HOA, condo association group weighs in on foreclosures over unpaid assessments, fines

Recent headlines have highlighted controversial HOA and condo association foreclosures, prompting legislative action in several states to impose stricter foreclosure procedures. In response, the Community Association Institute (CAI) updated its foreclosure policy, emphasizing fairness, reasonable payment plans, and foreclosure as a last resort. The policy ensures homeowners have opportunities to resolve delinquencies while preserving associations' ability to collect dues and secure financing. These changes aim to balance homeowner protections with the financial stability of community associations.

Source: MSN

Florida condo owners face hefty fees under new structural reserve laws

A new Florida law requires condo associations to maintain reserve funds for structural repairs, leading to hefty assessment fees for residents, including a $21 million charge at 1060 Brickell. Some owners argue the repairs are not urgent, but the law was enacted after the Champlain Towers collapse to prioritize safety. A hearing is set for January 24 as residents seek to delay or reduce costs, while concerns grow over affordability and the financial strain on homeowners.

Source: CBSNews

Florida has made changes to HOAs as of July 1

A new Florida law, effective July 1, 2024, significantly limits the power of HOAs, aiming to address widespread homeowner complaints about excessive fines, selective enforcement, and lack of transparency. The law prohibits HOAs from enforcing arbitrary rules, such as banning vegetable gardens, regulating non-visible home improvements, or fining residents for minor infractions like trash can placement or holiday decorations. It also caps fines, mandates recordkeeping and financial transparency, and requires HOAs to provide accessible meeting notices and documentation. Additionally, HOA board members must complete training, and accepting kickbacks is now a felony offense, ensuring greater accountability and fairness in community governance.

Source: TallahasseeDemocrat

Trump taps western NC real estate broker as Austrian ambassador

President-elect Donald Trump nominated Art Fisher, a real estate broker from western North Carolina, as the U.S. ambassador to Austria. Fisher, president of Fisher Realty, has been an active supporter of "America First" policies and a donor to multiple Republican campaigns in the 2024 cycle. He is also involved in several organizations, including Brevard College, Pisgah Health Foundation, and the North Carolina Travel and Tourism Board. Fisher holds degrees in business and corporate communications from the College of Charleston and has traveled extensively worldwide.

Trump announced four other ambassadorial nominations: George Glass (Japan), Lou Rinaldi (Uruguay), Stacey Feinberg (Luxembourg), and Leah Francis Campos (Dominican Republic). All nominations require Senate confirmation.

Read More: NC Newsline

Builder turns over HOA to homeowners, some neighbors clash

In Denver, N.C., the turnover of the Fox Chase neighborhood's HOA from the developer to the homeowners has sparked conflict. Residents like Nick Cox criticize the HOA board for being authoritarian, particularly regarding parking and boat storage in the lake community. Others, like Michael Mascaro, attribute issues to inexperience and lack of transparency, citing concerns about communication and financial management.

The HOA defends itself, claiming it has acted in good faith and condemns inflammatory accusations from residents. It highlights that its decisions have been legally reviewed but regrets needing to allocate community funds to address disputes instead of community improvements.

To resolve HOA disputes, residents are advised to unite with neighbors, meet with the board collectively, or consult legal counsel, though this can be costly. Meanwhile, the N.C. General Assembly is considering legislation to increase transparency and limit HOA powers, including timelines for record access and stricter criteria for liens and foreclosures.

Read More: WSOC-TV

Can an HOA in SC make you take down your Christmas lights and decorations when it wants?

Homeowners in neighborhoods with HOAs should be mindful of restrictions on holiday decorations, as most HOAs limit the time they can remain up. Columbia attorney Kathleen McDaniel notes that HOAs can regulate outdoor decorations, flags, and displays if allowed by their restrictive covenants, which commonly include such provisions. HOAs help maintain community standards, which can boost property values.

In South Carolina, about 25% of homes are under HOA regulation, and many allow holiday lights from 30 days before the holiday until the second week of the new year. Non-compliance may result in fines. The South Carolina Department of Consumer Affairs oversees HOA-related complaints but lacks enforcement power, instead tracking and reporting issues to the General Assembly.

Read More: TheState

Navigating HOA Taxes: Deadlines, Forms, and Expert Tips

Homeowners’ associations (HOAs) are generally classified as corporations for federal tax purposes and must file annual tax returns. Even if an HOA is organized as a non-profit at the state level, it typically doesn’t qualify for federal tax-exempt status under Section 501(c)(4) unless it meets specific criteria, such as serving the general public rather than just its members.

HOAs have two primary options for filing federal taxes:

1. Form 1120-H (U.S. Income Tax Return for Homeowners Associations): This form is tailored for HOAs, allowing them to exclude exempt function income—like membership dues and assessments—from gross income. The taxable income is subject to a flat rate of 30% for condominium management associations and residential real estate associations.

2. Form 1120 (U.S. Corporation Income Tax Return): While this form offers a lower tax rate of 21% on net income, it requires more detailed financial reporting and doesn’t provide the same exclusions for exempt function income. HOAs should compare their tax liabilities under both forms annually to determine the most advantageous option.

It’s essential for HOAs to file their tax returns by the 15th day of the fourth month after the end of their tax year, typically April 15 for calendar-year associations. Late filings can result in penalties and interest. Given the complexities of HOA taxation, consulting a certified public accountant (CPA) experienced in this area is advisable to ensure compliance and optimize tax outcomes.

For more detailed information, refer to the IRS guidelines on homeowners’ associations. If you have questions, your HOA manager can provide additional information or connect you with qualified professionals who specialize in HOA taxation.

Editor’s Note: The above information is only provided for general informational purposes and derived largely from the IRS website.

4 Listening Skills Every HOA Leader, Manager, and Customer Service Rep Should Master

Listening is an essential skill for anyone working in HOA management, whether you’re a leader setting strategy, a manager overseeing day-to-day operations, or a customer service representative handling homeowner concerns. The ability to truly hear others can transform a simple conversation into an opportunity to build trust, resolve conflicts, and strengthen community relationships. Based on insights from Debra Schifrin, a corporate consultant and Stanford lecturer, here’s how these listening skills can apply to the HOA business—with examples to bring them to life.

1. Listen Until the End

Too often, we interrupt or jump in with solutions before someone finishes speaking. This can cause misunderstandings or leave the person feeling unheard. Instead, focus on staying present and letting them share their full story.

Example:

A homeowner calls a customer service rep, upset about a billing error. Before they can explain the issue, the rep assumes they understand the problem and provides a quick fix. The homeowner grows more frustrated, insisting, “That’s not what I meant!” By pausing and letting the homeowner finish, the rep learns the error stems from incorrect automatic payment settings—a completely different issue. The homeowner feels heard, and the correct solution is applied.

2. Listen to Summarize, Not Solve

In HOA management, it’s tempting to jump straight to solutions. But summarizing what you’ve heard first ensures you understand the problem and shows the other person you value their input.

Example:

At a board meeting, the HOA manager hears complaints about the clubhouse cleanliness. Instead of proposing immediate solutions, they say, “What I’m hearing is that you’re concerned about how often the clubhouse is cleaned and whether we’re meeting community expectations. Did I get that right?” When board members agree, the manager adds, “Let’s explore ways to address this, whether it’s adjusting cleaning schedules or updating our contract with the cleaning service.” This approach clarifies the issue and builds trust.

3. Balance Relationship and Content

HOA professionals must balance emotional connections (relationship) with practical problem-solving (content). Focusing on one at the expense of the other can alienate homeowners or stall progress.

Example:

A manager receives a complaint from a homeowner about a neighbor violating parking rules. The homeowner is visibly upset, feeling their concerns have been ignored in the past. The manager first acknowledges their frustration: “I understand how upsetting this must be for you. Thank you for bringing it to my attention.” Then, they shift to the content: “Let me review the parking policy and the steps we can take to address this issue.” By addressing both the emotional and practical aspects, the homeowner feels valued, and a solution is in progress.

4. Listen for Values

Behind every complaint or concern lies a deeper value. Understanding these values helps HOA professionals respond in a way that resonates with homeowners and board members.

Example:

A homeowner sends a series of emails complaining about landscaping. At first glance, it seems like minor nitpicking. But by listening carefully during a phone call, the HOA manager picks up on the homeowner’s underlying value: pride in community appearance. The manager responds, “It sounds like keeping our community beautiful is really important to you. I appreciate your passion, and I’d love to work with you on ways to improve our landscaping plan.” By recognizing the homeowner’s values, the manager turns a complaint into an opportunity for collaboration.

Why This Matters in HOA Management

Listening isn’t just about hearing words—it’s about understanding the emotions, values, and concerns behind them. For HOA leaders, managers, and customer service reps, these skills can:

- Strengthen trust and relationships.
- Reduce conflicts by ensuring all parties feel heard.
- Create more effective, personalized solutions.

Paul Mengert, CEO of Association Management Group (AMG), emphasizes the power of effective communication in HOA management. “Our role is to bridge gaps, solve problems, and create thriving communities,” Mengert says. “Mastering listening skills isn’t just beneficial—it’s essential for delivering exceptional service and fostering strong relationships within the communities we serve.”

By adopting these listening strategies, HOA professionals can build stronger, happier, and more engaged communities.

Breaking News: CTA Filing Requirements Paused Again by Fifth Circuit

This article was originally published on December 27, 2024 by Thomas Skiba for Community Association Institute.

On Dec. 26, the full panel of judges of the Fifth Circuit Court of Appeals issued an order vacating the stay of a preliminary injunction halting reporting compliance under the Corporate Transparency Act. The U.S. Department of Treasury’s FinCEN released a statement this afternoon announcing BOI filings are voluntary.  

The most recent decision suspends the upcoming Jan. 2025 deadline requiring community association boards to file sensitive personal information with the government in an effort to combat terrorist activities.  

The latest dramatic decision in Texas Top Cop Shop v. Garland follows a Dec. 23 order reversing a temporary preliminary injunction imposed by the U.S. District Court for the Eastern District of Texas.  

This means beneficial ownership information reporting requirements have been paused again by a federal court for applicable community associations under federal statute. This continues to be a developing issue. Association boards should remain vigilant and informed on these ongoing updates.  

FinCEN issued the following statement “In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.” 

Please visit CAI’s Corporate Transparency Act resource page for additional information. 

Sincerely, 

 

Thomas M. Skiba, CAE 

Chief Executive Officer  

Community Associations Institute  

UPDATE: Corporate Transparency Act Compliance Back on Hold

UPDATE: Corporate Transparency Act Compliance Back on Hold

December 26, 2024


The Corporate Transparency Act (CTA) is once again on hold. On December 26, 2024, a Fifth Circuit panel reinstated a nationwide injunction blocking enforcement of the CTA, just days after another panel lifted it. This ongoing legal back-and-forth has created significant uncertainty for compliance efforts nationwide.

To recap:

  • The CTA, enacted as an anti-money laundering measure, requires U.S. entities that existed before 2024 to disclose their beneficial owners - individuals who own or control the business - by January 1, 2025.

  • On December 3, a district court issued a nationwide injunction halting enforcement of the law following a legal challenge.

  • On December 23, a Fifth Circuit motions panel lifted that injunction, stating the government is likely to succeed in defending the law's constitutionality.

  • On December 26, another Fifth Circuit panel reinstated the injunction to "preserve the constitutional status quo" while the merits of the case are considered.

For AMG clients, this means compliance with the CTA is not currently required. If you are unsure about how to proceed, each community should consult with their legal counsel to determine the best course of action.

AMG encourages clients to wait until compliance is unequivocally required. We offer this recommendation for two key reasons:

  1. Avoiding Unnecessary Costs: Premature action could result in expenses that may not ultimately be needed.

  2. Minimizing Effort for Volunteer Members: Preparing and submitting the required information is a time-consuming task. Until compliance is mandatory, we believe communities should focus their resources elsewhere and avoid unnecessary burdens on their volunteer members.

For further information, you can refer to the following resources:

AMG does not provide legal advice. We strongly recommend that clients consult with their attorney before making important legal decisions regarding the CTA or any other matter. We remain committed to monitoring developments and keeping you informed. If you have any questions on this issue, please feel free to reach out to your Community Manager. 

Warm regards,

Dacy Cavicchia, CMCA, AMS, PCAM 
President 
Association Management Group, Inc.

Winter Maintenance Tips for HOA Members in the Carolinas: Protect Your Home and Community

As winter approaches in North and South Carolina, it’s crucial for homeowners to proactively maintain their properties to ensure safety, comfort, and efficiency during the colder months. Neglecting these tasks can lead to costly repairs and potential hazards. Here’s a comprehensive checklist tailored for HOA members:

Proactive Maintenance Saves Money and Hassle
Did you know? Studies show that regular home maintenance can reduce costly repairs by up to 30%! Don’t wait for a problem to arise—take these simple steps to protect your home and your wallet.

1. Clean Dryer Vents

Lint accumulation in dryer vents is a leading cause of household fires. Regular cleaning enhances dryer efficiency and significantly reduces fire risks. Ensure both the lint trap and the external vent are free from obstructions.

2. Test Smoke and Carbon Monoxide Detectors

With increased use of heating systems, the risk of fire and carbon monoxide (CO) exposure rises. Test all detectors monthly and replace batteries as needed. If a unit is over ten years old, consider replacing it to maintain optimal functionality.

3. Schedule HVAC Maintenance

A well-maintained heating system operates more efficiently and has a longer lifespan. Hire a professional to inspect and service your HVAC system, ensuring it’s prepared for continuous use during winter. Regular filter replacements also improve air quality and system performance.

A Winter Story: The Importance of Checking Plumbing

Last winter, a homeowner in one of our North Carolina communities discovered a burst pipe after a cold snap. The damage flooded their home, costing thousands in repairs and temporarily displacing the family. The root cause? An outdoor faucet hadn’t been winterized. Taking just a few minutes to drain outdoor spigots and insulate exposed pipes could have prevented this costly headache. Learn from their experience and winterize your plumbing today!

4. Inspect Plumbing Fixtures and Valves

Frozen pipes can burst, causing extensive water damage. Insulate exposed pipes, especially in unheated areas like basements and crawl spaces. Ensure all valves function correctly and consider shutting off and draining outdoor faucets to prevent freezing.

5. Seal Windows and Doors

Drafts around windows and doors can lead to significant heat loss, increasing energy bills. Inspect for gaps and seal them with weatherstripping or caulk. This simple step enhances indoor comfort and energy efficiency.

6. Clean Gutters and Downspouts

Clogged gutters can cause water overflow, leading to ice dams and potential roof damage. Remove leaves and debris to ensure proper drainage, protecting your home’s exterior and foundation.

Review Your Insurance Coverage

Winter is an ideal time to consult with your insurance agent to ensure you have appropriate coverage for your property. In most cases, the association’s coverage is not all-inclusive and often does not cover individual homes. Understanding the specifics of your policy can prevent unexpected expenses in the event of winter-related damage.

Understand Your HOA Responsibilities

Responsibilities vary by community. Owners should always take an active role in ensuring their property is properly maintained. Review your HOA covenants carefully to understand the specific responsibilities and requirements within your community. Each HOA operates differently, and what is considered an owner’s responsibility in one community may fall under the HOA’s purview in another. When in doubt, consult with your property management company or legal counsel to clarify your obligations and ensure compliance.

By diligently performing these maintenance tasks, homeowners can safeguard their properties against winter-related issues, ensuring a safe and comfortable season. Remember, proactive maintenance not only protects your home but also contributes to the overall well-being of your community.

Storage Caves, a Luxury Condo Garage Storage Developer, to Build 119 Luxury Garages in Fort Mill South Carolina

Storage Caves has acquired 5.5 acres in Fort Mill, SC, to develop a luxury storage facility for RVs, boats, cars, and business inventory. The facility, expected to open by summer 2025, will feature 119 spacious, climate-controlled units with cutting-edge security. Located near the Greater Charlotte area, the development addresses a growing demand for secure and customizable storage solutions. Storage Caves also plans additional projects in the region over the next 18 months.

Read More: Newswire

HOA Manager AMG Announces Good News for Community Associations: Federal Court Halts CTA Filing Requirements Nationwide

Association Management Group (AMG) announced that a federal court has issued a preliminary nationwide injunction halting the enforcement of the Corporate Transparency Act (CTA) filing requirements. The CTA aims to combat financial crimes by requiring organizations, including HOAs, to disclose beneficial ownership information, but the court cited concerns about compliance costs and data privacy. AMG advises community associations to hold off on filing and consult their attorneys for guidance. AMG remains dedicated to informing and supporting associations while offering tailored management services across the Carolinas.

Read More: PRWeb

One dead after carbon monoxide leak at Fayetteville condo, officials say

A fatal gas leak occurred Sunday morning at Lionshead Condos in Fayetteville, N.C., leaving one person dead. Firefighters responding to the scene detected high levels of carbon monoxide throughout the building and began evacuations. Hazmat teams are working to identify the source of the leak, and authorities advise avoiding the area due to ongoing police and fire presence.

Read More: CBS17

Editor’s Note: AMG urges all owners to install and regularly maintain CO2 and smoke detectors. 

Construction prep begins on $18M downtown Greenville luxury condo development

Construction is set to begin this year on The Avant, an $18 million luxury condo development in downtown Greenville, expected to be completed by summer 2026. Located at 702 S. Main St., the four-story building will feature innovative design elements, including an 84-foot water feature and an automated basement parking system to optimize space and sustainability. Developer Stephen Mack emphasized local talent and Greenville’s heritage in the project, which overcame delays through value engineering to manage costs and enhance efficiency. The Avant aims to set a new standard for Southeast development while offering lifestyle-focused residences.

Read More: GSA Business Report

AMG Continues Tradition of Showing Gratitude for Employees with 5th Annual Thanksgiving On Wheels Meal

PHOTO CUTLINE: This week, AMG’s Thanksgiving On Wheels event brings fully-cooked turkey and sides to team members across the Carolinas.

“People say it’s not happiness that makes us grateful; it’s gratefulness that makes us happy. We believe that,” said AMG President, Dacy Cavicchia. “At this time of counting blessings, we feel it’s especially important to honor the efforts of the most important asset our company has–our staff. They are the key to our success and we appreciate their excellence, commitment, and professionalism.”

AMG is showing appreciation for the team with its fifth annual Thanksgiving On Wheels event. The company is making the holiday a little easier for its busy, dedicated employees by gifting them with the cornerstone elements of their Thanksgiving dinners. Each team member across its five offices in Greensboro, Winston-Salem, Charlotte, and Raleigh/Durham, NC, and Greenville and Aiken, SC, received a delicious fully cooked turkey and gravy, plus two scrumptious side dishes of beans and mac n’ cheese.

Since 1985, Founder and CEO Paul Mengert and Vice-President May Gayle Mengert have worked to instill a culture of service in the organization. But that ethos of giving isn’t just for association clients and nonprofits in the community–it also includes the company’s internal team. “AMG has a long history of excellent customer service, as well as tireless and dedicated community service to a number of organizations that focus on helping others,” Mengert said. “At this time of year, we just want our team across the Carolinas who give so much of their time and talent to our clients and communities that they are important to us, we need them, and we thank them for who they are and how masterfully they ‘show up’ for AMG day after day. We couldn’t do this–we wouldn’t be us–without them.”

Are HOAs allowed to ban street parking in NC neighborhoods? Here’s what legal experts say

Homeowners’ associations (HOAs) in North Carolina are stirring debate over their power to enforce street parking bans, a common rule designed to address safety and aesthetic concerns. Recent discussions on social media platforms like Nextdoor highlight divided opinions, with some residents frustrated by restrictions that limit parking options for families or guests, while others advocate stricter enforcement to avoid street clutter and safety hazards.

Under the North Carolina Planned Community Act, HOAs established after 1999 have the authority to regulate parking, even on public streets, if outlined in their community’s restrictive covenants (CCRs). Legal experts note that these rules aim to maintain order, but they are often contentious among residents.

A proposed bill could change this dynamic by prohibiting HOAs from enforcing parking rules on public roads maintained by the state or local governments, regardless of what is stated in the CCRs. If passed, this legislation would limit HOA authority and potentially resolve ongoing conflicts.

Source: The Charlotte Observer

Myrtle Beach says they lose millions converting short-term rentals. Here’s how much

A recent report by Arnett Muldrow & Associates presented to Myrtle Beach officials warns of significant revenue losses if short-term rentals are converted to long-term use. The analysis, revealed on October 1, 2024, estimates that such conversions could cost Myrtle Beach $1.51–$2.52 million annually in lost taxes and fees, with combined losses for the city, Horry County, and South Carolina ranging from $4.58–$7.78 million. If 1,000 rental units were converted, the total impact could reach $7.61 million.

The report also highlighted increased costs for fire and police services in long-term rental areas and projected 48 job losses. Myrtle Beach had imposed a moratorium on conversions in April 2024 to assess financial impacts, covering properties near the beach. The freeze expires in January 2025, with no decision yet on an extension.

Key recommendations include creating an overlay district to manage conversions, updating zoning codes, and allowing long-term rentals in multi-family residential zones while excluding hotels and motels. However, the study’s scope was limited and excluded many property types, leaving unanswered questions about the broader economic effects and hotel room supply.

Critics argue the region’s evolving year-round economy might offset losses, but the city’s tax structure, reliant on tourism, suggests otherwise. The findings align with earlier projections of a $5.7 million economic impact loss.

Source: The Sun News

The Cockaboose Corp. is the coolest HOA ever — and it’ll throw a yellow flag if needed

The Cockabooses are a unique set of 22 retrofitted railcars turned into luxury tailgating suites near the University of South Carolina’s Williams-Brice Stadium. Created in 1990 by Ed and Cathy Robinson, these iconic cabooses sell for upwards of $220,000 today and are governed by a homeowners association (HOA) called The Cockaboose Corp.

The HOA oversees external maintenance, enforces rules (like prohibiting signage and rentals), and plans for costly future repairs, such as repainting. Annual dues recently spiked to $5,000 to cover these expenses. Quarterly board meetings also address issues like trademark rights and game-day logistics. Owners, often wealthy USC alumni or enthusiasts, view Cockabooses as more than investments—they symbolize prestige and the ultimate tailgating experience. Despite the challenges of managing HOA duties, owners cherish the joy and exclusivity of hosting in these legendary spaces.

Source: TheState.com

War over windows: Charlotte homeowner wins 5-year fight with HOA, gets $75K settlement

Sherry Loeffler won a rare legal settlement against her HOA in Lake Wylie, ending a five-year dispute over vinyl windows installed in her townhome. Despite receiving $75,000 and keeping her windows, the ordeal cost her financially and emotionally. The HOA fined her nearly $12,000, placed a lien on her house, and threatened foreclosure, prompting Loeffler to sue.

The case highlights growing tensions between homeowners and HOAs in North Carolina, where foreclosure actions by HOAs have increased. Loeffler’s victory included canceled fines and legal fee reimbursements, but she endured significant stress and financial hardship. She advises homeowners to document everything when dealing with HOAs.

The HOA board, citing complaints about property values and mismatched windows, expressed frustration over the drawn-out dispute but aims to move on. Loeffler, disillusioned by the experience, plans to relocate to a community without an HOA.

Source: The Charlotte Observer