A legal dispute over stormwater management remains unresolved between Fayetteville and four HOAs. The city recently rejected a settlement offer from the HOAs, prolonging the seven-year battle. The dispute centers on whether the city should be responsible for repairing private dams that failed during Hurricane Matthew in 2016.
Fayetteville vs HOAs: Background of the Dispute
Hurricane Matthew severely damaged dams owned by four homeowners associations, leaving dry land and murky water where lakes once stood. The affected HOAs — Devonwood-Loch Lomond Lake Association, Arran Lake Homeowners Association, Rayconda Homeowners Association, and Strickland Bridge Road Homeowners Association — sued the city in 2018. They argued that the city should repair the dams because they use the lakes for stormwater management.
The city has consistently opposed the claims, leading to ongoing legal battles that have bounced between different courts. In October 2024, the N.C. Court of Appeals ruled in favor of the HOAs, overturning a previous dismissal of their case.
The Settlement Proposal and City’s Rejection
On February 19, the HOAs proposed a settlement, offering the city complete control of the lakes for stormwater and recreational use. In exchange, they requested that the city restore the dams to their pre-2016 conditions. The HOAs suggested this arrangement could be achieved through property acquisition, easements, or a joint partnership. They argued that restoring the lakes would enhance recreational options and increase property values, benefiting the city’s tax revenue.
The city rejected the offer, raising legal and financial concerns. Officials stated that using public funds for private property improvements could be problematic. They also cited high repair costs and minimal stormwater benefits as reasons for their refusal. Additionally, the city argued that taking responsibility for private dams would create an undesirable precedent, potentially obligating the city to maintain other private infrastructure.
Recent Legal Developments
The case has seen multiple legal filings in recent months:
- October 28, 2024: The city requested a rehearing from the N.C. Court of Appeals.
- November 1, 2024: The court denied the city’s request.
- December 13, 2024: The city responded to the HOAs’ original Cumberland County Superior Court lawsuit.
- January 17, 2025: The HOAs filed a motion to dismiss the city’s response.
- February 19, 2025: The HOAs submitted their settlement proposal.
- March 3, 2025: The city formally rejected the settlement offer.
A decision is still pending on whether the Superior Court will grant the HOAs’ motion to strike the city’s response. In the meantime, the city has sent discovery requests to the plaintiffs, seeking additional documentation and answers.
Ongoing Frustrations Over Stormwater Management
HOA representatives expressed disappointment with the city’s refusal to settle. One HOA attorney argued that resolving the dispute would benefit both parties by addressing stormwater issues and avoiding litigation costs.
Residents remain frustrated, claiming the city continues to use their lakes for stormwater management without maintaining them. Some describe the water as murky and polluted due to unchecked stormwater runoff. They believe the city’s 2019 stormwater ordinance change, which limits liability for non-city-owned property, unfairly absolves the city of responsibility for their deteriorating lakes.
The HOAs insist they only want the lakes restored to their former condition. With no resolution in sight, the legal battle between Fayetteville and the HOAs is set to continue.
