Category Archives: Ask the Experts

Articles provided by Charlotte Observer

Its a Bad Idea to Hire Residents for HOA Work…

By Mike Huntermike_hunter

Attorney Michael Hunter specializes in community and condominium association law for the firm of Horack Talley

Question: Our condo bylaws state that “directors shall serve without compensation.” Last October our HOA board contracted with a homeowner who is also a director for the community’s lawn maintenance contract. In addition, the same director/homeowner was to receive compensation for handling complaints, getting quotes for work to be done, etc. Our board president also recommended that our secretary/treasurer be given an exemption from paying monthly HOA assessments, which was approved by the board. Now another homeowner/director is bidding for the housekeeping contract. Are we in violation of our bylaws with any of these three directors? We are paying for a service with the lawn maintenance, housekeeping, and complaint resolution, but can we consider the secretary/treasurer position to be a service? We have never compensated any HOA officers in the past.

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What happens to HOA when developer folds?

By Mike Huntermike_hunter

Attorney Michael Hunter specializes in community and condominium association law for the firm of Horack Talley

Question: We live in a condo subdivision planned for 56 units. The developer has fallen into financial difficulty and has only sold six units. There are now 16 completed units. The developer is renting the remaining 10 units. Even though the six homeowners are paying $155 monthly as association dues, the developer is not providing home maintenance. What legal recourse do we have? What would happen to our property if the developer declares bankruptcy or if all of the unsold property goes into foreclosure? Would the HOA, which only consists of six owners, be responsible for paying the mortgage on the clubhouse? Would we be responsible for paying property taxes on the unsold homes?

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Is foreclosure best option to get debt paid?

by: Mike Hunter

mike_hunterCharlotte attorney Michael Hunter specializes in community and condominium association law for the firm of Horack Talley.

Q. It seems in today’s economy that a lot of HOA foreclosures don’t result in a collection of the debt owed to the HOA. The owner either abandons the property, or the HOA lien is extinguished by the foreclosure of a superior deed of trust to a mortgage lender. It seems the HOAs rack up a lot of fees to foreclose against homeowners that are going to walk away from the debt one way or the other. Is there a better option?

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HOA’s restriction on pool use is legal

Q. My neighborhood HOA limits the number of people from a single household who can use the pool to five persons at one time. The HOA distributes five pool bands per household regardless of the number of people living in the house. Additional bands are $200 per season. My husband and I are both on the property deed, and we have four minor children. This seems discriminatory and illegal for our family to have to pay extra for the six of us to be inside the pool gate at one time. This restriction was not disclosed to us at the time of purchase, but was on a private section of the HOA website for property owners only. We did read the HOA’s governing documents and this restriction was not in the general rules and regulations. The N.C. Planned Community Act gives HOA boards the right to adopt rules and regulations and to “regulate the use, maintenance, repair, replacement, and modification of common elements.”

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