Last week I was invited to address the Legislative Research Commission’s Committee on Dispute Resolution Options for Homeowners, Associations and Governing Entities. The committee’s charge is to explore the “creation of a mediation or arbitration board” to handle community association disputes, and I was asked to share my thoughts. My comments to the Committee are below. FYI, almost all lawsuits filed in North Carolina’s District or Superior Courts are sent to either mediation or arbitration. And state law currently requires that community associations notify members each year of their right to request mediation. While I am an active proponent of … Continue reading →

Each year several of our HOA/condo attorneys attend the annual community association Law Seminar presented by the College of Community Association Lawyers and the Community Associations Institute. The Law Seminar has excellent HOA/condo speakers and programs, and this year was no exception. There were some 20 education sessions, including discussions of Fair Housing Act developments, the explosion of assistance animal issues in community associations, protecting association names and websites, dealing with hoarders, and the fiduciary obligations of board members. A goal for attorneys who attend the Law Seminar is to come back with a better feel for trends that will … Continue reading →

Lawyers get asked about reported cases all the time, but usually what happens in a specific lawsuit isn’t that relevant to parties not involved in the case. That’s because circumstances are different, facts vary, associations are created at different times, it’s a condo instead of an HOA, etc.  That said, the decision in an appellate case can be instructive, and that’s certainly the case with a decision regarding collections this week from the NC Court of Appeals. In the case In re: Ackah a homeowners association foreclosed on a lot for nonpayment of assessments. The property was eventually sold to … Continue reading →

These blogs often focus on community association issues, whether hot topics, new appellate cases, or proposed federal or state laws. Today there’s a more pressing issue to address—the devastation caused by Hurricane Harvey. Without question, what’s happened in Texas is also a community association and community association resident disaster. Texas is third among states (only behind Florida and California) in its number of community associations, with more than 19,900 HOA/condo associations and more than 4 million residents. Many of them now face dangerous conditions and uncertain futures. Everyone also likely knows someone who has been personally affected. Houston attorney Mark … Continue reading →

Senate Bill 16 was vetoed by Governor Cooper on August 15, 2017, for reasons other than the proposal described below. The proposed study of a mediation and arbitration board by the Legislative Research Commission below is on hold until the legislature votes on whether or not to override the veto. 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. Senate Bill 16: Business & Agency Reg. … Continue reading →

The General Assembly adjourned its 2018 regular session this month, so questions have arisen about what happens to proposals that would have directly impacted North Carolina’s homeowner and condominium associations (see NC Community Association Legislative Update-June 22, 2017), but weren’t adopted. The clear answer: “It depends.” Although legislators left town, they haven’t really left for good. The adjournment resolution provided that special legislative sessions will be held in August, September, and again by November. While these sessions are intended to be focused on legislative redistricting and other major issues, the General Assembly can consider what it wishes. While it is unlikely … Continue reading →

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 on various bills. (FYI, while the crossover deadline is a big deal, keep in mind the News & Observer’s warning several years ago: “[Legislative] rules are made to be circumvented, so there are many ways to keep legislation alive.”) UNDERSTAND THAT ALL OF THESE ARE PROPOSALS, … Continue reading →

While most NC General Assembly bill filing deadlines have passed, legislation considered appropriations or finance can be filed through next week. A bill introduced yesterday would, if adopted, significantly impact North Carolina’s HOA/condo associations as well as community managers. House Bill 865: Community Association Property Management Act was filed April 20, 2017 by Rep. Jonathan Jordan (Ashe, Watauga), Rep. John Blust (Guilford), and Rep. Rodney Moore (Mecklenburg) and provides that: The full bill can be found at http://www.ncleg.net/gascripts/BillLookUp/BillLookUp.pl?Session=2017&BillID=H865 This bill and others will be updated as the legislative session progresses.

Several important legislative deadlines have passed in recent weeks. Tuesday, April 4 marked the NC Senate deadline for filing public bills and resolutions. Tuesday, April 11 marked the NC House deadline for filing public bills and resolutions (other than appropriations or finance bills). While there are a still a few ways for bills impacting HOAs or condos to be introduced in the General Assembly this session, now is an appropriate point to look at the filed bills that, if adopted, would directly impact North Carolina’s community associations. (1) Senate Bill 491/House Bill 625: HOA/Condo Crime & Fidelity Insurance Policies. Senate Bill 491: … Continue reading →

While there are still several weeks for legislative proposals to be introduced in the General Assembly, one bill introduced yesterday (March 29) would directly impact North Carolina condominium and homeowner associations: Senate Bill 491: HOA/Condo Crime & Fidelity Insurance Policies filed by Sen. Norman Sanderson (Carteret, Craven, Pamlico). The bill’s purposes are to (1) require more financial transparency in community associations, and (2) help ensure associations recover monies in the event of financial wrongdoing by an association leader or community manager. In short, SB 491 takes a different approach than some prior proposals on how to address concerns about financial … Continue reading →

Benjamin Franklin said that “in this world nothing can be said to be certain, except death and taxes.” As community association attorneys, we’re not CPAs. And every association has different circumstances. Having said that, it is almost certain that due to a shift in how North Carolina taxes certain services, association budgets will need to be increased. North Carolina has traditionally relied heavily upon income taxes as a revenue stream. Without getting into any pro or con political discussions, the NC General Assembly over the past several years has begun shifting to a model of lower personal and corporate income … Continue reading →

The national Community Association Law Seminar is by far the best HOA or condo legal program I attend each year. The year’s Law Seminar, sponsored by the Community Associations Institute (CAI) and the College of Community Association Lawyers (CCAL), is the 38th annual and will be held January 18-21 in Las Vegas, NV. While the Law Seminar provides about 13-20 hours of CLE and is mostly attended by attorneys, it’s not only for attorneys. Attendees include community association managers, bankers, other industry professionals and even homeowners who want to learn about HOA/condo law changes and trends. For insurance professionals who work … Continue reading →

New Year’s Day begins a new CAI-NC Chapter year. As this is my last Chapter update, I’d like to look back at some of our Chapter’s 2016 accomplishments and look forward to upcoming changes in 2017. The Chapter has accomplished much this year, including: Our Chapter’s successes this year have been the work of many individuals, including our Management Company Champions and Supporting Partners, committee chairs and members, Regional Council officers and members, LAC officers and members, and other volunteers. My special thanks to Leslie Blum, our experienced and professional Chapter Executive Director, who works incredibly hard behind the scenes. … Continue reading →