In a recent development, the North Carolina Court of Appeals delivered its opinion in the case of Alexander v. Burkey, 894 S.E.2d 291 (2023). The verdict ruled in favor of the condominium association.
Court of Appeals Sides With Condo on Alexander v. Burkey
The court’s ruling supported the authority of condominium associations to establish maintenance regulations for limited common elements within their covenants and levy assessments on unit owners for associated costs. Furthermore, the decision confirmed the distinction between ownership and maintenance in condominiums. It emphasized that ownership allocations and maintenance obligations can diverge.
Representing the Community Associations Institute in this case was Alex Dale from Ward and Smith, P.A. The Community Associations Institute is an international organization that provides information, education, resources, and advocacy for community association leaders, members, and professionals. It participated in the proceedings as an amicus curiae with court approval.
With over 43,000 members, including homeowners, board members, association managers, and other professionals, the Community Associations Institute stands as the largest organization of its kind. It serves over 74.1 million homeowners in over 355,000 community associations in the United States.
The court’s decision aligned with the stance taken by the Community Associations Institute in the case involving the Courtyards of Huntersville, a condominium community featuring a distinctive layout of 51 free-standing residential units resembling patio homes.
Alexander v. Burkey Key Takeaways
The dispute, which led to two appeals, centered on an amendment to the condominium declaration in December 2023. The court’s opinion provided several key points pertinent to condominium developers, associations, and unit owners:
- Developers have flexibility in forming condominium communities. Structures may vary, even resembling planned communities with single-family lots. However, condominium laws must still govern them.
- Repairing and maintaining limited common elements may fall on condominium associations. Limited common elements are specific community spaces used by fewer than all members.
- The declaration of restrictive covenants determines the duty to maintain limited common elements, irrespective of the condominium structure.
- A validly adopted covenant amendment can alter the maintenance responsibility for limited common elements. It necessitates the required vote based on the percentage specified in the declaration for an amendment.
- Shifting maintenance responsibilities for limited common elements does not necessitate a unanimous vote. This distinguishes it from amendments related to undivided interests or common expenses. The North Carolina Condominium Act clarifies this.
The court’s decision on Alexander v. Burkey was a significant triumph for condominium associations. Alex Dale expressed satisfaction, stating, “I am pleased with the outcome of this decision. It confirms that communities can continue to chart their path, amending covenants in the best interest of the condominium, aligning with the self-governance envisioned by the North Carolina Condominium Act.”