: null,
“notes”: null
},
{
“name”: “Samantha Finch”,
“role”: “petitioner”,
“side”: “petitioner”,
“affiliation”: null,
“notes”: “Appeared for herself and Millard C. Finch”
},
{
“name”: “B. Austin Baillio”,
“role”: “respondent attorney”,
“side”: “respondent”,
“affiliation”: “Maxwell & Morgan, P.C.”,
“notes”: null
},
{
“name”: “Samuel Fox”,
“role”: “ALJ”,
“side”: “neutral”,
“affiliation”: “OAH”,
“notes”: “ALJ for the initial decision (No. 25F-H017-REL)”
},
{
“name”: “Kay A. Abramsohn”,
“role”: “ALJ”,
“side”: “neutral”,
“affiliation”: “OAH”,
“notes”: “ALJ for the rehearing decision (No. 25F-H017-REL-RHG)”
},
{
“name”: “Jonathan Sweat”,
“role”: “witness”,
“side”: “respondent”,
“affiliation”: “First Service Residential (former Community Manager)”,
“notes”: “Testified for Respondent”
},
{
“name”: “Melinda Montoya”,
“role”: “witness”,
“side”: “respondent”,
“affiliation”: “First Service Residential (Accounts Receivable Manager)”,
“notes”: “Testified for Respondent”
},
{
“name”: “Susan Nicolson”,
“role”: “ADRE Commissioner”,
“side”: “neutral”,
“affiliation”: “Arizona Department of Real Estate (ADRE)”,
“notes”: null
},
{
“name”: “V. Nunez”,
“role”: “ADRE/OAH staff”,
“side”: “neutral”,
“affiliation”: “ADRE/OAH”,
“notes”: “Involved in decision transmission list ([email protected])”
},
{
“name”: “D. Jones”,
“role”: “ADRE/OAH staff”,
“side”: “neutral”,
“affiliation”: “ADRE/OAH”,
“notes”: “Involved in decision transmission list ([email protected])”
},
{
“name”: “L. Abril”,
“role”: “ADRE/OAH staff”,
“side”: “neutral”,
“affiliation”: “ADRE/OAH”,
“notes”: “Involved in decision transmission list ([email protected])”
},
{
“name”: “M. Neat”,
“role”: “ADRE/OAH staff”,
“side”: “neutral”,
“affiliation”: “ADRE/OAH”,
“notes”: “Involved in decision transmission list ([email protected])”
},
{
“name”: “L. Recchia”,
“role”: “ADRE/OAH staff”,
“side”: “neutral”,
“affiliation”: “ADRE/OAH”,
“notes”: “Involved in decision transmission list ([email protected])”
},
{
“name”: “G. Osborn”,
“role”: “ADRE/OAH staff”,
“side”: “neutral”,
“affiliation”: “ADRE/OAH”,
“notes”: “Involved in decision transmission list ([email protected])”
}
]
}

{ “case”: { “agency”: “ADRE”, “tribunal”: “OAH”, “docket_no”: “25F-H017-REL”, “case_title”: “Samantha and Millard C. Finch, Petitioners, v. Mountain Gate Community aka Copper Canyon Ranch, Respondent.”, “decision_date”: “2025-07-03”, “alj_name”: “Kay A. Abramsohn” }, “parties”: [ { “party_id”: “P1”, “role”: “petitioner”, “name”: “Samantha and Millard C. Finch”, “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”: “Mountain Gate Community aka Copper Canyon Ranch”, “party_type”: “HOA”, “email”: null, “phone”: null, “attorney_name”: “B. Austin Baillio”, “attorney_firm”: “Maxwell & Morgan, P.C.”, “attorney_email”: “[email protected]”, “attorney_phone”: null } ], “issues”: [ { “issue_id”: “ISS-001”, “type”: “statute”, “citation”: “A.R.S. u00a7 33-1803(A)”, “caption”: “Excessive Late Charges vs. Collection Fees”, “violation(s)”: “Charging 45.00(15 late charge + $30 late notice fee) per delinquent assessment instance, exceeding the statutory limit of $15.00 for late payment charges.”, “summary”: “Petitioners argued that the total 45.00chargeleviedforlatepaymentsexceededthestatutorylimitforlatepaymentcharges(15.00) prescribed by A.R.S. u00a7 33-1803(A) and CC&R 6.10.112. The ALJ concluded that the $30.00 “late notice fee” (or “rebill fee”) was a collection cost allowed under ARS u00a7 33-1807(K) and the CC&Rs, not a late fee restricted by ARS u00a7 33-1803(A)$34.”,”outcome”:”petitioner
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oss”:”Petitionersfailedtodemonstratebyapreponderanceoftheevidencethatthefeesinquestion(30 Late Notice Fee / Rebill Fee) were late fees subject to the $15 limit under A.R.S. u00a7 33-1803(A), as opposed to permissible collection costs under A.R.S. u00a7 33-1807(K)34.”, “cited”: [ “A.R.S. u00a7 33-1803(A)”, “A.R.S. u00a7 33-1807(K)”, “CCu0026R Section 6.10.1” ] } ], “money_summary”: { “issues_count”: 4, “total_filing_fees_paid”: 2000.0, “total_filing_fees_refunded”: 0.0, “total_civil_penalties”: 0.0 }, “outcomes”: { “petitioner_is_hoa”: false, “petitioner_win”: “none”, “summarize_judgement”: “The initial ALJ Decision found Respondent the prevailing party on all four petition issues5. Petitioners requested a rehearing, but the rehearing was limited to alleged errors in the admission or rejection of evidence during the initial proceeding7. The ALJ in the rehearing concluded that Petitioners failed to meet their burden of proof regarding the alleged errors, and the Dispute Petition was dismissed68.”, “why_the_loss”: “Petitioners failed to meet the burden of proof for the underlying violations in the initial hearing4…, and failed to meet the burden of proof for the limited grounds granted for the rehearing (error in the administration or rejection of evidence)811.” }, “analytics”: { “cited”: [ “A.R.S. u00a7 33-1803(A)”, “A.R.S. u00a7 33-1803(B)”, “A.R.S. u00a7 33-1807(A)”, “A.R.S. u00a7 33-1807(K)”, “A.R.S. u00a7 33-1242(A)(11)”, “CCu0026R Section 6.10.1”, “CCu0026R Section 6.10.5” ], “tags”: [ “HOA Dispute”, “Late Fees”, “Collection Costs”, “Statutory Interpretation”, “Rehearing” ] } }

The case involves Millard C. and Samantha Finch (Petitioners), members of the Mountain Gate Community aka Copper Canyon Ranch (Respondent), disputing alleged violations of Planned Community Statutes and community documents regarding assessment charges and collection practices1…. The matter proceeded through the Arizona Office of Administrative Hearings (OAH)45.

Key Facts and Main Issues (Initial Hearing – February 7, 2025)

Petitioners raised four main issues, focusing primarily on the imposition of a $45.00 charge for delinquent assessments, which consisted of a $15.00 late charge and a $30.00 “late notice fee” or “Rebill Fee”3…. Petitioners argued that this $45.00 sum exceeded the statutory limit for late charges—the greater of $15.00 or 10% of the unpaid assessment, as stipulated in A.R.S. § 33-1803(A) and the CC&Rs6…. They also challenged the imposition of fees when they believed their payments were timely, resulting from the HOA applying payments to previously delinquent balances in accordance with A.R.S. § 33-1807(K)1112. Finally, they challenged the legitimacy of the “late notice fees” as impermissible penalties imposed without proper notice and alleged inappropriate threats of foreclosure1314.

Legal Points and Initial Outcome

The Administrative Law Judge (ALJ) Samuel Fox found that Petitioners failed to meet their burden of proof on all four issues12…. The crucial legal distinction was that the $30.00 “Late Notice Fee” and “Rebill Fee” were determined to be collection fees, which are legally separate from, and permissible in addition to, the $15.00 statutory late charge15…. Collection fees and costs are contemplated under A.R.S. § 33-1807(K) and the CC&Rs1719. The ALJ determined that the Respondent (HOA) and its manager correctly applied payments first to delinquent assessments, causing subsequent monthly fees, as mandated by A.R.S. § 33-1807(K)1112. Regarding foreclosure threats, no evidence was entered to support the allegation, and Respondent’s witness testified that no foreclosure efforts had been made2021. The Respondent was deemed the prevailing party in the initial matter16.

Rehearing Proceedings (June 13, 2025)

Petitioners filed a request for rehearing, which the Department of Real Estate granted on the limited issue of “Error in the administration or rejection of evidence or other errors occurring during the proceeding”2223. The Department explicitly denied rehearing based on disagreement with the factual findings or the underlying decision2425.

At the rehearing, conducted by ALJ Kay A. Abramsohn, Petitioners primarily argued that the previous ALJ had relied on an unsubstantiated or incorrect version of A.R.S. § 33-1807 and that their evidence was not properly considered2627. The Respondent noted that the statute version used was the one legally in effect at the time of the actions (prior to a 2024 amendment), and its application was harmless to the outcome28…. Petitioners repeatedly sought to re-argue their disagreement with the initial factual findings and decision, but were reminded by the ALJ that the scope was restricted to procedural errors during the original hearing31….

Final Decision (Rehearing)

The ALJ concluded that Petitioners failed to meet their burden of proof that any error occurred in the administration or rejection of evidence, or any error of law, during the initial February 7, 2025 hearing34. The rehearing evidence confirmed that Petitioners’ exhibits were, in fact, admitted to the record and that the statutes relied upon were contained within the record34. Arguments concerning disagreement with the initial ALJ’s Findings of Fact and Conclusions of Law were dismissed as improperly raised under the limited scope of the granted rehearing33. The ALJ Dismissed Petitioners’ Dispute Petition35.

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“violation(s)”: “ARS 33-1803(A); CC&R Article 6, Section 6.10.1”,
“summary”: “Petitioners argued the total fee exceeded the statutory late charge limit, but the ALJ found the additional fees ($30 ‘late notice fee’) were permissible collection costs, distinct from late fees78.”, “outcome”: “respondent_win”, “filing_fee_paid”: 500.0, “filing_fee_refunded”: false, “civil_penalty_amount”: 0.0, “orders_summary”: “Respondent deemed the prevailing party on this issue5.”, “why_the_loss”: “Petitioners failed to demonstrate that the Late Notice Fee or Rebill Fee were late fees limited under A.R.S. § 33-1803(A)8.”, “cited”: [“4”, “12”, “37”, “42”] }, { “issue_id”: “ISS-003”, “type”: “statute”, “citation”: “A.R.S. §§ 33-1803(B), 33-1242(A)(11); Association Rules and Design Guidelines”, “caption”: “30.00/20.00 “late notice fees” levied against the account without providing notice, violating statutes regarding monetary penalties9.”, “violation(s)”: “ARS §33-1803(B), ARS §33-1242(A)(11), Association Rules and Design Guidelines”, “summary”: “Petitioners alleged collection fees were impermissible penalties imposed without notice and hearing, but the ALJ determined they were collection costs, distinct from monetary penalties per A.R.S. § 33-1807(K)1011.”, “outcome”: “respondent_win”, “filing_fee_paid”: 500.0, “filing_fee_refunded”: false, “civil_penalty_amount”: 0.0, “orders_summary”: “Respondent deemed the prevailing party on this issue5.”, “why_the_loss”: “Petitioners failed to meet their burden that Respondent impermissibly applied monetary penalties, as the fees were collection fees1011.”, “cited”: [“5”, “13”, “16”, “44”] }, { “issue_id”: “ISS-004”, “type”: “statute”, “citation”: “A.R.S. § 33-1807(A); CC&Rs Article 6, Section 6.10.5(ii), 6.10.5(i), and 6.10.2”, “caption”: “Pre-legal team threatening foreclosure and legal action when Petitioners are not delinquent12.”, “violation(s)”: “ARS 33-1807(A); CC&Rs Article 6, Section 6.10.5(ii), 6.10.5(i), and 6.10.2”, “summary”: “Petitioners challenged Respondent’s authority to threaten legal action without proven delinquency. The ALJ found no evidence of foreclosure threats and deemed the complaint unclear or not ripe5….”, “outcome”: “respondent_win”, “filing_fee_paid”: 500.0, “filing_fee_refunded”: false, “civil_penalty_amount”: 0.0, “orders_summary”: “Respondent deemed the prevailing party in this matter regarding Petition Issue 45.”, “why_the_loss”: “The complaint either did not allege actionable conduct or was not yet ripe for resolution, and Petitioners failed to submit evidence of threats or meet their burden5….”, “cited”: [“6”, “14”, “47”] } ], “money_summary”: { “issues_count”: 4, “total_filing_fees_paid”: 2000.0, “total_filing_fees_refunded”: 0.0, “total_civil_penalties”: 0.0 }, “outcomes”: { “petitioner_is_hoa”: false, “petitioner_win”: “none”, “summarize_judgement”: “The Administrative Law Judge Decision in the underlying matter (25F-H017-REL), which found Respondent the prevailing party on all four petition issues, stands, as Petitioners’ Dispute Petition for Rehearing was dismissed5…. Petitioners failed to meet the burden of proof that there was error in the administration or rejection of evidence or other errors occurring during the initial proceeding1718.”, “why_the_loss”: “Petitioners failed to establish by a preponderance of the evidence that Respondent violated applicable statutes, CC&Rs, and/or Bylaws in the underlying dispute4…. Subsequently, Petitioners failed to meet the burden during rehearing to demonstrate error in the initial administrative proceeding17.” }, “analytics”: { “cited”: [ “A.R.S. § 33-1803(A)”, “A.R.S. § 33-1803(B)”, “A.R.S. § 33-1242(A)(11)”, “A.R.S. § 33-1807(A)”, “A.R.S. § 33-1807(K)”, “A.R.S. § 32-2199.02(B)”, “A.R.S. § 32-2199.04” ], “tags”: [ “HOA dispute”, “late fees”, “collection costs”, “assessment payment application”, “rehearing dismissal”, “A.R.S. Title 33 Chapter 16” ] } }

{
“rehearing”: {
“is_rehearing”: true,
“base_case_id”: “25F-H017-REL”,
“original_decision_status”: “affirmed”,
“original_decision_summary”: “The original decision (25F-H017-REL) found the Respondent (Mountain Gate Community) to be the prevailing party on all four petition issues related to late fees, collection costs, the proper application of assessment payments under A.R.S. § 33-1807(K), and threats of legal action [1], [2]. The ALJ found Petitioners failed to meet their burden of proof on all claims [3], [4], [5], [1].”,
“rehearing_decision_summary”: “The Department granted the rehearing on the limited ground of: ‘Error in the administration or rejection of evidence or other errors occurring during the proceeding’ [6], [7]. The rehearing ALJ found that Petitioners failed to meet their burden of proof to show such errors occurred during the original hearing [8], [9]. The Petitioners’ Dispute Petition was dismissed, affirming the underlying findings and conclusions of the original decision [10], [11].”,
“issues_challenged”: [
{
“issue”: “Issue 1: Charging a $45.00 fee ($15.00 late charge + $30.00 ‘late notice fee’) when assessment is paid before or on the due date.”,
“challenge_status”: “Affirmed (Petitioner failed to prove procedural/evidentiary error)”
},
{
“issue”: “Issue 2: The $45.00 charge exceeds the statutory limit of $15.00 for delinquent assessments.”,
“challenge_status”: “Affirmed (Petitioner failed to prove procedural/evidentiary error)”
},
{
“issue”: “Issue 3: $30.00/$20.00 “late notice fees” levied against the account without providing notice, violating statutes regarding monetary penalties.”,
“challenge_status”: “Affirmed (Petitioner failed to prove procedural/evidentiary error)”
},
{
“issue”: “Issue 4: Pre-legal team threatening foreclosure and legal action when Petitioners are not delinquent.”,
“challenge_status”: “Affirmed (Petitioner failed to prove procedural/evidentiary error)”
}
]
}
}

{
“case”: {
“docket_no”: “25F-H017-REL-RHG”,
“case_title”: “Samantha and Millard C. Finch, Petitioners, v. Mountain Gate Community aka Copper Canyon Ranch, Respondent.”,
“decision_date”: “2025-07-03”,
“tribunal”: “OAH”,
“agency”: “ADRE”
},
“individuals”: [
{
“name”: “Samantha Finch”,
“role”: “petitioner”,
“side”: “petitioner”,
“affiliation”: null,
“notes”: null
},
{
“name”: “Millard C. Finch”,
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“notes”: null
},
{
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“role”: “HOA attorney”,
“side”: “respondent”,
“affiliation”: “Maxwell & Morgan, P.C.”,
“notes”: null
},
{
“name”: “Samuel Fox”,
“role”: “ALJ”,
“side”: “neutral”,
“affiliation”: “OAH”,
“notes”: “Presided over initial hearing (25F-H017-REL)”
},
{
“name”: “Kay A. Abramsohn”,
“role”: “ALJ”,
“side”: “neutral”,
“affiliation”: “OAH”,
“notes”: “Presided over rehearing (25F-H017-REL-RHG)”
},
{
“name”: “Jonathan Sweat”,
“role”: “witness (former community manager)”,
“side”: “respondent”,
“affiliation”: “First Service Residential”,
“notes”: “Testified for Respondent”
},
{
“name”: “Melinda Montoya”,
“role”: “witness (accounts receivable manager)”,
“side”: “respondent”,
“affiliation”: “First Service Residential”,
“notes”: “Testified for Respondent”
},
{
“name”: “Susan Nicolson”,
“role”: “ADRE Commissioner”,
“side”: “neutral”,
“affiliation”: “ADRE”,
“notes”: null
},
{
“name”: “vnunez”,
“role”: “ADRE staff”,
“side”: “unknown”,
“affiliation”: “ADRE”,
“notes”: “Listed as recipient of decisions”
},
{
“name”: “djones”,
“role”: “ADRE staff”,
“side”: “unknown”,
“affiliation”: “ADRE”,
“notes”: “Listed as recipient of decisions”
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{
“name”: “labril”,
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“affiliation”: “ADRE”,
“notes”: “Listed as recipient of decisions”
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“name”: “mneat”,
“role”: “ADRE staff”,
“side”: “unknown”,
“affiliation”: “ADRE”,
“notes”: “Listed as recipient of decisions”
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{
“name”: “lrecchia”,
“role”: “ADRE staff”,
“side”: “unknown”,
“affiliation”: “ADRE”,
“notes”: “Listed as recipient of decisions”
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{
“name”: “gosborn”,
“role”: “ADRE staff”,
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“affiliation”: “ADRE”,
“notes”: “Listed as recipient of decisions”
}
]
}

This summary details the proceedings and decisions of the underlying legal dispute and the subsequent administrative rehearing concerning alleged violations of planned community statutes and governing documents.

——————————————————————————–

Case Title: 25F-H017-REL (Original Decision)

Parties: Millard C. and Samantha Finch (Petitioners) versus Mountain Gate Community aka Copper Canyon Ranch (Respondent)1. Hearing Date: February 7, 20251. Key Facts: The Petitioners, homeowners in the community, became involved in a dispute over late assessment payments2. The core issue stemmed from payments applied according to A.R.S. § 33-1807(K), which dictates that payments received must be applied first to delinquent assessments, then to collection fees, and then to other amounts3,4. An attempt by Petitioners to pre-pay the December 2022 assessment was unsuccessful and the payment was applied to past due amounts, leading to a continuous cycle of late charges and collection fees through February 20255,6.

Main Issues (Original Case): Petitioners raised four complaints, primarily alleging that Respondent violated law and community documents by:

1. Levying a **45.00charge∗∗(15.00 late charge plus $30.00 “late notice fee”) when assessments were allegedly paid on time7.

2. Levying a total charge ($45.00) that exceeded the statutory $15.00 limit for late payment charges set by A.R.S. § 33-1803(A) and CC&R 6.10.18,9.

3. Imposing 30.00/20.00 “late notice fees” (Rebill Fees) without proper notice, treating them as penalties10,11.

4. Threatening foreclosure and legal action without proper cause12,13.

Outcome and Key Legal Points (Original Case): The Administrative Law Judge (ALJ Samuel Fox) ordered that the Respondent was the prevailing party regarding all four Petition Issues14,15.

• The ALJ found that Respondent correctly applied payments to delinquent assessments first, pursuant to A.R.S. § 33-1807(K), and that Petitioners failed to prove the charges were levied against timely payments4,16.

• Crucially, the ALJ determined that the $30.00 “Late Notice Fee” or “Rebill Fee” was a collection cost, not a “late charge” restricted by the $15.00 limit in A.R.S. § 33-1803(A)17,11. A.R.S. § 33-1807(K) differentiates between collection fees/costs and monetary penalties/late charges, allowing for the application of collection costs incurred by the association3,18.

——————————————————————————–

Case Title: 25F-H017-REL-RHG (Rehearing)

Procedural History: This matter constitutes a rehearing (RHG), granted by the Arizona Department of Real Estate (DRE) following Petitioners’ timely request19,20. Rehearing Date: June 13, 202521. Scope of Rehearing: The DRE limited the sole issue for rehearing to: “Error in the administration or rejection of evidence or other errors occurring during the proceeding” of the original hearing22,23,24. The DRE explicitly denied rehearing requests based on disagreement with the original findings of fact or the overall decision (e.g., that the decision was arbitrary or unsupported by evidence)25,26.

Key Arguments (Rehearing): Petitioners (represented by Samantha Finch) argued that:

• The original ALJ erred by using an “unsubstantiated” version of A.R.S. § 33-1807, suggesting that their version, which they believed was the proper law, would have changed the outcome27,28.

• The original ALJ rejected or failed to consider their evidence, evidenced partially by the fact they did not receive copies of their own exhibits after the decision29.

• The original ALJ improperly prevented them from questioning a witness about the need for a “court order” regarding payment application, ruling the question sought a legal conclusion30,31.

Outcome and Key Legal Points (Rehearing): The Administrative Law Judge (ALJ Kay A. Abramsohn) concluded that Petitioners failed to meet their burden of proof regarding any alleged error within the limited scope of the rehearing32,33.

• The rehearing evidence confirmed that Petitioners’ documents were admitted to the record of the original hearing33.

• The ALJ found no evidence that Petitioners were prevented from presenting any evidence during the February 7, 2025 hearing34.

• The ALJ dismissed Petitioners’ repeated arguments concerning their disagreement with the original findings of fact and conclusions of law because those issues were improperly raised and outside the limited scope of the granted rehearing26.

Final Decision: The Tribunal Dismissed Petitioners’ Dispute Petition35. This order is binding, and any subsequent appeal must be filed with the superior court35.