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 →

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 →

With the appreciating residential real estate market, rental homes are becoming an increasingly common feature in residential neighborhoods subject to restrictive covenants.  Restrictive covenants will typically have a few main types of provisions that lot owners opt into when purchasing their restricted lots—architectural standards, obligations to pay assessments to a homeowners’ association, provisions outlining the common area/amenities- but also some regulations that relate to conduct of individuals who reside on a lot.  Sometimes the practice of leasing will even be prohibited or limited in the restrictive covenants of a community, or even provide that the HOA can screen prospective tenants. … Continue reading →

The Internal Revenue Service has recently announced additional relief for Hurricane Ian victims across North Carolina and South Carolina. The tax relief postpones several tax filing and payment deadlines in North and South Carolina, as outlined below: Individuals and businesses located anywhere in the Carolinas will now have until February 15, 2023 to file returns, provided they had a valid extension to file their 2021 return. Individuals and businesses will have until February 15, 2022 to pay taxes that were originally due on September 25, 2022 in South Carolina and September 28, 2022 in North Carolina (the full list of … Continue reading →

There is often a breakdown between what homeowners within a community and the board of an association believe are the responsibilities of the association. Our association clients experience this with a myriad of issues, and one area of particular importance is that of homeowner safety. For associations hoping to understand what their responsibilities are in ensuring a homeowner’s safety and wellbeing, a great place to start is the governing documents. The governing documents will explain an association’s responsibilities in regard to the safety of homeowners, and their additional responsibilities in general. An association should take reasonable action to protect those … Continue reading →

As community association attorneys, we hear all sorts of reasons from homeowners to explain why they haven’t paid their assessments.  These usually include legitimate explanations such as illnesses like COVID, job loss, or other hardships.  Some homeowners are more creative.  One owner recently told our office that the presence of “entities” in the home was a reason for non-payment.  In a recent case out of Kentucky, William and Theresa Thompson told their homeowners association they shouldn’t have to pay assessments on two lots they owned because the lots weren’t there anymore.  Although existing as two separate lots, they were treated … Continue reading →

Community associations have historically been able to stay largely uninvolved in neighbor-to-neighbor disputes unless the conduct complained of violated the governing documents of the association. If no governing documents were being violated, the neighbors would be expected to work out the issues among themselves. Now, there is an important step for association boards and managers to consider when learning of neighbor-to-neighbor disputes. The Fair Housing laws may create a duty for community associations to investigate complaints of discrimination between neighbors and to possibly take some action. Note – This duty might exist even if the board of directors and association manager … Continue reading →

A decision last week (November 4) by the NC Supreme Court provides helpful authority to older condominiums not only in the context of foreclosures, but in the larger context of relying on the retroactive portions of the NC Condominium Act (Chapter 47C). In the Matter of the Foreclosure of a Lien by Executive Office Park of Durham Association, Inc Against Martin E. Rock A/K/A Martin A Rock considered the issue of whether a pre-October 1, 1986 condominium, formed pursuant to the NC Unit Ownership Act (Chapter 47A), has the power of sale for foreclosure as set forth in the Condominium … Continue reading →

Law Firm Carolinas Partner David Wilson has been elected Chair of the South Carolina Legislative Action Committee (SC LAC). The SC LAC is a committee of the Community Associations Institute that monitors and influences legislation that impacts community associations, and its members talk with legislators on issues of concern to HOAs and condos. For more information on the activities of the SC LAC, visit the South Carolina Legislative Action Committee page.

In a recent South Carolina Supreme Court decision, the Court struck a mandatory arbitration clause from purchaser contracts with a home builder because the terms were considered to be unconscionable.  In Damico v. Lennar Carolinas, a group of home buyers in the Spring Grove Plantation community sued Lennar Carolinas for construction defect claims.  As one of its primary defenses, Lennar Carolinas pointed to the arbitration clause included in the contracts that each homeowner had signed.  These clauses required cases to be arbitrated and waived other protections normally available to a home buyer, such as trial by jury.  The Court determined … Continue reading →