Senate Bill 378 Could Devastate North Carolina’s Community Associations—And Burden Responsible Homeowners

This article was originally published on May 8, 2025 by Jim Slaughter for Law Firm Carolinas Blog.

Senate Bill 378, recently passed by the North Carolina Senate, contains a provision that could unintentionally cause enormous financial harm to North Carolina’s 15,000+ homeowner and condominium associations . If left uncorrected, this language would punish the homeowners who pay their dues on time—while giving a free pass to those who don’t.

A Well-Intentioned Bill With a Deep Flaw

SB 378 was introduced to address concerns about associations overreaching—particularly when it comes to violations of rules and covenants. That’s a fair issue to explore. Many agree that when disputes arise over governing document violations—where facts may be unclear or subjective—a judge should have some discretion in whether to award attorneys’ fees.

But the bill goes far beyond that.

As currently written, SB 378 makes attorneys’ fees discretionary in all association-related legal cases—including lawsuits to collect unpaid assessments. That change may have been an oversight, but its consequences would be serious and far-reaching.

Dues Collection Isn’t Optional—It’s the Lifeblood of a Community

Associations rely entirely on owner assessments to function. There are no profit margins or financial cushions. Assessments cover basic services: power, insurance, maintenance, and trash pickup. Many of these associations don’t even have amenities—just infrastructure to maintain. While some associations charge high assessments and provide numerous amenities, most associations in North Carolina only take care of essential services for owners and have no discretionary funds. There are even Habitat for Humanity associations for first-time home buyers!

Every owner agrees to pay association dues when they purchase a home in the community. The amount is known up front, disclosed by law, and recorded in filed public documents. If assessments aren’t paid, there is no backup funding and only one place the money can come from–the other paying owners.

SB 378 Would Shift Delinquent Owners’ Costs Onto Everyone Else

Under current law, if a homeowner doesn’t pay and the association is forced to sue, the court charges attorneys’ fees to the nonpaying owner. That ensures the cost of enforcement falls on the person who breached their obligation—not on their neighbors.

SB 378 would change that. Even when an association wins in court, it might be unable to recover legal costs. In other words, the association might have to pay an attorney $500 to collect $500—or more. That could make enforcement of assessments irrational and unsustainable.

If SB 378 passes in its current form, many associations will have no choice but to stop pursuing collections. And once word spreads that there’s no real consequence for nonpayment, delinquencies will rise. The result: paying homeowners will be forced to make up the shortfall, or services will be cut.

This Isn’t About Overreach—It’s About Survival

The concerns that prompted SB 378 related to some associations aggressively enforcing minor violations. That’s not the issue here. There’s a major difference between:

• Violations, where facts can be disputed, and

• Assessment nonpayment, which is clear and documented—either the dues were paid or they weren’t.

In violation cases, it may make sense to allow judicial discretion with attorneys’ fees. But applying the same rule to dues collection is a mistake—one that would make it harder for associations to function and easier for owners to ignore their financial obligations.

Associations Are Already Cautious and Transparent

Associations do not rush to collections. The process is deliberately slow and heavily regulated under state law. Multiple notices must be sent—by different methods and to multiple addresses—over the course of several weeks or months. The association’s only goal is to secure payment of the owed assessments, not to pursue legal action. Only after extended nonpayment and repeated outreach does a final “15-day letter” go out, offering one last opportunity for the owner to pay without owing any attorney’s fees. This level of notice and leniency far exceeds what is required of banks, credit card companies, or utility providers.

Associations don’t want to sue their owners. But they must—because they have a fiduciary duty to every other member of the community to pay the association’s bills.

This Can—and Should—Be Fixed

The issue with SB 378 is correctable. The provision about discretionary attorneys’ fees should be limited to violation enforcement cases only. It should not apply to the collection of assessments. That clarification would protect associations without undermining the bill’s broader goals.

The Bottom Line

Without this change, SB 378 would cause real harm. It would:

• Discourage assessment collection.

• Encourage nonpayment.

• Shift costs to other homeowners who must shoulder the non-paying owner’s costs—essentially forcing them to pay twice.

• Threaten the financial viability of entire communities.

This may not have been the legislature’s intent—but that makes it all the more important to fix. North Carolina’s associations, and the millions of homeowners they serve, are counting on it.

Voting in and Around Association Membership Meetings

This article was originally published on March 14, 2025 by Jim Slaughter for Law Firm Carolinas Blog.

Important Note: Every community association operates under its own governing documents, and different rules may apply based on state law, bylaws, articles of incorporation, type of association (homeowner association or condominium), and even when the association was created. As a result, this article provides a general discussion of voting methods but is not legal advice. If your association needs guidance on a specific situation, consult one of the community association attorneys at Law Firm Carolinas.

We often get questions about how community association membership meetings can vote before, during, and after meetings. With statutory changes made during the past few years, there are now several options—so many that it can get confusing. Below is a summary of common voting methods and their requirements for homeowner and condominium associations holding annual or special membership meetings. These methods follow the NC Nonprofit Corporation Act (NCGS Chapter 55A) and related statutes.

1. In-Person Meetings

The traditional way of conducting an association meeting still works. Members attend in person and cast their votes during the meeting. If a member cannot attend, they can send a proxy—a written authorization allowing someone else at the meeting to vote on their behalf.

Key rules for in-person meetings:

• Quorum requirements: A certain number of members must be present for a vote to count. Unless otherwise provided in the bylaws, quorum is often 10% of the votes for planned communities and 20% of the votes for condominiums.

• Proxy voting: Unless prohibited by the bylaws, members can typically authorize another person to attend and vote for them.

2. Virtual Meetings

Since COVID, associations can now hold virtual membership meetings, often using platforms like Zoom. Voting in these meetings can vary depending on the association’s size due to practicalities:

• Smaller associations can vote by raising hands on camera or using Zoom’s voting feature.

• Larger associations usually need a separate electronic voting system, as Zoom voting can be impractical.

NC State law allows virtual meetings (by “remote communication”) if the association verifies that those participating are members and provides them a reasonable opportunity to participate in the meeting and to vote on matters.

Note: It is possible to have a virtual meeting with some members in-person, whether at a clubhouse or another location participating virtually as a group. In other words, there might be a television screen at the clubhouse where 10 people are gathered and another 20 participating virtually from their homes. Don’t think of this as an in-person meeting. It’s a VIRTUAL meeting where some members are gathered in one location. Any voting should be done by everyone using the same voting platform.

3. Hybrid Option – Virtual Meeting with Written Ballots Following the Meeting

A popular approach combines a virtual meeting with voting by written ballot after the meeting. This method has several benefits:

• Virtual meetings encourage higher attendance and allow for full discussion.

• Avoiding real-time electronic voting reduces complications.

In this model, the association announces a virtual meeting but notes that all formal decisions—such as officer elections and budget ratification—will be made through a written ballot sent out afterward.

Key rules for written ballots:

• The ballot must allow members to vote for or against each proposal.

• It must include a deadline for submission, after which ballots will not be counted.

• Enough ballots must be received to meet quorum requirements.

Ballots can be mailed to owners or sent by electronic means (if the owner has consented to transact business electronically with the association). Once mailed, the ballots can also be sent via email attachment and possibly even sent a second time (by mail or email attachment) by the association to members who have not responded.

Once submitted, written ballots cannot be revoked.

4. Electronic Voting Without a Meeting

Another option is electronic voting that happens entirely outside of a meeting. This method was authorized during COVID but is more complicated.

For an association to conduct electronic voting without a meeting, the law requires:

1. Member consent: Members must have previously agreed in writing to conduct business with the association electronically.

2. Quorum requirements: Enough members must vote electronically to meet the same quorum rules as an in-person meeting.

3. Fair process: The voting deadline must be clear, and the voting method must allow members to cast their votes securely.

Since not all members have likely consented to electronic voting, this method often requires a mix of both electronic and written ballots, making it more complicated than other options. As a result, we seldom see votes conducted only by electronic voting without a meeting.

5. Notice Requirements for All Meetings

For any membership meeting—whether in person, virtual, or hybrid—members must receive advance notice.

• For homeowner associations subject to the NC Planned Community Act or condominium subject to the NC Condominium Act, notice to members must be sent at least 10 days before the meeting and no more than 60 days in advance.

• The notice must include the date, time, and location of the meeting.

• If it’s a special meeting, the notice must also include the purpose of the meeting.

• Members who have agreed to electronic communication may receive the notice by email.

6. Proxies

A proxy is essentially a power of attorney granted by a member to another individual, authorizing them to attend a meeting and act on the member’s behalf. While state statutes encourage the use of proxies, they do not require associations to distribute proxy forms to members or to adopt a standardized format—unless the association’s bylaws provide otherwise. That said, proxies are frequently used to help establish a quorum and facilitate voting at meetings.

There are actually five different types of proxies: general, directed, limited, limited directed, and quorum proxies. The most common and easiest to use is the general proxy. For more details, refer to page 94 of my book, Robert’s Rules of Order Fast Track.

While a proxy could theoretically be used for any type of meeting or vote—including ballot votes distributed to all members—it’s generally unnecessary. In most cases, the member can simply complete and return the ballot themselves. Proxies in those situations are typically only used under unusual circumstances, such as extended travel or military deployment. In practice, proxies are almost always reserved for in-person membership meetings.

Final Thoughts

Association voting rules can be complicated, and different associations may have additional rules in their bylaws or governing documents. If you’re unsure about the best voting method for your association, it’s always a good idea to consult with an attorney who regularly practices community association law.

By following these guidelines, your association can ensure fair, legal, and efficient voting—no matter what format you choose!

HOA Ruining Your Life? 10 Unenforceable HOA Rules—and How You Can Fight Back

Living in an HOA community can come with great benefits like well-maintained amenities and neighborhood events, but it may also include absurd or unenforceable rules. Some HOA boards overstep their authority by violating legal boundaries or enforcing rules inconsistently, which can open them up to liability or lawsuits. Homeowners have rights protected by state and federal laws, such as the right to fair housing, privacy, and reasonable rule enforcement. If an HOA violates these rights or its own CC&Rs, residents can challenge the rules, request hearings, and even take legal action.

Source: Realtor.com

HOA Leadership: Serving Communities, Not Controlling Them

By Paul Mengert, CEO of Association Management Group

In response to Jamie Wiebe’s provocative article, “HOA Ruining Your Life? 10 Unenforceable HOA Rules—and How You Can Fight Back,” I feel it’s important to right-size the conversation. While the frustrations of some homeowners are real and deserve thoughtful attention and appropriate action, the larger picture is much more collegial and collaborative: : The vast majority of community associations, their board members, and their managing agents are not rogue enforcers. They are neighbors—volunteers working to protect home values, foster safety, and build stronger, more connected communities.

Yes, HOAs must follow the law. And yes, sometimes rules are flawed, misapplied, or outdated. But to paint community associations as power-hungry cabals based on a few anecdotes is misleading—and unproductive.

Let’s set the record straight:

1. Community associations don’t exist to control homeowners—they exist to maintain and protect neighbors.

No one wants a neighborhood where home values plummet due to neglect, disputes fester because there’s no process for resolution, amenities disappear, or community spaces fall into disrepair. When run responsibly, associations ensure common areas are maintained, finances are managed properly, and everyone plays by the same rules—not to stifle individuality, but to promote fairness and a better quality of life.

2. Board members aren’t villains—they’re volunteers.

Contrary to the portrayal of “HOA board members on a power trip,” most of these men and women are homeowners who donate their time, energy, and creativity to serve their neighbors. They are people juggling jobs, families, and civic duty. They step up, not because it’s glamorous, but because they know someone has to be willing to do the work to ensure the community functions well. Bottom line, most HOA boards are comprised of well-intentioned people doing their best to ensure their community thrives.

3. Rules aren’t arbitrary—they’re created through a democratic process.

Homeowners actually have more power than they realize. Governing documents,—including Covenants, Conditions, and Restrictions (CC&Rs), are developed and changed through community input. Residents vote on budgets, run for the board, and have the right to challenge any decisions they feel are unfair. The system isn’t perfect, but it is participatory.

4. Mistakes don’t mean malevolence.

When an unenforceable rule makes headlines, such as requiring specific trampoline covers, it

should be addressed. And often, it is. That’s how most HOA boards operate—quickly, effectively, and collaboratively. It’s important to reframe the situation and dial back the drama: The truth is, these are not systemic abuses; they’re correctable missteps. Strong associations welcome feedback, adapt to changing needs, and revise outdated policies that no longer serve a dynamic and evolving community.

5. A better HOA starts with engaged residents.

We all know Gandhi’s empowering adage: “Be the change you want to see in the world.” The same applies in all arenas of life, including HOAs. If you want change, get involved. Attend meetings. Join a committee. Run for the board. Good governance is a two-way street: The more residents participate, the more responsive, balanced, and effective associations become.

In conclusion, while the headline “HOA Ruining Your Life?” may draw clicks, it does a an undeserved disservice to the millions of homeowners who benefit daily from thoughtful, well-managed associations. HOAs are not inherently adversarial or dictatorial—they’re collaborative by design. When run with transparency, fairness, and community spirit, they serve one mission: making neighborhoods better for everyone.

While we know journalism is storytelling at its best, we should remember what investigative journalist Carl Bernstein said, “Good journalism should challenge people; not just mindlessly amuse them.” So, let’s move past the caricature and focus on solutions. That’s what responsible leadership—and responsible journalism—should aim for.

The Power of Asking Better Questions

Ask Better Questions, Get Better Results

By: Paul K. Mengert, CEO

Association Management Group, Inc.

At AMG, we often deal with complex issues—from board governance and budgeting to resolving resident concerns and coordinating with vendors. In these moments, it’s easy to fall into the habit of trying to provide quick answers or make fast decisions. But over time, I’ve learned that the most effective leaders aren’t always the ones with the best answers—they’re the ones asking the best questions.

Whether you’re leading a meeting, coaching a team member, or speaking with a homeowner, a well-placed question can shift the entire dynamic. It invites people to think more deeply, to contribute more meaningfully, and to collaborate with greater trust. And it doesn’t have to be complicated.

Instead of asking, “Is that clear?”, try:

“What part of this might be unclear or need clarification?”

Instead of asking, “Can you handle this?”, try:

“What support would make this easier to manage?”

These small shifts create space for others to engage, share concerns, and build better solutions with you.

In our line of work, relationships are everything—and relationships are built on communication. When we ask thoughtful questions, we show people that we value their perspective. That’s true whether we’re talking with a colleague, a board president, or a vendor partner.

So as you go about your work this week, I encourage you to pause and ask:

“Is there a better question I could be asking right now?”

It might be the simplest way to make your next conversation your most productive one yet.

How Professional Management Elevates Property Values in an HOA

Homeowners Associations (HOAs) play a crucial role in maintaining community standards, enhancing property values, and ensuring a harmonious living environment. However, the effectiveness of an HOA largely depends on the quality of its management. Professional management companies bring expertise, structure, and efficiency to the table, significantly impacting property values within the community. Here’s how:

1. Consistent Enforcement of Rules and Standards

One of the primary responsibilities of an HOA is to uphold community guidelines and aesthetic standards. Professional management helps to ensures that rules are consistently enforced, preventing issues such as neglected landscaping, unapproved exterior modifications, or unsightly clutter. By maintaining a cohesive and well-kept appearance, home values remain stable and often appreciate over time.

2. Financial Oversight and Budgeting

A well-managed HOA operates with a sound financial plan, ensuring that funds are allocated wisely for maintenance, repairs, and improvements. Professional managers bring financial expertise, helping to create realistic budgets, manage reserves, and ensure timely collections of dues. A financially stable HOA reassures potential buyers and current homeowners that their investment is protected.

3. Regular Maintenance and Upkeep

Property values decline when common areas, amenities, and infrastructure are neglected. Professional management companies help boards to oversee routine maintenance, landscaping, and repairs, keeping the community in top condition. Whether it’s maintaining a pool, repairing sidewalks, or ensuring streetlights are functional, these efforts contribute to the overall desirability of the neighborhood.

4. Effective Vendor Management

Professional managers have established relationships with reputable vendors and contractors, ensuring that maintenance and improvement projects are handled efficiently and cost-effectively. By securing quality work at competitive prices, an HOA can enhance its community without unnecessary expenses or delays.

5. Conflict Resolution and Community Harmony

Disputes among homeowners can negatively impact the community’s reputation and atmosphere. A professional management company acts as a neutral third party, facilitating conflict resolution and ensuring that issues are addressed in a fair and consistent manner. This helps maintain a positive environment where residents feel secure and satisfied.

6. Strategic Long-Term Planning

Beyond day-to-day operations, professional management helps HOAs plan for the future. This includes reserve studies, capital improvement projects, and long-term maintenance strategies that prevent financial shortfalls. A well-prepared HOA demonstrates foresight, ensuring that the community remains attractive to both current and prospective homeowners.

7. Enhanced Communication and Transparency

Clear communication is vital for a well-functioning HOA. Professional managers implement structured communication channels such as newsletters, community websites, and town hall meetings. Transparency in decision-making fosters trust among residents, leading to higher homeowner engagement and satisfaction.

Conclusion

A professionally managed HOA provides structure, stability, and strategic oversight that directly contributes to increasing and sustaining property values. By ensuring financial health, enforcing community standards, maintaining common areas, and fostering a sense of harmony, professional management helps create a thriving neighborhood where homeowners can enjoy both quality living and strong investment growth. If your HOA is seeking ways to enhance its operations, partnering with a professional management company may be the key to long-term success.

NC Community Association Legislative Update – March 20, 2025

This article was originally published on March 20, 2025 by Jim Slaughter for Law Firm Carolinas Blog.

Yesterday, House Bill 444 (the “Homeowners Association Reform Bill”) was introduced. (For details, see What House Bill 444 Would Mean for North Carolina Condominium & Homeowners Associations). Today, the trend continued with the filing of Senate Bill 378 (“HOA Revisions”).

The structure and tone of SB 378 closely resemble last session’s HB 542, though it introduces several new provisions. Some of these proposals have appeared in previous legislative sessions. (For background, see Legislative Update – NC House Select Committee on HOAs Files New Bill and NC Community Association Legislative Update – February 28, 2024)

The bill spans 18 pages, but the key provisions are summarized below. To help navigate the many proposed changes, they are presented in the order they appear in the bill.

1. Management Contracts: Contracts between associations and management companies cannot exceed two years. Additionally, they cannot include an automatic renewal provision requiring more than 60 days’ notice for termination. If a contract does automatically renew, the association retains the right to terminate it for any reason with 90 days’ notice.

2. Prohibited Management Fees: Management companies cannot be compensated based on the amount of fines collected from an association or unit owner. (For context, our firm’s attorneys are not aware of any such business model currently operating in North Carolina.)

3. Parking Restrictions: Without explicit authorization in the declaration, an association may not enforce restrictions on parking personal vehicles on public streets—unless the authority to regulate parking has been expressly delegated by the Department of Transportation (DOT) or local government. (Currently, no such delegation process exists.) The term “personal vehicle” excludes motor homes, self-propelled RVs, and vehicles primarily used for commercial purposes.

4. Restrictions on Home-Based Lessons: Associations cannot impose fines for violations related to tutoring, educational lessons, academic lessons, or music lessons conducted on an owner’s property—provided the group consists of no more than five people at a time. This applies regardless of noise levels or time of day and extends to townhomes and condominiums with shared walls.

5. Lender Questionnaires and Statements of Unpaid Assessments: Fees for preparing a lender’s questionnaire or a statement of unpaid assessments cannot exceed $200 per item. An additional $100 may be charged for expedited requests requiring completion within 10 days. Beyond these charges, neither the association nor its managing agent may impose fees on a unit owner or prospective purchaser in connection with a unit’s conveyance unless the fee is expressly authorized in the declaration and not otherwise prohibited by law. A violation of this provision automatically constitutes an unfair and deceptive trade practice.

6. Copying Costs for Association Records: Costs for providing copies of association records cannot exceed the actual cost of photocopying.

7. Architectural Review Procedures: Architectural review procedures must be established and followed as outlined in the association’s governing documents, which must specify a maximum timeframe for issuing a decision or reconsideration request. A decision must be made within 90 days of submission, and all decisions must be in writing, made in good faith, and not unreasonable, arbitrary, or capricious. If a proposal is disapproved, the decision must include an explanation for the disapproval and, if the determination was not issued by the executive board, a description of the process for reconsideration by the executive board.

8. Violation Hearings and Fines: For violations of governing documents, written notice of a hearing must be sent to the owner at least 10 days in advance and must include a general description of each alleged violation and the required corrective action. Following the hearing, written notice of the decision must be sent, specifying each violation found and the required corrective action. Fines may be imposed at a rate of up to $100 per day but cannot exceed a total of $2,500 per violation, regardless of its duration. Liens related to fines must be filed with the court within 90 days of imposition.

9. Collection of Delinquent Assessments: For the collection of delinquent assessments, notice must be sent to owners via both physical mail and email, if the owner has designated an email address. A copy of any claim of lien or certificate of service must also be sent by email if applicable. A lien related to fines is extinguished unless enforcement proceedings are initiated within one year of filing the claim of lien. Foreclosure for assessment delinquencies cannot be initiated until the delinquency has persisted for 180 days or more. The bill imposes additional notice requirements on foreclosure proceedings, including new rules regarding continuances of hearings. Judicial foreclosure is eliminated as an option for liens related to fines and violations; instead, associations must pursue a civil action to obtain a judgment.

10. Attorney’s Fees in Assessment Collections: The bill modifies the rule on attorney’s fees in assessment collection matters, shifting them from the delinquent homeowner to the association at the court’s discretion.

11. Contract Transparency: Upon proper notice, an owner or their agent may inspect and copy any contract between the association and a management company.

12. Automatic License Plate Readers: Associations must maintain written records of any policy related to automatic license plate reader systems. The bill also amends NCGS 20-183.33 to govern the use of such systems by associations.

13. Mandatory Mediation for Disputes: Mediation would become mandatory before filing lawsuits, except for assessment collection matters, unless both parties agree to waive it. Since North Carolina established voluntary pre-litigation mediation for HOA/condo disputes in 2013, this change may slow the resolution process, particularly for urgent matters. (See New Voluntary Mediation Law for HOAs and Condos and New Mediation Program to Help Resolve North Carolina HOA/Condo Disputes.)

14. DOJ Oversight of Homeowner Complaints: The North Carolina Department of Justice would be tasked with collecting and publishing data on homeowner complaints against associations. While the DOJ would not mediate or arbitrate disputes, it would track complaint trends and report findings to the General Assembly.

FINAL THOUGHTS
While these proposals aim to address homeowner concerns, the bill’s details could lead to unintended consequences. Poorly drafted legislation may create confusion or financial strain for both associations and homeowners. For instance, the six-month foreclosure requirement could allow homeowners to fall significantly behind on dues, forcing others to absorb the financial burden. The shifting of attorneys’ fees from a nonpaying owner to the association will increase costs on paying owners and could lead to inconsistent outcomes even within the same association.

No single solution fits all homeowner and condominium associations, as communities vary widely in size and structure. North Carolina is home to both small, two-home associations and large-scale developments with thousands of members. A one-size-fits-all approach to community association law may have unintended repercussions. Our firm, which represents associations across the state, understands the complexities these communities face and is available to provide guidance and insights to legislators as they evaluate this bill.

The full bill can be found at SB 378.

Source: BlogLawFirmCarolinas

Note From Editor: The proposed legislative updates underscore the importance of balancing homeowner protections with the operational needs of community associations. While thoughtful reforms can promote transparency and accountability, a one-size-fits-all approach may unintentionally burden responsible homeowners and limit a board’s ability to manage effectively. Associations rely on timely assessment payments and clear governance structures to maintain common areas and deliver essential services. As legislation evolves, it is critical that both boards and residents remain informed, communicate openly, and work together to ensure compliance and fairness for all.

Fight over chickens goes to NC Supreme Court for final ruling

Mary Schroeder of Union County has been battling her HOA for years over keeping chickens, which she considers pets. Although initially told by the HOA that chickens were allowed as long as they weren't livestock, the HOA later changed its stance and fined her $100 a day, totaling $31,500. A jury sided with the HOA, forcing the family to pay the fines and move, but an appellate court later ruled the chickens were indeed pets. The final outcome now rests with the North Carolina Supreme Court, which was set to make a ruling on April 22nd.

Source: WCCBCharlotte

Note From Editor: This case highlights the importance of clear communication and consistent enforcement of unambiguously written community covenants and rules. Associations should apply these standards fairly and follow due process as outlined in their governing documents and state law. Ultimately, communities function best when both boards and homeowners have aligned expectations, understand their roles, and work together with mutual respect and transparency.

fight with HOA over $400 cost family their home

Taylor Sanders of Union County lost her home after a dispute with her HOA over $400 in unpaid dues, which escalated into foreclosure. Despite claiming she never received the HOA's notices, the board placed a lien and later sold her 3,300-square-foot home for just $49,000—while the buyer resold it months later for $850,000. Sanders is now speaking out to warn other homeowners to take HOA legal actions seriously and understand their rights. Meanwhile, a proposed North Carolina bill aimed at protecting homeowners in similar situations has seen no progress since last May.

Source: WSOC-TV

Note From Editor: While AMG cannot comment on this specific case, we encourage all homeowners to pay assessments, fees, and dues when due, as associations rely on these payments to cover common expenses and operate the community effectively. We also urge associations to follow all due process outlined in their governing documents and state law. Both owners and boards should consult legal counsel to fully understand their rights and responsibilities.

homeowners get HOA to fix their drainage issues

Two Raleigh homeowners, Kelley Poskitt and Lori Rodgers, faced serious drainage issues that led to flooding and property damage, and they believe their HOA should have addressed the problem. After finding records of the HOA covering similar drainage repairs for other homeowners, they repeatedly brought the issue to board meetings but were met with little action. Eventually, with help from ABC11 Troubleshooter Diane Wilson, the HOA board approved repairs, and crews installed drain boxes and other fixes. While grateful for the resolution, Poskitt is still seeking compensation for water damage to her kitchen, and the HOA has not yet responded.

Source: ABC11

Note From Editor: Because responsibility for these types of issues can vary, AMG recommends that boards consult with legal counsel to determine liability and with engineering professionals to identify the most effective solution.

Disaster Preparedness: How HOAs Can Plan for the Unexpected

When disaster strikes, preparation can mean the difference between chaos and a well-managed response. Homeowners Associations (HOAs) play a crucial role in ensuring their communities are prepared for unexpected emergencies, whether it's a natural disaster like hurricanes, wildfires, or earthquakes, or man-made crises such as power outages and security threats. Having a solid disaster preparedness plan in place can protect property, ensure residents’ safety, and help the community recover more efficiently.

1. Develop a Comprehensive Disaster Plan

A well-documented and detailed emergency plan is the foundation of disaster preparedness. HOAs should work with local emergency management agencies to identify potential risks specific to their area. The plan should include:

•  Evacuation routes and procedures

• Communication strategies for notifying residents

• Locations of emergency shelters

• Key contacts for emergency services

• A list of essential supplies and resources

2. Establish a Communication Plan

Clear and timely communication is vital during an emergency. HOAs should implement multiple channels to disseminate critical information, such as:

• Email and text message alerts

• Community website updates

• Social media announcements

• Physical notice boards in common areas

Encouraging residents to sign up for emergency notification systems can also enhance community-wide awareness and responsiveness.

3. Conduct Regular Drills and Training

Preparedness is not just about having a plan—it’s about practicing it. HOAs should organize periodic emergency drills to ensure both board members and residents know their roles and responsibilities. Consider:

• Fire evacuation drills

• Severe weather response exercises

• First aid and CPR training

• Guest speakers from local emergency services

4. Maintain Emergency Supplies and Resources

Having essential supplies on hand can be a lifesaver during a crisis. HOAs should consider maintaining emergency kits in clubhouses or common areas, including:

• First aid kits

• Flashlights and batteries

• Bottled water and non-perishable food

• Backup power sources for essential services

Additionally, ensuring that community infrastructure, such as storm drains and fire hydrants, is well-maintained can prevent further damage in the event of a disaster.

5. Develop a Post-Disaster Recovery Plan

Once the immediate crisis has passed, communities need a plan to rebuild and recover. HOAs should outline:

• Steps for assessing property damage

• Coordination with insurance providers

• Guidelines for temporary housing if needed

• Strategies for mental health and wellness support

Working with local contractors and service providers in advance can also expedite the recovery process and reduce downtime for essential services.

6. Foster a Culture of Preparedness

Encouraging residents to take personal preparedness measures is just as important as community-wide efforts. HOAs can promote preparedness through:

• Regular newsletters with safety tips

• Community meetings focused on emergency planning

• Encouraging residents to create their own emergency kits and family plans

By fostering a culture of preparedness, HOAs can ensure that their communities remain resilient, even in the face of the unexpected.

Conclusion

Disaster preparedness is a critical responsibility for HOAs. By developing a comprehensive emergency plan, maintaining clear communication, conducting regular drills, stocking essential supplies, and fostering a culture of preparedness, HOAs can help protect their communities and ensure a swift recovery when disaster strikes. Taking proactive steps today can make all the difference tomorrow.

Spring Gardening Tips for Homeowners in HOA Neighborhoods

Spring is a time of renewal, and for homeowners in HOA communities, it’s the perfect season to refresh your landscape while staying within HOA guidelines. Here are some key tips to ensure your garden flourishes this season without running into compliance issues.

1. Review Your HOA’s Landscaping Rules

Before planting, check your HOA’s landscaping guidelines. Many communities have specific rules about plant types, lawn maintenance, and decorative elements. Understanding these regulations can save time and prevent costly replanting efforts.

2. Choose HOA-Approved Plants

Opt for plants that thrive in your region and align with HOA-approved species. Native and drought-resistant plants are great choices, as they require less maintenance and water while contributing to a healthier ecosystem.

3. Maintain Lawn and Flower Beds Regularly

A well-kept yard not only enhances curb appeal but also keeps you in good standing with your HOA. Regular mowing, weeding, and mulching help maintain a neat appearance while promoting healthy plant growth.

4. Use Eco-Friendly Gardening Practices

Many HOAs encourage sustainability. Consider composting, using organic fertilizers, and installing a rain barrel for watering. These practices benefit your garden and help conserve natural resources.

5. Plan for Seasonal Color

Incorporate a variety of seasonal flowers and perennials to add vibrant color to your landscape. Spring flowers like tulips, daffodils, and pansies can enhance your home’s appearance while keeping within HOA guidelines.

6. Keep Hardscapes HOA-Compliant

If you plan to add pathways, decorative stones, or raised garden beds, ensure they meet HOA standards. Obtain necessary approvals before making structural changes to your outdoor space.

7. Address Pest and Weed Control Naturally

Many HOAs prohibit certain chemical treatments. Consider natural pest deterrents like companion planting, neem oil, or introducing beneficial insects to your garden.

8. Communicate with Your HOA

If you have a new gardening idea, consult with your HOA board or landscaping committee before implementing it. Clear communication can prevent misunderstandings and help align your vision with community guidelines.

Spring gardening in an HOA community doesn’t have to be restrictive. By following these tips, you can create a beautiful, well-maintained garden that enhances your home’s appeal while staying in compliance with community rules. Happy gardening!

Major Win for Homeowners Associations: Corporate Transparency Act Requirements Lifted

In a major and welcome development for community associations, the Financial Crimes Enforcement Network (FinCEN) announced an interim final rule eliminating beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA) for U.S.-formed entities—including homeowners associations (HOAs). 

The updated rule redefines “reporting company” to apply only to foreign entities registered to do business in the U.S., thereby exempting U.S.-based HOAs and other domestic nonprofit corporations from the time-consuming and costly federal reporting mandates. The change is effective immediately.  

Association Management Group (AMG) has actively lobbied against the implementation of these reporting requirements, recognizing that the CTA would have cost HOAs and other community associations thousands of dollars in unnecessary man hours, forcing volunteer boards to navigate frivolous and burdensome federal filings. This regulatory rollback is a direct result of widespread industry and public feedback—including advocacy efforts by AMG and other leaders in the association management field.  

What HOAs Need to Know:  

• The CTA no longer applies to U.S.-formed HOAs and community associations.

• The reporting requirement now applies only to foreign companies doing business in the U.S.

• Foreign entities are still subject to revised reporting deadlines, but are no longer required to report U.S. beneficial owners.  

This is a significant relief for community associations across the country, many of whom faced confusing and intrusive requirements that had little relevance to their nonprofit, residential missions.  

As always, AMG remains committed to keeping our communities informed and protected. We proactively track legislative and regulatory developments that impact our clients and provide timely guidance to help HOA boards focus on what matters most: serving their communities.  

For more detailed information on the new rule, please visit: 

FinCEN Removes Beneficial Ownership Reporting Requirements for U.S. Companies and U.S. Persons, Sets New Deadlines for Foreign Companies  

Please note: AMG’s guidance is provided for general informational purposes only. We strongly encourage all HOA boards to consult legal counsel when interpreting or acting upon federal regulations such as the CTA.  For questions about this development or any other matter affecting your community, please contact your AMG community manager or visit us at amgworld.com.

Can an HOA in SC give you a real speeding ticket?

HOAs in South Carolina have the authority to set speed limits on private roads, but they must obtain approval from the county sheriff and follow proper signage regulations. While HOAs cannot issue state-recognized speeding tickets or make arrests, they can enforce fines for speeding violations as part of their governing documents. Homeowners who receive a fine can dispute it through the HOA’s dispute resolution process, but refusal to pay could lead to further civil penalties, including potential foreclosure in extreme cases. Additionally, HOAs can hire private security or off-duty officers to patrol, but these officers can only issue citations on behalf of the HOA, not the state.

Source: TheIslandPacket

HOA fees are becoming more common — and costly

More homes for sale in 2024 came with homeowners association (HOA) fees, and those dues increased from 2023, according to a Realtor.com report. HOA fees, which cover maintenance and amenities, can be a financial hurdle for buyers in an already expensive market. Nationwide, 40.5% of homes listed had HOA dues, with the median monthly fee rising from $110 to $125. Experts advise buyers to check an HOA’s reserve funds to avoid unexpected fee hikes, and those looking to avoid HOA fees may have better luck in Charleston, South Carolina.

Source: Axios

CTA NATIONAL UPDATE: Corporate Transparency Act Suspended for Domestic Reporting Companies

This article was originally published on March 3, 2025 by Community Association Institute for Community Association Institute Advocacy Blog.

On March 2, the U.S. Treasury Department issued a statement regarding enforcement of the Corporate Transparency Act.   

The official notice says, “not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory guidelines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either.”   

Further, the department said it will be issuing a proposed rulemaking to narrow the scope of the act to foreign reporting companies only.  

This recent action is interpreted to mean the Corporate Transparency Act and its reporting requirements are no longer in effect for U.S. citizens or domestic reporting companies, including all applicable community associations.   

We thank the many CAI advocates who contacted their members of Congress to express their opposition to the act’s reporting requirements for community associations. Your voices were heard!  

CAI’S FEDERAL LAWSUIT STATUS

On October 24, 2024, CAI’s preliminary injunction request was DENIED by the federal judge in this case. While this decision was not the outcome CAI had hoped for, it does not mark the end of CAI’s efforts. CAI appealed the court’s denial of the preliminary injunction request on November 4, 2024, and on November 12, 2024, filed its opening brief of the appeal in the Fourth Circuit urging a pause on reporting requirements for community associations while this lawsuit is adjudicated. The Government filed it response to CAI's appeal on February 7, 2025. CAI filed its reply on February 28, 2025.

CAI’s other lobbying and advocacy efforts continue on Capitol Hill seeking both a one-year delay of implementation of the CTA’s reporting requirements and an exemption for community associations. The lawsuit itself is continuing to go through the legal process even as the preliminary injunction decision is being appealed. 

Pickleball Court Costs & HOA Considerations: What Association Leaders Need to Know

By Paul Mengert, CEO of Association Management Group

Thinking of adding a pickleball court to your HOA? Learn about costs, legal considerations, and community impact in this guide for association leaders.

Introduction: The Growing Demand for Pickleball in HOAs

Pickleball is one of the fastest-growing sports in the U.S., and many homeowners’ associations (HOAs) are being asked whether to add courts to their communities. While new amenities can enhance property values and resident engagement, they also require careful financial planning, legal review, and member support analysis.

As the CEO of Association Management Group (AMG)—one of the Carolinas’ leading community association management firms—I frequently advise HOA boards on new amenity projects, including pickleball court construction. This blog provides a general cost breakdown, discusses court construction challenges, and highlights legal and financial considerations for association leaders.

Important Note: Pickleball court costs vary widely by location, surface material, and site conditions. This guide is intended as a starting point—HOA boards should consult legal, financial, and real estate experts before proceeding.

How Much Does It Cost to Build a Pickleball Court?

The cost of constructing a dedicated pickleball court ranges from $35,000 to $80,000. Several factors impact the final price:

1. Court Size & Layout

- Standard court (30' x 60'): $35,000–$50,000

- Larger court (34' x 64'): $40,000–$80,000

- Multi-court complexes save on per-court costs due to shared site preparation.

2. Surface Materials

- Post-Tension Concrete (Best Option) → $20,000+

- Rebar-Reinforced Concrete (Good Option) → $15,000+

- Asphalt (Budget Option) → $10,000+, but higher maintenance costs

- Acrylic Surfacing (Required for Playability) → $5,000–$15,000

3. Fencing & Lighting

- Chain-link fencing (4ft high) → $35 per linear foot

- Vinyl-coated fencing (10ft high) → $125 per linear foot

- Basic LED lighting → $2,500

- Tournament-quality lighting → $12,500

4. Site Preparation & Drainage

- Flat land → Lower costs

- Hilly terrain or poor soil → Adds $10,000+ in grading and drainage solutions

Converting a Tennis Court into Pickleball Courts

A cost-effective alternative is converting an existing tennis court into pickleball courts.

Multi-Use Court Benefits

- A single tennis court (78’ x 36’) can accommodate up to four pickleball courts.

- Dual-use lines allow tennis and pickleball play on the same surface.

- Portable pickleball nets enable easy switching between sports.

**Conversion Cost Estimate:**

- Painting pickleball lines → $1,000–$3,000

- Adjustable net systems → $150–$500 per court

- Total cost: Much lower than building a new court from scratch

Challenges & Considerations for HOA Pickleball Courts

1. Noise Concerns

Pickleball courts generate more noise than tennis due to the hard paddle-and-ball impact. This has led to complaints in some communities.

Mitigation Strategies:

- Locate courts away from homes

- Install noise-reducing barriers

- Restrict play hours

2. Legal & Liability Issues

HOA boards must review governing documents to ensure they can add a pickleball court without violating existing rules.

Consult legal counsel to determine:

- Whether a membership vote is required

- If insurance policies need coverage adjustments

- Any zoning restrictions that apply

3. Impact on Property Values

While amenities generally increase property values, a poorly planned court could do the opposite.

Best Practices:

- Consult real estate professionals for property value impact analysis.

- Survey homeowners to ensure broad support.

- Plan for long-term maintenance costs.

Assessing Community Support for Pickleball Courts

A common challenge HOA leaders face is vocal minority influence—a small but passionate group may push for a pickleball court, while the majority may not actually want or use it.

How to Gauge True Community Interest:

✔ Conduct surveys to measure overall resident support.

✔ Hold town hall meetings to discuss the pros, cons, and costs.

✔ Weigh input from real estate professionals, appraisers, and financial advisors.

Final Thoughts: Proceeding with Expert Guidance

Adding a pickleball court can be a valuable investment for a community, enhancing recreation, social engagement, and property appeal. However, it’s critical to:

✔ Consult an attorney for legal compliance.

✔ Engage real estate and valuation experts to assess impact on property values.

✔ Survey homeowners to ensure broad support for the investment.

✔ Plan for long-term maintenance and costs to protect the association’s financial health.

By taking a thoughtful, well-researched approach, community associations can make informed decisions that best serve their members both now and in the future.

For more insights on association management, amenities, and budgeting, visit www.AMGworld.com.

CTA NATIONAL UPDATE: Beneficial Ownership Reporting Requirements Reinstated by Federal Court

This article was originally published on February 18, 2024 by Community Association Institute for Community Association Institute Advocacy Blog.

Updated February 18, 2025, 6 PM EST

On February 17, the United States District Court for the Eastern District of Texas granted the government’s motion for stay a nationwide injunction(Opens in a new window) halting enforcement of the Corporate Transparency Act in Smith v. United States Department of Treasury. The Court cited the Supreme Court of the United States’ decision to stay the preliminary nationwide injunction in the Texas Top Cop Shop, Inc., matter as precedent for their decision. 

This was the last remaining nationwide order pausing beneficial ownership reporting requirements. Due to this new court order, reporting requirements under the act are reinstated for applicable community associations. 

FinCEN has previously stated they will likely issue a 30-day extension for all entities impacted by the nationwide injunction. We await an announcement from FinCEN on an official extension. 

CAI continues to track movements in the federal courts over challenges regarding the Corporate Transparency Act and has contacted the United States Department of Treasury, urging an administrative delay be issued due to the chaos and confusion created by these recent court rulings and Congress’ deciding not to take legislative action to extend the filing deadline. 

CAI’S FEDERAL LAWSUIT STATUS

On October 24, 2024, CAI’s preliminary injunction request was DENIED by the federal judge in this case. While this decision was not the outcome CAI had hoped for, it does not mark the end of CAI’s efforts. CAI appealed the court’s denial of the preliminary injunction request on November 4, 2024, and on November 12, 2024, filed its opening brief of the appeal in the Fourth Circuit urging a pause on reporting requirements for community associations while this lawsuit is adjudicated. The Government filed it response to CAI's appeal on February 7, 2025. CAI has until February 28, 2025 to reply.

CAI’s other lobbying and advocacy efforts continue on Capitol Hill seeking both a one-year delay of implementation of the CTA’s reporting requirements and an exemption for community associations. The lawsuit itself is continuing to go through the legal process even as the preliminary injunction decision is being appealed. 

The Insidious Effects of Hurrying in Community Association Management

In today’s fast-paced world, the pressure to accomplish more in less time has created a culture of “hurry sickness,” a term coined by cardiologists Meyer Friedman and R.H. Rosenman in 1974. This condition, characterized by chronic rushing, impatience, and a sense of time scarcity, poses serious risks to both individual health and organizational success. For community association managers, board members, and industry professionals, the impacts of hurry sickness can be especially damaging.

Why Hurry Sickness Matters in HOA Management

In the community association management industry, where decision-making, communication, and problem-solving are central, hurry sickness can lead to costly mistakes. A rushed response to a maintenance issue or an unreviewed vendor contract might save time initially, but the long-term consequences—errors, dissatisfied residents, or financial missteps—can outweigh the short-term gains.

Hurry sickness also affects relationships, a cornerstone of effective HOA management. Managers who are always rushing may come across as impatient or dismissive, unintentionally alienating board members or homeowners. This not only erodes trust but also undermines collaboration, which is critical for a thriving community.

On a personal level, hurry sickness leads to burnout. Managers and board members juggling multiple responsibilities often sacrifice self-care—skipping meals, forgoing exercise, or losing sleep—all in the name of productivity. Over time, this takes a toll on mental and physical health, resulting in decreased performance and satisfaction.

A Story from the Field: The Rushed Reserve Study

A seasoned HOA manager, Sarah, received a request from her board to recommend a reserve study vendor on a tight deadline. Feeling pressured to act quickly, she chose a company she had heard about but failed to carefully review their qualifications thoroughly. The study was completed, but it underestimated the association’s funding needs. A year later, the board faced an unexpected shortfall, leading to a special assessment that angered homeowners. 

This situation, caused by haste, could have been avoided if Sarah had paused to more thoroughly vet vendors and discuss options with her board. By slowing down and prioritizing due diligence, she could have saved the community from financial stress and frustration.

Practical Strategies for Managers and Boards

     1.        Implement Prioritization Tools: Use methods like the 4D system—Do, Defer, Delegate, or Delete—to focus on what truly matters. Discuss priorities with your manager or board to ensure alignment.

     2.        Build Buffer Time: Schedule time for deep work and reflection. Block out parts of your calendar to avoid back-to-back meetings and give yourself time to think critically.

     3.        Practice Mindfulness: Take a few minutes each day to practice mindfulness techniques, such as deep breathing or focused attention. These small breaks can reduce stress and improve focus.

     4.        Pause Before Saying Yes: Evaluate whether a task aligns with your goals or whether it can be delegated. Write down the consequences of agreeing to additional tasks and discuss them with your manager to avoid overloading yourself.

     5.        Strengthen Collaboration: Managers and boards should work together to create realistic plans for handling responsibilities. If you need help developing such a plan, talk to your manager or email me for more guidance.

Take Action Now

Hurry sickness is not just an individual issue—it’s a cultural challenge in industries like community association management, where speed is often equated with success. By slowing down and adopting thoughtful strategies, managers and board members can improve decision-making, strengthen relationships, and achieve better results for the communities they serve.

If you’re feeling the pressure to always hurry, remember: it’s not about how fast you go, but how effectively you use your time. Let’s work together to create a more balanced, productive approach to HOA management.

Trump Administration Defends Corporate Transparency Act

On February 5, 2025, the Trump administration filed an appeal and motion for stay against an Eastern District of Texas injunction that paused enforcement of the Corporate Transparency Act (CTA) filing deadline. If granted, the stay would extend the deadline by 30 days, allowing the Treasury Department to reassess filing requirements for lower-risk entities. The CTA, originally passed during Trump’s first term but implemented under Biden, has faced legal challenges, with some courts ruling it unconstitutional while others uphold it. While enforcement is currently paused, a stay or court ruling could reinstate the deadline at any time, prompting entities to consider filing preemptively to avoid last-minute complications.

Source: NatLawReview