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EliG (Arizona)
Posts: 11
Posted:
I need some creative help here. Our HOA in Arizona wants to host a holiday party and provide beer and wine to our residents. We went to apply for an event liquor license and were told that we cannot have one. The reason is that even though we are a non-profit, we are not a ā€˜true’ non profit because we are entirely gated and do not ā€˜serve the public’…just our residents. Other HOAs that are not gated can get a license.

We were told a resident cannot sponsor the party on our behalf, and even if we asked a local non-profit to host, that would also not be acceptable. We cannot make sense of this because residents can host a party in our community room and get an event license, but we cannot do so.

So, if there are any creative thinkers out there, I would really like to hear from you. We really don’t want to have a BYOB holiday party. Thanks!!
KerryL1 (California)
Posts: 14,550
Posted:
WHO is this "we were told" by???

WHY can't any resident add the event to their insurance for one night and "host" the party?

Your declaration (CC&Rs, covenants) says what kind of "non profit" your HOA is--there's more than one kind in CA and maybe in
AZ too.

Are you sure someone doesn't have "nor profit" mixed up with charity????
KerryL1 (California)
Posts: 14,550
Posted:
WHO is this "we were told" by???

WHY can't any resident add the event to their insurance for one night and "host" the party?

Your declaration (CC&Rs, covenants) says what kind of "non profit" your HOA is--there's more than one kind in CA and maybe in
AZ too.

Are you sure someone doesn't have "nor profit" mixed up with charity????
KerryL1 (California)
Posts: 14,550
Posted:
WHO is this "we were told" by???

WHY can't any resident add the event to their insurance for one night and "host" the party?

Your declaration (CC&Rs, covenants) says what kind of "non profit" your HOA is--there's more than one kind in CA and maybe in
AZ too.

Are you sure someone doesn't have "nor profit" mixed up with charity????
CathyA3 (Ohio)
Posts: 6,299
Posted:
Here's a creative thought: talk to the HOA's insurer and let that person explain to you the realities of the current insurance market and why this is a really bad idea. And then explain to your membership why your insurance premiums are going to triple or worse next year (assuming your insurer isn't going to just dump you as too high risk).

You might also want to chat with the HOA attorney about how serving alcohol could be viewed as discriminatory since a number of religions prohibit alcohol consumption, thus raising the dreaded specter of a Fair Housing complaint. Sorting out a Fair Housing complaint can be painful and expensive.

Shall I continue...?
TerriS6 (California)
Posts: 3,284
Posted:
Cathy very good advice.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Eli,

I say, lets look at the regulations: Charity and Special Events from the AZ Dept of Liquor Licenses and Control.

Per that website, I would say that what you have been told is correct.

That said, if the HOA just wants to provide the alcohol for free, you might not need a license (as they won't be selling it).
Perhaps they can have it catered with the alcohol included in the price.
Call the liquor license dept and find out.

LetA (Nevada)
Posts: 2,679
Posted:
Why can't the party be BYOB? Talk you your insurance carrier first.
LetA (Nevada)
Posts: 2,679
Posted:
Quote:
Posted By TimB4 on 09/27/2024 2:39 PM
Eli,

I say, lets look at the regulations: Charity and Special Events from the AZ Dept of Liquor Licenses and Control.

Per that website, I would say that what you have been told is correct.

That said, if the HOA just wants to provide the alcohol for free, you might not need a license (as they won't be selling it).
Perhaps they can have it catered with the alcohol included in the price.
Call the liquor license dept and find out.


Wouldn't the caterer have a traveling liquor license?
SheliaH (Indiana)
Posts: 6,964
Posted:
LetA brings up a good point. In my area there are mobile bars that provide booze, and I think you can make it a cash bar or pay X amount by the numbers of bottles consumed. You might also limit the time in which alcohol is available- if it'll be a 4 hour party, for example, limit the booze to the first hour. Or pay for the first hour only and a authorize the bartender to turn away people who have more than a buzz.

I've also attended wine tastings where everyone who indulges must show an ID proving they're 21+ and sign a waiver releasing the organization and venue from liability if they leave and something happens because they got really tipsy or blackout drunk. You attorney and insurance may be able to help with language.

That said, I'd either go BYOB and present the waiver or skip the booze altogether.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
DeanJ
Posts: 1,786
Posted:
You do know there are probably 1,000 ot more HOA’s across the US with golf course club houses selling alcohol and none of them are having fair housing complaints against them for religious discrimination.

Not following every religious prohibition is not grounds for a fair housing complaint.
CathyA3 (Ohio)
Posts: 6,299
Posted:
It's not so much the religious members as the ones with minor children, who may kick up a fuss if an official association event isn't appropriate for the entire family. Our attorney cautioned us about holding "adult only" events because they discriminate based on familial status.

I don't write the laws, I just live with them...
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By CathyA3 on 09/28/2024 6:03 AM
It's not so much the religious members as the ones with minor children, who may kick up a fuss if an official association event isn't appropriate for the entire family. Our attorney cautioned us about holding "adult only" events because they discriminate based on familial status.

I don't write the laws, I just live with them...

Even in an Ohio, children are allowed in licensed liquor establishments. They even serve alcoholic beverages at Cracker Barrel.

Under your attorneyā€s logic, one couldn’t have a derby party because of gambling and the this may be inappropriate for children. And for god’s sake don’t have an HOA book club because the children under age 6 can’t read and participate.

If an owners decides the event is not appropriate is different than an HOA excluding.
LisaB21 (Texas)
Posts: 97
Posted:
For the life of me I can not figure out why anyone would want to service alcohol at an HOA sponsored event. A holiday pary can be held, but I am a big NO to serving liquor at any HOA event.
KerryL1 (California)
Posts: 14,550
Posted:
rAll high rise condo HOAs around me have events that serve alcohol. I assume those who think it's bad for whatever reason don't attend. I've heard no complaints over the 20 years I've lived here.

More and more vegans live in our HOA. Our event alway offer now 1-2 nice vegan choices. A close friend of mine, however, refuses to attend any events. He doen' complain.
EliG (Arizona)
Posts: 11
Posted:
Thanks for all the comments. We have had numerous discussions with our city officials and we can’t get a license. And the issue of liability is a real one. We are considering a BYOB event which is permissible, but haven’t decided yet. We can also get a third party like a caterer to provide drinks, but that would raise the cost considerably. And having no liquor is really best, but this issue has raised a lot of unhappiness among our residents.

So…no decision yet.
GeorgeR8 (Arizona)
Posts: 182
Posted:
Quote:
Posted By LisaB21 on 09/28/2024 5:01 PM
For the life of me I can not figure out why anyone would want to service alcohol at an HOA sponsored event. A holiday pary can be held, but I am a big NO to serving liquor at any HOA event.

We have wine nights. We had a shooters night once. Sometimes people will just bring a beer when we have something going on. Our pot lucks have beer.

A condo I owned over 40 years ago used to have their meetings in a bar.
CathyA3 (Ohio)
Posts: 6,299
Posted:
Quote:
Posted By EliG on 09/30/2024 7:19 PM
Thanks for all the comments. We have had numerous discussions with our city officials and we can’t get a license. And the issue of liability is a real one. We are considering a BYOB event which is permissible, but haven’t decided yet. We can also get a third party like a caterer to provide drinks, but that would raise the cost considerably. And having no liquor is really best, but this issue has raised a lot of unhappiness among our residents.


Are the residents unhappy because they want to have alcohol, or because they don't think it's appropriate in an HOA function? If it's the first option, why would BYOB not be acceptable to them? What are they really upset about?

It seems like every year before the holidays, I see articles about why party hosts should be careful about serving alcohol in case some of their guests drive home with a snootful and get injured (or injure someone else), and then sue the hosts for serving drinks. For an HOA event, the accidents would probably be on association property, which ups the liability for the HOA.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By GeorgeR8 on 10/07/2024 4:42 AM

We have wine nights. We had a shooters night once. Sometimes people will just bring a beer when we have something going on. Our pot lucks have beer.

Does the Association give the wine, shooters and beer away for free?
Are the events catered?

If the answers to the above questions are no, did the Association obtain a liquor licenses (as required by AZ law)?
GeorgeR8 (Arizona)
Posts: 182
Posted:
It's donated by the owners. No different than a BYOB.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By GeorgeR8 on 10/08/2024 7:13 PM
It's donated by the owners. No different than a BYOB.

Yep, that is one option that, from my reading, keeps things legal.

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