Homeowners’ associations (HOAs) and condominium associations across North and South Carolina frequently navigate complex regulations regarding vehicle use and property restrictions within their communities. As boards work to maintain community standards and property values, understanding these regulations and ensuring consistent enforcement is crucial. This blog post explores areas of vehicle and property use regulations, their legal foundations, and provides practical guidance for fair enforcement.
Vehicle Regulations: Are Pickup Trucks “Commercial Vehicles”?
In North Carolina, many associations have covenants that prohibit “commercial vehicles” or “trucks.” This creates a significant point of contention given that pickup trucks are among the most popular vehicles in the state—the top two best-selling vehicles and three of the top five vehicles in North Carolina are pickup trucks.
Legal Interpretation of Vehicle Restrictions
When enforcing restrictions on “commercial vehicles” or “trucks,” North Carolina law instructs courts to interpret such restrictions narrowly. This means that ambiguities in the definition favor the homeowner. When analyzing these restrictions, several key factors should be considered:
- Covenant Language Clarity: Without clear definitions of what constitutes a “commercial vehicle” or “truck,” broad enforcement against standard pickup trucks faces significant legal challenges.
- Original Intent: Courts consider whether the original intent of a developer writing covenants would have been to ban some of the most popular vehicle models in the state, potentially limiting the pool of prospective buyers.
- Enforcement History: A history of inconsistent enforcement—allowing some pickup trucks while restricting others—will likely undermine an association’s enforcement efforts.
- Legal Precedent: The 2009 Banbury Woods case in North Carolina upheld an association’s restriction against “campers and all other similar property,” finding no distinction between a “camper” and a “motor home.” However, the court’s decision was influenced by the clarity of the restriction and the association’s consistent enforcement history.
Practical Application of Vehicle Restrictions
For a typical restriction against “commercial vehicles” or “trucks,” a North Carolina court would likely rule in favor of a homeowner with a standard pickup truck for several reasons:
- The original intent of a developer was likely not to ban owners of three of the five most popular vehicle models in the state
- The language in such restrictions is often broad, vague, and ambiguous without further definition
- There is likely a history of non-enforcement against standard pickup trucks in most communities
Alternative Vehicle Restrictions
Rather than broadly restricting “commercial vehicles” or “trucks,” associations often find more success with specific regulations that are easier to enforce consistently:
- Prohibiting parking on non-paved surfaces
- Restricting street parking
- Limiting commercial signage on vehicles
- Addressing nuisance concerns
These focused restrictions typically face fewer legal challenges while still maintaining community standards.
Understanding Exemptions: VA Loans and HOA Rules
A common misconception involves government-backed loans and HOA exemptions. The question often arises: Does having a VA-guaranteed loan exempt a property from HOA rules?
VA Loans and Covenant Compliance
The short answer is no. While exemption language in declarations may state that “assessments, charges and liens” do not apply to properties where title is vested in “the Secretary of Housing & Urban Development or the Administration of Veterans Affairs or any other state or federal governmental agency which acquires title by reason of such agency’s guarantee,” this exemption:
- Only applies to financial obligations (assessments, charges, and liens)
- Only takes effect if the VA or lender acquires the property through foreclosure
- Does not exempt homeowners from complying with other restrictive covenants
Homeowners with VA-guaranteed loans must still comply with all non-financial covenant restrictions, including those related to property appearance, vehicle parking, architectural standards, and other community rules.
Display of Flags: Regulation and Legal Requirements
Both North Carolina Planned Community and Condominium Acts place specific limitations on an association’s ability to restrict the display of United States and North Carolina flags.
North Carolina Flag Display Laws
Under N.C.G.S § 47F-3-121 and § 47C-3-121, community restrictions may not regulate or prohibit the display of the United States or North Carolina flags that meet these criteria:
- Size no greater than four feet by six feet
- Displayed in a manner consistent with federal flag code (4 U.S.C. §§ 5-10)
Unless:
- For restrictions registered before October 1, 2005: The restrictions specifically use terms like “Flag of the United States of America,” “American flag,” “United States flag,” or “North Carolina Flag”
- For restrictions registered on or after October 1, 2005: The first page of the recorded instrument states in capital letters, bold face type: “THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF THE FLAG OF THE UNITED STATES OF AMERICA OR STATE OF NORTH CAROLINA”
Federal Flag Display Regulations
Federal law also addresses flag display, stating that “a condominium association, cooperative association, or residential real estate management association may not adopt or enforce any policy, or enter into any agreement, that would restrict or prevent a member of the association from displaying the flag of the United States” on their property.
However, the law does permit reasonable restrictions regarding:
- Time of display
- Place of display
- Manner of display
These restrictions must be necessary to protect a substantial interest of the association.
Enforcement Considerations
Before enforcing restrictions on flag displays, associations should:
- Review their governing documents to determine the exact language used
- Confirm when their restrictions were recorded
- Understand both state and federal requirements
- Consider consulting with legal counsel to ensure compliance
Best Practices for Community Associations
For effective vehicle and property use regulations:
- Use Precise Language: Clearly define terms like “commercial vehicle” or “truck” to avoid ambiguity
- Document Enforcement History: Maintain records of how restrictions have been applied to ensure consistency
- Consider Amendments: For vague or problematic restrictions, consider amendments that provide greater clarity
- Seek Legal Guidance: Consult with community association attorneys when interpreting or amending restrictions
Navigating vehicle and property use regulations requires balancing community standards with legal limitations and homeowner rights. By developing clear restrictions, implementing consistent enforcement processes, and maintaining thorough documentation, community associations can effectively maintain property values while fostering a harmonious living environment. When faced with enforcement challenges, consult with experienced HOA legal counsel and a professional homeowners association management company in the Carolinas to develop strategies that protect both the community’s interests and the board’s legal standing.
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.
