A Dark Horse Wins in a Recent South Carolina HOA Foreclosure The South Carolina Court of Appeals just bridled an HOA’s attempt to foreclose a delinquent owner.  Thankfully, the case is unpublished (meaning that it is not binding precedent on future court cases).  Even though the case is unpublished, it signals a growing unease among the Court of Appeals about HOA foreclosures for small sums. In a case from the Columbia area, the Court of Appeals overturned a lower-court …

North Carolina Legislature Introduces Bill To Make Virtual HOA Meetings Permanent During the past 12+ months, most of us have gotten comfortable with conducting HOA board and membership meetings over virtual platforms such as Zoom, GoToMeeting, and Microsoft Teams.  The authorization for this method of conducting business came from a provision in one of the Governor’s early Covid-related Executive Orders, which has been extended multiple times and is currently set to expire on May 10.  Though nothing is certain, …

Ask the Experts: Credit Reporting  Q: More than a quarter of the owners in our 143-home association are delinquent paying their assessments. Is it possible to report these delinquent debts to a credit bureau? —North Carolina A: While it might sound attractive for your homeowners association to report the delinquent debts to one or more of the consumer-credit reporting agencies, such as Equifax, Experian, and TransUnion, as a collection tool, your community would have to be a member of the bureaus …

Time for Your HOA’S Annual Checkup It’s 2021, and while 2020 was a rough year, let’s try to keep 2021 as normal as possible. Like many Americans trying to set goals for the new year, HOAs and condominium boards should also. First, check on buildings’ health and other improvements for which the association is responsible for maintaining. Now might be an excellent time to see if delayed maintenance can be undertaken to the pool or amenities so they will …

Increasing Events of Rainfall and Flooding Cause Headaches for HOA’s – Part 2 A townhome community in Salisbury suffered unprecedented flooding rainfalls over the last two years. One townhome located in the community’s low-lying area sustained damage to the foundation and other structural components, to the point that the structure was starting to settle. Like most townhome communities, the HOA only provides exterior maintenance on the townhomes. The homeowner reportedly incurred expensive repairs to the foundation to cure mold …

Increasing Events of Rainfall and Flooding Cause Headaches for HOA’s – Part 1 Grandfather Golf and Country Club is a resort community in Linville’s North Carolina mountains, comprised of 250 single-family homes and 150 condominiums. One day in May 2018, the community experienced four inches of rain in two hours – something that had not been seen in recent memory. Bridges and cart paths on the golf course were washed away. The clubhouse flooded. Maintenance personnel reported that the force …

North Carolina Appellate Cases Could Impact Enforceability of HOA Restrictions There are currently three cases pending before the Court of Appeals all asking the same question: does the North Carolina “Marketable Title Act” invalidate planned community restrictive covenants that are more than 30 years old? In 1973, the Legislature enacted Chapter 47B, which is the North Carolina Marketable Title Act. The Act’s stated purpose is: . . .to provide that if a person claims title to real property under …

6 Tips for Budget Season Yes, it’s that time of year again for HOAs. No, not the holiday season—it’s the budget season! Most HOAs use the calendar year as their fiscal year, and now is the time of year that many boards of directors are formulating their budgets for next year. Here are some tips for making the budget and next year’s finances run smoothly and in compliance with North Carolina law. Reserves: analyze the property that the HOA …

Can annual or special meetings proceed in a pandemic? One of the oft-heard concerns of our HOA and condominium clients during the Covid-19 crisis is whether annual or special meetings of the membership may proceed. Boards and members are justifiably worried about violating mass-gathering restrictions, and more importantly, about exposing themselves and their families to Covid-19 health risks.  The foundational principle of HOA and condominium governance is that an informed membership or board makes better decisions after a robust …

Recent Legislation Brings Twin Impacts to Community Associations (Note: this column was written by Hope Carmichael, Esq., CAI-NC Chapter President and fellow of the College of Community Association Lawyers)   Limited Immunity for Pools Gov. Cooper signed HB 902 on July 2, a bill mandating that owners and operators of community pools and their agents shall not be liable in any claim or action seeking damages for injury or death resulting from transmission of COVID-19 alleged to have resulted …