The speakers explained differences between planned communities governed by the North Carolina Planned Community Act and developments without formal homeowner associations, emphasizing that associations with recorded declarations and assessments (typically 20+ lots recorded after Jan 1, 1999) have statutory enforcement powers. They described enforcement procedures including notice, a hearing process, fines up to $100 per violation per day that can become liens and lead to foreclosure, and noted management, insurance, and liability issues for associations and condominiums. Advice for buyers included reviewing covenants, disclosure statements, and consulting a realtor or attorney before purchase, and homeowners were advised to engage with or change their board if dissatisfied with management.

Popularity and types of community living

• Discussion of growing popularity of planned communities, townhome-like communities, and condominium developments across age groups. [01:19][31:21]

• Differentiation among planned communities, condominium associations, and simple covenant-restricted subdivisions. [03:40][07:46]

Governing documents and organization

• Emphasis on importance of governing documents (declarations/covenants, bylaws, amendments) as primary authority for associations; attorneys obtain these immediately when representing associations. [15:33][06:48]

• Explanation that some developments have covenants but no intent to form a nonprofit association, resulting in public streets and no common areas. [04:08][05:01]

Planned Community Act (47F) — scope and applicability

• Criteria: declarations/covenants recorded on or after January 1, 1999 and development of 20 (or 20/21) lots or more may fall under the Planned Community Act (NCGS 47F); this Act provides additional powers to associations. [07:18][07:46]

• Distinction that condominiums are governed by a related statute (likely 47C). [07:46]

Enforcement and fines under the Planned Community Act

• Associations covered by the Act can notify property owners in writing of violations, hold hearings (board or adjudicatory panel), and allow owners to present evidence—constituting procedural due process. [10:33][11:02]

• The board may impose fines up to $100 per violation per day after procedures; fines become a lien on the property if not paid, recorded in chain of title. [11:27][11:57][12:25]

• Associations can foreclose on properties to collect unpaid fines using the Judicial Sales Act process (trustee, notice, sale). [13:16]

• If a community lacks an association or does not meet Act criteria, enforcement against another owner requires private lawsuit for breach of covenants. [09:14][13:41]

Remedies, strategy, and practical considerations

• The Planned Community Act serves as a fallback to address deficiencies in original covenants drafted by developers; serves to protect property values and provide governance continuity. [14:40][16:02][16:27]

• Counsel recommends staying organized to avoid litigation where possible but acknowledges litigation may be necessary. [17:53][18:22]

Association management and third-party managers

• Associations often hire private management companies to handle day-to-day tasks (collecting dues, letters, money handling), but the board of directors hires/fires and remains ultimately responsible. [19:26][20:45][21:43]

• Owners dissatisfied with management should organize to elect representatives to the board or petition and vote to remove board members if misconduct or mismanagement (e.g., theft, breaches) occurs. [20:18][21:15]

• Caution that management companies sometimes overstep legal advice or make mistakes beyond their expertise. [22:12][22:40]

Liability, insurance, and common areas

• Associations must obtain appropriate insurance to cover officer/director liability and property liability (e.g., pools as attractive nuisances); insurance is part of common expenses funded by assessments. [23:36][24:00][24:28]

• Condo associations have more complex insurance responsibilities because the association typically insures exteriors and common elements while unit owners insure interiors; disputes can arise over where interior/exterior boundaries lie. [25:25][25:54]

• Insurance proceeds for common property must be used for common expenses per statute; any remaining funds must be distributed pro rata to owners. Misuse of pooled insurance funds by a board is not permissible. [26:52][27:44]

Buyer due diligence when purchasing in an HOA or planned community

• Buyers should obtain and review covenants/declarations and the residential property disclosure statement; check for special assessments or major obligations (e.g., aging wastewater systems with potential large assessments). [28:33][29:03][29:31]

• A good realtor can assist in obtaining documents and identifying issues; however, obtaining an attorney review of covenants is recommended to understand responsibilities and restrictions. [30:00][30:27][30:54]

Local context and closing remarks

• Observations that planned community development is increasing locally (Carteret County and surrounding areas), making awareness of governance, covenants, and statutory protections more important for buyers and existing associations. [31:48][32:30][32:53]

• Program hosts reiterate availability of Harvell & Collins for consultation and encourage due diligence. [00:00][30:54]S