Question:
We live in a community that consists of independent developments each with their own HOA board.
However anyone from any of these communities besides our own can run for an open seat on our communities HOA board. But the opposite is not true.
As a result our development has its 3 seats filled by residents of 1 of the 3 communities inclusive.
In terms of legalities is this allowed in North Carolina and if so, are there any rules or regulations governing oversight up to including ensuring election fairness, voting rights, voting methods, arbitration and mediation and veto-powers to ensure that all communities are equally represented?
– Paul
Answer:
Hi Paul,
Kindly refer to your bylaws as they should state the qualifications of the directors. They should indicate who can be members of the board. If the HOA is excluding your community’s members without the authority of the bylaws, then you may raise this concern at a board meeting. Moreover, the North Carolina Planned Community Act Section 47F-3-103(b) states that the board cannot unilaterally act on behalf of the HOA to determine the qualifications of the board. Hence, if this rule was unilaterally instituted by the board, it may not be valid.
In addition, according to Section 47F-2-120, master associations are subject to all provisions of the act. Hence, all provisions within the act regarding elections, voting, arbitration, and veto powers also apply to your master association.
This includes Section 47F-3-110(e), which states that the declaration may specify that only a subgroup of owners may vote under the following conditions:
(1) The issue being voted is of special interest solely to the members of the subgroup
(2) All except de minimis cost that will be incurred based on the vote taken will be assessed solely against those lot owners entitled to vote.
Section 47F-3-110(f) also states that an issue to be voted on is not a special interest solely to a subgroup if it substantially affects the overall appearance of the planned community or substantially affects the living conditions of lot owners not included in the voting subgroup.
These conditions should help clarify when the HOA is allowed to include only specific communities or subgroups in voting. Kindly consult a lawyer for further guidance.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
