North Carolina Community Association Legislative Roundup – April 8, 2015

Ah. Flowers are blooming. Birds are chirping. Community association legislative proposals are being filed. It must be spring! Both the North Carolina House and Senate are back in full swing with the two-year 2015-2017 legislative session. While there are numerous bill deadlines, here are some of the important ones. All Senate bills had to be filed by Thursday, March 26. House deadlines are a bit more complicated. House bills recommended by study commissions had a filing deadline of Wednesday, February 25.  House public bills and resolutions that were not appropriations or finance have a filing deadline of Tuesday, April 14. House public bills that are appropriations or finance have a … Continue reading

Community Association Managers, Lawyers, and Tooth Whitening?

So, what do state boards that regulate community association managers and dentists have in common? According to a decision from the U.S. Supreme Court last week, possibly more than you’d think. Interestingly, the case of North Carolina State Board of Dental Examiners v. Federal Trade Commission has received little attention beyond lots of chatter by licensing boards, regulatory lawyers, and state legislators. Dawn Bauman, CAI’s Senior Vice President of Governmental Affairs, posted about the case to community association lawyers last week and there was not a single reply. This isn’t a case to be ignored, as it will likely impact many states … Continue reading

Does the Chair Vote in the Event of a Tie?

In board and membership meetings you’ll sometimes hear the phrase that the chair gets to vote “in case of a tie vote.” But is that accurate? In short, no. The chair only being permitted to vote in the event of a tie is not the general rule, would be unfair, and is not language found in any of the major parliamentary authorities, including Robert’s Rules of Order Newly Revised (12th Edition). While a few state statutes and some bylaws have such language, that’s mostly due to a misunderstanding of common parliamentary practices. So, what’s the general rule in Robert’s and other parliamentary manuals? Chair Voting … Continue reading

Attorneys Added to Charlotte Office

I’m pleased to announce that two attorneys with a focus on real estate and HOA/condo law have joined the Charlotte office of Law Firm Carolinas. Elizabeth Holloway practices real estate law and assists individuals, developers and entities with commercial and residential negotiations, refinancing, and closings. She received her J.D. from the Capital University Law School in 2001. Elizabeth has also become quite the expert on Non-Public Private Information (NPPI) under the Consumer Financial Protection Bureau (CFPB) and regular speaks to lawyers and other professionals on the new requirements and best practices. Issues surrounding the protection of Non-Public Private Information and “personally identifiable data” … Continue reading

2015 Community Association Law Seminar Not Just for Lawyers!

A highlight for me each year is the national Community Association Law Seminar, sponsored by the Community Associations Institute (CAI) and the College of Community Association Lawyers (CCAL), which I serve as 2014 President. Hands down the Law Seminar has the best speakers and programs of all the events I attend. While there is an emphasis on law at the “Law” Seminar, the program is not just for attorneys. Attendees include community association managers, bankers, other industry professionals and even homeowners. An entire concurrent CE program is for insurance professionals who work with homeowner and condominium associations. Law Seminar Details The 2015 Community Association … Continue reading

Hot Legal Topics in HOA & Condo Community Management

On Wednesday, December 3, 2014, from 11:30 am-2 pm I’ll be speaking on “Hot Legal Topics in Community Management” at the Charlotte Lunch ‘n Learn of the NC Chapter of the Community Associations Institute. The program is at Maggiano’s Little Italy at South Park Mall (4400 Sharon Road) in Charlotte. The cost for the program is $30 for CAI members/$40 for non-members. Topics will include: If you wish to attend, please register AS SOON AS POSSIBLE at by calling CAI-NC at 919-929-9312, as you must register to attend. Sponsorships are available. Feel free to forward this information to any managers, directors, community members, or others … Continue reading

Must North Carolina HOA and Condominium Associations Have Workers’ Compensation Insurance?

An article from another law firm in the Charlotte Observer last week suggested that all North Carolina HOA and condominium associations must have Workers’ Compensation coverage or suffer the consequences. The article can no longer be found online, but here’s the short version: Since the article appeared, we’ve been inundated with questions from managers and associations as to whether they must rush out and purchase Worker’s Comp coverage, and if so, what product and in what amount? As you can imagine, both of these are complicated questions and could vary by association and circumstances. (For instance, only NC planned communities created after January … Continue reading

Solar Panels, HOAs, and Condominiums in North Carolina

Our modern society is always looking for opportunities to limit our footprint on the environment and to increase sustainability in a modern world.  Wind, solar, and other renewable resources are common topics of conversation.  As part of this push, many states have enacted laws that encourage businesses and individuals to incorporate and use these technologies as a part of our everyday lives.  For those of us who live in a homeowner’s association, we may or may not have rules that either allow or prohibit installation of solar panels. The first relevant date for a homeowner’s association in North Carolina is … Continue reading

A Radio Tower in Every Yard?

Most often the Declaration of Covenants, Conditions and Restrictions (also known as the “CCR’s,” “Declaration of Condominium,” “Restrictions,” or by other names) is the highest governing document within an association. Typically, the terms of this document cannot be waived without express authority. After all, the Declaration is a binding contract among the members of the Association. Of course, language in the Declaration usually yields to express state statute or federal law. With that in mind, it is rather concerning to read House Resolution 4969 (“Amateur Radio Parity Act of 2014”) introduced last month by Congressman Adam Kinzinger (16th District, Illinois). HR 4969 would rewrite … Continue reading

Law Seminar Best Manuscript Award: Community Association Voting

Following this year’s national CAI Community Association (HOA and condo) Law Seminar, the College of Community Association Lawyers presented a “Best Manuscript Award” for the presentation with the best accompanying materials. First recipients of the Award were David Graf of Moeller Graf, P.C. in Englewood, CO and Steve Weil at Berding & Weil, LLP in Walnut Creek, CA for “Community Association Voting: Evolving Trends in Membership Elections of Directors and the Authorization of Corporate Action” (available at Law Seminar Best Manuscript). The 2015 Community Association Law Seminar will be held Wednesday, January 28 through Saturday, January 31, 2015, in San … Continue reading

Help, Our HOA (or Condo Association) Needs Money!

Community associations (HOAs and condos) can become cash-strapped for a variety of reasons—unexpected large repairs, increased utility expenses, weather related emergencies, or simply years of poor planning. Often the current board members are not the ones to blame. After all, they are simply trying to locate funds to pay necessary expenses, without which essential services such as water or electricity may be cut off. While there can be instances of financial malfeasance, most association financial crises are not the result of intentional wrongdoing. We see associations that kept assessments low for many years running headfirst into increased utility costs or unexpected expenses, at which … Continue reading

Legislative Update: Transfer of Special Declarant Rights Bill Adopted

The N.C. General Assembly is about to wrap up its two-year legislative session, so bills are flying around. In my legislative update of 2013 activity (www.lawfirmcarolinas.com/blog/nc-community-association-2013-legislative-roundup/), I noted several bills that while not adopted were still eligible for consideration in the 2014 Short Session. One of those, House Bill 330 (“Planned Community Act/Declarant Rights”) was signed into law by the Governor yesterday (Monday, July 7). HB 330, which was originally sponsored by Representatives Rob Bryan (Mecklenburg), Paul “Skip” Stam (Wake), Tom Murry (Wake), and John Szoka (Cumberland), was intended to clarify language in the Planned Community Act as to the transfer of … Continue reading

Declaration Amendments, Reasonableness & Original Intent: Wallach v. Linville Owners Association

A case issued by the North Carolina Court of Appeals today suggests there are instances when an amendment to a Declaration (also known as Covenants, Conditions and Restrictions) has to pass an “original intent” test.  In Wallach v. Linville Owners Association, Inc., the original Declaration provided for reduced assessments for lots owned by builders. Several years later and after transition, the membership followed the amendment process to amend the Declaration to require equal assessments from all lots (and eliminating the reduced rate for builders). On appeal, the builders argued that such an amendment “contravenes the original intent of the Declaration.”  The Court … Continue reading

Greensboro Office Expansion Complete

Exciting news—the expansion to our Greensboro office is finished and our large meeting room/training center is now open! (See photo.) Our newest conference room has a flexible arrangement and can be used for training, board meetings, videoconferencing, or even smaller membership meetings. While the standard set-up easily seats about 30 with tables, the room can be rearranged and has seating for 60. The room also is equipped with electrical plugs throughout, Wi-Fi, and an 80” widescreen TV for presentations or videoconferencing. We intend to regularly use this space for HOA/condo training and larger meetings that involve our attorneys. However, in the event you or … Continue reading

Drafting Enforceable Restrictive Covenants

“Restrictive Covenants.”  Hearing that phrase has made homeowners and their respective Boards of Directors cringe since the beginning of time.  Everyone who has ever lived in a Homeowner’s Association is familiar with the idea that there are certain things you may and may not do with your property.  If not, you might want to check into that. The original idea behind restrictive covenants was not some crazy person’s attempt to figure out a way to make homeowners’ lives more burdensome.  Instead—as many association’s “Declaration of Covenants, Conditions, and Restrictions” lay out—the idea is to work together to increase the value … Continue reading

How to Chair a Convention or Large Membership Meeting

Most of the time, I seem to be advising boards on how to run less formal meetings. That’s because the major parliamentary authorities, such as Robert’s Rules of Order Newly Revised (12th Edition) and The Standard Code of Parliamentary Procedure (“Sturgis”), recognize that boards with not more than about 12 members present can follow more relaxed procedures (and only be more formal if the circumstances require it). For examples of smaller board procedure, see Board Procedures Versus a Membership Meeting or Convention. Even so, you will occasionally encounter larger meetings—homeowner or condominium membership meetings, conventions, church meetings, shareholder meetings, membership meetings of … Continue reading

North Carolina Condo and HOA “Ask an Attorney Night” – April 22

Have a condo or HOA association question you’d like to ask a lawyer? The North Carolina Chapter of the Community Associations Institute (CAI) is hosting an “Ask an Attorney Night: Your HOA & Condo Questions Answered” on Tuesday, April 22, 2014, from 5-7:30 pm at the Sheraton Greensboro-Koury Convention Center in Greensboro, NC.  Topics could include: But it really depends on what questions are asked! Details are in the attached CAI-Ask-An-Attorney flyer.  Everyone is invited—homeowners, board members, community managers, or anyone interested in HOA’s and condos, but registration is required.  The cost is $25 for members and $35 for non-members.  For more information on … Continue reading

Support CAI — Buy a Book!

Prior to having two books published last year, I hadn’t given much attention to the bookselling world. Sometimes I’d buy a book from the Community Associations Institute (CAI) bookstore at the Annual Conference or Law Seminar.  Or I might purchase a book from the National Association of Parliamentarians on meeting procedure. Or from Barnes & Noble if I happened to be there. Or from Amazon if there was free shipping. Book purchases were really about convenience, since all the books seemed to cost generally the same. In fact, when you think about it, why would any organization like CAI go to the trouble to maintain … Continue reading

HOAs and Condos Protecting Children or Violating Federal Fair Housing Act?

Families with children under the age of eighteen are a protected class under the Federal Fair Housing Act and an alarming number of community associations are unintentionally violating federal law with rules, regulations, policies and practices. Swimming pool rules requiring a parent or guardian to be present at the pool with young children would seem to be the responsible thing to do, but be careful!  One Court has held that a rule requiring a “parent or guardian” to be present was discriminatory because a slightly older child may be adequate. Remember adult swim time at the pool?  Adult swim time … Continue reading

Unanimous Consent: Good Presiding Officers Use It!

Sure, you can use formal procedure to handle routine, noncontroversial matters in board and membership meetings. But why would you? Let’s look at a typical meeting example: Chair: Is there a motion to approve the minutes?[uncomfortable silence, finally followed by]Member: I move to approve the minutes.Chair: Is there a second?[uncomfortable silence, finally followed by]Member: Second! Chair: It is moved and seconded to approve the minutes.  Is there any discussion?[no, there isn’t]Chair: The question is on the motion to approve the minutes.  Those in favor of approving the minutes, say ‘aye.’ . . . Those opposed, say ‘no.’  The minutes are approved.[FYI, everyone … Continue reading