Assessments are the lifeblood of a community association. Community associations are not designed to make money; they are designed to pay the bills. Associations effectively act as collection agents for shared expenses such as water, waste collection, electricity, and landscaping. Funds collected are not retained by the association, but are forwarded to other parties, including governmental entities.

Unless associations are able to collect owed assessments, the association may incur debts without having sufficient funds to cover them. Shortfalls can only be addressed by failing to meet necessary obligations, charging paying homeowners higher amounts, or allowing the community’s common elements to deteriorate. As a result, associations must be vigilant about collecting association dues, also called assessments.

Law Firm Carolinas can advise on collection strategies, including what is and is not permitted under state and federal law. When necessary, we take all steps permitted by law to collect past-due assessments, fines, and other charges, including sending demand letters, filing claims of lien, commencing foreclosure proceedings, and, if required, conducting foreclosure sales. While these steps may seem harsh, prompt collection is essential for associations to meet their obligations and avoid increasing assessments for compliant owners.

HOAs and condominium associations conduct many types of meetings, including board meetings, membership meetings, committee meetings, and architectural review committee meetings. Board and membership meetings are subject to numerous statutory requirements, as well as Robert’s Rules of Order.

Our attorneys advise associations on all aspects of running effective and legally compliant meetings, whether in person or virtual. This includes required meeting notice, quorum, proxies, motions and resolutions, voting requirements for different issues, and drafting necessary documents for filing.

North Carolina law requires that HOA and condominium meetings be conducted in accordance with Robert’s Rules of Order Newly Revised (12th Edition). Jim Slaughter has written four books on association meeting procedure, including Robert’s Rules of Order Fast Track and Notes and Comments on Robert’s Rules, Fifth Edition, both updated for the current edition of Robert’s Rules. Carole Albright is a Professional Registered Parliamentarian and an officer of the American College of Parliamentary Lawyers, bringing additional nationally recognized parliamentary expertise to the firm’s community association practice.

Most North Carolina homeowner associations created on or after January 1, 1999 are required to comply with the North Carolina Planned Community Act. Most North Carolina condominiums created on or after October 1, 1986 are required to comply with the North Carolina Condominium Act. Even older associations are generally subject to certain provisions of these Acts, including those governing the collection of assessments, fining owners for violations, and conducting meetings.

Our attorneys can advise on which statutory provisions apply to your association, interpret the statutes in light of your specific circumstances, and explain how recent court decisions may affect their application. We also perform governing document audits to identify provisions that are out of compliance with the Acts and therefore unenforceable or in need of amendment.

North Carolina statutes require associations to notify owners, either annually or on the association’s website, of the right to request voluntary mediation for certain disputes. Jim Slaughter has been a Certified Superior Court Mediator for more than twenty years and has successfully mediated numerous association disputes.

As one reviewer noted:

Jim served as a mediator in a highly contentious dispute between homeowners and their HOA involving decades-old issues. He was a superb mediator who genuinely cared about the outcome and was deeply invested in helping the parties reach a compromise. I would recommend Jim as a mediator in the highest regard.

Arbitration is also available in appropriate cases as a faster and less expensive alternative to litigation.

Having represented a large number of community associations, our attorneys assist with both the legal and practical aspects of association disputes. Common issues include developer and transition matters, pet and animal issues, rental caps, short-term rental matters involving platforms such as Airbnb or VRBO, zoning or easement disputes, and conflicts involving owners or board members, as well as many other issues that arise within community associations.