Effective April 7, 2020, at 5:00 pm, South Carolina will join most other states with statewide “stay at home” orders.  Governor Henry McMaster referred to the order as a “home or work” order that would require people to stay home if they are not at work or tending to essential needs.  A copy of the South Carolina Governor’s full order is here.  The order does not close more businesses than had previously been closed, but did create additional limits on how many customers can be inside a store at any given time.  According to his order, all stores must limit … Continue reading →

In these difficult times (thanks to the COVID-19 virus) and local and statewide orders prohibiting gatherings to protect public health, it is likely impossible to physically gather all of the people required to hold your Association’s membership meeting.  If your Association’s governing documents allow holding an electronic or telephonic meeting, then that is a great option.  We have previously written regarding the best ways to hold electronic or telephonic meetings However, even if your governing documents do not provide any authority to hold an electronic or telephonic membership meeting, you do not necessarily need to postpone your meetings.  Your Association … Continue reading →

My community association practice is split between North Carolina and South Carolina.  One of the primary differences between the law in these two states is the fact that North Carolina has a comprehensive HOA statute while South Carolina does not.  I’ve written more than once about the need for a comprehensive HOA statue in South Carolina.  While there are many nuances that make the laws in each state unique, one that I deal with frequently is the enforcement method for covenant violations.  Most covenants authorize “an action at law or in equity” as a method for the association to enforce … Continue reading →

Last week the NC Chapter of the Community Associations Institute hosted a free live webinar on “Coping with COVID-19 for NC Community Associations.” The hope was to get out timely, helpful information about how HOA and condo associations should respond to the coronvirus pandemic and included participant Q&A. The webinar clearly served a need—attendance was capped at 500, and far more than that wished to attend. If you did not see the program (or did and wish to share it with someone), the NC Chapter of the Community Associations Institute has made it available as a recording on the Chapter’s … Continue reading →

Association Boards are not typically groups that like to overshare.  They often can take a “need to know” approach to communicating with association membership.  However in this brave new world we are facing with Coronavirus (“COVID-19”) sharing what actions the Board is taking, or not taking, with regard to the virus is going to be of vital importance to maintaining a well informed and healthy membership. Typically when associations discuss communication, they are referring to those notices required to be provided by governing documents or state statute, such as notices required for annual meetings, collection of assessments, imposing fines for … Continue reading →

Questions to our firm about how homeowner and condominium associations should respond to the coronavirus (COVID-19) epidemic have come in waves.  When news of the virus broke, we were asked by HOAs and condos how to keep homeowners safe. (See: Coronavirus: What Should Homeowner and Condominium Associations Do?) Then, once health concerns cancelled board and membership meetings, questions turned to how to transact association business without having physical meetings. (See: The Coronavirus, Flu, and HOA/Condo Association Meetings and “Let’s Have Our Meeting Online!”) Now, with the extended health and economic crisis, association boards are concerned both about the association’s finances … Continue reading →

With everyone on high alert because of the coronavirus (COVID-19) we get a number of questions every day about how community associations (HOAs and condos) should react and what should be done.  One of the questions we’ve received a lot lately is whether the association should close its common areas.  The answer, as with most legal things, is “it depends.”  First, most community associations are nonprofit corporations and are obligated to do whatever any state or local government or health department has said should be done.  For a great discussion on general steps your community should take to deal with … Continue reading →

Yet another issue that is coming up frequently in the face of COVID-19:  what should an association do about violation hearings that need to proceed, and are already scheduled or need to be scheduled?  Obviously, we are recommending against any face-to-face meetings for the foreseeable future.  Mecklenburg County’s stay at home order requires residents today to stay home and avoid all unnecessary trips may soon spread to the rest of North Carolina. This means we have to get creative about how to hold hearings.  The goal, as always, will be to allow owners to clearly understand the alleged violation and … Continue reading →

This is one of three articles on dealing with the Coronavirus and its impact. This blog looks at how associations can protect the association as well as responsibilities. See also The Coronavirus, Flu, and HOA/Condo Association Meetings and “Let’s Have Our Meeting or Convention Online!” Since our blog last week on The Coronavirus, Flu, and HOA/Condo Association Meetings, there has been an increase in U.S. Coronavirus cases, including one death in Washington state. That has led to a number of questions from association boards to the effect of: “Thanks for the blog, but what should we DO to protect the … Continue reading →

Community Association Law Day is always one of the most popular programs of the North Carolina Chapter of the Community Associations Institute. This year there are TWO: Charlotte on Friday, February 28 and Raleigh on Friday, March 13. Attendees include HOA/condo board members, community leaders, and community managers. Speakers include many of the best community association professionals in the state. Five Law Firm Carolinas attorneys will be presenting at the 2020 Community Association Law Days (a record!). Here are their topics: What HOA/Condo Leaders Need to Know About Meeting Procedure & Robert’s Rules of Order – Jim Slaughter. Running community … Continue reading →

Yesterday, January 28, 2020, the US Department of Housing and Urban Development (HUD) Office of Fair Housing and Equal Opportunity (FHEO) released new assistance on guidance animals. Notice FHEO-2020-01 (“Assistance Animals Notice”) includes two parts: “Assessing a Person’s Request to Have an Animal as a Reasonable Accommodation Under the Fair Housing Act” contains best practices for complying with the Fair Housing Act (FHA) when assessing a person with a disability’s accommodation request involving animals in housing, including . “Guidance on Documenting an Individual’s Need for Assistance Animals in Housing” provides guidance on information that an individual seeking a reasonable accommodation … Continue reading →

I often note that community associations are effectively microcosms of our larger culture, facing the same challenges and trends. One example of this is the increase in (real or perceived) lack of civility and ethics in communications with and between boards and their members. This past week, the Community Association Institute (CAI), an international membership organization that provides information, education and resources related to community associations, published a newly adopted Civility Pledge as a resource for communities to foster civil discourse. The Civility Pledge, linked here, is an excellent resource for boards wishing to support a more respectful dialogue. The … Continue reading →

Authored by Hamony Taylor and David Wilson As our community association clients settle into a new year and new issues, many boards with new members find themselves with questions or confusion about the attorney-client privilege. Because this privilege is complicated but incredibly important, we thought it would be helpful to go over the basics and how boards can and should preserve the privilege. Very generally, in both North and South Carolina, the attorney-client privilege protects communications between an attorney and a client in the following circumstances: The parties were in an attorney/client relationship. It is not necessary that the client … Continue reading →

The annual Expo and Law Day of the South Carolina Chapter of the Community Associations Institute (CAI) will be held Thursday, January 9, 2020 in Myrtle Beach at the Sports Convention Center (2115 Farlow Street).  Attendees will include community association professionals and community leaders from across South Carolina. David Wilson with Law Firm Carolinas will be featured at 4:00 during a Q & A session to wrap up the educational sessions being offered.   The full schedule and registration information can be found at the 2020 SC CAI Expo and Law Day page.

Obligation to Pay Assessments Homeowner dues (legally called “assessments” by statute) are the lifeblood of an association. Most all HOAs and condominium are nonprofit corporations. That is, community associations are not designed to make money; they are designed to pay the association’s bills. Associations basically act as agents for collections by other entities—water, garbage, electricity, landscaping. The funds collected are not kept by the association, but are forwarded to other parties, including the government. For example, many of our associations pay the premiums insuring all units each year. Unless assessments can be collected the association will owe debts but not … Continue reading →

We are often asked what can be done when a homeowner is violating the governing documents.  That answer depends on the language of the association’s declaration, and whether or not the association is subject to the North Carolina Planned Community Act or Condominium Act.  Quite frequently, the answer results in a discussion on the association’s ability to issue fines to owners who are in violation.  However, the same North Carolina statutes that grant the ability to issue fines also grant the association the ability to suspend community privileges or services. As with issuing fines, an owner’s community privileges or services … Continue reading →

With the recent decision in Winrose Homeowners’ Association, Inc. v. Hale the South Carolina Supreme Court proved that it is past time for a comprehensive HOA statute in South Carolina.  For more in-depth analysis of the Court’s decision, see our earlierarticle. Suffice it to say, throughout its decision the Court expressed discomfort with some practices that have grown up surrounding HOA foreclosures in this state.  But it is important to note what it did not say as well.  The Court did not say that HOAs could not foreclose.  In fact, it specifically stated that the HOA in this case “had … Continue reading →

In an opinion issued yesterday (December 18, 2019), the South Carolina Supreme Court ruled that an HOA foreclosure for $250 was unconscionable given the specific facts of that case. The ruling is in Winrose Homeowners’ Association, Inc. and Regime Solutions, LLC v. Hale. In Winrose, the homeowners bought their property in 1998 for $104,250, but in 2011 fell behind in their association assessment payments. The HOA filed a Complaint seeking foreclosure for nonpayment of dues. After the Complaint was filed, the homeowners received and paid a bill to the Association for $250, which they thought resolved the assessment dispute. Because … Continue reading →