Senate Bill 378 Update: HOA Provisions Removed—But Likely to Reappear Senate Bill 378 was originally entitled “HOA Revisions” and would have significantly impacted North Carolina’s 15,000 HOAs and condominiums. (See our prior post: Senate Bill 378 Could Devastate North Carolina’s Community Associations—And Burden Responsible Homeowners, for details on the original proposal. As of October 22, the bill has been completely rewritten. It is now titled “Align Medicaid Eligibility with Federal Law” and contains no HOA or condominium provisions. You can view the new version here. For those less familiar with the legislative process, this may seem an odd development. However, … Continue reading →

The U.S. Department of Housing and Urban Development (HUD) has released two new documents that signal a major change in how the agency will enforce the Fair Housing Act. The memoranda (“Fair Housing Act Enforcement and Prioritization of Resources” and “Notice of the Withdrawal of FHEO Guidance Documents”) withdraw several earlier HUD guidance statements and outline a narrower, case-by-case approach to investigations. Under the new policy, HUD will focus its resources on intentional and systemic discrimination rather than on broad theories of “disparate impact.” The agency has also rescinded prior guidance on issues such as criminal background checks, limited English … Continue reading →

Restrictive covenants are a cornerstone of community association governance, providing a framework for maintaining the character and harmony of residential developments.  However, these covenants, which function as binding agreements between property owners, are often the subject of disputes that test the balance between individual property rights and the collective interests of the community.  It is important for community managers and board members to understand how courts approach certain issues and be familiar with recent legal trends. The recent case of Fowler v. Burnham out of Florida provides important insights into the enforceability of restrictive covenants when an injunction is sought … Continue reading →

One of the most common restrictions found in the governing documents of a homeowners association is that individual property be used only for “residential purposes.”  Similar to how a picture is worth a thousand words, residential use can encompass a broad array of ideas and uses. In one recent case out of Nevada, an HOA adopted a rule aimed at clarifying the residential use in their community.  NOTE:  This is a case from Nevada and has no precendential value in North Carolina or South Carolina.  However, important lessons may be gleaned from it. Homeowners in the Cold Canyon Homeowners Association … Continue reading →

As an attorney, I read cases from all over the country on various HOA and condo topics and I’m always on the lookout for interesting or noteworthy decisions that might have an impact in North Carolina or South Carolina where I practice. In a recent case out of California, several neighbors got into a fight and their HOA was sued by two of the participants in the fight. Quick note 1—this case is not a NC or SC case, and is not binding on any community in North Carolina or South Carolina. However, there are important takeaways from the case … Continue reading →

Authored by Ryan Futrell and David Wilson I am often asked to give an opinion on whether a particular restrictive covenant is enforceable.  In most cases the answer is “yes.”  Occasionally, however, there are factors that may make the restriction unenforceable.  In a recent case from South Dakota, homeowners learned the hard way that their failure to enforce their restrictive covenants in the past prevented them from enforcing them when it mattered most. Note:  Although this case is not legally binding in North or South Carolina, it is instructive and teaches an important lesson that communities in North Carolina and … Continue reading →

Authored by David Wilson and Ryan Futrell I am often asked to give an opinion on whether a particular restrictive covenant is enforceable.  In most cases the answer is “yes.”  Occasionally, however, there are factors that may make the restriction unenforceable.  In a recent case from South Dakota, homeowners learned the hard way that their failure to enforce their restrictive covenants in the past prevented them from enforcing them when it mattered most. Note:  Although this case is not legally binding in North or South Carolina, it is instructive and teaches an important lesson that communities in North Carolina and … Continue reading →

Condominiums and community associations function best with reasonable communication between the board and the membership. That can only happen if the members know who serve them. To make sure that everyone knows who is on the board and who is managing their association, both the NC Planned Community Act and the NC Condominium Act require certain board member disclosures. N.C. General Statute 47F-3-103(f) (for planned communities) and N.C. General Statute 47C-3-103(g) (for condominiums) state that associations must publish the names and addresses of all officers and board members within 30 days of their election or appointment.  For directors and officers … Continue reading →

Senate Bill 378, recently passed by the North Carolina Senate, contains a provision that could unintentionally cause enormous financial harm to North Carolina’s 15,000+ homeowner and condominium associations. If left uncorrected, this language would punish the homeowners who pay their dues on time—while giving a free pass to those who don’t. A Well-Intentioned Bill With a Deep Flaw SB 378 was introduced to address concerns about associations overreaching—particularly when it comes to violations of rules and covenants. That’s a fair issue to explore. Many agree that when disputes arise over governing document violations—where facts may be unclear or subjective—a judge … Continue reading →