Although homeowner associations are created as nonprofit corporations, this does not mean the associations do not engage in financial transactions or require the services of a certified public accountant (CPA). For example, it is common for an association’s governing documents to require a financial audit or review on an annual basis, and associations are required to file tax returns every year. Further examples of situations in which it may be beneficial to consult a CPA include:
Q: A member of our homeowners’ association believes he does not have to follow our subdivision’s covenants, conditions and restrictions (or CCRs). He filled in the natural depression of the drainage ditch in his back yard to level the area. He then built a catch basin at his property line where the natural water flow would normally have gradually drained onto the adjacent lot, and installed drain tile trenches that all empty into a catch basin.
Now during heavy rains, his neighbor has rapids over 4 feet wide and sometimes over a foot deep eroding away his yard.
Q: We purchased a vacant lot in western North Carolina in 1998, and since we were the first buyers in the community, we had the developer write some covenants and restrictions (CCRs).
The CCRs are simple: no chain-link fences, no...
It is not unusual for owners at an annual homeowners meeting to make motions about issues that aren’t listed on the agenda. For example, a motion to amend the bylaws. Or, at a special meeting called to amend the bylaws, an owner might make a motion to recall the board.