This year, in the aftermath of Hurricane Helene and other storms which have affected our region, we are frequently asked who is responsible for cleanup or damage from fallen trees. This blog won’t address Hurricane Helene issues directly, as this would require an in-depth discussion of insurance and complicated issues involving FEMA, State, and local government. Information on that can be found in Jim Slaughter’s recent blog, Legal Tips for HOAs and Condos Following a Natural Disaster. Instead, this blog seeks to address the more common scenarios that come when trees fall from one property to another and cause property … Continue reading →

Hurricane Helene’s impacts and devastation are still being assessed, but we are already hearing from community associations in the Western part of North Carolina about catastrophic damage to dwellings and infrastructure. Now the focus is simply on restoring access to working phones, power and water, and making sure that association members are safe with access to emergency services. Soon, however, we will begin the arduous task of damage assessment and rebuilding.  All of this will take enormous amounts of money. We are already receiving questions about whether associations should impose some type of moratorium on collection of assessments from owners … Continue reading →

As of today (September 3, 2024), the Corporate Transparency Act (“CTA”) (see What Is the Corporate Transparency Act and Why It Matters to Your Association and Board Members) remains unchanged and still requires registration of certain information by almost all boards of directors of HOAs and condos with FinCEN (the Financial Crimes Enforcement Network). Below are links to updated videos on CTA requirements for managers and board members. CTA Video for Community Managers CTA Video for Sharing with Board Members For reference, the FinCEN Beneficial Ownership Information page can be found at https://fincen.gov/boi. Feel free to share. If you have questions about the CTA … Continue reading →

Congratulations to Law Firm Carolinas’ partner David Wilson, who has been named a Fellow in CAI’s College of Community Association Lawyers! The College, which was created in 1994, recognizes excellence in the practice of community association law. Of the thousands of attorneys who work with homeowner and condominium associations in the US, there are fewer than 200 current CCAL Fellows. As a past national CCAL President, I can say without reservation that David reflects the high standards of professionalism, professional involvement, and passion for community association law the CCAL designation was created to spotlight.​ David’s practice has been 100% HOA/condo law in both North … Continue reading →

As attorneys, we are regularly asked by homeowner and condominium associations to assist with restrictions on rentals, whether complete or percentage bans, restrictions on short-term rentals, or limiting corporate rentals. (See past articles, including HOA/Condo Rental Restrictions, Corporate Owners & Institutional Investors and Short-Term Rentals in North Carolina and South Carolina HOAs and Condominiums). In February of this year, the NC Court of Appeals struck down a condominium rental amendment as unreasonable. (When Is an HOA/Condo Rental Amendment Unreasonable?) Yesterday, August 6, 2024, the NC Court of Appeals again visited the issue of whether a specific declaration amendment restricting rentals is reasonable. … Continue reading →

Here’s an interesting (and frightening) insurance article from The Wall Street Journal. The report seems available on the subscribers’ only site as well as generally online, so here’s a link that should work: Big Jump in Insurance Costs Strikes Condos. One association’s insurance renewal went up four times with 12 carriers refusing to even quote a policy, likely due to the many recent natural disasters and higher rebuilding costs. Industry statistics show average condo insurance increases of 20% with some being 300% to 1,000%. And such increases come on the heals of some states requiring greater expenditures by condominiums as … Continue reading →

Our office has had two situations in the last six months where an association failed to pay property taxes on association common area, the tax department foreclosed, and a third-party bought the common area at the tax foreclosure sale. Fortunately in these cases it was not the association pool or clubhouse, but it could have been. For North Carolina associations – There is a statue in North Carolina that allows associations to apply for a tax exempt status for common area. Once approved the association does not owe property taxes on that common area going forward. The key is to make … Continue reading →

Within the last several months, community association attorneys in North Carolina have begun to see a new scenario with their clients: the ground lease.  Usually, when someone purchases a lot, they own the lot and any structures on that lot, such as a home, outbuildings, or landscaping installations. However, we are now seeing situations where someone purchases a lot, but only leases the home and other structures on the lot (the “Improvements”) for some long period with an option to buy at the end.  The duration of these leases is variable, but often extends to periods as long as 99 … Continue reading →