Homeowner associations must abide by a variety of rules, regulations, and laws in order to safeguard themselves and their residents. These can include
NC HOA community associations must be
incorporated by filing Articles of Incorporation in their county of
incorporation. This formal legal document outlines eligibility criteria and
term lengths for board members as well as who holds office within the
association.
Incorporation of an HOA and Its Corporate Structure
Articles of Incorporation also establish certain tax
obligations and procedures for collecting fees and special assessments from an
association. Furthermore, these documents often outline how amendments to
governing documents or other rules affecting a community can be made.
Assessments to the
Association
Most communities in North Carolina rely on annual
assessments from lot owners to fund services provided by their associations.
These assessments are based on a percentage of each lot's share of overall
common interest as defined in declarations and other documents governing subdivisions.
If there remains money left over after all expenses and reserves have been
deducted, it can either be refunded pro-rata or credited towards future
assessments.
Fines and penalties may
apply for violations of governing documents or HOA regulations.
If a lot owner fails to abide by the governing
documents of their community, homeowners associations have the power to issue
fines that must be approved by either the board of directors or an independent
hearing committee. These fees can range anywhere from $100 without a hearing to
up to $500 with one.
CC&Rs (Covenants,
Conditions, and Restrictions)
In a subdivision, covenants, and conditions specify
what types of structures are allowed and prohibited on the property as well as
how they should be built and maintained. These documents are usually created
when the subdivision first forms and recorded in official land records of the
county in which it lies.
Rights to Vote on HOA
Matters
HOA members have the privilege of voicing their
concerns at annual and special meetings, as well as voting on important matters
like board elections or covenant amendment. Moreover, members have the option
to request mediation when disputes arise and file suits against board members
who they feel have acted unfairly or infringed upon their legal rights.
Homeowners have the right to access HOA documents
and financial reports by making a written request to the board. This could
include financial reports, budgets, vendor contracts, board meeting agendas and
minutes, membership lists, tax returns, and governing documents.
Removal of Board Members
and Other Removable Officers
A majority vote of homeowners is necessary in order
to remove any board member or officer from office. Unfortunately, this process
is not always straightforward; sometimes an association's bylaws will provide
guidance on how to remove a board member.