Ratification of State Statute

Our community is a 200 home development in North Carolina. The development was built in the early 1970's and still has a very active Board of Directors and neighborhood committees.

As the Chairman of our Community Relations Committee, I have been asked by our Board to address the following issue. Our homeowners assocation was formed under North Carolina General Statute Chapter 55A which does NOT allow the imposition of fines for bylaw violations or the ability to recoup any legal expenses if the Board chooses to prosecute homeowners for violations.

The current North Carolina statute for planned developments built after January 1999 is chapter 47F.

Our Board of Directors would like to the community to adopt this new statute which WOULD give the Board more authority for imposing and collecting fines. Adoption of the statute would require 2/3 approval of the membership.

Problem: How in the world do we sell our homeowners on approving this when on the surface all it appears to do is give the Board more control. For those willing to think this through, hopefully they will understand the approval would allow us to better protect our property values and the assets of the assocation.

Does anyone have any experience in having pursued this or any suggestions on how to move forward.

Kaye, this will take an amendment to your Declaration of CC&Rs. This is what I presume you mean by requiring 2/3 approval of the members (actually it should require 2/3 of the unit OWNERS OF RECORD). We find the most effective means of amending the Declaration is to provide a mail in ballot which states the amendment, vote to approve or disapprove, address, signature, and date. Include a carefully drafted letter explaining the pros and cons of the amendment. Provide a self addressed stamped envelope to encourage return plus phone number to call if they have questions. A special meeting could also be called to explain the proposed amendment IF you think enough owners would attend. Finally, be prepared to go door to door for signatures of those who do not respond, if necessary.

JoeW, I think your idea of a special meeting is good but would have the proposed amendment drafted and sent to the owners with the notice of meeting and include the proposed pros and cons. That way the owners would come prepared. My only concern is whether or not you will get sufficient attendance to warrant a meeting to finalize the amendment. I have done this and when there is a MAJOR amendment proposed there usually is at best fair attendance.

Nope. Based on my experience it is simply apathy. That is why a carefully crafted letter is needed; not just to explain the issues but to stir up enough interest to try to get an owner to even return their vote. Many owners will not even return a vote when a stamped self addressed envelope is provided