Education for Homeowners about North Carolina HOA Laws

( See the Links to Other States on Home Page )

Setting Goals for Better Communities and Higher Property Values


Do some of your own research -- become informed and involved !

From Wikipedia - A Homeowner Association (HOA) is usually a “non-profit” Corporation formed by a Real Estate Developer (NOT by Homeowners) for the purpose of marketing, managing, and selling of homes and lots in a residential subdivision. It grants the Developer privileged voting rights in governing the association, while allowing the Developer to exit financial and legal responsibility of the organization, typically by transferring ownership of the association to the homeowners after selling off a predetermined number of lots. It allows a civil municipality to increase its tax base, but without requiring it to provide equal services to all of its citizens. Membership in the Homeowners Association by a residential buyer is typically a condition of purchase; a buyer isn't given an option to reject it. Some homeowner associations hire and retain property management companies. The board of directors is responsible for the retention of these companies.

Most Homeowner Associations are incorporated, and are subject to state statutes that govern non-profit corporations and homeowner associations. State oversight of homeowner associations is minimal, and mainly takes the form of laws which are inconsistent from state to state. Some states, such as Florida and California, have a large body of homeowner association law, and some states, such as Massachusetts, have virtually no homeowner association law.

The Community Associations Institute trade association estimated that HOAs governed 23 million American homes and 57 million residents in 2006.

Community Associations Institute (CAI) is a nonprofit membership association dedicated to building better communities. CAI’s 30,000-plus members include community association board members and other homeowner volunteer leaders, community managers, association management companies and a diverse range of product and service providers, e.g., accountants, attorneys, bankers, insurance professionals, landscapers, painters and technology providers.

A Property Management Company (PMC) provides management and specialized administrative services to trade associations and professional societies using a for-profit approach that runs not-for-profit associations like businesses.  PMCs manage associations of varying sizes (from 10 members to 10,000 members) and annual budgets (from $50,000 to $16 million). The Property Management Company model affords association clients the characteristics of economies of scale, experience in the association marketplace, flexibility and adaptability, buying power and centralized facilities.  Property Management Companies typically provide strategic planning, financial management, executive management, membership development, marketing and public relations, educational and professional development, meeting and event planning, among other services.

Read your HOA CCRs (Covenants, Conditions, Restrictions) as they may not always be in your favor,

as they are often written by the Community Developer.  Challenge them and ask for them to be

revised or voided, if necessary, and “start over” ... so that You are protected and Your Property is protected ...

for the Common Good with your Neighbors, not for the benefit of the HOA Board, Attorneys and Property Managers

First - Learn about the HOA Laws of NC , the “Planned Community Act”

Link here >>>  Chapter 47F of the NC General Statutes


Second - Contact your Legislator ( Link here >>>  Thom Tillis, Speaker of House )

and ask what is being done to bring Regulation to Home Owner Associations


Third - Try to file a Complaint with the NC Dept of Justice (Attorney General)

by following this Link >>> Complaint to Attorney General of NC 

only to find out that they cannot even comment, let alone act on your behalf


Fourth - Look for Organizations devoted to Homeowner Rights

For example: and the Presentation prepared for Owners about HOAs


Fifth - Contact Professionals in the Insurance Industry for HOA Insurance Information

For example: from HOA-USA website Clink Here for Director and Officer Insurance Info