Most managers, board member and attorneys in the community association industry have found themselves dealing with a hotly contested vote or election. Sometimes the end of voting is just the start of further challenges, with bickering over who voted, how they voted, and who really won. An effective way to document and report on voting outcomes is through a tellers’ report. If you don’t regularly peruse your copy of Robert’s Rules, you may not know what this is, so this blog will tell you what a tellers’ report is, how to prepare one, and what it can do for your … Continue reading
Author Archives: Harmony Taylor
Liability for Fallen (or Threatening to Fall) Trees
This year, in the aftermath of Hurricane Helene and other storms which have affected our region, we are frequently asked who is responsible for cleanup or damage from fallen trees. This blog won’t address Hurricane Helene issues directly, as this would require an in-depth discussion of insurance and complicated issues involving FEMA, State, and local government. Information on that can be found in Jim Slaughter’s recent blog, Legal Tips for HOAs and Condos Following a Natural Disaster. Instead, this blog seeks to address the more common scenarios that come when trees fall from one property to another and cause property … Continue reading
Collections, Force Majeure and Other Contractual Considerations Post-Hurricane Helene
Hurricane Helene’s impacts and devastation are still being assessed, but we are already hearing from community associations in the Western part of North Carolina about catastrophic damage to dwellings and infrastructure. Now the focus is simply on restoring access to working phones, power and water, and making sure that association members are safe with access to emergency services. Soon, however, we will begin the arduous task of damage assessment and rebuilding. All of this will take enormous amounts of money. We are already receiving questions about whether associations should impose some type of moratorium on collection of assessments from owners … Continue reading
When Is an HOA or Condo Rental Restriction Unreasonable (Part II)
As attorneys, we are regularly asked by homeowner and condominium associations to assist with restrictions on rentals, whether complete or percentage bans, restrictions on short-term rentals, or limiting corporate rentals. (See past articles, including HOA/Condo Rental Restrictions, Corporate Owners & Institutional Investors and Short-Term Rentals in North Carolina and South Carolina HOAs and Condominiums). In February of this year, the NC Court of Appeals struck down a condominium rental amendment as unreasonable. (When Is an HOA/Condo Rental Amendment Unreasonable?) Yesterday, August 6, 2024, the NC Court of Appeals again visited the issue of whether a specific declaration amendment restricting rentals is reasonable. … Continue reading
Feeding Wild and Feral Animals in HOAs
As development continues to crowd out open space previously occupied by wild animals, North Carolina community associations find themselves increasingly close neighbors with deer, racoons, foxes, and other “wild” animals. These animals come into yards and happily munch on gardens, landscaping and occasionally someone’s beloved cat or dog. Combine development issues, poor control of domestic animal breeding, and owners with sympathies for hungry and thirsty animals, and you are left with an association caught between reasonable controls on animals and those who want to help them. We are often asked what associations can (and should) do to regulate wild animals … Continue reading
Legislative Update – NC House Select Committee on HOAs Files New Bill
As the short session continues and the legislature continues to negotiate House Bill 542 with interested parties, a new bill was introduced on May 1, 2024 by Representatives Frank Iler, Steve Tyson and Ya Liu. House Bill 959, entitled an AN ACT TO MAKE VARIOUS CHANGES TO THE NORTH CAROLINA CONDOMINIUM ACT AND THE NORTH CAROLINA PLANNED COMMUNITY ACT, TO MANDATE PRELITIGATION MEDIATION OF DISPUTES BETWEEN OWNERS’ ASSOCIATIONS AND THEIR MEMBERS, AND TO REQUIRE THE DEPARTMENT OF JUSTICE TO COLLECT AND REPORT ON COMPLAINTS SUBMITTED TO IT INVOLVING SUCH DISPUTES, AS RECOMMENDED BY THE HOUSE SELECT COMMITTEE ON HOMEOWNERS’ ASSOCIATIONS, … Continue reading
Ground Leases- A New (?) Path to Home Ownership
Within the last several months, community association attorneys in North Carolina have begun to see a new scenario with their clients: the ground lease. Usually, when someone purchases a lot, they own the lot and any structures on that lot, such as a home, outbuildings, or landscaping installations. However, we are now seeing situations where someone purchases a lot, but only leases the home and other structures on the lot (the “Improvements”) for some long period with an option to buy at the end. The duration of these leases is variable, but often extends to periods as long as 99 … Continue reading
Can, or Should, My Community Association Prohibit “Group Homes”?
With the passage of federal and State laws protecting disabled individuals, we see a societal push away from institutionalized living arrangements and towards community based, group home settings. This firm is frequently asked how, or if, an association can prohibit these group living arrangements within their community. Sometimes residents are worried that the group home occupants will pose a safety risk; there are also concerns about parking and transient residents; and fundamentally, associations may question whether this type of group living arrangement is consistent with single family residential use. The purpose of this blog is to provide a broad overview … Continue reading
New NC Supreme Court Case: Applicability of Condominium Act Foreclosure Rights to Pre-1986 Condominiums
A decision last week (November 4) by the NC Supreme Court provides helpful authority to older condominiums not only in the context of foreclosures, but in the larger context of relying on the retroactive portions of the NC Condominium Act (Chapter 47C). In the Matter of the Foreclosure of a Lien by Executive Office Park of Durham Association, Inc Against Martin E. Rock A/K/A Martin A Rock considered the issue of whether a pre-October 1, 1986 condominium, formed pursuant to the NC Unit Ownership Act (Chapter 47A), has the power of sale for foreclosure as set forth in the Condominium … Continue reading
North Carolina Supreme Court Issues Important Solar Panel Case
Harmony Taylor & David Wilson In a case of wide-reaching impact, the North Carolina Supreme Court on Friday, June 17, 2022, issued its decision in Belmont Association, Inc. v. Farwig. An earlier blog discussed the factual background and decision from the Court of Appeals in detail. By way of brief summary, the homeowners in this case installed solar panels on the front facing façade of their roof without approval and the homeowners association commenced fines. Nothing in the declaration explicitly regulated solar collectors, but the association, pursuant to its general authority over architectural matters and aesthetics, refused to allow … Continue reading
Drone Surveillance in Community Associations
Ah, spring. Flowers are blooming, birds are chirping, and the sound of power saws, stone cutters and earth moving equipment fills the air. This country is in the midst of a construction boom, and more homeowners than ever before are undertaking home improvement projects. In community associations, these improvements usually require some type of architectural approval to make certain that, once constructed, the new pool, patio or pergola will be aesthetically pleasing and harmonious with surrounding structures. The process is supposed to start with the owner submitting an architectural request, but sometimes owners don’t know or care to do so. … Continue reading
Maintaining Confidentiality on your Board (or in your Committee)
Individuals who agree to serve on boards for their community associations will inevitably find themselves receiving confidential information about their friends and neighbors. This may be information about an alleged architectural violation, or an unpaid balance due to the association. Sometimes the association will receive complaints about police called to a home, only to learn later of alleged drug activity or a domestic violence situation. This may seem like juicy gossip, and it can be tempting to share this information with others. However, directors owe certain duties of confidentiality to their members, and understanding these duties is essential for the … Continue reading
Voting by Written Ballot and Written Agreement in North Carolina
When it comes to asking homeowners association / condo members to approve or reject matters in North Carolina, there are generally two options: the written ballot and the written agreement. These documents and legally dictated processes may look very similar, but they are legally distinct. This article examines how and when using the written ballot versus a written agreement makes sense and how to use each effectively. Written Ballot When you think about being asked to vote on something, most people probably first think of a ballot. Ballots, by definition, allow someone to vote for or against something. For in-person meetings, ballots … Continue reading
Community Association Records Requests – Who Can Get What, When and Why
Member records requests is a frequent topic of consultation with boards and managers. The law in North Carolina is somewhat nuanced when it comes to what constitutes a record of the association, and who is entitled to review that record and under what circumstances. Here, we look at North Carolina law generally related to records requests and how a community should evaluate and respond to a request for records. In this state, homeowner, property owner and condominium members have certain document inspection rights under the Nonprofit Corporation Act, Chapter 55A of the North Carolina General Statutes, and the Planned Community … Continue reading
How to Run an Effective Online Meeting
With the passage of HB 320 (see Jim Slaughter’s article: Bill Adopted to Allow Electronic Membership Meetings and Voting in North Carolina Associations) we are seeing more communities opting to conduct electronic membership meetings to encourage greater participation and community interest in these meetings. Our attorneys collectively—and particularly our Certified Professional Parliamentarian, Jim Slaughter—have participated in more virtual meetings than anyone, and we find that having good meeting rules in place before the meeting takes place is key to a successful outcome. Although it usually is not necessary to tailor rules for each individual meeting an association has, the issues … Continue reading
New NC Appellate Case: Williams v Reardon (Covenants and Real Property Marketable Title Act – Part 2)
The North Carolina Court of Appeals has once again determined that restrictive covenants are largely extinguished by operation of the Real Property Marketable Title Act (N.C. Gen. Stat. 47B-1 et seq.) if not included in the chain of title in the preceding thirty years. The decision can be found at C.E. Williams, III et al v. Reardon et al. (Unpublished). Our blog on last month’s Marketable Title Act decision can be found at New NC Appellate Case: C Investments 2, LLC v Auger (Covenants and Real Property Marketable Title Act). This decision leaves one additional case pending for decision in … Continue reading
New NC Appellate Case: C Investments 2, LLC v Auger (Covenants and Real Property Marketable Title Act)
Today, Tuesday, May 18, 2021, the NC Court of Appeals issued its decision in C Investments 2, LLC v Auger. The decision may impact restrictions in planned communities based on the Marketable Title Act, and is a “published” decision. That means the decision is controlling legal authority and can be cited in other cases. The Marketable Title Act To understand the decision, you need to understand what the NC Real Property Marketable Title Act (“MTA”) is and why it is important. Prior to 1973, anyone buying real estate who wanted to know what restrictions applied to that property had to go back, … Continue reading
Snow and Ice Removal in HOAs and Condos
North Carolina may not see the same weather challenges as most other states, but we aren’t immune from winter (and spring) storms that bring snow and ice that can make travel treacherous. No board of directors wants to find itself scrambling after the fact to decide how or when to put down salt or scrape a road or parking lot. Here are some general issues to consider, and recommended best practices. DEFINE THE AREA OF RESPONSIBILITY HOA and condo associations are generally obligated to reasonably maintain the common areas within the association. This often includes any private roads within the … Continue reading
Flags and Political Signs in North Carolina HOAs
With the nation preparing for elections in November, community associations are finding themselves in the crosshairs of a debate over when and how free speech may be exercised by residents in their communities. Impassioned residents want to express their opinions through signs, flags, bumper stickers, t-shirts and even sidewalk chalk decorations, and they may run up against restrictions in their governing documents or local ordinances. After fielding countless questions about this, I put together this blog to provide some general guidance for residents, boards and their members on this issue with a focus on politically focused signs and flags. Let’s … Continue reading
New Law Offers Important Protection to NC Pool Operators
House Bill 902 was signed into law by Governor Cooper on July 2, 2020 and grants some limitations on liability for privately owned swimming pool operators who open their pools during the COVID-19 pandemic. The Bill applies to community pools owned by private entities, such as apartment complexes, homeowners associations and condominium associations, and protects those pool operators from liability for injury or death allegedly related to COVID-19 if those pool operators have opened the pools in compliance with the various Executive Orders for pool safety issued by the Governor. Probably the most important Executive Order here is Executive Order … Continue reading