Many homeowners have asked about the status of the lawsuit involving SunBird’s Capital Improvement Fee (CIF). The following is a summary of where the case stands.
In 2021, the SunBird membership approved an amendment to the Declaration of Restrictions (CC&Rs) by a vote of 983 in favor and 266 opposed. The amendment authorized the Association to collect a Capital Improvement Fee from new homeowners purchasing property in SunBird. The amendment also stated that these funds could be used, at the discretion of the Board of Directors, for improvements to HOA common areas and/or the golf course.
In 2023, a SunBird homeowner, Jimmie Klatt, filed a lawsuit in Maricopa County Superior Court challenging the validity of the amendment.
In 2025, the Superior Court ruled that the Association may continue collecting the Capital Improvement Fee from new homeowners. However, the court also ruled that the Association may not use Capital Improvement Fee proceeds—or other HOA funds—for golf course improvement projects, including stormwater runoff and drainage work on golf course property.
Based on the advice of legal counsel, the Board of Directors appealed the Superior Court’s decision.
On June 11, 2026, the Arizona Court of Appeals affirmed the Superior Court’s ruling. As a result, the Association may continue to collect the Capital Improvement Fee from new homeowners, but the courts have determined that HOA funds, including Capital Improvement Fee proceeds, may not be used for golf course improvement projects under the current Declaration of Restrictions.
The Board of Directors is reviewing the Court of Appeals’ decision with the Association’s legal counsel to determine what options are available. The Board appreciates the patience and understanding of the SunBird community as it carefully evaluates the decision and its implications for the Association.