The information provided in this newsletter was done so by Offit Kurman Attorneys at Law.
Governor Roy Cooper issued Executive Order 204 (“EO204”) on March 23, 2021. EO204 relaxes a number of the protective actions taken by the State of North Carolina to address the Coronavirus Disease 20 19 ("COVID-19") public health emergency, but EO204 is far from a “re-opening.” To the extent EO204 is applicable to planned communities and condominium owners Associations in North Carolina, here are the hot button items as outline by some of theHOAteam’s partners:
No, the Sky Isn’t Falling
By Mike Hunter
There has been a bit of consternation among HOA boards around Charlotte the last few months before and after the City Council approved the controversial “2040 Plan” that will guide development in the city for the future. In particular, it is the provision that allows the city to rezone neighborhoods currently zoned for single-family residential to allow multi-family development – the stated purpose to allow for higher-density and more affordable housing.
I saw HOA presidents issue a “call to arms” for homeowners in their communities of single-family, detached homes to protest the plan (before it was approved), with dire-predictions that their single-family communities will be forever impacted when developers can start buying homes, tearing them down and replacing them with townhomes, condos or apartments. The fear is that putting multi-family housing in the center of what has been strictly a single-family community will significantly alter the character of the community and depress property values.
I checked with three of my law partners (Zip Edwards, Rob McNeill, and Amy Hunt) who are experienced practitioners in the area of real estate title issues and litigation. All three emphatically agreed that these fears are unfounded. The bottom line is that a change in local zoning codes will NOT “trump” properly recorded and otherwise enforceable restrictions in the chain of title for real property that limit its use to single-family purposes. Despite a new zoning overlay that would allow multi-family development in a particular area, detached, single-family homes in a deed-restricted community would still be protected. That restriction would remain enforceable by the HOA or by other lot owners in the particular subdivision.
If a particular neighborhood is not subject to restrictive covenants that limit homes to single-family, then a rezoning of that neighborhood to multi-family would open that community up to multi-family development. But owners of homes in deed-restricted communities with a single-family limitation have nothing to worry about. The sky isn’t falling.
North Carolina Electronic Meeting and Voting Bill Signed into Law
by Mike Hunter
Governor Roy Cooper signed House Bill 320 on September 20, 2021. The bill is titled “Modernize Remote Business Access” and allows HOAs, condominium associations and other nonprofit and for-profit corporations to conduct business (holding meetings and casting votes) utilizing e-mail and the web-based virtual meeting platforms we all became accustomed to over the past 1.5 years (Zoom, GoToMeeting, Teams, etc.). The bill is extensive and complex, placing a number of requirements on HOAs wishing to making use of the technology.
Below is a summary of the chief provisions of the bill:
There are a number of web-based platforms available for conducting virtual meetings and casting ballots during the meeting, including VoteHOANow and Election Buddy.
The full text of the bill can be found here:
We will continue to offer guidance as everyone begins adapting to these new ways of doing business. If you have question, feel free to email me or one of my partners in our Community Association Practice Group: