Q: I’m the president of a single-family residential subdivision with about 100 homes. The homeowners assumed control over the homeowners’ association from the developer about a year ago, and our HOA’s board of directors is revising and updating the community guidelines and rules. A new builder has purchased several lots, and that has focused our […]
An Ounce of Prevention: Architectural Review in Your Homeowners Association
Most homeowners associations have some sort of architectural review process. Of these, many spell out how that review is supposed to proceed. Generally, the homeowner submits an application for some sort of change to the property, and the board of directors or an appointed architectural review committee Read the article………..
Easy Guide to the U.S. Flag Code
Most of us learned growing up that during the Pledge of Allegiance we’re supposed to stand at attention facing the American flag with our right hands over our hearts. Persons in official uniform render military salutes. Hats should be removed unless part of a uniform or religious attire. Read the article………
Keeping HOA open meetings productive and on track
I am a big proponent of homeowners’ association (HOA) boards keeping their meetings open to members when possible. This promotes an atmosphere of transparency and gives homeowners an opportunity to see and understand how the HOA functions. It also helps homeowners better appreciate the often difficult situations board members grapple with on a routine basis. […]
When A Motion To Strike Can Be Proper
After a defendant succeeded on a Motion for a More Definite Statement, a plaintiff added more detail to the claims that had been dismissed. The defendant responded to the beefed up allegations with a Motion to Strike. Read the article………..
First NC Community Association Bill Signed into Law
House Bill 513 “Real Property/Technical Corrections” (with a long title of “An Act to Make Technical Corrections and Other Conforming Changes to the General Statutes Concerning Real Property”) was ratified by the North Carolina General Assembly on May 28, 2015, and signed by Governor McCrory earlier today (June 4, 2015). As a result, HB 513 […]
What’s the best way to update architectural rules?
Q: I’m the president of a single-family residential subdivision with about 100 homes. The homeowners assumed control over the homeowners’ association (the HOA) from the developer about a year ago, and our HOA’s board of directors is currently revising and updating the community guidelines and rules. A new builder has purchased several lots, and that […]
Voting by Proxy at Homeowner Association Meetings
If you cannot attend the annual meeting for a homeowners association but you still want your vote to count, then voting by proxy might be for you! The planned community act allows a member of most homeowner’s associations to appoint a proxy to vote (or take any other action) for that member at a meeting […]
Pool Rules – A Confusing World
With warmer weather, we’re getting our usual barrage of pool questions. Many deal with appropriate pool rulesand pool signs. Without question, pool issues are one of the more confusing areas of our practice in that there are few absolutes. That’s particularly the case when it comes to dealing with Fair Housing Act issues. […]
Going to Pot
States are relaxing restrictions on marijuana, which means conflict is coming to community associations. What is clouding the debate? It doesn’t happen often. But every couple of months, there’s that unmistakable smell wafting through a hallway at Penn Square Condominium high-rise in Denver: marijuana. Manager Michael Milburn’s strategy is always the same. He knocks on […]
What Goes Up………..Must Break Down
Elevators may be the most complicated and expensive asset in your building. Fix your contract, know the basics and minimize legal risks before your community finds itself out of order. The passenger elevators in a 90-year-old, 62-unit, 16-story condominium complex in Chicago were so small and vintage that residents often used the freight elevators. Unfortunately, […]
What’s In? What’s Out?
Forget gates and golf. Today’s homeowners and buyers want something else. Adapt your amenities and community events or get left behind. In the not too distant past, simply having a gatehouse, golf course and swimming pool were a sure-fire way for a community association to attract residents and boost property values. By most accounts, that’s […]
How Is the Motion to Lay on the Table Misused?
Because the motion to Lay on the Table is not debatable, requires only a majority vote, and has high precedence, members are too often tempted to use it to kill the main motion. This is an improper use of the motion to Lay on the Table and an example of railroading (see Robert’s 210, 215–16). […]
Non-Judicial Foreclosure in North Carolina: The Limited Scope of the Hearing Before the Clerk of Court in Condominium or Homeowner Association Foreclosures
Contrary to popular belief, most property owners fulfill their financial obligations to their association. As a result, the number of actual association foreclosures is very, very small. Of that percentage, almost nobody wakes up in the morning and decides to stop paying a mortgage or condominium or homeowner association dues. The facts of life, however, […]
North Carolina Community Association Legislative Roundup
Ah. Flowers are blooming. Birds are chirping. Community association legislative proposals are being filed. It must be spring! Both the North Carolina House and Senate are back in full swing with the two-year 2015-2017 legislative session. While there are numerous bill deadlines, here are some of the important ones. Read the article………
Can HOAs spend money to fight rezoning projects nearby? (NC)
Q: Members of our community have been involved in a lawsuit over the possible installation of a solar-panel farm just outside the entrance to the community. We won the lawsuit based on the fact that 1) The solar farm would not be in “harmony” with the surrounding residential communities and 2) it would have a […]
Look Out for Sneaky Provisions in your Declarations that Bite
Trying to keep communities looking good is one of the most important goals for homeowners associations; in fact, it is one of the main reasons people purchase homes in HOAs. Unfortunately, enforcing governing documents is not an easy task and there are oftentimes provisions in the governing documents that make it even tougher. To assist […]
Government, federal court complicate HOA pool rules
Most swimming pools have a list of rules posted somewhere on the premises. We’ve all seen them. The rules contain common sense prohibitions against dangerous pool activities, such as having glass in the pool area and diving into the shallow end. Read more……….
Community Association Managers, Lawyers, and Tooth Whitening?
So, what do state boards that regulate community association managers and dentists have in common? According to a decision from the U.S. Supreme Court last week, possibly more than you’d think. Interestingly, the case of North Carolina State Board of Dental Examiners v. Federal Trade Commission has received little attention beyond lots of chatter by […]
HOA Boards need to keep reserve budgets fully funded
Q. Our condominium association last raised our assessments in 2010, which left us with a small surplus above our annual expenses to fund our reserve account. With no assessment increases since then, but increasing expenses, we are no longer able to meet our operating expenses, much less contribute to reserves. Read more………
Government, federal court complicate HOA pool rules
Most swimming pools have a list of rules posted somewhere on the premises. We’ve all seen them. The rules contain common sense prohibitions against dangerous pool activities, such as having glass in the pool area and diving into the shallow end. Read more………
Does the Chair Vote in the Event of a Tie?
In board and membership meetings you’ll sometimes hear the phrase that the chair gets to vote “in case of a tie vote.” But is that accurate? In short, no. Read more………
Feds complicate HOA pool rules
Most swimming pools have a list of rules posted somewhere on the premises. We’ve all seen them. The rules contain common sense prohibitions against dangerous pool activities, such as having glass in the pool area and diving into the shallow end. Read more……….
(NC) Supreme Court Loosens Up Construction Warranty Claims
The North Carolina Supreme Court does not often render decisions that directly affect HOAs, but on December 19, 2014, the Court issued an opinion in Christie v. Hartley Construction that may impact your HOA, and will certainly impact many consumers and construction contractors. Read more……..
CAI Best Practices: Ethics
Simply put, when someone is employing ethics, he or she recognizes what is right and what is wrong and is choosing to do the right thing; however, as a great deal of business ethics literature will attest, “the right thing” is not always straightforward. For example, most ethical dilemmas in the workplace are not simply […]
HOA boards should tread carefully on assistance animals
We are often asked about pet restrictions in the context of homeowners’ associations (HOAs) and their enforceability with respect to assistance animals for persons with disabilities. An HOA’s governing documents often restrict the type, size, and quantity of pets allowed. Like all good rules, there are exceptions. Read more………
More thoughts on the need for workers’ compensation insurance for HOA’s (NC)
An article written by two attorneys from Wilmington, NC and published in my Charlotte Observer column recently has caused a firestorm of controversy over whether HOAs can, should, or must have workers’ compensation insurance. My friend and colleague Jim Slaughter, a Greensboro attorney, fielded many calls from his clients on the issue, spoke to industry […]
Does Your NC Property Owners Association Need Workers’ Compensation Insurance? Yes!
The North Carolina Workers’ Compensation Act (“Act”) requires all employers with three or more employees to carry workers’ compensation insurance. The purpose of this requirement is to ensure that employees injured by an accident while working have a safety net to cover lost wages and medical expenses. Read more……..
I Really Don’t Like My Neighbor’s Tenants: Issues With The Use And Enforceability Of Rental Restrictions In Homeowners’ Associations
It is an all too common situation, especially in coastal communities, mountain retreats, and college towns: You bought a home in a planned community that has a homeowners’ association with thoughts of being able to enjoy a quiet, family-oriented neighborhood. Then you find that your community’s amenities are being overrun with transient tenants and their […]
Condominiums Spent Budgeted Reserve Contributions Elsewhere
In recent months while assisting condominiums to get certified and recertified with FHA, we are running into an issue that is a fairly simple one to avoid. We make it a point to remind our clients to contribute at least 10% of the budget to the reserve account annually. Not only does FHA require this, […]
4 tips for a smoother HOA budget process
Yes, it’s that time of year again for HOAs. No, not the holidays, it’s budget season! Most HOAs use the calendar year as their fiscal year, and now is the time of year many boards of directors are formulating their budgets for next year. Here are tips for making the budget and next year’s finances […]
“But Jimmy’s got one…”
Tired of hearing phrases like that each time you send a violation letter? Tired of feeling like you are back in grade school? Enforcement of covenants seems to bring out the same questions of fairness we had when we were all children. We want to be treated fairly and we don’t want to be told […]
Does your board president rule with an iron FIST? You don’t have to put up with it. Dictators can be toppled.
Maybe she’s been running the association single-handedly forever. Or perhaps he’s been a big shot in the business world and is certain the community needs his iron fist. Whatever the motivation, the community association president becomes a dictator. Read more………
Some community associations are banning registered sex offenders. Can these restrictions stand up in court?
Valley View Village Condominium Homeowners Association in Texas adopted a rule in 2012 that registered sex offenders could not live within 2,000 feet of places where children congregate—school bus stops, parks, greenbelts, the community pool and other common areas. The association later amended its declaration to incorporate the ban. Read more……….
Governing Documents and the Role of Each One
The primary “governing documents” of an association are the declaration, articles of incorporation, and bylaws. When properly drafted, all three governing documents work together and have separate roles addressing different aspects of associations’ governances. Unfortunately, all too often documents are not drafted correctly, which results in overlapping and contrary provisions between documents and provisions written […]
South Carolina Supreme Court Issues Decision Limiting Former Developer’s Right to Assign Its Rights or Amend Restrictive Covenants
On October 22, 2014, the Supreme Court of South Carolina issued an opinion upholding a ruling by the South Carolina Court of Appeals that once a developer no longer has a sufficient property interest in a development, it loses its ability to assign developer’s rights or to amend the restrictive covenants for that development. In […]
Five Tips on the Pitfalls and Practicalities of Using Committees
Committees can be an excellent resource for HOA, condo and co-op boards – using committees increases the scope of the work that a board can do by increasing the number of people available to investigate the issues. Committees also are a training ground for future Directors, and are a good way to increase a familial […]
Must North Carolina HOA and Condominium Associations Have Workers’ Compensation Insurance?
Since the article appeared, we’ve been asked by many managers and associations if they must rush out and purchase Worker’s Comp coverage, and if so, what product and in what amount? As you can imagine, both of these are complicated questions and could vary by association and circumstances. Read more………
Should Our HOA Install Surveillance Cameras?
We have had several recent incidents of vandalism in our otherwise quiet and well-maintained subdivision. It has a single entrance, and our board is considering the installation of surveillance cameras to capture the image of vehicles coming and going from the neighborhood, particularly those vehicles that enter the community late at night. What are the […]
Solar Panels, HOAs, and Condominiums in North Carolina
Our modern society is always looking for opportunities to limit our footprint on the environment and to increase sustainability in a modern world. Wind, solar, and other renewable resources are common topics of conversation. As part of this push, many states have enacted laws that encourage businesses and individuals to incorporate and use these technologies […]
Does Your NC Property Owners Association Need Workers’ Compensation Insurance? Yes!
The North Carolina Workers’ Compensation Act (“Act”) requires all employers with three or more employees to carry workers’ compensation insurance. The purpose of this requirement is to ensure that employees injured by an accident while working have a safety net to cover lost wages and medical expenses. The Act, however, has a very technical definition […]
Changes… to Your HOA’s Restrictive Covenants (NC)
The North Carolina Court of Appeals recently rendered an opinion reiterating that all amendments to the restrictive covenants (“CCRs”) governing a planned community must be reasonable. As background, the existing law is that amendments to the CCRs must be reasonable in light of the developer’s original intent for the subdivision. Read more………
Help! Our HOA (or Condo) Needs Money
Community associations can become cash-strapped for a variety of reasons – unexpected large repairs, increased utility expenses, weather related emergencies, or simply years of poor planning. Often the current board members are not the ones to blame. After all, they are simply trying to locate funds to pay necessary expenses Read more……….
Debt Collection A to Z: D is for “Deadbeat List”
Deadbeat lists are lists of persons who owe money to a creditor. One simple rule: do not use them! While there are some instances where a debtor’s debt and delinquency on the debt can be made publicly known (ex: liens) these instances are few and somewhat far between. Read more……..
Exception to the Disaster Rules
FEMA is drawing the line on distributing recovery funds. Individual homeowners can get aid after a devastating storm but not community associations for their common elements. Flood waters that swamped part of Nashville’s River Plantation community in May 2010 disappeared within a few days. The damage did not. Nearly all of the 156 slab-floor condominiums […]
Publication of Debtors = Problems for Creditors
Publishing a list of deadbeats may seem like a cool and effective means of collecting debts but it could get the publisher(s) in big legal trouble. I recently resolved a case involving a homeowner who was part of the Olde Vineyard Homeowners Association. Read more……..
Four Types of Bothersome Homeowners Conduct
Q: I serve on the board of directors of a homeowner association. There is one particular owner who monopolizes board time with antics and actions that I think are way out of bounds, but the other board members tell me there is nothing that can be done about it. Is there a line that can […]
All’s Fair! – What Community Association Boards and Managers Need to Know About the Federal Fair Housing Act
Fair Housing Act, Title VIII of the Civil Rights Act prohibits discrimination in the sale, rental, financing, insuring and other housing related services of dwellings based on race, gender, color, religion disability or national origin. Some states and local governments have adopted their own versions that expands the protected classes to sexual orientation, age and […]
Condominium Insurance – Who Covers What?
Most condominium association’s Declaration of the Condominium (hereinafter referred to as declaration) follow the wording of Chapter 47C of the North Carolina Read more……..