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
David Wilson Named CCAL Fellow
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
Why Are Our HOA/Condo Bylaws So Bad?
The HOA/condo attorneys at Law Firm Carolinas are regularly asked to create or to amend association bylaws. On any given day, different attorneys are working on edits or even complete rewrites of association bylaws. Before getting into why that is so often necessary, let’s make sure we’re all on the same page. Here are the governing documents most all associations have (or need to have): With that background as to the different documents, let’s focus again on why bylaws so often don’t seem well crafted for a community association. The primary reason we are so often asked to assist with … Continue reading
When Is an HOA or Condo Rental Restriction Unreasonable (Part II)
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
Conveying the Common Elements: What you need to know
It doesn’t really come up often, but there are times when the Association may want to convey some portion of their common elements to a third party. There could be various reasons for this, including but not limited to, a land swap with a neighboring community, changing Lot boundaries, as part of a negotiation in a condemnation proceeding, etc. How common elements are conveyed is dependent on the age of the community and whether or not we are talking about the common elements of a planned community or a condominium. NCGS § 47F-3-112 states, in part: “(a) Portions of the … Continue reading
Why Wait till After the Meeting to Write Meeting Minutes?
Whether following Robert’s Rules of Order Newly Revised or standard parliamentary practices, meeting minutes tend to be fairly short. That’s because minutes are not supposed to be a record of what members SAID at a meeting, but what was done. (See A Minute on Meeting Minutes or this Minutes Outline) But if compiling the minutes after a meeting is still bothersome, there are ways to move much of the effort to before the meeting. (If you wonder how you can describe what happened at the meeting PRIOR to the meeting, stay with me.) Meeting Minutes Template Minutes are fairly formulaic. … Continue reading
There Is No “Next Order of Business”
The humorist Will Rogers once said “It isn’t what we don’t know that gives us trouble, it’s what we know that ain’t so.” I’ve shared several recent articles (Why the Chair Never Asks for Old Business and Banish the Phrase “I So Move” from Meetings) on what meeting attendees are certain SHOULD be done, but “it just ain’t so.” One phrase you often hear in meetings is the chair making reference to the “next order of business,” as in “The next order of business is . . . .” As suggested by the name, the “order of business” is the … Continue reading
Banish the Phrase “I So Move” from Meetings
A prior article examined Why the Chair Never Asks for Old Business. Let’s take a look at another phrase that’s used too often in meetings when it should be avoided–“I so move.” Sometimes at a board or membership meeting following the remarks of a member or a committee report, the speaker or another member will say “So moved!” or “I so move.” For only 2 or 3 words, few phrases can lead a business meeting into more confusion and trouble. For organizations that follow Robert’s Rules of Order Newly Revised (12th Edition), the phrase “I so move” only appears once. And that’s in … Continue reading
Huge Jump in Condominium Insurance Premiums
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
Feeding Wild and Feral Animals in HOAs
As development continues to crowd out open space previously occupied by wild animals, North Carolina community associations find themselves increasingly close neighbors with deer, racoons, foxes, and other “wild” animals. These animals come into yards and happily munch on gardens, landscaping and occasionally someone’s beloved cat or dog. Combine development issues, poor control of domestic animal breeding, and owners with sympathies for hungry and thirsty animals, and you are left with an association caught between reasonable controls on animals and those who want to help them. We are often asked what associations can (and should) do to regulate wild animals … Continue reading
SC Community Association Legislative Update – June 17, 2024
With the second regular session of the 125th South Carolina General Assembly now adjourned, it is time to look at where things are now that the session has ended. Over this most recent legislative session, South Carolina saw a number of bills potentially affecting homeowners associations and condominiums filed. Two were signed into law. Several more gained the attention of legislators, and one was passed by the House but died in the Senate. Many of these bills, had they been enacted, would have been detrimental to condominiums and homeowners associations. With the session now over, it is time to see … Continue reading
Keeping Your Community Association Solvent in A High Inflation Economy
If you are like me, you are becoming acutely aware of rising costs in our current economic environment. While inflation appears to be cooling off a bit, it certainly is not coming down at the rate necessary for most Americans to see much of a difference. In a post COVID world, we have seen prices of food, goods, and labor soar. And while we are all hopeful for some relief from rising costs in the near future, we must prepare as best we can to live and operate in a high inflation economy. Homeowners and condominium associations are certainly not … Continue reading
CAI’s Common Ground Article on Jim Slaughter
The most recent Common Ground from the Community Associations Institute includes an interview with Law Firm Carolinas’ partner Jim Slaughter following his Don Buck Award recognition. The article includes Jim’s thoughts on proposed HOA/condo legislation, what Board members and owners often forget about community associations, and the need for Board members and homeowners who appreciate their associations to better communicate that message. The one-page article can be found at https://lsc-pagepro.mydigitalpublication.com/publication/?m=20613&i=819074&p=62&ver=html5.
Legislative Update – NC House Select Committee on HOAs Files New Bill
As the short session continues and the legislature continues to negotiate House Bill 542 with interested parties, a new bill was introduced on May 1, 2024 by Representatives Frank Iler, Steve Tyson and Ya Liu. House Bill 959, entitled an AN ACT TO MAKE VARIOUS CHANGES TO THE NORTH CAROLINA CONDOMINIUM ACT AND THE NORTH CAROLINA PLANNED COMMUNITY ACT, TO MANDATE PRELITIGATION MEDIATION OF DISPUTES BETWEEN OWNERS’ ASSOCIATIONS AND THEIR MEMBERS, AND TO REQUIRE THE DEPARTMENT OF JUSTICE TO COLLECT AND REPORT ON COMPLAINTS SUBMITTED TO IT INVOLVING SUCH DISPUTES, AS RECOMMENDED BY THE HOUSE SELECT COMMITTEE ON HOMEOWNERS’ ASSOCIATIONS, … Continue reading
Carole Albright Recognized as Leader in the Law
Carole Albright, Managing Partner of Law Firm Carolinas, has been recognized by NC Lawyers Weekly as a 2024 Leaders in the Law Honoree. The award recognizes legal professionals who have gone above and beyond in their profession through contributions to the practice of law as well as service to the broader community. Carole is a Board Certified Specialist in Family Law as well as a Certified Parenting Counselor and is past Chair of the Family Law Section of the Greensboro Bar Association. She co-chaired and helped organize and lead the Course Planning Committee of the NC Family Law Specialists for … Continue reading
SC Foreclosure Bill Passed House, Now in Senate—Potential Impacts on Your HOA
As recently reported in previous articles, the South Carolina Legislature is considering a bill that impacts the ability of community associations to collect assessments from non-paying members of their communities. As originally drafted, the bill would have eliminated a community association’s ability to foreclose. However, the Community Associations Institute (CAI) and its South Carolina Legislative Action Committee (SC-LAC) worked closely with members of the SC House of Representatives to propose an alternative approach to the original bill. As a result, the proposed new law would require an additional hearing in the foreclosure process to ensure that homeowners are given ample … Continue reading
Department of Labor Issues Final Rule for Exemptions to Overtime
The Department of Labor (the “DOL”) has issued a final rule regarding overtime exemptions under the Fair Labor Standards Act (commonly referred to as the “FLSA”), which rule should be noted by employers and employees alike. The FLSA, which applies to most employers throughout the country and, indirectly, their employees, controls the classes or categories of employees that are exempt from overtime pay and what additional factors must be met before employers can avoid overtime payments. Today’s issuance of the new rule follows years of debate, announced rules, and litigation that saw the proverbial pendulum swing, at various times, from … Continue reading
FTC Votes to bar Most Noncompetition Agreements, But Don’t Throw Out Your Noncompete Yet!
The Federal Trade Commission (often referred to as the “FTC”) voted today to bar non-competition agreements or “noncompetes,” both retroactively (for all but top corporate officials and senior executives holding a policy-making position and making not less than $151,164 annually) and in the future. More specifically, employers would be prohibited from: entering into or attempting to enter into non-competition agreements with employees, workers and independent contractors; maintaining a non-competition agreement with workers, employees or independent contractors; or representing to a worker, contractor or employee that he is subject to a non-compete. Those employers with existing non-compete agreements in place for … Continue reading
Podcast on NC HOA/Condo Insurance Issues & Proposed Legislation
Joe Stewart, lobbyist for the Independent Insurance Agents of North Carolina (IIANC), had me on his recent IIANC Radio podcast to discuss North Carolina’s HOA and condo insurance statutes as well as legislative proposals that may be of interest. The 20-minute program can be found at HOA Statutes & Insurance Insights.
Spring Has Sprung! Is Your Community Association Ready?
Spring has sprung! Which means that community associations through North and South Carolina will begin seeing increased community traffic, amenity use (including use of playgrounds, pools, tennis and pickleball courts), and increased social events. So, is your community ready. Communities should consider the following: It is important to be ready for increased community use that the warmer weather will bring. Our North and South Carolina community association attorneys are happy to assist your community as spring rolls into the Carolinas.