Power of North Carolina HOA? (Charlotte, Havelock: mortgages, new house, costs)

[Jack Rousseau]

North Carolina Homeowners Associations are governed by the NC General Statutes, specifically by Chapter 55a (NC Nonprofit Corporation Act), Chapter 47c (NC condominium Act) and Chapter 47f (NC Planned Community Act). In addition there are each Association's Articles of Incorporation, ByLaws and their Declaration of Covenants, Conditions and Restrictions.

Unfortunately, violations are only enforced in court if suit is brought there. Many HOAs just violate any and all without regard. 'Tis sad but true!

[ineedhelpnnc]

Thank you for the reply. Yes I now know our bylaws by heart. And this particular HOA is governed by the Nonprofit corporation, as it was established in the early 60's. But one homeowner owns the majority of the houses and therefore the rest of us are always in the minority. And seeing how this one person controls the monies spent and pays out money with out being the least bit embarrassed by lack of scrupels. I am trying at least to get this person to to have have regular board meetings w/dues accountability much to my chagrin no such luck.

Also changes have been made to the bylaws to suit the needs of this person without much regard to city laws and regs. Trying to get the City to act responsibly in this has also been very difficult.

So money spent on lawyers has pretty much not done me any good but to let me know I am basically SOL.

So I still have hope of honesty prevailing but alas Pollyanna is slowly dying.

[wattmama]

I had a condo in NC which was heired to me by my father. I had never had the loan changed and my mother lived in the condo paying the mortgage for three year The property is in the process of foreclosures and the HOA is attempting to collect fees even though they know noone has lived in the property for 3 months, am I still liable for the condo fees, they are threatening a suit.

[mike052082]

Originally Posted by wattmama

I had a condo in NC which was heired to me by my father. I had never had the loan changed and my mother lived in the condo paying the mortgage for three year The property is in the process of foreclosures and the HOA is attempting to collect fees even though they know noone has lived in the property for 3 months, am I still liable for the condo fees, they are threatening a suit.

Yes, why wouldn't you be?

[rumorsunstitched]

There are many laws that regulate HOAs from Federal Law, State Law, City/Town/County Law, etc. HOAs are not excluded from this, but you do need to understand your covenants too. I would recommend that you do your homework before buying a property. I served on a community board for three years. The covenants do take away certain rights which means you can't do whatever you want just because you own a plot of land. You agreed that the HOA can tell you what you can and cannot build on the property OR that you must mow your lawn to keep up with appearances. Most HOAs are allowed to fine you and place a lien on your property (even foreclose) if you are not following the covenants. No one wants to do these things to their neighbor - but it's the only way to get someone's attention if they are repeatedly ignoring letters and requests from the HOA. The article "10 Things a Homeowners Association Won't Tell You" seems more like a warning page to buyers - these are things that you should research before you buy in a community. I find that most of those "10 Things" are rumor between neighbors and no one really tries to talk problems out with the Board members. Instead they sulk about them and complain to their neighbors about how miserable the HOA is - for whatever reason, they are too cowardly to work the problem out as an adult. Just do your homework before you buy. Our community opens all their meetings up to neighbors and communicate often with the homeowners, so we really have a good group of people living here. If your community is not opening their meetings, then you have more serious problems because it is a law in NC that Board members have to meet with homeowners from time to time. That's not to say that you can harass them until you get your way. Our Board is very responsive and sometimes the answers are not what everyone wants, but they are looking out for A COMMUNITY not one or two complainers.

[ineedhelpnnc]

thank you for your reply. I have done much research and spent a lot of money on lawyers. It is a small non-profit HOA set up in the 60's. I found the lawyer that set it up. It gives the majority owner(s) the right to veto anything and everything. I have read our by-laws but it does not matter the majority owner does what they want. They use the check book for personal usage, with-out receipts and spend money on their units for upgrades and veto the 3 that are not theirs.

My two attorneys say that I am out of luck unless North Carolina tightens up their laws as it is not enough money to warrent North Carolina's court system to take action. I have owned for 6 years and plan on retiring.

In California where I reside now, this would not occur no matter how little or how much property was owned. Very frustrating, but I do have a new home owner coming to see what's going on and is on my side. The other two home owners rent.

Very very upsetting, but thank you so much for the time and your informative response.

[GCharlotte]

Originally Posted by terilee

NC has many State laws that protect homeowners that are involved with HOA's General Assemby just passed a bill in Oct 2009 that helps homeowners and takes away all the power from the HOA House Bill 806. All states are doing this as it is a huge waste of Tax paer money to go to to court over 300 or less in some cases.

I'm replying to this old message because there are new messages on this thread. HOA House Bill 806 only specifies the requirements to inform people when an association puts a lien on a property.

It just makes them verify where someone lives if they can before taking their house. That's about it.

[GCharlotte]

Originally Posted by ineedhelpnnc

thank you for your reply. I have done much research and spent a lot of money on lawyers. It is a small non-profit HOA set up in the 60's. I found the lawyer that set it up. It gives the majority owner(s) the right to veto anything and everything. I have read our by-laws but it does not matter the majority owner does what they want. They use the check book for personal usage, with-out receipts and spend money on their units for upgrades and veto the 3 that are not theirs.

My two attorneys say that I am out of luck unless North Carolina tightens up their laws as it is not enough money to warrent North Carolina's court system to take action. I have owned for 6 years and plan on retiring.

In California where I reside now, this would not occur no matter how little or how much property was owned. Very frustrating, but I do have a new home owner coming to see what's going on and is on my side. The other two home owners rent.

Very very upsetting, but thank you so much for the time and your informative response.

I am not sure what your exact beef is. If you direct message me the name of the association I can give you some tips.

The problem with what you just posted is that you said "units" which means Condo laws and not HOA laws. That's two different laws.

An HOA can't change bylaws without a 60% (not sure the exact number) vote so even if one guy had that many votes he'd still have to call a meeting to have the vote and then record the results with the register of deeds office.

If he's doing what you say he is he may have violated fiduciary duties but I'm not sure if you have a specific problem or are just mad at him in general.

If it's an HOA, and you don't pay the fees, they can foreclose and sell your property after proper notice. Don't be on that taking a year. And the least you'd pay is $1200 in lawyers fees, $75 in court fees, and bunch more.

DM the name of the association if you want but keep in mind HOA and Condo laws are two different things in NC.

[ksicely]

If you look at the Planned community act of north carolina, this has all the information listed as to the powers of the hoa. It is very valuable information and may help a lot. If they are trying to place a lein or foreclose look at chapter 47. They cannot place a lein or refuse payment if it will catch up the dues without attorneys or collection fees. Hope this helps.

[ksicely]

also, they can only foreclose on the home if they have the mortgage company on board. If you mortgage is current, they may only place a lein on the home.