The Planned Community Act and the Condominium Act require most homeowners associations and condominium associations to hold budget ratifications meetings.  What are these meetings? A budget ratification meeting is a meeting of the owners of the association to review the proposed budget that has been adopted by the executive board.  The budget ratification meeting has a number of different requirements and provisions that are unlike other meetings of a community association.  Notably, a budget ratification meeting does not have a quorum requirement, which is dramatically different from typical annual or special meetings. In addition, the budget ratification meeting has special … Continue reading →

I am often asked by HOA & condo Boards a question that looks something like these: Is it OK for the Association to use community volunteers instead of a professional? or My Uncle Sal does that, can’t we use him? / I’m sure he’ll give us a discount! Naturally, in typical lawyer fashion, I tell them that it depends.  There are scenarios where the Board will always want a professional service provider and others where it is perfectly acceptable for volunteers from the community to provide services. The bottom line for the Board is always whether it has met its … Continue reading →

What can an HOA or condominium association do when activity is occurring within the community that appears to be objectionable, but which is not specifically addressed in the Declaration of Covenants, Conditions, and Restrictions or other association governing documents? The clear answer, if the association wants enforcement power, is to amend the governing documents by following the proper procedure. Vague restrictions are difficult to enforce, and we always recommend amending governing documents to make restrictions as clear as possible. Unfortunately, as most association members are aware, the amendment process can take some time. What if the objectionable activity needs to … Continue reading →

Lawyers get asked about reported cases all the time, but usually what happens in a specific lawsuit isn’t that relevant to parties not involved in the case. That’s because circumstances are different, facts vary, associations are created at different times, it’s a condo instead of an HOA, etc.  That said, the decision in an appellate case can be instructive, and that’s certainly the case with a decision regarding collections this week from the NC Court of Appeals. In the case In re: Ackah a homeowners association foreclosed on a lot for nonpayment of assessments. The property was eventually sold to … Continue reading →

These blogs often focus on community association issues, whether hot topics, new appellate cases, or proposed federal or state laws. Today there’s a more pressing issue to address—the devastation caused by Hurricane Harvey. Without question, what’s happened in Texas is also a community association and community association resident disaster. Texas is third among states (only behind Florida and California) in its number of community associations, with more than 19,900 HOA/condo associations and more than 4 million residents. Many of them now face dangerous conditions and uncertain futures. Everyone also likely knows someone who has been personally affected. Houston attorney Mark … Continue reading →

Senate Bill 16 was vetoed by Governor Cooper on August 15, 2017, for reasons other than the proposal described below. The proposed study of a mediation and arbitration board by the Legislative Research Commission below is on hold until the legislature votes on whether or not to override the veto. The General Assembly met yesterday (August 3) to consider several issues remaining from the legislative session. Bills that would impact North Carolina’s homeowner and condominium associations weren’t really on the agenda, but one proposal was adopted that has a provision concerning community associations. Senate Bill 16: Business & Agency Reg. … Continue reading →

I often receive questions from managers and board members about fees that homeowners associations and condos can and can’t charge to homeowners and to prospective purchasers in their communities.  One of the most common questions goes something like this: “Our covenants say that we can charge a capital contribution fee / transfer fee / some other similar fee at each closing.  Can we charge this fee?” The answer will depend on several factors, including the age of the fee covenant, which party is entitled to receive the fee, and whether the original developer is still selling property in a community. … Continue reading →

The General Assembly adjourned its 2018 regular session this month, so questions have arisen about what happens to proposals that would have directly impacted North Carolina’s homeowner and condominium associations (see NC Community Association Legislative Update-June 22, 2017), but weren’t adopted. The clear answer: “It depends.” Although legislators left town, they haven’t really left for good. The adjournment resolution provided that special legislative sessions will be held in August, September, and again by November. While these sessions are intended to be focused on legislative redistricting and other major issues, the General Assembly can consider what it wishes. While it is unlikely … Continue reading →