Developer control in HOAs became the central issue in a Mooresville waterfront community where residents said they lacked power over decisions. Homeowners explained that the developer retained decision-making power for more than five years while still building out the neighborhood. Many felt powerless despite paying dues and living in the community full-time.
Developer Control in HOAs Leaves Homeowners With Limited Authority
Residents said they could not elect their own board, select an HOA president, or vote on most decisions. They described paying monthly dues while having a voice only on the annual budget. Many said they never expected this imbalance when they purchased homes in the lakefront development.
Legal professionals said this situation is common in North Carolina. The state has no law that requires developers to hand over HOA control by a specific deadline. The timing depends on the governing documents and whether the developer still owns unsold lots.
In many planned communities, developers begin with full HOA control. They appoint board members, make financial decisions, and manage major construction projects. The structure is meant to ensure the community’s success, but legal experts said the control often lasts far longer than residents want.
Some developers reportedly hold onto one or two lots to maintain voting power. Experts said those lots sometimes carry multiple votes, making it nearly impossible for homeowners to elect their own board.
Effects of No Homeowner Control
Residents said the impact is visible in daily life. They described limited access to financial information, unclear decision-making, and little to no transparency. Legal professionals said they have seen developers use their authority to approve financial decisions that benefit themselves rather than the association.
North Carolina’s Planned Community Act governs many associations but does not establish a statewide turnover requirement. Some attorneys said this gap allows developers to keep control longer than necessary.
The developer of this Mooresville community said the neighborhood is being built in two phases. It stated that HOA control will shift to residents once Phase 2 is complete and the required road is finished. The developer also said it was not aware of other concerns raised about oversight or fees.
Residents continue to wait for a complete transition so they can elect their own board and participate in governing their community.
