HOA and Owners’ Association Disputes

Understanding the Role of HOAs and POAs

HOAs and POAs are typically governed by a set of recorded covenants, conditions, and restrictions (CC&Rs), along with bylaws and other governing documents. These rules often cover topics such as property maintenance, architectural standards, use of common areas, and payment of dues or assessments.

Boards of directors are elected by the community to enforce these rules. However, when enforcement becomes inconsistent, overreaching, or legally questionable, disputes may escalate into formal legal conflicts.

Common Types of HOA Disputes

While each situation is unique, some of the most common issues that lead to legal disputes with HOAs in North Carolina include:

• Assessment Disagreements: Challenges over the validity, amount, or application of dues, fines, or special assessments.
• Selective Enforcement: When an HOA enforces rules inconsistently, allowing some violations to go unchecked while penalizing others.
• Architectural Control Conflicts: Disputes over exterior changes, landscaping, fences, or additions that the HOA believes are non-compliant.
• Access to Records and Transparency: Owners may face obstacles when seeking financial records or meeting minutes, raising concerns about proper governance.
• Improper Board Conduct: Allegations of conflicts of interest, breaches of fiduciary duty, or failure to follow governing documents.
• Short-Term Rental Restrictions: Conflicts over the ability to lease homes for short stays, such as through Airbnb or VRBO.
• Nuisance Complaints: Disputes related to noise, pets, or other property use issues affecting neighbors.

Legal Framework in North Carolina

Property owners in North Carolina are granted a range of legal rights when residing within a planned community or condominium governed by an HOA or POA. These rights are primarily outlined in the North Carolina Planned Community Act (Chapter 47F) and North Carolina Condominium Act (Chapter 47C). Key protections include:

• Right to Due Process: Before any fines or penalties can be imposed, homeowners are entitled to notice and an opportunity to be heard. Associations must follow proper procedures as outlined in their governing documents and state law.
• Right to Access Records: Homeowners generally have the right to inspect financial statements, board meeting minutes, and other official records of the association upon reasonable request. This ensures transparency and accountability.
• Right to Fair and Equal Treatment: HOA boards are required to enforce covenants and restrictions uniformly. Selective or discriminatory enforcement may be challenged under the law.
• Right to Challenge Unlawful Actions: If an HOA acts beyond its authority or fails to adhere to its governing documents, homeowners may seek legal remedies, including injunctive relief or declaratory judgment.
• Right to Vote and Participate: Homeowners typically have voting rights on major community decisions, including the election of board members and approval of budgets or amendments to covenants.

Understanding and asserting these rights can be critical when disputes arise. While associations play a significant role in community governance, their authority is not absolute and must be exercised within the bounds of the law and the association's governing documents.

Disputes with HOAs or POAs can be frustrating and emotionally charged. Whether the conflict involves assessments, rule enforcement, or board governance, understanding your rights under North Carolina law is the first step toward resolution.

Contact Parton Law today to schedule a consultation. We offer personalized guidance to help you understand your legal options and protect your property rights.

* This article is for informational purposes only and does not constitute legal advice. No attorney-client relationship is created by reading this content. You should not act upon this information without seeking advice from a licensed attorney in your jurisdiction.