2.21 Administrative Hearing Process

• Jurisdiction: Arizona

§ 2.21 Administrative Hearing Process

A.R.S. §§ 32-2199 , 32-2199.01 , 32-2199.02 , 32-2199.04 and 32-2199.05 provide jurisdiction to an administrative law judge to adjudicate complaints regarding and to ensure compliance with Title 33, chapter 16 planned community statutes and the planned community documents. The statutes allow an owner or the planned community association to request a hearing before an Administrative Law Judge (“ALJ”) after being referred there by the Arizona Department of Real Estate (“ADRE”) for disputes concerning violations of the planned community association’s documents, or violations of the statutes, which regulate condominiums or planned communities. This statute only applies to disputes between the owner and the planned community association, not to disputes between owners, or disputes with developers or other third parties. By statute, the ALJ can impose civil penalties for violations of the statutes and the governing documents.

After this process was enacted in 2006, it was found to violate the Arizona Constitution. ²⁶⁷ Despite the finding of unconstitutionality by Division One of the Arizona Court of Appeals, the Arizona Legislature enacted SB1148 in the 2011 legislative session. The changes made to the prior...