Our clients often ask us what can be done about homeowners who are clearly violating the Association’s governing documents. Both the North Carolina Planned Community and Condominium Acts (“Acts”) have mirror provisions and procedures for the imposition of fines. Imposing fines often causes a great amount of heartburn for Boards as they are tasked with […]
5 Renovation Rules to Implement in Your HOA
Whether homeowners are wishing to renovate their homes in order to sell the property, or whether they are wanting to improve the home for their own use, renovations can be a source of conflict within the community. Noise, dust, and the unsightliness of construction can irk other homeowners and cause rising tensions. The best way […]
Steps for Crime Prevention in Your HOA
We all want our homes and communities to be safe. A high pressure is placed upon the shoulders of the HOA board to promote the security and safety of the neighborhood. Although the level to which the board is responsible for the safety of the community is outlined in the governing documents, there are a […]
8 Homeowners Association Collection Laws (NC)
It’s HOA collection season, so our HOA Ninjas want to remind you of the 8 laws of HOA collections to help your homeowners association help its members pay their assessments on time. Following these laws will collect more dues more quickly, and keep your HOA in compliance, so you’ll have the best chance to win […]
What to Do About Subdivision Roads—The Orphan Road Conundrum
For many homeowners associations roads can be a source of constant consternation. Most homeowners do not make their home-buying decision based on the condition of the roads in the community or on the responsibility of the community to maintain subdivision roads. Where the community is responsible for the roads, it can be one of the […]
Understanding What is What in Your HOA Governing Documents
Terminology surrounding the governing documents in your HOA can be confusing at times. If you have been a part of an HOA or even on the board, you may have heard the terms “governing documents”, “CC&Rs”, “bylaws”, and “rules and regulations” without really understanding the difference between them or what each individually means. In this […]
Muddy Waters: Stormwater Permits Not Meant to Control Flooding or Flood Losses (NC)
Those living in communities subject to North Carolina Stormwater Permits or local stormwater management easement agreements are increasingly alarmed as rainy weather, even without a named storm, causes property to saturate and appear flooded. Read the article………………..
Case Alert: A Very Un-Jolly Christmas for One North Carolina Homeowners Association
The North Carolina Court of Appeals delivered a lump of coal to one homeowners association this winter. In McVicker vs. Bogue Sound Yacht Club, Inc., available here, which came out on December 20th, the Court of Appeals ruled that a homeowners association had exceeded its authority when it attempted to collect a construction bond from […]
What is D&O Liability Insurance?
The Directors and Officers Liability coverage is an insurance that protects officers and trustees from being held accountable for the actions they took or failed to take as members of a board. It offers liability coverage for the damages that ensued alleged wrongdoings of a member. This policy can cover the liability of officers and […]
Improving Attendance at HOA Board Meetings
One of the greatest challenges for HOA boards is a lack of participation in annual board meetings. This is detrimental for the residents, who will miss key information, and for the board, who will have a harder time communicating important information to a community who neglects to come to the meetings. This is an area […]
Questions To Ask An HOA Management Company
The best HOA management companies are those that are not only dedicated to building great communities, but are also professional, communicative, punctual, and excellent at what they do. As a company that is committed to providing service that exceeds expectations, we have put together a list of the top questions to ask an HOA management […]
Protecting Associations from Liability for Sexual Harassment
You can’t turn on the news these days, pick up a paper or listen to the radio without hearing about someone else in the entertainment industry being accused of improper sexual behavior towards employees, coworkers or others. Community Associations are microcosms of our culture, and so it should come as no surprise to find that […]
HOA Selective Enforcement
Enforcement of the rules and regulations of an HOA can be an intimidating challenge at the best of times. Many of the rules may seem impossible to enforce, and homeowners may often challenge an enforcement that they feel is unwarranted or unfairly implemented. In some cases, a resident may plead “selective enforcement” in a court. […]
Where Do HOA Fees Go?
If you have recently purchased a home that is part of a homeowners association, you may have already starting paying your HOA fees. Each member of the community, along with signing the governing documents that provide the community with order and stability, must pay weekly or quarterly fees. You may be wondering where the HOA […]
Budget Ratification Meetings Basics – What You Need to Know (NC)
The Planned Community Act and the Condominium Act require most homeowners associations and condominium associations to hold budget ratifications meetings. What are these meetings? A budget ratification meeting is a meeting of the owners of the association to review the proposed budget that has been adopted by the executive board. The budget ratification meeting has […]
Enforcement: Might a Local Ordinance Help Your Community Association?
What can an HOA or condominium association do when activity is occurring within the community that appears to be objectionable, but which is not specifically addressed in the Declaration of Covenants, Conditions, and Restrictions or other association governing documents? The clear answer, if the association wants enforcement power, is to amend the governing documents by […]
Stay Off The Naughty List When Planning Holiday Events
The trick-or-treaters have come and gone, and there is an ever-so-slight briskness in the air. That means the holidays – and all the twinkling lights, festive decorations and parties that come with them – will soon be upon us. But before you pull out the tinsel and send out those invitations, the best place to […]
We Want Our Neighborhood Back: A North Carolina Homeowners Association’s Guide to the Use and Enforcement of Rental Restrictions
Lending you a cup of sugar, offering to watch the kids, or grilling out on a summer afternoon— whatever the activity, our neighbors are a key part of what makes our communities familiar and unique. Neighbors help make a neighborhood into your neighborhood. Ideally, the people you share your community with hold similar values and […]
Are HOA Fees Tax Deductible?
If you have purchased a home or condo, you are likely paying a monthly fee to cover repairs and maintenance on the outside of your home or in common areas. You may be wondering whether this fee is tax deductible. The answer regarding whether or not your HOA fees are tax deductible varies depending on […]
Stormwater Permits: Preventing Your Owners Assn From Getting Stuck with Unnecessary and Potentially Large Expenses (NC)
Developers in North Carolina must obtain numerous permits from various governmental agencies prior to constructing a planned community or developing condominiums. Most construction permits end by their terms upon completion of construction of the project—but one permit, the Stormwater Permit (“Permit”)— continues into the future and the community owners association (“Association”) will be forced to […]
Five Qualities of a Good HOA Treasurer
One of the most important jobs on the board of a homeowners association is the position of HOA treasurer. The position is much more than a simple knowledge of how to manage finances, (although this is also important). There are many qualities of a treasurer that are are valuable, but we have put together a […]
Case Alert: Emailed Notices of Foreclosure Under In Re Ackah (NC)
In re Ackah: Must Planned Communities Now Serve Notices of Foreclosure Hearing Via Email? The North Carolina Court of Appeals issued an opinion on September 5, 2017, that appears to add an additional requirement for foreclosure trustees regarding the due diligence necessary to properly serve the homeowner in an HOA foreclosure proceeding. Read the article…………….
The Best Community Amenities for Your HOA
Staying up to date with current trends and providing competitive amenities is one of the best ways to attract tenants who care as much about your community as you do. When looking to raise the bar, looking beyond the basic conveniences will boost your overall appeal, increase the value of your property, and make your […]
Faulty Foreclosure Service Results in Lienholder Having to Pay Property Owner (NC)
When a lienholder starts a foreclosure, it usually is focused on getting money into its pocket. Yet a recent opinion from the North Carolina Court of Appeals (In re: Ackah – Sept. 5, 2017) should provide a warning to all lienholders – make sure you get proper service in the foreclosure or you may end […]
Common Problems in Your HOA: Mold
Whether the buildings in your HOA community are old or new, mold is a common problem in moist climates. This article contains answers to some of the most common questions regarding mold in an HOA community as well as suggestions on how to tackle the problem and prevent further breakouts. Read the article……………
Three Tips to Help You Crack Down on Unenforced Rules
If you are the new manager of an HOA or a new leader in the board, it may have come to your attention that certain rules have been passed over or relaxed, lulling residents into a sense of complacency. HOAs are notorious for not enforcing the rules that residents agree to when becoming a member […]
Preparing Your HOA Community For Fall
As August progresses and summer draws to a close, many communities are entering into a crucial time of transition for their properties and residents. While temperatures may still be still be hovering comfortably in the 80s, August is a perfect time to assess your HOA and prepare it for the fall and early winter seasons. […]
Mediation and Arbitration Study for HOAs and Condos (NC)
The General Assembly met yesterday (August 3) to consider several issues remaining from the legislative session. Bills that would impact North Carolina’s homeowner and condominium associations weren’t really on the agenda, but one proposal was adopted that has a provision concerning community associations. Read the article…………..
Five Financial Mistakes That Can Be Devastating to Your Community
Being part of an HOA board is a job that comes with a lot of difficult responsibilities. When it comes to the financial side on an HOA, there are so many moving parts that it can get overwhelming. Avoiding these five financial mistakes can help protect your HOA from getting into a difficult position financially. […]
What to do About Director Resignations (NC)
From time to time we receive questions regarding the resignation of directors, term expiration and what to do in the event of a mass resignation by the existing board. The North Carolina Planning Community Act, Condominium Act, and the Non-Profit Corporation Act address certain issues with regards to directors’ terms and how to fill vacancies. […]
NC Community Association Legislative Update – June 22, 2017
I’m asked frequently about the status of proposals filed this session in the General Assembly that, if adopted, would directly impact North Carolina HOAs and condominium associations. The “crossover deadline” (the date on which a bill must have cleared one chamber to move forward) has passed, which means this a good time to check in […]
Ask SAM: HOA Woes? (NC)
Q: Our home owners association by-laws state that it is the duty of the president to call a special meeting when 20 percent or more of members present him with a written request. A request was delivered by certified mail. What is the homeowners’ recourse if the request is ignored? What should homeowners do when […]
Communities for Those 55 Years of Age or Older
Recently we have been approached by multiple associations inquiring about making their housing community one that is restricted to those residents that are 55 years of age or older. The ability and requirements for establishing or becoming a housing community for those 55 years of age or older is governed by the federal Housing for […]
Service Animals And Your Condominium Or Community Association
As a professional community manager for the past two decades, I have seen a rapid growth in the number of service animals within condominium and community associations. Currently, about 79.7 million households – or 65 percent of all households in the United States – include pets, and 42 percent of those have more than one […]
What NC Community Associations Need to Know about Fair Debt Collection
Nearly all Community Associations (“Associations”) must cope with owners who fail or refuse to pay their periodic assessments (also known as “Dues”). When this happens, the Association, typically acting through its property manager, may first attempt to collect the delinquent dues themselves, rather than referring the matter to an attorney. In such cases, Associations should […]
What NC Community Associations Need to Know about Fair Debt Collection
Nearly all Community Associations (“Associations”) must cope with owners who fail or refuse to pay their periodic assessments (also known as “Dues”). When this happens, the Association, typically acting through its property manager, may first attempt to collect the delinquent dues themselves, rather than referring the matter to an attorney. In such cases, Associations should […]
Bankruptcy basics for community association boards of directors
Over the last decade, community associations (like other businesses) have been forced to navigate the “Great Recession” and continued recovery. The “Great Recession” brought with it a significant increase in the number of personal bankruptcy filings across the country. Even now, personal bankruptcy filings continue to impact communities and their ability to collect assessments. It […]
Good Collection Practices Protect Lifeblood of Community Associations
Assessments are the lifeblood of every community association. For most associations, it is the sole source of income to pay for common expenses. Therefore, having tools and good practices to maximize collection of assessments are vital not just to survive and thrive, but to avoid unwanted special assessments and/or debt. It is the obligation of […]
Well-Informed Community Associations Make For Happier Residents
Being involved with a condominium or community association can sometimes make you feel like a Jack-of-all-trades. Homeowners often expect professional managers and community volunteers – officers and board and committee members – to know something about, well, just about everything. We are expected to be attorneys and landscapers, accountants and engineers, roofers and plumbers, pool […]
Challenging the Chairman of a Meeting
Have you ever been at a meeting that you did not believe was being run properly? Is the chair ruling every motion out of order? Were you unsure on what you could do or did you feel like there was nothing you could do? Fortunately, there are actions that you can take in these situations. […]
Do You Know Who Your Registered Agent Is? (NC)
North Carolina corporations, whether for-profit or nonprofit, must have a registered agent name filed with the NC Secretary of State. Planned communities (i.e., homeowner associations) created on or after January 1, 1999 by statute must be incorporated. And almost all homeowner and condominium associations in North Carolina ARE incorporated, regardless of when they were created. […]
Price vs A Job Well Done ~ Managing Maintenance Issues in a Homeowners Association
One of the largest questions we get at Key CMI is about managing maintenance issues in a Homeowners Association scenario. Has your board of directors ever embarked on a significant community project, and once completed, it became evident the quality of the job didn’t meet expectations, but you sure saved a lot of money? HOA […]
Failure to Hold Formal HOA Board Votes Dooms Two Charlotte HOAs (NC)
There are times in the practice of homeowners’ association law when courts make rulings with which we as attorneys disagree but where an underlying principle or best practice is affirmed. A prime example is the N.C. Court of Appeals’ opinion of November 1, 2016 in the case of Willowmere Community Association Inc. and Nottingham Owner’s […]
What your HOA Board Needs to Know Before You Attempt to Change Your Restrictive Covenants.
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. This rule arose in the […]
10 Ways to Shorten Your Board Meetings
Considering a board meeting that is too brief will not cover essential details and a meeting that is too long will exhaust all members involved, it is crucial to find the right balance. 60 to 90 minutes is generally an ideal and reasonable goal for the majority of board meetings. Consider trying out some of […]
No Ifs, Ands, or Butts: Regulating Smoking Within Community Associations
The past twenty years have seen a dramatic uptick in the regulation of smoking, as dozens of states and hundreds of cities and counties have enacted laws making designated public places “smoke-free.” For its part, the North Carolina legislature passed an anti-smoking law in 2009 which prohibits smoking in restaurants and bars, as well as […]
Fire Safety Education for Your Neighborhood
When it comes to having a safe and peaceful community, it is the responsibility of everyone in the community to do their part to keep themselves and others safe. That is why education is so important in a close environment. In the area of fire safety, every little bit helps. Here are some tips for […]
The End of the Age of “Mad Men”
The past twenty years have seen a dramatic uptick in the regulation of smoking, as dozens of states and hundreds of cities and counties have enacted laws making designated public places “smoke-free”. For its part, the North Carolina legislature passed an anti-smoking law in 2009 which prohibits smoking in restaurants and bars, as well as […]