Effective early this year Fannie Mae and Freddie Mac, the two largest purchasers of residential real estate mortgages from lenders, started requiring information regarding the structural integrity and plans for addressing deferred maintenance for almost all condominium buildings. This is in direct response to the tragedy of the partial collapse of the Champlain Towers in Florida. Is the Association legally obligated to complete the questionnaire? Unless the governing documents of the Association require it (which is highly unlikely) the Association is not obligated to complete the questionnaire; however, not filling out the questionnaire will almost certainly result in 60-70% of … Continue reading
Category Archives: HOA & Condo Associations
Federal Legislation Introduced to Address Financing Condo Safety Repairs
On April 18, 2022, Representatives Charlie Crist and Debbie Wasserman Schultz (both U.S. Representatives from Florida) introduced the Securing Access to Finance Exterior Repairs (“SAFER) in Condos Act of 2022. The bill is designed to address one of the main problems identified following the partial collapse of Champlain Towers South in Surfside, Florida, last year. Although many condominiums may need significant structural repairs, a recurring problem has always been the ability to obtain financing to pay for the costs of those repairs. Following the collapse, many condominium associations have begun to evaluate their own buildings in earnest and investigate their … Continue reading
Voting Cards at Conventions & Annual Meetings
Although COVID-19 is (hopefully) waning, there are still concerns about immediately going back to the way things used to be done at annual meetings. For instance, the most common method pre-pandemic of voting during large meetings was by voice. On any matter to be decided, the presiding officer would ask all those in favor to say “AYE,” and those opposed to say “NO.” With continuing concerns about the virus, both leaders and health professionals have questioned whether hundreds or thousands of delegates should all be yelling in a crowded room at the same time, masked or not. There are alternatives … Continue reading
New Appellate Decision Impacts Declaration Amendments
In a decision issued today (April 5, 2022), the North Carolina Court of Appeals makes potentially significant changes to how amendments to declarations are adopted. As a result, associations considering declaration amendments should consult their attorney to make certain the process meets the new standards for adoption. Bryan v. Kittinger is a “published opinion,” which means the decision is controlling legal authority and can be cited in other cases. Interestingly, though the opinion impacts associations, there is no association involved as a named party in the case. Instead, this dispute is between two lot owners in the Sleepy Hollow Subdivision … Continue reading
Completely Updated Parliamentary Procedure Website with Resources
For almost thirty years, my parliamentary procedure website has had more articles and resources on meeting procedure and Robert’s Rules of Order than most anywhere else online. In part due to the new Robert’s Rules of Order (released 2020), the site has been completely revamped and updated, with all references now to Robert’s Rules of Order Newly Revised (12th Edition). The updated website includes: The updated site can still be found at www.jimslaughter.com. Check it out! Jim Slaughter is an attorney, Certified Professional Parliamentarian, Professional Registered Parliamentarian, and past President of the American College of Parliamentary Lawyers. He is author … Continue reading
South Carolina Launches New SC Homeowner Rescue Program (SC HRP)
As my colleague, Jim Slaughter, reported last month, the new federal Homeowner Assistance Fund established a program with nearly $10 billion for states to provide relief to those suffering from the effects of the COVID-19 pandemic. For South Carolina homeowners who have become delinquent in their HOA or condo assessments during the pandemic, this program may offer assistance. In general terms, the SC Homeowner Rescue Program (SC HRP) accepts applications from South Carolina homeowners who were impacted by the pandemic and need assistance with housing-related expenses. Funds may be available on a first-come, first-served basis. There are income requirements, as well as … Continue reading
Maintaining Confidentiality on your Board (or in your Committee)
Individuals who agree to serve on boards for their community associations will inevitably find themselves receiving confidential information about their friends and neighbors. This may be information about an alleged architectural violation, or an unpaid balance due to the association. Sometimes the association will receive complaints about police called to a home, only to learn later of alleged drug activity or a domestic violence situation. This may seem like juicy gossip, and it can be tempting to share this information with others. However, directors owe certain duties of confidentiality to their members, and understanding these duties is essential for the … Continue reading
Finding the Right HOA/Condo Lawyer
Given our firm’s large practice in the Carolinas and our many online resources, I’m asked weekly by individuals in others states about how to find the right community association lawyer for an HOA/condo issue. Community association law is a very focused practice area. There are a number of online directories and Bar lists that can direct you to attorneys who focus on homeowner and condominium associations. However, if you want to find an attorney with a significant HOA/condo practice who has been recognized for exceptional work, I’d recommend starting with the Fellows in CAI’s College of Community Association Lawyers (CCAL). … Continue reading
Proposed Short Term Rental Ordinance in Greensboro: The City Wants Your Input!
The City of Greensboro has met with various stakeholders in the community over the last several months to develop a City wide ordinance to address and create rules for short term rentals. There is no current definition for short term rentals in Greensboro, which means that they are currently regulated under the ordinance covering Tourist Homes (i.e. Bed and Breakfasts). Some of the highlights of the proposed ordinance would be: Short term rentals would be allowed only in residential dwellings. There would have to be a zoning permit for this type of rental. The number of persons allowed in the … Continue reading
A Revolt! Tips to Prevent Owner Insurrections!
The terms “coup” and “insurrection” are making their way into everyday conversation as of late. We hear about it on the news, but what happens when your community association experiences a similar situation? Meaning, what happens when your HOA or condominium board of directors is the target of an overthrow by the members of the association? It seems to be happening more frequently and is something our firm has encountered on several occasions in the last year or so. Maybe there is something in the water! Being a board member can be a thankless job, and it often seems like owners … Continue reading
What Does The Champlain Tower Collapse Mean For NC / SC Condos?
With the collapse of the Champlain Tower South (a part of a condominium located in Surfside, Florida) in June of last year, there has been a search for answers. Condominium owners want to know whether their building is safe, and boards of directors want to make sure they are taking appropriate steps to prevent another disaster similar to the one in Florida. Although the ultimate reasons for the collapse may not be known for years, it is likely that some problems that may have contributed to the collapse are not unique. The Community Associations Institute (CAI) has published recommendations relevant to … Continue reading
Do You or Owners Need Assistance Paying HOA/Condo Dues? – The NC Homeowner Assistance Fund May Help
Last year President Biden proposed and Congress adopted the American Rescue Plan, which was a $1.9 trillion coronavirus rescue package designed to speed America’s recovery from the Covid pandemic. Among the bill’s many proposals was almost $10 billion for states, territories and tribes to provide relief to vulnerable homeowners through a “Homeowner Assistance Fund.” Monies from the Homeowners Assistance Fund were not immediately available. Instead, each state had to draft a state-specific plan, submit it to the US government, and get the plan approved by the US Treasury. In each state, different sorts of relief were considered, such as mortgage … Continue reading
Robert’s Rules of Order vs The Standard Code of Parliamentary Procedure vs the AIP Standard Code of Parliamentary Procedure
A question came up during a recent online discussion of pros and cons between Robert’s Rules of Order and The Standard Code of Parliamentary Procedure. One comment asked if Robert’s was “archaic and obsolete.” Here’s my answer. There are several major parliamentary manuals, with Robert’s Rules of Order being the best known. Robert’s Rules and parliamentary procedure are viewed as one and the same by most of the public. Of organizations that have a parliamentary authority in their governing documents, Robert’s is by far the most common choice (some surveys suggest 80%-90%) . State statutes that prescribe a parliamentary authority for some types of … Continue reading
New Appellate Case: Almason v. Southgate on Fairview Condominium Association
In a decision issued today (February 1, 2022), the North Carolina Court of Appeals examined several issues that associations deal with regularly—budget ratification, owner attendance at board meetings, rules governing board meetings, and association records requests. Nothing in the decision is groundbreaking, but the findings of the court may provide comfort that your association practices are proper (or may suggest you need to make some changes). Almason v. Southgate on Fairview Condominium Association, Inc. et al. is an “unpublished opinion,” which means the decision is not controlling legal authority and should not be cited in other cases. However, even unpublished … Continue reading
Voting by Written Ballot and Written Agreement in North Carolina
When it comes to asking homeowners association / condo members to approve or reject matters in North Carolina, there are generally two options: the written ballot and the written agreement. These documents and legally dictated processes may look very similar, but they are legally distinct. This article examines how and when using the written ballot versus a written agreement makes sense and how to use each effectively. Written Ballot When you think about being asked to vote on something, most people probably first think of a ballot. Ballots, by definition, allow someone to vote for or against something. For in-person meetings, ballots … Continue reading
Community Association Records Requests – Who Can Get What, When and Why
Member records requests is a frequent topic of consultation with boards and managers. The law in North Carolina is somewhat nuanced when it comes to what constitutes a record of the association, and who is entitled to review that record and under what circumstances. Here, we look at North Carolina law generally related to records requests and how a community should evaluate and respond to a request for records. In this state, homeowner, property owner and condominium members have certain document inspection rights under the Nonprofit Corporation Act, Chapter 55A of the North Carolina General Statutes, and the Planned Community … Continue reading
Nomination Procedures for Elections
If you are administering an election for your group or association, then you may have questions about how the nomination process works. Do you need to use an election committee? What are nominations from the floor? What about other methods of doing nominations? Fortunately, it’s not as difficult as it may seem. There are six different methods: (1) nominations by the chair, (2) nominations from the floor, (3) nominations by a committee, (4) nominations by ballot, (5) nominations by mail, and (6) nominations by petition. Nominations by the Chair is when the Chair selects candidate(s) for a position. Typically, this method is not … Continue reading
There Is No “Meeting by Ballot” Under New NC Law
Our firm’s attorneys have seen several recent association mailings entitled something to the effect of “Meeting by Ballot” or “Annual Meeting by Ballot.” It appears there is a belief among some that the recent adoption of House Bill 320 (“Modernize Remote Business Access”) created a new method of members meeting through a written instrument. It did not. As discussed in the recent post Does New Law Mean Associations Don’t Have to Hold Annual Meetings?, North Carolina has two main methods for association members to make decisions: Given these two options, it is also possible to combine a virtual meeting (with … Continue reading
How to Run an Effective Online Meeting
With the passage of HB 320 (see Jim Slaughter’s article: Bill Adopted to Allow Electronic Membership Meetings and Voting in North Carolina Associations) we are seeing more communities opting to conduct electronic membership meetings to encourage greater participation and community interest in these meetings. Our attorneys collectively—and particularly our Certified Professional Parliamentarian, Jim Slaughter—have participated in more virtual meetings than anyone, and we find that having good meeting rules in place before the meeting takes place is key to a successful outcome. Although it usually is not necessary to tailor rules for each individual meeting an association has, the issues … Continue reading
Does New Law Mean Associations Don’t Have to Hold Annual Meetings?
Since HB 320 passed (see Bill Adopted to Allow Electronic Membership Meetings and Voting in North Carolina Associations), we’ve had questions to the effect of “Do we have to hold annual member meetings anymore?” The thinking seems to be that because the new law allows decisions by “written ballots or electronic voting” that you could use those methods and forego the annual meeting. That is, a written or electronic ballot could be sent out for everything that needs to be handled at the annual meeting and then have no meeting at all. Anyone who suggests that the new law … Continue reading