As recently mentioned here on March 28, 2024, the South Carolina Legislature is currently considering a bill that impacts the ability of community associations to collect assessments from non-paying members of their communities.  As originally drafted, House Bill 3180 would have eliminated any HOA’s ability to foreclose its lien when someone didn’t pay their assessments.  The Community Associations Institute (CAI) and its South Carolina Legislative Action Committee (SC-LAC) have worked closely with other members of the House, including Representative Weston Newton, to propose alterative solutions to the proposed bill. Through that collaboration, an amended version of the bill was proposed … Continue reading →

In a recent case heard by the Illinois Court of Appeals, Muhs v. Fox Point Homeowners Association (the “Association”), the Appellate Court of Illinois ruled in favor of a homeowners association, stating that the association was not liable for the actions of a volunteer committee member. Doreen Colletti Muhs (the “Homeowner”) sued Fox Point Homeowners Association (the “Association”) and Stacy Boyum for injuries she sustained during a party on Fox Point’s premises when Boyum knocked the Homeowner to the ground while trying to encourage her and other party guests to jump into the pool.  Boyum was one of three volunteers … Continue reading →

Freddie Mac announced yesterday, December 6, 2023, that it would be implementing steps to increase transparency in condominium project certification and eligibility for loans. See the link to Freddie Mac’s announcement. Up to now, industry leaders have voiced concerns about the secretive nature of Freddie Mac’s determination of a condominium’s eligibility status—contending that its unavailable list of condominiums amounted to a secret blacklist. For prospective home buyers wanting to buy in a condominium, this has meant that there was less access to mortgages, sometimes causing serious problems because existing condominium owners, boards of directors, and community managers didn’t know that … Continue reading →

Community associations play a crucial role in maintaining the quality of life and property values. They oversee a wide range of responsibilities, from maintaining common areas to enforcing community rules and regulations. One often underappreciated but critical aspect of appropriate association management is long-term financial planning. One of the most valuable tools for ensuring a sound financial future for your association is the reserve study. In this article, we will discuss why community associations in North Carolina should prioritize conducting regular reserve studies, and what role the community’s attorney plays in that process. The Importance of Financial Planning for Community … Continue reading →

For many community associations, it is either the middle of budgeting season, or they have just completed this financial review period for the coming year. Budgets include many categories, including maintenance, landscaping, legal, accounting, and management expenses. But what about a line item for social? Is a social budget appropriate or even allowed under the governing documents?  I have been told that I like to use the phrase “it depends”, and that would hold true here. If your association is organized for more limited functions, such as maintaining the private road and street lights, there may not be authority to … Continue reading →

I am sometimes asked about the South Carolina chapter of the Community Associations Institute (CAI) and the Legislative Action Committee.  First, to make it easier, we usually refer to it as the “SC-LAC.”  The SC-LAC is a diverse group of homeowner leaders, community managers, and business partners who work hard to protect and advance association communities and their interests at the state legislative level in Columbia. Each legislative session there are bills proposed that impact the functioning, operation, and well-being of community associations and their business partners.  In the most recent legislative session, the SC-LAC provided testimony at hearings related … Continue reading →

I recently facilitated an election at a contentious HOA meeting.  The lone board member called a special meeting to fill the vacant board seats and she was concerned it would not go smoothly due to conflict amongst the members.  Her first brilliant move was to consult an attorney for advice on how to properly notice and conduct the election and her second smart move was to have us facilitate the meeting.  Having a neutral parliamentarian or HOA attorney lead the meeting diminishes any concern about impropriety and also removes the board member(s) from the hot seat.  I am happy to … Continue reading →

The question I’ve been asked most often this summer by association board members and industry professionals has been “What’s going on with House Bill 542?” There’s not been an easy answer. That’s because the provisions in the legislation have been such a moving target. On the NC General Assembly website, you’ll see four editions of the bill. Each adds a host of new requirements for North Carolina homeowner and condominium associations. Not listed on the website are at least eight prior “drafts” of HB 542, as different proposals were floated and either added or dropped from the proposed legislation following … Continue reading →