In a recent decision by the North Carolina Court of Appeals, the Court held that a condominium association was not responsible for out of pocket expenses incurred by an owner when she was forced out of her unit while repairs were made. In Gehrke v. Gates at Quail Hollow Homeowners’ Ass’n, an owner sued her condominium association for all the costs she incurred while she was forced out of her unit for repairs. To read the full case, click here.    Marguerite Gehrke was a unit owner in The Gates at Quail Hollow Homeowners’ Association, Ltd. (the “Association”), in Charlotte, North … Continue reading →

Homeowners associations are tasked with managing and overseeing the common areas of a neighborhood, which many times include recreational facilities such as tennis courts. In recent years, pickleball, a game that is a mixture of tennis, ping pong, and badminton, has grown in popularity, and residential developers are now regularly including pickleball courts as an amenity in newer neighborhoods. Some more established communities are also engaging with the trend, and are considering converting their existing tennis courts into pickleball courts. This decision to accommodate pickleball as a neighborhood amenity can be surprisingly controversial, as it can reduce the number of … Continue reading →

We are often asked what an association can or cannot spend their money on. In fact, this blog was inspired by a request from one of our regular readers. Associations are tasked with performing various community functions based on the requirements of their particular governing documents and state statute. You will often hear us say that assessments are the “lifeblood of an association.” That is because without them the association cannot do its job. There are some obvious uses for community funds, such as paying for the maintenance of the common area, improving association property, hiring professionals such as managers, attorneys, and … Continue reading →

In North Carolina, many Associations have covenants that prohibit “commercial vehicles” or “trucks.” In North Carolina, the top two best-selling vehicles and three of the top five vehicles in the state are pickup trucks. With the volume of pickups on North Carolina roads, and the number of truck-related covenants in place, the intersection is a common one to encounter, and the HOA is the traffic cop that is stationed at that intersection. Recently in Florida, this intersection was the subject of a dispute between an HOA and a homeowner. The homeowner purchased a 2022 Rivian R1T, which recently was named MotorTrend’s Truck of … Continue reading →

With the passage of federal and State laws protecting disabled individuals, we see a societal push away from institutionalized living arrangements and towards community based, group home settings. This firm is frequently asked how, or if, an association can prohibit these group living arrangements within their community. Sometimes residents are worried that the group home occupants will pose a safety risk; there are also concerns about parking and transient residents; and fundamentally, associations may question whether this type of group living arrangement is consistent with single family residential use. The purpose of this blog is to provide a broad overview … Continue reading →

Requests for amendments to declarations tend to go in waves. Twenty years ago many associations were concerned about certain categories of sex offenders living in their communities. For several years now, the declaration amendment our firm most often gets asked about has to do with rental restrictions. Such questions arise out of concern that too many rentals or certain types of rentals will impact the “character” of neighborhoods. As a result, associations regularly approach our firm for advice on rental bans, rental caps, or restrictions on short-term/transient rentals like Airbnb or VRBO. (See Top Declaration Amendments for an HOA or … Continue reading →

All community association boards want to be good stewards of the funds collected from their homeowners.  Sometimes, when finances are tight, a board has to face hard choices about how to reduce costs.  That might mean reducing services or even deferring needed maintenance for a period of time where that maintenance is not essential to safety or structural integrity.  As with all contracts, boards want to find the insurance that best suits their community and offers the best protection—at the best price.  For those townhome and condo communities located in a flood zone, the question often arises whether they must … Continue reading →

With the appreciating residential real estate market, rental homes are becoming an increasingly common feature in residential neighborhoods subject to restrictive covenants.  Restrictive covenants will typically have a few main types of provisions that lot owners opt into when purchasing their restricted lots—architectural standards, obligations to pay assessments to a homeowners’ association, provisions outlining the common area/amenities- but also some regulations that relate to conduct of individuals who reside on a lot.  Sometimes the practice of leasing will even be prohibited or limited in the restrictive covenants of a community, or even provide that the HOA can screen prospective tenants. … Continue reading →

The Internal Revenue Service has recently announced additional relief for Hurricane Ian victims across North Carolina and South Carolina. The tax relief postpones several tax filing and payment deadlines in North and South Carolina, as outlined below: Individuals and businesses located anywhere in the Carolinas will now have until February 15, 2023 to file returns, provided they had a valid extension to file their 2021 return. Individuals and businesses will have until February 15, 2022 to pay taxes that were originally due on September 25, 2022 in South Carolina and September 28, 2022 in North Carolina (the full list of … Continue reading →

There is often a breakdown between what homeowners within a community and the board of an association believe are the responsibilities of the association. Our association clients experience this with a myriad of issues, and one area of particular importance is that of homeowner safety. For associations hoping to understand what their responsibilities are in ensuring a homeowner’s safety and wellbeing, a great place to start is the governing documents. The governing documents will explain an association’s responsibilities in regard to the safety of homeowners, and their additional responsibilities in general. An association should take reasonable action to protect those … Continue reading →

As community association attorneys, we hear all sorts of reasons from homeowners to explain why they haven’t paid their assessments.  These usually include legitimate explanations such as illnesses like COVID, job loss, or other hardships.  Some homeowners are more creative.  One owner recently told our office that the presence of “entities” in the home was a reason for non-payment.  In a recent case out of Kentucky, William and Theresa Thompson told their homeowners association they shouldn’t have to pay assessments on two lots they owned because the lots weren’t there anymore.  Although existing as two separate lots, they were treated … Continue reading →

Community associations have historically been able to stay largely uninvolved in neighbor-to-neighbor disputes unless the conduct complained of violated the governing documents of the association. If no governing documents were being violated, the neighbors would be expected to work out the issues among themselves. Now, there is an important step for association boards and managers to consider when learning of neighbor-to-neighbor disputes. The Fair Housing laws may create a duty for community associations to investigate complaints of discrimination between neighbors and to possibly take some action. Note – This duty might exist even if the board of directors and association manager … Continue reading →

A decision last week (November 4) by the NC Supreme Court provides helpful authority to older condominiums not only in the context of foreclosures, but in the larger context of relying on the retroactive portions of the NC Condominium Act (Chapter 47C). In the Matter of the Foreclosure of a Lien by Executive Office Park of Durham Association, Inc Against Martin E. Rock A/K/A Martin A Rock considered the issue of whether a pre-October 1, 1986 condominium, formed pursuant to the NC Unit Ownership Act (Chapter 47A), has the power of sale for foreclosure as set forth in the Condominium … Continue reading →