Homeowners fight HOAs all the time, but it’s not every day that they get the chance to voice their opinions to legislators. With the deadline for recommendations nearing, homeowners and HOAs find themselves in a battle.
Homeowners Fight HOAs and Push Legislators for Change
Sue Hodgin made the lengthy journey from Southport to Raleigh last week to voice her concerns to lawmakers about her HOA-controlled community. She described it as operating like “a secret society.” Speaking before the House Select Committee on Homeowners’ Associations, Hodgin highlighted the lack of transparency within her HOA. According to her, residents struggled to obtain information on board activities, discussions, and approved construction plans.
Hodgin criticized her HOA for limiting residents to just two to three minutes of public comment at the beginning of virtual meetings. After public comment, the proceedings turned private. She pointed out that Zoom calls were not recorded for later review. Furthermore, her HOA did not produce meeting minutes adequately.
Additionally, Hodgin expressed dissatisfaction with the influence of big corporate management companies. She suggests that if HOAs were operating as businesses, it is time to reconsider their nonprofit status. She believes this will help ensure proper oversight and accountability.
Counterpoint from HOA Institutions
Keith Marine, representing the HOA management group Associa, was also present. During the committee meeting, Marine stated that a significant majority of homeowners under his company’s management were content with their HOAs.
However, William Keller, a former HOA president from Virginia, shared a less favorable experience. Keller cited issues with his current HOA management company’s fiduciary responsibilities. This includes the non-opening of an amenity center despite ongoing dues collection.
Harmony Taylor represents the Community Association Institute. Taylor emphasized each community’s uniqueness and the challenges boards of directors face in changing restrictive covenants. She also argued that North Carolina law already provided a substantial amount of transparency. Furthermore, she cited mandatory annual meetings that members could attend and speak to their board.
Janice Almond from the Mediation Network of North Carolina advocated for mediation as a solution. This, of course, assumes that both parties are willing to participate.
However, Daniel Mosteller from the Attorney General’s office cautioned against creating false hopes during the legislative short session. Mosteller acknowledged the challenges of overseeing HOAs. He points out the substantial discretion that North Carolina law currently affords HOAs.
Homeowners Fight HOAs: Complaints Mounting
Mosteller highlighted that over the past three years, the state attorney general’s office received 357 complaints against HOA management companies. The complaints ranged from fines to inadequate access to financial and corporate records. House Bill 542, addressing HOA-initiated foreclosures, is currently in a conference committee with no action taken since last fall.
As the House Select Committee on Homeowners’ Associations concluded its public comment period, legislators will spend the next few weeks finalizing recommendations for the full General Assembly, meeting again on February 7th.