NC HOA Rules, Regulations, and Laws

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.

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