In a recent case out of Pennsylvania, a condominium association was found to have violated Fair Housing laws for its delay in approving requests for reasonable accommodation for an emotional support animal belonging to a resident and for imposing conditions on the animals’ use of the common area. The Dorchester Owners’ Association in Philadelphia is a condominium with a rule against keeping pets. Two different owners requested an exemption from the rule based on their disabilities. One, Louise Hamburg, obtained a letter from a clinical psychotherapist that said she was treating Ms. Hamburg. It was later discovered that the statements in the … Continue reading
Category Archives: HOA & Condo Associations
NC Bill to Restrict HOA/Condo Collections Would Harm Associations & Owners
As described in my recent NC Community Association Legislative Update, one bill moving through the NC General Assembly is HB 542 “Protect Homeowners’ Rights.” In addition to placing further requirements on associations as to the collection of past due assessments, the proposal would prohibit the filing of a lien against an owner who fails to pay obligatory association assessments unless the amount is $2,500 “or one year of unit owners’ association assessments, whichever is lesser.” The bill’s attempts to add protections to owners not paying obligatory dues may be well intentioned, but such a dollar cap before a lien can … Continue reading
New South Carolina Bill Would Allow Virtual Membership Meetings for HOAs
House Bill 4049, which was initially introduced in February, was approved by the SC House yesterday (April 18, 2023) and has now crossed over to the SC Senate for consideration. The bill would allow for remote participation at homeowners association membership meetings. Up until now, unless the governing documents for a homeowners association or condominium specifically allowed remote participation at a membership meeting, there was no specific statute in South Carolina authorizing membership meetings to be held virtually. One of the positives of the COVID pandemic was that many more people became comfortable with video conferencing and other similar means … Continue reading
NC Community Association Legislative Update – April 18, 2023
Ahh, Spring has arrived! Bees are buzzing. Birds are singing. The deadline for filing HOA/condo bills in the legislature has arrived…. For the current two-year session of the NC General Assembly (2023-2025), several important dates have just passed. There are exceptions to all rules, but generally the filing deadline for Public Bills in the North Carolina Senate and House ended at 3 pm today. That makes now a good time to look at proposed legislation that, if adopted, would impact North Carolina’s homeowner and condominium associations. The following bills are not in order of the impact they would have upon … Continue reading
NC Bar Journal Article on Meeting Procedure & Robert’s Rules of Order
In case it’s of interest, the article “Robert’s Rules of Order: An Interview” appears in the most recent NC State Bar Journal (Spring 2023). The article, by Executive Director Alice Neece Mine, covers what lawyers should know about meeting procedure, why Robert’s is still relevant today, changes in the new Robert’s, virtual and hybrid meeting procedures, common mistakes about meeting procedure, tips for keeping meetings short and productive, and more. As a reminder, both the NC Planned Community Act and NC Condominium Act require that unless otherwise provided in the bylaws, association and board meetings must “be conducted in accordance … Continue reading
Records Retention & Records Retention Policies
Recently, a question came up on a national nonprofit list serve about how long various documents should be kept by an association, such as board meeting materials. Here was my response. “Your question has both legal and political aspects. Since I don’t practice law in your state, I can’t say what specific language or practice should be used for record retention, but here are some general considerations: While a bit dated (which means I should update it!), here’s an article I wrote on “Association Documents: Keep or Toss?” that appeared in a national magazine some time ago but is mostly … Continue reading
Homeowners Association Not Responsible for Owner’s Out of Pocket Expenses
In a recent decision by the North Carolina Court of Appeals, the Court held that a condominium association was not responsible for out of pocket expenses incurred by an owner when she was forced out of her unit while repairs were made. In Gehrke v. Gates at Quail Hollow Homeowners’ Ass’n, an owner sued her condominium association for all the costs she incurred while she was forced out of her unit for repairs. To read the full case, click here. Marguerite Gehrke was a unit owner in The Gates at Quail Hollow Homeowners’ Association, Ltd. (the “Association”), in Charlotte, North … Continue reading
Pickleball Court Conversion Considerations to Avoid Placing Your Association in a Pickle
Homeowners associations are tasked with managing and overseeing the common areas of a neighborhood, which many times include recreational facilities such as tennis courts. In recent years, pickleball, a game that is a mixture of tennis, ping pong, and badminton, has grown in popularity, and residential developers are now regularly including pickleball courts as an amenity in newer neighborhoods. Some more established communities are also engaging with the trend, and are considering converting their existing tennis courts into pickleball courts. This decision to accommodate pickleball as a neighborhood amenity can be surprisingly controversial, as it can reduce the number of … Continue reading
Podcast on NC HOAs & Condos
If you like podcasts, NC attorney Justin Ckezepis does a program on real estate issues and hot topics called “Today’s Real Talk.” Here’s the latest program that went live this week–a discussion with me about community associations, the authority of HOAs and condos, and various issues they face, including document amendments, rental restrictions, lot violations, collection of assessments, virtual meetings/electronic voting, and more. While the segment is focused on the Carolinas, some aspects are universal. Who Can Tell You What You Can & Can’t on Your Property? Understanding HOAs
What is the Statute of Limitations and Statute of Repose for NC / SC HOAs?
Homeowners associations and condominiums frequently hire contractors to perform work within their communities. Although some work is obviously poor, it is not always apparent that a contractor’s work was defective. Where defective work is not discovered until some time later, most boards of directors want to know whether the time has passed for the association to bring suit against the contractor. When we talk about time limitations to bring suit, there are two types of statutes involved. The first is called the statute of limitations—this is the one most people are familiar with. Generally speaking, the statute of limitations is the time … Continue reading
The Purpose of Assessments: What Is an Appropriate Use of Association Funds?
We are often asked what an association can or cannot spend their money on. In fact, this blog was inspired by a request from one of our regular readers. Associations are tasked with performing various community functions based on the requirements of their particular governing documents and state statute. You will often hear us say that assessments are the “lifeblood of an association.” That is because without them the association cannot do its job. There are some obvious uses for community funds, such as paying for the maintenance of the common area, improving association property, hiring professionals such as managers, attorneys, and … Continue reading
Are Pickup Trucks “Commercial Vehicles” and Can HOAs Ban Them? Florida Pickup Man Says “No.”
In North Carolina, many Associations have covenants that prohibit “commercial vehicles” or “trucks.” In North Carolina, the top two best-selling vehicles and three of the top five vehicles in the state are pickup trucks. With the volume of pickups on North Carolina roads, and the number of truck-related covenants in place, the intersection is a common one to encounter, and the HOA is the traffic cop that is stationed at that intersection. Recently in Florida, this intersection was the subject of a dispute between an HOA and a homeowner. The homeowner purchased a 2022 Rivian R1T, which recently was named MotorTrend’s Truck of … Continue reading
What Can Members Vote on at an HOA or Condo Membership Meeting?
A question came up during a recent online discussion about “what members can do at an HOA or condo membership meeting?” Specifically, the questioner wondered if a member could seek recognition and unexpectedly make a motion to “make the association do most anything.” It’s a good question, and one we community association lawyers spend time analyzing. Hate to say, “It depends,” but facts matters. This is not a question that can be answered in a vacuum without specifics. State statutes and governing documents (usually the bylaws or articles of incorporation) vary as to what authority the membership has versus the … Continue reading
Board of Directors vs. Officers: How to Tell the Difference
What is the difference between the Board of Directors and corporate Officers? In the community association world there can be some confusion regarding these distinct corporate roles because they can often be the same individuals. However, if we take a step back we can see that they are actually very distinct roles. Here is some guidance as to North Carolina distinctions. Duties: Board members are tasked with guiding the direction of the corporation. They set the broader vision for the corporation. For example, the Board would be responsible for adopting corporate resolutions, rules and regulations, and other policies and procedures … Continue reading
Best Practices for Board Meeting Minutes
A question came up during a recent online discussion about “best practices” for board meeting minutes. The answer to questions of what should (or should not) be included in minutes is more complicated than it seems. This article will give a broad answer, but I have to mention there are chapters in both my recent books, Robert’s Rules of Order Fast Track and Notes and Comments on Robert’s Rules, Fifth Edition, on what to include (or not) in minutes, approving minutes, changing minutes after the fact, handling closed/executive session meeting minutes, as well as model minutes templates and skeletal minutes (writing minutes before … Continue reading
Can, or Should, My Community Association Prohibit “Group Homes”?
With the passage of federal and State laws protecting disabled individuals, we see a societal push away from institutionalized living arrangements and towards community based, group home settings. This firm is frequently asked how, or if, an association can prohibit these group living arrangements within their community. Sometimes residents are worried that the group home occupants will pose a safety risk; there are also concerns about parking and transient residents; and fundamentally, associations may question whether this type of group living arrangement is consistent with single family residential use. The purpose of this blog is to provide a broad overview … Continue reading
Court of Appeals Confirm Vagueness and Ambiguity in Zoning Ordinance Will be Viewed in Favor of Free Use of Property
This week the North Carolina Court of Appeals issued a ruling in Frazier v. Town of Blowing Rock, 2022-NCCOA-782, that confirms the views of the Courts in this State that vague terms or ambiguity in language, in this case relating to a local zoning ordinance, will be viewed in favor of the free use of an owner’s property. In the community and association world (HOA and Condominiums) we have seen this line of decisions from the courts before as they deem vague restrictions or covenants in association governing documents as void and unenforceable for vagueness. This holds true for local … Continue reading
HOA/Condo Rental Restrictions, Corporate Owners & Institutional Investors
Requests for amendments to declarations tend to go in waves. Twenty years ago many associations were concerned about certain categories of sex offenders living in their communities. For several years now, the declaration amendment our firm most often gets asked about has to do with rental restrictions. Such questions arise out of concern that too many rentals or certain types of rentals will impact the “character” of neighborhoods. As a result, associations regularly approach our firm for advice on rental bans, rental caps, or restrictions on short-term/transient rentals like Airbnb or VRBO. (See Top Declaration Amendments for an HOA or … Continue reading
Conflicts of Interests: What Community Association Directors Should Know
Are you a director on your community association executive board? If so, you may be wondering about conflicts of interest. When do you as a board member have a conflict of interest? First, what is a conflict of interest? The North Carolina Non-profit Act defines a conflict of interest transaction as “a transaction with the corporation in which a director of the corporation has a direct or indirect interest.” A direct or indirect interest means that you have some personal interest in the transaction beyond your interest as a member of the Association. Basically, the question is will you (or … Continue reading
New Announcement by HUD Means More Options for Flood Insurance
All community association boards want to be good stewards of the funds collected from their homeowners. Sometimes, when finances are tight, a board has to face hard choices about how to reduce costs. That might mean reducing services or even deferring needed maintenance for a period of time where that maintenance is not essential to safety or structural integrity. As with all contracts, boards want to find the insurance that best suits their community and offers the best protection—at the best price. For those townhome and condo communities located in a flood zone, the question often arises whether they must … Continue reading