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Enforcing HOA Rules: Navigating Specific Regulations and Avoiding Selective Enforcement

As homeowners’ associations (HOAs) work to maintain property values and community standards, proper rule enforcement is crucial. Understanding specific regulations and ensuring consistent enforcement helps boards avoid legal challenges while fostering a harmonious community environment. This guide explores key areas of HOA regulation and provides practical guidance for fair enforcement.


Contents


Political Signs: Understanding the Legal Framework

As election seasons approach, political signs often become a point of contention in planned communities. In North Carolina, for example, an HOA’s ability to regulate political signs depends on specific factors:

  • For communities with declarations recorded before October 1, 2005, restrictions must specifically prohibit “political signs”
  • For declarations recorded after October 1, 2005, the document must explicitly state in bold, capital letters on the first page: “THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF POLITICAL SIGNS”

When political signs are permitted, HOAs can still implement reasonable regulations:

  • Limit display periods to 45 days before and 7 days after an election
  • Regulate size and number of signs, consistent with local ordinances
  • If no local regulations exist, allow at least one sign up to 24 by 24 inches

Rental Limitations: Balancing Property Values and Market Forces

In recent years, HOAs have faced increasing challenges regarding rental properties within their communities. The rising popularity of both long-term rentals and short-term vacation rentals has prompted many associations to consider implementing rental restrictions. While maintaining a predominantly owner-occupied community can help preserve property values and community engagement, boards must carefully weigh the potential impacts of rental limitations on their market and residents.

Many communities consider implementing rental restrictions to maintain property values. Common approaches include:

  • Limiting the number of homes that can be leased simultaneously
  • Restricting the number of properties one individual or entity can own

While these restrictions can help maintain a owner-occupied majority, boards should consider:

  • The impact on property marketability
  • Potential effects on FHA loan qualification (particularly for condominiums)
  • The need for consistent, uniform application to avoid discrimination claims

Avoiding Selective Enforcement

One of the most challenging aspects of HOA governance is maintaining fair and consistent rule enforcement across all properties and owners. Selective enforcement claims can arise when community members perceive that rules are being applied inconsistently or unfairly. This issue typically manifests in two distinct ways: either through the sporadic enforcement of certain covenants while others are consistently enforced, or through varying enforcement of the same covenant against different property owners.

The courts have provided significant guidance on how associations should approach enforcement to avoid claims of selectivity. In the landmark case of Palmetto Dunes v. Brown, the South Carolina Supreme Court established that boards must be able to demonstrate reasonable relationships between their decisions and the community’s overall development plan. This means that when making enforcement decisions, boards need to consider not only the specific violation at hand but also how their decision aligns with previous cases and the community’s broader standards.

Understanding Enforceable Restrictions

Recent North Carolina Court of Appeals decisions have established important precedents regarding what constitutes an enforceable restriction. The courts have held that restrictions must be sufficiently specific to apply objective standards. For example:

  • Vague requirements like maintaining a “clean and sightly condition” may be deemed unenforceable
  • Standards requiring “compatible aesthetic appearance” may be void due to subjective interpretation
  • Restrictions must provide clear, measurable criteria for compliance
  • Boards should avoid language subject to individual preference or interpretation

Common Enforcement Challenges

Selective enforcement often arises in several typical situations:

  • Inconsistent enforcement of lawn maintenance standards
  • Varying treatment of vehicle and parking violations
  • Different handling of architectural modifications
  • Uneven application of commercial vehicle restrictions

Privacy and Documentation

When handling enforcement matters:

  • Individual violation notices and fine records are confidential
  • Homeowners cannot demand access to other owners’ violation histories
  • Members can request meetings with the board to discuss general enforcement concerns
  • Boards must maintain secure records of all enforcement actions

Documentation plays a crucial role in defending against selective enforcement claims. Boards should maintain detailed records that outline the specific reasoning behind each enforcement decision. This includes noting any distinguishing factors between seemingly similar cases and documenting any policy evolution that might explain different treatment of similar violations over time. For instance, if a board’s stance on certain architectural elements has changed based on community feedback or professional recommendations, this evolution should be clearly documented and communicated to residents.

Consistency in enforcement doesn’t necessarily mean identical treatment in every case. Courts recognize that circumstances can vary, and boards may have valid reasons for treating similar violations differently. However, these differences must be based on objective criteria and well-reasoned value judgments rather than arbitrary decisions. For example, a board might approve one architectural modification while denying a similar one if they can demonstrate specific differences in impact on the community or changes in community standards over time.


Best Practices for Fair Enforcement

To maintain effective and legally sound enforcement practices:

  1. Review governing documents regularly to ensure enforcement authority
  2. Create clear enforcement procedures and follow them consistently
  3. Keep detailed records of all enforcement actions and decisions
  4. Consult with legal counsel when developing new restrictions
  5. Communicate rules and enforcement procedures clearly to all residents

Courts generally support HOA enforcement when boards can demonstrate:

  • Decisions fall within their authority
  • Rules are applied uniformly and fairly
  • There are reasonable explanations for different treatment of similar cases
  • Proper procedures were followed in making and implementing decisions

North Carolina Enforcement Powers

State law provides HOAs with specific enforcement tools:

  • Authority to levy fines up to $100 per violation
  • Ability to assess daily fines of $100 for continuing violations
  • Power to suspend community privileges and services
  • Right to restrict access to amenities like pools, clubhouses, and utilities

Implementing Enforceable Standards

To strengthen enforcement practices:

  1. Review existing restrictions for clarity and specificity
  2. Consider amendments to clarify vague or subjective standards
  3. Develop clear, objective criteria for common violations
  4. Document evolution of enforcement policies and standards
  5. Maintain thorough records of enforcement decisions and rationales

Legal Protection Through Documentation

While maintaining consistent enforcement, boards should:

  • Document specific reasoning behind each enforcement decision
  • Note distinguishing factors between similar cases
  • Record any policy changes that affect enforcement
  • Maintain evidence of uniform application of rules
  • Preserve records of communication with residents about violations

Partner with HOA Experts for Effective Rule Enforcement

Navigating HOA regulations and enforcement requires expertise, dedication, and consistency. While understanding these principles is crucial, implementing them effectively can be challenging for volunteer boards managing complex communities. That’s where professional HOA management partners can make a difference.

As a leading provider of HOA management services in North and South Carolina, Community Association Management empowers association boards with expert-backed resources and solutions.

Ready to enhance your community’s rule enforcement approach? Contact Community Association Management online or call us at 888-565-1226 to learn more about our customized HOA management solutions.

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.