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North Carolina Community Associations and HOAs

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4 Minutes Read

How to Set Up Your North Carolina HOA/Community Association

More Americans are looking for better places to live.

They're eager to lower their cost of living, enjoy reduced taxes , improve their lifestyle and live in safety. And the state of North Carolina is increasingly coming into their view.

Given the benefits North Carolina offers, it seems reasonable that both Americans and US businesses will seek to locate here in the coming years. They're leaving high tax state behind for lower tax states where they have lower home prices and cost of living. Just recently, CNBC ranked North Carolina as the 2nd most attractive state to do business within. 

Why start an HOA or community association here?  NC may be one of the best states for operating a homeowners association. It's easier to create the value residents seek in asset protection, safety, well-managed services, and ideal lifestyles for young families.

Enjoy this startup info as well as links to authoritative and helpful help on forming new a new HOA.

North Carolina State Facts

Today, North Carolina is seeing the greatest influx of new residents (3,000 per month in 2024) attracted to its major cities including Raleigh, Durham, Chapel Hill, Wilmington, Greensboro and Charlotte. As a state, over the last 2 decades, NC has drawn business investment and new professional workers which has greatly elevated the quality of life and opportunities for jobs and housing here.

NC's unemployment rate hovers around 3.5%, lower than the US average, while home prices are an average of $335,521, up 4.4% vs last year, and 26th highest in the USA. The cost of living here is the 24th-lowest in the United States. Add that to North Carolina's geographic splendor and lifestyle amenities, and it's easy to see why home construction has risen. The state placed 6th in the US for new home build growth rate (17%) in the last 14 years, behind Texas, North Dakota and South Carolina.

Community Associations in the State

About 2.756 million residents of North Carolina reside in about 14,000+ community associations and HOAs -- about 26% of the population. Despite being a small state in terms of population, its 14,300 associations marks it as 5th in the nation behind, Illinois, Texas, Florida and California, yet ahead of New York, according to stats from Caionline.org.

And the number of HOAs and community associations launched in North Carolina are expected to increase as more people move to NC. This state is an HOA-friendly state, however boards must its understand laws and regulations and how they might be overstepping their authority, or where expedient enforcement might not be a wise decision.

Welcome to our series of articles focused on the HOA creation in the US. See our posts on Texas POAs, Florida HOAs, California HOAs, and Illinois HOAs. Each state has its own unique laws and parameters for operating community associations. These posts are just primers to get you up to speed, before you contact a qualified consultant or lawyer in your state. 

You can find more on how to create an association and what to consider in building one on the Illinois HOA post.

What's North Carolina's Association Sector Like?

As an industry, associations here collect about 5.1 billion dollars in revenues/dues. Living within HOAs is good for properties and property owners, where home values are valued at about 4% more than nonassociation homes. Laws and regulations are favorable to HOAs, yet homeowners do feel vulnerable to hasty regulation enforcement such as foreclosures for late HOA fees. Hopefully, your HOA board and managers will handle these delicate matters professionally and with compassion.

North Carolina HOA Regulations

With respect to homeowners associations, Subdivisions with homeowners’ associations created after Jan. 1, 1999, are governed by the North Carolina Planned Community Act found in Chapter 47F of the North Carolina General Statutes. This outlines the creation, management, and powers of HOAs.  Similar to Texas POAs, there is no state or federal agency that oversees homeowners’ associations.

All associations within the state must be nonprofits and adhere to the laws set forth in the North Carolina Nonprofit Corporation Act. HOA boards must adhere to many specific HOA laws and regulations, and keep proper documentation for each aspect of HOA management. 

Having an HOA software that help you automate your documentation and keep on top of government changes, protocols, and corporate laws is important.

Any developer or community group wishing to start a North Carolina HOA must file an Articles of Incorporation, with its name and a set of board of directors. The HOA board must produce a Declaration of Covenants, Conditions and Restrictions (CC&R's) and some documents must be filed with the relevant county's Register of Deeds.

These are general requirements for HOA boards, however you can learn more fully about the most common questions asked at the Secretary of State website.  

The Board/association management company involved must collect assessments and dues, manage the HOA finances, and handle surplus funds and financial records according the rules set forth in the North Carolina Nonprofit Corporation Act.

The rights of HOA homeowners and community residents is set forth in the North Carolina Planned Community Act, and Fair Housing Act (FHA), American with Disabilities Act (ADA), the North Carolina Debt Collection Act along with the North Carolina State Fair Housing Act.

How to Start a NC HOA?

Here are 12 steps you might take:

  1. decide on the purpose of your organization and give it a name
  2. review the state laws
  3. determine your funding and operational needs -- establish your budget
  4. get resident's feedback and gauge their willingness to join/cooperate
  5. communicate your HOA plan to all stakeholders
  6. build your plan for the HOA and community
  7. write your CC&Rs
  8. determine HOA or association fees
  9. form your corporation's legal entity and contact a lawyer
  10. create governing documents & elect your board members
  11. purchase HOA software and build a community portal
  12. acquire HOA insurance for property and liability

The requirements of all the laws, guidelines, and practices necessitates hiring a North Carolina lawyer to ensure your organization is built with legal compliance first. Friction from misunderstanding, disputes, and resident resistance, then requires extra enforcement and administration and ultimately adds costs. 

Additional info sources regarding HOAs in North Carolina

Frequently Asked Questions of NC HOA business:

NC Secretary of State - https://www.sosnc.gov/frequently_asked_questions/by_title/_homeowners_associations 

NC Department of Justice Office:  Homeowners protections https://ncdoj.gov/protecting-consumers/home-repair-and-products/homeowners-associations/


Save Your Time and Speak with Our HOA Software Sales Team

When designing your new North Carolina Association, it's wise to review ManageCasa's association management platform first. 

You'll get a real, hands-on view of the essential services of accounting, online payments, communications and daily management of HOA operations and maintenance.  Your HOA software is a foundation for your entire HOA/CAM success. It's more than just automation, efficiency and compliance. It's a suite of services to optimize finances, communications, and support services. 

Speak with our sales team regarding switching to ManageCasa™ or about how to set up your member database in our system. You'll find ManageCasa™ is simple and powerful and will become the key asset in your HOA success. 

Begin with best HOA management platform and never worry about what's ahead.

Learn more about HOA software, Improving your HOA, and Association Payment software

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