Homeowners associations in North and South Carolina frequently navigate complex issues related to community demographics and safety regulations. From interpreting single-family restrictions to implementing age requirements or addressing safety concerns, boards must balance legal compliance with community preferences. This guide explores key demographic and safety restrictions, their legal foundations, and implementation considerations for Carolina communities.
Contents
- Single-Family Use Restrictions
- Age-Restricted Communities (55+ Housing)
- Sex Offender Residency Restrictions
- Additional Demographic Considerations
- Implementation Through Covenant Enforcement
Single-Family Use Restrictions
Many communities in the Carolinas include “single-family use” provisions in their governing documents, but interpreting and enforcing these provisions presents significant challenges for boards and managers.
Defining “Single Family”
The term “single family” often appears in governing documents without clear definition, creating enforcement challenges. Courts in both North and South Carolina have wrestled with this terminology, generally focusing on living arrangements rather than strict biological or legal relationships.
When evaluating whether a household qualifies as a “single family,” courts typically consider:
- Whether residents function as a cohesive household unit
- If residents share expenses, meals, and household responsibilities
- The permanency of the living arrangement
- Whether the property is being used primarily for residential purposes
- The community’s historical interpretation of the restriction
Without specific definitions in your governing documents, broad enforcement actions against unrelated residents may be difficult to sustain legally. For example, a home with seven unrelated college students might violate a well-defined single-family provision, but without clear definitions, enforcement becomes problematic.
Enforcement Considerations
If your association faces challenges with single-family enforcement, consider:
Governing Document Review
Examine your covenants to determine if “single family” is clearly defined. Many older documents lack specific definitions, while newer ones may include specific language like “persons related by blood, marriage, or adoption” or numerical limits on unrelated occupants.
Amendment Options
If your documents lack clear definitions, consider proposing amendments that specify:
- Maximum number of unrelated residents (e.g., “no more than three persons unrelated by blood, marriage, or adoption”)
- Minimum residency periods to prevent short-term rentals
- Additional parking requirements for multi-occupant households
Practical Enforcement Approaches
Rather than directly challenging multi-occupant households, associations often find success addressing secondary issues like:
- Parking violations
- Noise disturbances
- Property maintenance standards
- Trash management
These secondary violations are typically easier to document and enforce than ambiguous occupancy restrictions.
Age-Restricted Communities (55+ Housing)
Communities designed for older residents must navigate specific federal and state requirements to legally maintain age restrictions.
Legal Framework
Age-restricted communities in the Carolinas operate under exemptions to the Fair Housing Act provided by the Housing for Older Persons Act (HOPA). While age restrictions would normally constitute illegal age discrimination, HOPA creates a specific exemption for qualified senior communities.
To qualify for HOPA exemption, communities must meet three key requirements:
- Minimum Occupancy Threshold: At least 80% of occupied units must have at least one resident age 55 or older
- Published Policies: The community must publish and adhere to policies demonstrating intent to operate as housing for persons 55+
- Age Verification: Regular surveys (typically every two years) must verify continued compliance with the 80% threshold
This “80/20” rule provides some flexibility for communities, allowing up to 20% of units to have residents under 55, though many communities adopt more stringent requirements in their governing documents.
Implementation Considerations
Communities considering conversion to age-restricted status should carefully evaluate:
Current Demographics
Before pursuing age restriction, survey existing residents to confirm at least 80% of units already have a 55+ occupant. Attempting to implement restrictions without meeting this threshold creates significant legal exposure.
Amendment Requirements
Review your declaration to determine amendment procedures and required approval thresholds. Most communities require 67-75% owner approval for such fundamental changes.
Market Impact
Age restrictions significantly impact your community’s real estate market position by:
- Limiting the potential buyer pool
- Potentially increasing property values in areas with high demand for senior housing
- Creating marketing differentiation from surrounding communities
- Affecting mortgage and insurance options
Ongoing Compliance
Establishing age restrictions creates continuing compliance obligations, including:
- Regular age verification surveys
- Policies for hardship exceptions
- Record-keeping systems
- Processes for addressing non-compliance
Communities considering conversion should work closely with experienced legal counsel to develop appropriate amendment language and implementation procedures.
Sex Offender Residency Restrictions
Safety concerns regarding registered sex offenders present particularly challenging issues for community associations, requiring careful balancing of safety priorities with legal limitations.
Legal Limitations
While many associations would prefer to prohibit registered sex offenders from residing in their communities, broad restrictions face significant legal hurdles:
- Courts have generally not upheld blanket prohibitions against sex offenders purchasing homes
- While sex offenders aren’t a protected class under anti-discrimination laws, residency rights are fundamentally different from tenancy rights
- Enforcement mechanisms for such restrictions are often impractical
- Potential civil rights claims could expose associations to liability
Associations do have more latitude regarding rental properties, as courts have generally recognized broader association authority over leasing activities.
Practical Approaches
Communities concerned about sex offender residency should consider these approaches:
Leasing Restrictions
Implement leasing approval requirements that include background checks for all potential tenants, giving the board authority to approve or reject proposed leases based on criminal history.
Community Notification
When a registered sex offender resides in the community:
- Verify information through official sources like sheriff’s department websites
- Direct residents to public registration information
- Avoid proactive distribution of identifying information that could create liability
- Consider holding community safety meetings with local law enforcement
Security Measures
Focus on general security improvements:
- Enhanced common area lighting
- Security cameras in amenity areas
- Access control systems
- Neighborhood watch programs
- Regular security assessments with law enforcement consultation
These approaches address safety concerns while minimizing legal exposure for the association.
Additional Demographic Considerations
Beyond the specific restrictions addressed above, Carolina associations may confront other demographic questions requiring careful legal navigation.
Familial Status Restrictions
The Fair Housing Act prohibits discrimination based on familial status, protecting households with children under 18. Unlike age restrictions, there is no broad exemption for “adult-only” communities outside the senior housing context.
Communities should avoid:
- Rules specifically targeting children (e.g., “no children in the pool during adult swim hours”)
- Marketing that suggests families with children aren’t welcome
- Selective enforcement against households with children
Instead, focus on:
- Behavior-based rules that apply to all residents
- Reasonable safety regulations with clear relationship to legitimate concerns
- Consistent, documented enforcement processes
Occupancy Limits
While associations can establish reasonable occupancy standards, these must be carefully crafted to avoid disparate impact claims under fair housing laws.
Generally acceptable approaches include:
- Standards based on square footage or bedroom count
- Limits tied to local building or housing codes
- Consistent application regardless of resident relationships
Avoid standards that:
- Specifically target unrelated individuals
- Create disproportionate impact on protected classes
- Exceed what can be justified by legitimate health and safety concerns
Implementation Through Covenant Enforcement
While specific amendments to implement new demographic restrictions require careful legal guidance, associations can often address demographic-related concerns through existing covenant enforcement mechanisms:
- Consistent enforcement of noise, parking, and nuisance provisions
- Regular property inspections and violation notices
- Clear documentation of all enforcement actions
- Established hearing procedures for violations
- Graduated fine structures for continuing violations
HOA Community Experts at Your Service
Navigating demographic restrictions and safety concerns requires specialized knowledge of both Carolina and federal laws affecting community associations. As the premier HOA management partner in North and South Carolina, Community Association Management provides boards with the expertise needed to develop legally sound policies while fostering safe, welcoming communities. Contact our dedicated Carolina team at 888-565-1226 to discuss how we can help your HOA.
The content on this website is provided without any warranty and does not constitute legal advice. For legal advice specific to your community or issue, please consult an attorney specializing in Association Management.
