HOA LAWS AND REGULATIONS
Federal Laws - In addition to state law regulations, the federal government has laws that govern the operation and management of common interest communities, condominiums, cooperatives, and residential properties in North Carolina.
North Carolina Unit Ownership Act, N.C. Gen. Stat. §§47A-1, et seq.: This Chapter applies to all condominiums created within North Carolina before October 1, 1986.
North Carolina Condominium Act, N.C. Gen. Stat. §§ 47C-1-101, et seq.: The law governs, among other things, the creation, alteration, and termination; management and protection of purchasers of condominiums created after October 1, 1986.
North Carolina Planned Community Act, N.C. Gen. Stat. §§ 47F-1-101, et seq.: This Chapter applies to all planned communities created on or after January 1, 1999, except as otherwise provided in section 47F-1-102. A planned community is created by recording a community declaration in the county's land records in which the community is located. See § 47F-2-101 (creation of the planned community).
North Carolina Nonprofit Corporation Act, N.C. Gen. Stat. §§ 55A-1-01, et seq.: The statute governs nonprofits with regard to corporate structure and procedure. All lot owners' associations in North Carolina must be incorporated. Every association created after January 1, 1999, must be organized as a nonprofit corporation § 47F-3-101. Condominium associations may organize as either for-profit or nonprofit corporations § 47C-3-101.
Prelitigation mediation of condominium and homeowners association disputes, N.C. Gen. Stat. § 7A-38.3F. North Carolina associations must notify members at least annually of their right to initiate a mediation. N.C. Gen. Stat. §7A-38.3F(j). Associations and members can contact the North Carolina Dispute Resolution Commission or the Mediation Network of North Carolina and request a mediator. N.C. Gen. Stat. §7A-38.3F(c). This provision does not apply if the dispute arises solely from a member's failure to pay assessments. N.C. Gen. Stat. §7A-38.3F(b).
North Carolina Debt Collection Act (NCDCA), N.C. Gen. Stat. §§ 75-50, et seq.: The Act regulates debt collection practices at the state level and contains provisions similar to the federal Fair Debt Collection Practices Act (FDCPA). The NCDCA prohibits debt collectors from using unfair or deceptive practices when collecting a debt. HOA fees are considered "debts" under the FDCPA and the NCDCA, and homeowners are protected "consumers." Importantly, while the FDCPA only applies to those who regularly collect debts on behalf of others, the NCDCA applies to creditors attempting to collect their own debts, potentially including community associations under the right circumstances. N.C.G.S. §75-50(3). Victims can file a complaint with the state's Attorney General's Office, FTC, or the CFPB.
Recommended Reading:
Davis Lake Community v. Feldmann, 138 N.C. App. 292, 530 S.E.2d 865 (N.C. Ct. App. 2000). The court heald that a homeowners' association trying to collect assessments owed to it, is a "debt collector" under the NCDCA.
Reid v. Ayers, 138 N.C. App. 261, 531 S.E.2d 231 (N.C. Ct. App. 2000). The court held that attorneys engaged in debt collection on behalf of their clients are exempt from the NCDCA.
North Carolina State Fair Housing Act (NCFHA), N.C. Gen. Stat. §§ 41A-1, et seq.: The law protects people's right to access all housing opportunities without discrimination based on race, color, religion, sex, national origin, handicapping condition, or familial status (the presence of children under the age of 18). See N.C. Gen. Stat. § 41A-4 (unlawful discriminatory housing practices, § 41A-3 (Definitions), and § 41A-6 (exemptions). See also, Persons With Disabilities Protection Act (PWDPA), N.C. Gen. Stat. §§ 168A, et seq., for associations with common elements open to the general public.
The NCFHA and PWDPA provide state-level protections similar to the federal Fair Housing Act (FHA) and the Americans With Disabilities Act (ADA). Victims of housing discrimination can file a complaint with the Housing Discrimination Section of the North Carolina Civil Rights Division or HUD within one (1) year from the date of the discriminatory act. Victims may also file a private lawsuit in the federal district court within two (2) years of the discriminatory act.
Recommended Reading:
SOLAR PANELS
Deed Restrictions, Covenants, and Other Agreements Prohibiting Solar Collectors, N.C. Gen. Stat. § 22B-20. The purpose of the statute is to "protect the public health, safety, and welfare by encouraging the development and use of solar resources and by prohibiting deed restrictions, covenants, and other similar agreements that could have the ultimate effect of driving the costs of owning and maintaining a residence beyond the financial means of most owners." § 22B-20(a).
In particular, this chapter voids any deed restriction, covenant, or similar binding agreement that effectively prohibits the installation of a solar collector for residential property (excluding condominiums created under Chapter 47A or 47C) subject to the deed restriction, covenant, or agreement. § 22B-20(b). The law permits associations to impose restrictions on the location or screening of solar collectors provided the deed restriction, covenant, or similar binding agreement does not have the effect of preventing the reasonable use of a solar collector for a residential property. § 22B-20(c). The law sets additional requirements for solar collectors that are visible by a person on the ground. § 22B-20(d).
GOVERNMENT AGENCIES
Federal Agencies - List of federal agencies with oversight authority over homeowners’ associations.
Important Facts About North Carolina Homeowner Associations - Discover how associations are governed and what boards can and cannot do when managing an association's affairs, collecting assessments, and enforcing covenants.
North Carolina Housing Discrimination Section of the Civil Rights Division - The agency investigates fair housing discrimination complaints on the state level. Homeowners who believe have experienced housing discrimination can file a complaint with this agency. Call (919) 431-3030 or toll-free at (866) 324-7474 to file a complaint.
North Carolina Licensing Board for General Contractors - The agency is responsible for the licensure, education, and general contractors' discipline.
North Carolina Real Estate Commission - The Commission is responsible for the licensure, education, and discipline of real estate professionals.
Q&As: Condos & Townhouses
North Carolina Attorney General - The attorney general's office plays an important role in protecting its citizens.
HOA CONTACT INFORMATION AND DOCUMENTS
HOA Directory - Homeowners can enter the community's name or subdivision to find the association’s contact information, list of board members, and other relevant corporate information.
Association Records and Inspection - All financial and other records, including records of the association and executive board meetings, must be made reasonably available for examination by any lot owner and the lot owner's authorized agents as required in the bylaws and Chapter 55A (Nonprofit Corporation Act) of the General Statutes. See N.C. Gen. Stat. §47F-3-118 (for HOAs), §47C-3-118 (for condominiums created after October 1, 1986), §55A-16-01 (corporate records), § 55A-16-02 (inspection of records by members), and §55A-16-03 (scope of inspection rights). See also, §47A-20 (records of receipts and expenditures; availability for examination; annual audit) for condominiums created before October 1, 1986.
North Carolina Recorded Document Search - Visit the county recorder's office where the property is located to find an association's Declaration of Covenants, Conditions, and Restrictions (CC&Rs), Amendments to CC&Rs, Bylaws, Lien Notices, HOA Notices, Plats, Maps, and other community documents can be found by visiting the county recorder’s office website in which the association is located. The association’s CC&Rs must be recorded with the county land records to be enforceable.
LEGAL RESOURCES
Direct link to North Carolina's General Statutes Table of Contents.
North Carolina General Assembly - Search your state representative and the legislation (or "statutory law") database.
North Carolina Dispute Resolution Commission or Mediation Network of North Carolina- Associations and members can contact these agencies and request that a mediator or community mediation center be assigned to resolve HOA disputes that do not involve a member’s failure to pay assessments.
The North Carolina Court System - Find court information, documents, rules, legal opinions, court cases, self-help services, and lawyer referral services.
North Carolina State Bar - The association offers access to a lawyer directory, lawyer referral service, and information to determine if a lawyer is in good standing or file a complaint.
Legal Aid of North Carolina - is a nonprofit law firm that offers free legal services to low-income people.
Legal Services Corporation - The independent nonprofit corporation provides civil legal assistance to low-income Americans.