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Tag Archives: developer

Finding the Right Attorney

Next to selecting a manager, probably the most important decision an association can make is selecting legal counsel.  The community association field is complex and ever-changing, and boards have a responsibility to find a legal expert with diverse talents and capabilities who will provide the best council for the association.

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Discussion Forum Follow-Up: Is HOA Dissolution or Receivership the Answer?

A reader writes, “The association has 1,539 homes. The development is 25 years old. The bylaws and covenants have not been updated since 1987. The developer left in 1999. There are warring factions–ones that want the HOA but don’t want the $35 a month dues to go up, and the other faction that wants the HOA to dissolve.

Discussion Forum Follow-Up: Is HOA Dissolution or Receivership the Answer?Discussion Forum Follow-Up: Is HOA Dissolution or Receivership the Answer?Discussion Forum Follow-Up: Is HOA Dissolution or Receivership the Answer?Discussion Forum Follow-Up: Is HOA Dissolution or Receivership the Answer?Discussion Forum Follow-Up: Is HOA Dissolution or Receivership the Answer?Discussion Forum Follow-Up: Is HOA Dissolution or Receivership the Answer?Discussion Forum Follow-Up: Is HOA Dissolution or Receivership the Answer?

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Association answers

Michael HunterQ: Our HOA has no Articles of Incorporation on file with the state, and no bylaws. It only has a Declaration of Covenants that has nothing in it about electing board members. Does that mean that, under the Planned Community Act, the current board is operating illegally since there is nothing in the Declaration saying how they are to be elected? Would that also mean that any decision they made is invalid? I have minutes from 2008 to March 2011, but nothing about the current four board members’ election.

While the majority of HOAs are established as nonprofit corporations with the filing of Articles of Incorporation with the Secretary of State, it is permissible for an HOA to operate as an unincorporated nonprofit association under Chapter 59B of the N.C. General Statutes.

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