Tag Archives: Reserves

The Gregory M and Donna P Hulbert Family Trust dated May 25, 1995 v.

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Case Summary

Case ID 24F-H049-REL, 24F-H055-REL
Agency ADRE
Tribunal OAH
Decision Date 2025-01-21
Administrative Law Judge Samuel Fox
Outcome partial
Filing Fees Refunded $2,500.00
Civil Penalties $500.00

Parties & Counsel

Petitioner The Gregory M and Donna P Hulbert Family Trust dated May 25, 1995 Counsel —
Respondent The Summit at Copper Square Condominium Association Counsel Daryl Wilson

Alleged Violations

Declaration §§ 7.1, 7.12, 7.14
Declaration §§ 4.6.1, 4.6.2
Declaration §§ 3.3.1, 3.3.2, 4.13
A.R.S. § 33-1248(E), (F)
Declaration § 5.1

Outcome Summary

Petitioner was deemed the prevailing party regarding issues 2 (Puppy Potty) and 4 (Notice/Agenda). Respondent was ordered to pay Petitioner a filing fee refund of $1,000 and a Civil Penalty of $500 for Issue 2. Respondent prevailed on Issues 1, 3, and 5.

Why this result: Petitioner failed to meet the burden of proof on Issues 1, 3, and 5, often due to the Board's discretion being upheld (budget, maintenance pace) or failure to establish the circumstances constituted an actionable nuisance (news crew).

Key Issues & Findings

Inadequate budget and funding of reserves; improper withdrawal of reserve funds.

Petitioner alleged the HOA improperly borrowed reserves (~$390k) for operating expenses and failed to adopt an adequate budget for reserves. The Tribunal found the budget practices required only a reasonable estimate and that the reserve contributions had exceeded recommended levels as of July 2024.

Orders: Petitioner's claim denied.

Filing fee: $500.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • Declaration § 7.1
  • Declaration § 7.12
  • Declaration § 7.14

Installation of 'puppy potty' on common elements.

Petitioner sought removal of a puppy potty installed on the roof (a common element) arguing it violated rules prohibiting pet structures on common elements and constituted a nuisance. The Tribunal found the puppy potty was a structure for the care of pets on common elements, violating Section 4.6.2.

Orders: Respondent is directed to remove the puppy potty structure, and a Civil Penalty of $500 is imposed.

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

Disposition: petitioner_win

Cited:

  • Declaration § 4.6.1
  • Declaration § 4.6.2

Allowing news crew use of common area.

Petitioner contested the HOA allowing a news crew in the common pool area during the 2023 baseball post-season. The Tribunal found the Declaration permits invitees (guests) and failed to establish the presence of the news crew was unreasonable, offensive, or infringed upon owner easements.

Orders: Petitioner's claim denied.

Filing fee: $500.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • Declaration § 3.3.1
  • Declaration § 3.3.2
  • Declaration § 4.13

Failure to provide required notice and adequate information in agendas.

Petitioner alleged the HOA agendas failed to provide adequate information for meaningful resident comments, specifically concerning non-emergency topics like purchasing patio furniture. The Tribunal found evidence that the Board failed to include at least one non-emergency topic on the agenda.

Orders: Respondent is directed to comply with the requirements of A.R.S. § 33-1248 and its Community Documents going forward.

Filing fee: $500.00, Fee refunded: Yes

Disposition: petitioner_win

Cited:

  • A.R.S. § 33-1248(E)
  • A.R.S. § 33-1248(F)

Failure to maintain, repair, and replace Common Elements (structural damage/garage cracks).

Petitioner sought enforcement of maintenance obligations due to perceived slow pace (years of delay) in addressing structural cracks and water infiltration in the garage ceiling. The Tribunal acknowledged delays but noted the Board had engaged experts and was following their recommendations for monitoring and testing before the decision date.

Orders: Petitioner's claim denied.

Filing fee: $500.00, Fee refunded: No

Disposition: respondent_win

Cited:

  • Declaration § 5.1

Analytics Highlights

Topics: HOA, Condo, Reserves, Budget, Pets, Common Elements, Board Meetings, Notice, Structural Integrity
Additional Citations:

  • Declaration § 7.1
  • Declaration § 7.12
  • Declaration § 7.14
  • Declaration § 4.6.1
  • Declaration § 4.6.2
  • Declaration § 3.3.1
  • Declaration § 3.3.2
  • Declaration § 4.13
  • A.R.S. § 33-1248(E)
  • A.R.S. § 33-1248(F)
  • Declaration § 5.1

Decision Documents

24F-H049-REL Decision – 1214040.pdf

Uploaded 2025-10-09T03:44:15 (45.7 KB)

24F-H049-REL Decision – 1218977.pdf

Uploaded 2025-10-09T03:44:15 (46.3 KB)

24F-H049-REL Decision – 1218981.pdf

Uploaded 2025-10-09T03:44:16 (5.9 KB)

24F-H049-REL Decision – 1219895.pdf

Uploaded 2025-10-09T03:44:16 (40.5 KB)

24F-H049-REL Decision – 1235253.pdf

Uploaded 2025-10-09T03:44:16 (47.1 KB)

24F-H049-REL Decision – 1264402.pdf

Uploaded 2025-10-09T03:44:16 (277.9 KB)

Aaron Ricks (Somerstone Properties, LLC), v. Montelena Master

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Case Summary

Case ID 21F-H2120024-REL
Agency ADRE
Tribunal OAH
Decision Date 2021-02-16
Administrative Law Judge Tammy L. Eigenheer
Outcome none
Filing Fees Refunded $500.00
Civil Penalties $0.00

Parties & Counsel

Petitioner Aaron Ricks (Somerstone Properties, LLC) Counsel —
Respondent Montelena Master Community Association Counsel Troy Stratman

Alleged Violations

A.R.S. § 33-442, A.R.S. § 33-1806

Outcome Summary

The Administrative Law Judge dismissed the Petition because the Petitioner failed to meet the burden of proof to establish that the Montelena Master Community Association violated A.R.S. § 33-442 or its CC&Rs regarding the imposition of a transfer fee. The ALJ found that the use of the fee to fund operating expenses and/or reserves was an acceptable purpose under the relevant statute.

Why this result: Petitioner failed to establish Respondent acted in violation of the community documents and A.R.S. § 33-442.

Key Issues & Findings

Challenge to unauthorized/unlawful transfer fees charged by HOA

Petitioner alleged that the $2500.00 transfer fee charged to the purchaser was an unlawful transfer fee in violation of A.R.S. § 33-442 and specific CC&R provisions, arguing that the authorized use of the fee (Master Association’s operating expenses and/or reserves) was not specific enough to meet the statutory exception under A.R.S. § 33-442(C).

Orders: Petitioner’s petition is dismissed.

Filing fee: $500.00, Fee refunded: No

Disposition: petitioner_loss

Cited:

  • A.R.S. § 33-1806
  • A.R.S. § 33-442
  • A.R.S. § 32-2199
  • A.R.S. § 41-1092.07(G)(2)
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)
  • Vazanno v. Superior Court, 74 Ariz. 369, 372, 249 P.2d 837 (1952)

Analytics Highlights

Topics: HOA transfer fee, A.R.S. 33-442, CC&R violation, Operating expenses, Reserves
Additional Citations:

  • A.R.S. § 33-1806
  • A.R.S. § 33-442
  • A.R.S. § 32-2199
  • A.R.S. § 32-2199.02(B)
  • A.R.S. § 32-2199.04
  • A.R.S. § 41-1092.09
  • A.R.S. § 41-1092.07(G)(2)
  • A.A.C. R2-19-119(A)
  • A.A.C. R2-19-119(B)(1)

Audio Overview

Decision Documents

21F-H2120024-REL Decision – 855401.pdf

Uploaded 2025-10-09T03:36:34 (95.8 KB)