HOA Boards must be wary of potential conflicts of interest Question:  What is a reasonable course of action for homeowners who have legitimate concerns about a board member with a clear conflict of interest? For example, say a homeowners’ association (HOA) has a board member who is also a contractor specializing in replacing siding. This person, along with the other board members, makes the decision to interpret a provision of the restrictive covenants (the CCRs) that requires homes to have a …

Can an HOA collect after a mortgage foreclosure? Question:  When there are past-due HOA assessments for a property, and a mortgage lender forecloses on the property and takes title, who can the HOA collect the unpaid HOA assessments from following the foreclosure? Answer:  This is a follow-up question from a column I wrote in 2015 that can be found here: https://carolinacommonelements.com/2015/05/01/after-foreclosure-who-pays-past-hoa-dues/ In a typical mortgage foreclosure, the foreclosing lender has a first-priority lien on the property, which means that the foreclosure …

GOLF CART CRUISIN’ ON PUBLIC ROADS This week’s column was written by Bill Hamel. A few years ago I wrote an article titled “Is Golf Cart Cruisin’ Legal?” that addressed whether it was legal to operate a traditional golf cart on a public road in North Carolina. My answer then was “no,” and that answer remains the same today—unless you turn your golf cart into an electric car and register it with the DMV, or, more realistically, you are in …

Must HOA’s act to end discriminatory actions by others? A few years ago one of our HOA clients came to us with a discrimination lawsuit that had been filed against them by the local housing agency.  Apparently a group of homeowners had started a Facebook page using the HOA’s name, without the HOA’s knowledge or authorization, and were posting disparaging and racially-charged comments about a particular family in the neighborhood.  While the HOA board had nothing to do with this …

Assessment Issues; Does Developer Owe Dues? Question:  I was delinquent in my mortgage payments and was facing foreclosure. I also had a separate lien against my property for nonpayment of HOA dues. Fortunately, I was able to sell my home via a “short sale.” In connection with the short sale, my mortgage lender removed the HOA lien from the property in order to transfer ownership to the buyer. However, the HOA is now saying that it is going to seek a …

Developer Giving Homeowners the “Cold Shoulder”? Question: I live in an HOA-governed community in Cabarrus County, North Carolina, that is still under the developer’s control. It’s been over two years since an annual meeting of the HOA was held, and the developer refuses to schedule one. Some homeowners want to withhold payment of the annual assessments, but they fear the repercussions for doing so (late fees, interest, liens, etc.) Answer: The North Carolina Planned Community Act (“PCA”), which is a body …

What’s the difference between a proxy and a ballot? Question:  I am on the board of directors for my homeowners’ association, and our annual meeting is coming up. There seems to be confusion among our board members and homeowners regarding the difference between a proxy and a ballot, and how the voting process works for owners who cannot attend the meeting to cast their vote. Answer:  A lot of homeowners’ associations (HOAs) hold their annual meetings in the first quarter of …

In Defense of HOAs This column was written by my colleague Donna Dimaggio Berger. Donna is a Shareholder in the Florida law firm of Becker & Poliakoff and is the author of the popular Community Association Law blog which can be found at www.communityassociationlawblog.com.  I want to express my gratitude to Donna for allowing me to share this column with our readers.  In this column, Donna makes some astute observations about the benefits that HOAs provide HOAs certainly have their share …

Going out on the limb with neighbors and overhanging trees This column was written by Bill Hamel. Question:  My neighbor’s trees and overhanging limbs are shading out part of my yard where I would like to grow grass and other plants that need sun.  What are my options? Answer:  Generally, you have the right to cut overhanging limbs and roots at the property line, but there are some important exceptions. Here are the basic rules you will need to follow: …

Navigating the Homeowners Portal for Board Members Board members have different access abilities to the homeowners portal to assist with management of the association. This webinar details how board members access and view key sections of the association website to get the overall information needed to run the association.  These sections include: Board ACC Review – review and comment and determine approval decision for changes made to a homeowners’ property – landscaping, outbuildings, additions, etc. Board Aging Report – …