NC Special Assessment Help

Hello All

I am a new condo owner in a North Carolina ocean front building that has 6 units. The building was going through an exterior waterproofing project that I noticed during the purchase. There were no assessments to owners. Before I closed the HOA president reached out to me out replacing the oceanfront slider and side windows to the new impact code windows for hurricanes. I said no because the seller said it was on a volunteer basis and we just spent on ton buying the property. I later said as an act of good faith I would do the side windows but the main slider was out of our budget. At that time 4 out of the 6 units agreed to replace the windows, just leaving me and the unit above me. I found out all owners knew that the HOA wanted these windows changed for two years, but nothing was ever mandatory.

What resulted was a non-board member called an emergency meeting two weeks after I bought to discuss the window. Ultimately the HOA said they could create an assessment if they feel like not replacing with the window compromises the building. Worth noting was there were no insurance claims for any storms last year, it was purely an HOA agenda.

The paragraph saying they can do this is here:
9. Maintenance (B). All parts of the condominium unit shall be kept in good condition and repair by and at the expense of the owner. The unit shall be maintained by the owner in a clean and safe condition, free of nuisance. Each unit owner will promptly comply with any requirements of the insurance underwriters of the insurance for the common areas and facilities when so requested in writing by the Board or its designated agent. Any failure of an owner to repair, maintain or replace as may be required pursuant to the Condominium Documents or a determination by the Board of its designated agent that such failure will endanger or impair the value of the common areas and facilities belonging to another owner, may be, upon written notice to the owner of the nature of the required repair, maintenance of replacement, repaired or replaced by the Association at the expense of the unit owner, to be collected by special assessment as provided herein and in the By-Laws. Such assessment may include the cost to the Association incurred in the abatement of any nuisance maintained by the unit owner therein.

Ultimately the assessment passed 4 to 1, with one member absent.

From what I am reading in the Declarations I do not think they have followed procedures. During emails back and forth over the window a non-board member said we should have a meeting. The Declarations say “Special meetings of the members may be called by the Board or at the request, in writing of one-third of the members. Such request shall state the purpose or purposes of the proposed meeting”. The non-board member handled setting up the meeting time and a call in option. There was never an official notice sent out by Board. Declarations say “Written notice of a special meeting of members, stating time, place and object thereof, shall be served upon each member”.
At the special meeting they ran it like a regular HOA meeting with various items discussed and Declarations say “business transacted at all special meetings shall be confined to the objects stated the in the notice.” During this run through of the business I found out there have not been meetings in two years nor a ratified budget. A budget wasn’t ratified then either, only an elementary level snapshot of finances. That’s a whole other issue.

Am I being too picky that the above meeting notice wasn’t followed since everyone was on the email communication and the non-board member is only 16% not 33%?

They basically said we have until hurricane season to replace slider with a comparable product or we would be assessed $3,500. A few days later the treasurer sent out an assessment email that had a ton of new restrictions that were not discussed in the meeting so not part of the vote and they are also not in the Secretary’s minutes.

Can they do that?

Lastly, if I am reading 9B above correct they would have to give me written notice, come in and replace window at their expense and then bill me. They want me to just pay them $3,500 before window is replaced so they can hire the contractor they used.

Thanks for the help!

Hi SheilaH. Yes there are only 6 units so extreme easy to get a majority vote passed when 3 of them run the Board/HOA. The window was actually on a volunteer basis until basically they didn't get the answer they wanted. All communication I had before closing was "recommended" or "encouraged" by the president.

I am finding the HOA has been loosely ran but everything done is the President's agenda. There have not been any formal meetings or budgets since he took over 2 years ago.

I did consult an attorney and he agreed they technically haven't done the assessment right but ultimately majority will win and attorneys will just cash in on fight.

I am preparing to send them a formal letter because even the attorney said the best thing I can do is point out law and hopefully things are corrected moving forward.

The HOA operates on the original Declarations and By-Laws so I wanted to make sure I am reading the collection of the assessment properly, that they would have to do repair and bill me, and can they just add whatever restrictions they want after a vote was taken?

Thanks and I am definitely learning some hard lessons with these people!

Sounds like process was generally followed - we don’t have the details.

It also sounds like you were told was was happening, and didn’t want to listen.