HOA - ALJDEC decisions

25F-H082-REL · Department of Real Estate - H/C · 2026-05-20

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

In the Matter of

Heidi Kummetz,

Petitioner,

Los Blancos Homeowners' Association Inc.,

Respondent.

No. 25F-H082-REL

ADMINISTRATIVE LAW JUDGE DECISION

HEARING: May 6, 2026

APPEARANCES: Heidi Kummetz represented herself. Attorney Austin Baillo represented Los Blancos Homeowners' Association Inc.

ADMINISTRATIVE LAW JUDGE: Kay A. Abramsohn

EXHIBITS ADMITTED INTO EVIDENCE: Notice of Hearing Packet (“Packet”), containing Petition and its attachments, and other background procedural documents.

Petitioner Exhibits P1 through P30. Respondent Exhibits R1 through R6

_____________________________________________________________________

FINDINGS OF FACT

1. Pursuant to Arizona Revised Statutes (Ariz. Rev. Stat.) § 33-1801 et seq., the Arizona Department of Real Estate (Department) is authorized by statute to receive and to decide Petitions for Hearings from members of planned community associations in Arizona.

2. Heidi Kummetz (Petitioner) is a homeowner within Los Blancos Homeowners' Association Inc. (HOA).

3. On or about August 28, 2025, Petitioner filed a single-issue petition with the Department which specifically alleged that HOA failed to fulfill Petitioner’s August 10, 2025 “Ten Day Records Request” in violation of Ariz. Rev. Stat. § 33-1805(A).

4. On or about November 26, 2025, the Department referred this matter to the Office of Administrative Hearings (“Tribunal”), an independent state agency, for an evidentiary hearing to determine whether the alleged violation of Ariz. Rev. Stat. § 33-1805(A) occurred.

THE RECORDS REQUEST AT ISSUE

5. On August 10, 2025, at 5:35 p.m., Petitioner emailed a records request essentially addressed to the attention of “Los Blancos Board and Associated Partners.” Petitioner emailed the request to the following persons, some at personal or work email addresses and some, repetitively, at an organizational address: Ulises Aragon; Christian Gragnano; Boris Kurtnik; Pam Zanocco; Gabriel Eagle; Yosdel Castillo; Advanced Community Services (ACS); Chandler Travis; and, Ian Quinn.

6. The August 10, 2025 email listed the following requested documents:

Per A.R.S., 10 day records request. Link below to upload documentation if you prefer.

All invoices from May 1, 2025 to current

All bids and related communications from May 1, 2025 to current

All board communications resulting in consensus vote from May 25, 2025 to current

All communications with vendors/contractors/City/Planning & Development/City Code Enforcement, etc.

Bank statements (May/June/July 2025) for all accounts, operating, reserve, mma, etc. all banks and entities

Bank registers for all accounts May, June, July 2025 all banks and entities

Utility bills (all including three for SWGas, 2 for APS, etc.) May, June, July 2025

All contracts, executed from May 1, 2025 to current

All termination notices to any and all vendors, trades, etc. from May 1, 2025 to current

All change order contracts to any and all vendors, trades, etc. from May 1, 2025

Copy of fully executed contract between Los Blancos and ACS including digital certificate page, full digital executed contract

Full binders on current insurance policies

Current Bank Loan Statements, May, June, July 2025

Current AR Aging non lot specific overview (overall $, w/legal $, lien status $)

Full Financials including Ledgers, Bank Reconciliation Reports, Cask Disbursement Ledger, Deposit Register, GL Trial Balance

Opening registers, Current register and statements for ACS accounts with coinciding bank register directly from bank

Governing Documents

Minutes Budget

7. On August 10, 2025, at 3:44 p.m., Boris asked Petitioner not to use his work email address. At 8:09 p.m., Petitioner requested of Boris, what email address to use.

8. On August 11, 2025, at 4:41 a.m., Boris provided a new address for himself and advised Petitioner that Chandler Travis no longer represented the HOA.

9. On August 11, 2025, at 8:44 a.m., Petitioner responded to Boris:

As Travis Law no longer represents Los Blancos and you are not following your/Thrive’s protocol of last record request, we can remove him from these communications.

10. On August 11, 2025, at 5:51 a.m., Boris responded:

I’m not sure what you mean – Thrive no longer manages the association. You should make your request to the current mgmt company. Do you need me to get their contact information for you?

11. On August 11, 2025, Petitioner then requested the “recommended email address for ACS.

12. On August 11, 2025, Boris provided the name of Yosdel Castillo as an ACS contact and the email address of yosdel@acs-hoa-com.

13. On August 11, 2025, at 8:51 a.m., Yosdel advised Pam to tell Petitioner that she needed to post the request on the ACS website as an Action Item.

14. On August 11, 2025, at 5:02 P.M., Pam texted Petitioner, in pertinent part, as follows:

I saw your email. ACS will give you all the records. They just ask that you post your request on their portal.

_________________

15. On December 9, 2025, at 1:01 p.m., Petitioner posted a records request to ACS on the ACS website. Petitioner requested the following records:

All invoices from May 1, 2025 to current

All bids and related communications from May 1, 2025 to current

All board communications resulting in consensus vote from May 25, 2025 to current

All communications with vendors/contractors/City/Planning & Development/City Code Enforcement, etc.

Monthly Bank statements (May/June/July 2025) for all accounts, operating, reserve, mma, etc. all banks and entities

Monthly Bank registers for all accounts May, June, July 2025 all banks and entities

Utility bills (all including three for SWGas, 2 for APS, etc.) May1, 2025 to current May, June, July 2025

All contracts, executed from May 1, 2025 to current

All termination notices to any and all vendors, trades, etc. from May 1, 2025 to current

All change order contracts to any and all vendors, trades, etc. from May 1, 2025

Copy of fully executed contract between Los Blancos and ACS including digital certificate page, full digital executed contract

Full binders on current insurance policies

Monthly Current Bank Loan Statements, May 1, 2025 to current May, June, July 2025

Current AR Aging non lot specific overview (overall $, w/legal $, lien status $)

Monthly Full Financials including Ledgers, Bank Reconciliation Reports, Cask Disbursement Ledger, Deposit Register, GL Trial Balance starting June 2025 monthly through current

Monthly - Opening registers, Current register and statements for ACS accounts with coinciding bank register directly from bank May 1, 2025 to current

Governing Documents

Minutes

Budget

AZROC# for chosen contractor for stairs

Proof of COI, License, Insurance, AZROC# for hired janitor/handyman

Copy of fully executed contract for GotJunk

Copy of fully executed contract for alley dumpsters

Copy of fully executed contract for janitor/ handyman

Copy of renegotiated contract and terms, fully executed for bank loan

Copy of fully executed contract for Plumber for sewer line work

Copy of City of Phoenix approved plans and permits for stairs project

Proof of payment (staged and /or final) for all contracts

Copy of COI/ROC/License for contractor that remodeled clubhouse 2025

Copy of contract for contractor that remodeled clubhouse 2025

16. On December 9, 2025, at 1:11 p.m., Petitioner posted an addendum to the records request, requesting the following additional records:

Copy of executed contract with vendor chose for stairs/decks

Copy of executed contract with forensic accountant

17. On December 19, 2025, ACS responded to Petitioner, indicating she was welcome to come to the ACS offices to review the available records. ACS also offered to schedule a different day for Petitioner to review the records.

18. On December 22, 2025, Petitioner advised ACS that she would be able to be at the ACS office on December 29, 2025 at 1:00 p.m.

BACKGROUND

19. Petitioner was formerly on the HOA Board of Directors (Board).

20. At that time, HOA employed Lighthouse as its management company; however, Petitioner had wanted a change in the management.

21. In May 2025, the existing Board was recalled. The recall was effective May 29, 2025.

22. Despite being under recall, on June 1, 2025, Petitioner hired Thrive With Us (Thrive) as the HOA management company; Amy Taylor was the Thrive President.

23. On June 18, 2025, a new Board was seated, with Pam Zanocco as President. Ann Taylor resigned at that June 18, 2025 meeting.

24. On July 1, 2025, ACS was hired by the Board as the new management company for HOA; Yosdel Castillo was the manager.

25. In July 2025, ACS sent out a newsletter to residents. The Newsletter instructs residents how to reach out to ACS with regard to any concerns and issues by posting an Action Item on the ACS website.

26. On July 15, 2025, Thrive President Amy Taylor responded to a records request from Petitioner, stating “Per your request, here is the link to the Dropbox folder for the documents we have.” As to each noted record, Ms. Taylor indicated its availability. In closing, Ms. Taylor advised Petitioner as follows:

As stated in our email to the community, the new management company has now taken over management of your community. Any records requests must be sent to them. Any further emails sent to Thrive will be forwarded to Pam Zanocco as directed by Pam.

27. On September 22, 2025, HOA Board sent an email to residents essentially updating residents of the Board’s progress and status of certain projects and also providing the following information, in pertinent part:

When necessary, we will send out community emails. The ACS website will be your main source for you to communicate your concerns, ask a question or request service, and of course, where you will pay your fees. http://losblancosaz.com

28. During the various management company transitions, The Board relied on each company to send the HOA documents, etc., to the next management company.

______________________

29. On April 2, 2026, HOA filed a motion to vacate the hearing and dismiss the Petition for the following reasons: (a) Petitioner had sold her home effective March 23, 2026; (b) as a result of the sale of the home, Petitioner no longer had an interest in the HOA documents; and, further, (c) Petitioner no longer had standing to maintain her Petition against the HOA. In its motion, HOA further indicated that Petitioner had been given an opportunity to review the Association’s records on 4 different occasions to examine all the Association records she had asked for, including the most recent viewing in March of 2026, and that she had paid for copies of the records and took those copies with her. HOA requested that the Petition be dismissed and that Petitioner’s filing fee be returned to her if possible.

30. At the time of the continued April 24, 2026 hearing setting, the background documents from Department, which would have included a copy of the Petition and any attachments filed by Petitioner with the Department, were not available in the Tribunal’s case system. Given the discussion at that time, which included varied positions by the parties as to the issue, or issues, for hearing, the Tribunal determined to continue the hearing due to the need to obtain the background documents from the Department.

31. At hearing, Petitioner testified on her own behalf.

32. At hearing, HOA presented the testimony of Pam Zanocco, President of the Board.

33. Petitioner’s position is that because Boris had received her email on August 10, 2025 and had responded to her about it on August 10 and 11, 2025, the Board had, in fact, received the records request on August 10, 2025 and, thereafter, the HOA failed to fulfill the records request within 10 days as was required by statute. Petitioner opined that HOA had to prove she had received the July 2025 ACS Newsletter, essentially arguing that she was unaware of the requirement to post an Action Item on the ACS portal until that requirement was announced at a November 22, 2025 meeting. Petitioner also argued that the ACS posting process had no bearing on this matter because the statute does not specify any particular process. Ultimately, Petitioner requested that the Tribunal order HOA to electronically produce records from May 2025 to March of 2026 to Petitioner and to her representative within 10 days. Further, that HOA reimburse the $500.00 filing fee and that HOA be assessed penalties for repeated wilful disregard of the statute.

34. HOA’s position is that the Petitioner’s email of August 10, 2025 should not be considered to have been submitted to ACS as was required at that time, per the requirement to post an Action Item to ACS on the website. HOA argued that it was not until December 9, 2025 that ACS received a records request from Petitioner through the ACS Action Item process. HOA argued that, at that time in December 2025, ACS responded to the records request within 10 days and provided Petitioner with the opportunity to review the records. Ultimately, HOA requested that the Tribunal dismiss Petitioner’s appeal.

CONCLUSIONS OF LAW

Pursuant to Ariz. Rev. Stat. §§ 32-2199(2), 32-2199.01(A), 32-2199.01(D), 32-2199.02, and 41-1092 et seq., the Tribunal has the authority to hear and decide the contested case at bar, a dispute between an owner and a planned community association. The owner or association may petition the Department for a hearing concerning alleged violations of community documents or alleged violations of the statutes which regulate planned communities, as long as the petitioner has filed a petition with the Department and paid a filing fee as outlined in Ariz. Rev. Stat. § 32-2199.05.

Ariz. Rev. Stat § 32-2199.02(A) provides, in pertinent part:

The administrative law judge may order any party to abide by the statute, condominium documents, community documents or contract provision at issue and may levy a civil penalty on the basis of each violation.

3. Ariz. Rev. Stat. § 32-2199.01(A) provides, in pertinent part:

On dismissal of a petition at the request of the petitioner before a hearing is scheduled or by stipulation of the parties before a hearing is scheduled, the filing fee shall be refunded to the petitioner.

4. In this proceeding, Petitioner bears the burden of proving by a preponderance of the evidence that Respondent violated Ariz. Rev. Stat. § 33-1805(A). “A preponderance of the evidence is such proof as convinces the trier of fact that the contention is more probably true than not.” A preponderance of the evidence is “[t]he greater weight of the evidence, not necessarily established by the greater number of witnesses testifying to a fact but by evidence that has the most convincing force; superior evidentiary weight that, though not sufficient to free the mind wholly from all reasonable doubt, is still sufficient to incline a fair and impartial mind to one side of the issue rather than the other.”

5. Ariz. Rev. Stat. § 33-1805(A) provides, in relevant parts, as follows:

Except as provided in subsection B of this section, all financial and other records of the association shall be made reasonably available for examination by any member or any person designated by the member in writing as the member's representative. The association shall not charge a member or any person designated by the member in writing for making material available for review. The association shall have ten business days to fulfill a request for examination. On request for purchase of copies of records by any member or any person designated by the member in writing as the member's representative, the association shall have ten business days to provide copies of the requested records. An association may charge a fee for making copies of not more than fifteen cents per page.

6. The hearing record demonstrates that Petitioner was advised by Thrive in July 2025 that Thrive was no longer the management company for HOA and that any records requests needed to be sent to the new management company. Despite having been informed to contact HOA through the ACS website, on August 10, 2025, Petitioner emailed multiple persons, two of whom were not connected to the HOA in any way. While persons received and read Petitioner’s email of August 10, 2025, at least two of those persons, Boris Kurtnik and Pam Zanocco, then responded to Petitioner telling her to post the request with ACS. Petitioner’s efforts to, apparently, cover all possibilities by simply emailing multiple persons, fell short of submitting a records request to the then known HOA management company.

7. The hearing record further demonstrates that Petitioner was advised in September 2025 by the HOA Board regarding using the ACS website as the source for residents to communicate your concerns or ask a question, etc. and that communication contained the ACS website address. The Administrative Law Judge concludes that Petitioner’s argument fails that she had not known of the requirement to contact ACS or post an Action Item on the ACS portal until that requirement was announced at a November 22, 2025 meeting.

8. Based on the hearing record, the Administrative Law Judge concludes that the hearing record demonstrates that Petitioner’s August 10, 2025 email requesting records was not received by ACS on August 10, 2025 as an Action Item to which ACS and HOA were required by statute to respond. Based on the foregoing, the Administrative Law Judge concludes that Petitioner has failed to sustain her burden of proof that HOA violated the Ariz. Rev. Stat. § 33-1805(A). Therefore, Petitioner’s Petition must be dismissed.

ORDER

Based on the foregoing,

IT IS ORDERED that Petitioner’s Petition is dismissed.

IT IS ORDERED HOA is the prevailing party and, therefore, Petitioner bears her filing fee.

NOTICE: Pursuant to Ariz. Rev. Stat. §32-2199.02(B), this Order is binding on the parties unless a rehearing is granted pursuant to Ariz. Rev. Stat. § 32-2199.04. Pursuant to Ariz. Rev. Stat § 41-1092.09, a request for rehearing in this matter must be filed with the Commissioner of the Department of Real Estate within 30 days of the service of this Order upon the parties.

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-137160-45720000Done this day, May 20, 2026.

/s/ Kay A. Abramsohn

Administrative Law Judge

Transmitted by either mail, e-mail, or facsimile May 20, 2026 to:

Susan Nicolson, Commissioner

Arizona Department of Real Estate

Austin Baillio, Esq.

Maxwell & Morgan, P.C.

[email redacted]

Heidi Kummetz

[email redacted]

By: OAH Staff