Can all CCR violations be sent via Email in North Carolina

We send out approximately 200 violations letters a year Mgt Co. charges HOA $5/letter or $1000/year. They pay $1.10/letter is their cost.

In 2022 zero homeowners were monetarily fined for CC&R violations. Most people correct the problem after getting the letter. Our bylaws only state that the annual meeting needs to be physically mailed. Violators of CC&R's just need to be notified.
Can my HOA board simply email out the notifications which are free through HOA LIFE?

If the violation was not corrected our fines policy states they are invited to a hearing and then can be fined. I think sending a certified letter at that point would be worth the expense.

But I see spending $1000 on letters as a big waste.

Any input appreciated.

There is another option. You can get as many homeowners as possible to sign an electronic consent document so you can legally email all official notices instead of sending. We have a big push on to do that right now as the postage alone for our annual meeting was $1.10 per household and ridiculous in this day and age - when most of it just goes immediately in recycling.

That way you would legally be covered even for the friendly reminder of the violation.

thanks we will work on that this year when we try to update bylaws.

Are you sure this is an option in North Carolina?

That is why I suggested having the HOA attorney offer an opinion to the HOA about options. I am not familiar with North Carolina law regarding electronic consent.

Thanks for the keyword to search for. Looks like every except annual meetings can be done electronically.

§ 2.07. Uniform Electronic Transactions Act
The Uniform Electronic Transactions Act, N.C.G.S. §§ 66-312, et seq., helps homeowners and
condominium associations conduct business electronically, through web portals and electronic mail.
The statute generally applies to electronic records and electronic signatures relating to a transaction.
The statute applies only to transactions between parties each of whom has agreed to conduct
transactions by electronic means.
Under the statute, a consumer transaction means a transaction
involving a natural person with respect to or affecting primarily personal, household, or family
purposes.
Thus, a homeowner voting in an association election would be a “transaction” potentially
covered by the statute. In fact, almost all association matters would be considered a “transaction”
under the statute, with the exception of formal amendments in instances where the document being
amended requires a “written instrument” signed by a certain number of owners. One of the main
benefits of the statute is to allow voting online if the owners consent to using such technology.
Where the law requires a record to be in writing, an electronic record satisfies the law
provided it complies with the provisions of this statute.
It also states that if the law requires a
signature, an electronic signature satisfies the law provided it complies with the provisions of the
statute.
Therefore, written consents for action without a meeting by both members and board
members of an association and requests for records by a member and notices of association meetings
can be evidenced by an electronic mail. Further, it would allow proxies and ballots to be in the form
of electronic mail or an online portal as well.In addition, the statute allows notices of meetings to
be sent over the internet or via electronic mail if owners have consented to receiving such notices
in this manner.
Even though the intent of the statute is to facilitate electronic transactions, there
are limitations to the statute. For instance, where the PCA and Condominium Act require various
written notices to member

Wendy,

What makes you think changing the delivery method will have the MC reduce the cost?

If the contract specifies each violation letter is $5 then each violation letter (regardless of delivery method) is $5.

I also don't think you are accounting for the time to create, print, mail and file with your $1.10 expense.

Time to create: 10 min
Time to fold/stuff/mail: 2 min
Time to file: 2 min.

Minimum billing time: likely 30min.

Cost of postage
Cost of envelope
Cost of paper
Cost of ink
Wear and Tear on printer

You get the idea.

Can a board member print and mail the notices?

yes they could, but I dont' want to do that , and I bet others dont either.

Compensation for Management Services
The Association shall pay administrative and clerical expenses including base postage that is incurred by agent for the Association. This includes but is not limited to preparation and
circulation of notices, invoicing, newsletters and other general correspondence. In addition, the cost of any repairs, materials or supplies to the property installed or furnished by Agent shall
be borne by the Association.

Hmm, reading above contract terms it states we are only to be charged base postage, but we are being charged $5 instead of $1.10. Am I being a penny pincher or do others agree with my interpretation of the contract?

Contract says we are to pay base postage, which is $1.10 per letter per the HOALIFE website.
They are charging us $5/letter which I think is not allowed per the contract. is one option
2nd option is to tell them to just stop doing mailing and do the free email.

I think my 2 options are much easier and better solution.

it would be 2 minutes for all 200 letters sent over the year, not for every single letter. You basically log onto HOALIFE and change it from physical mail to email only under settings.

Management company drives around the neighborhood with a smart phone and the HOALIFE app and takes phtoos and enters in very very short description of violation. This monthly report is part of our HOA mgt company fee.

Do you know how long it takes to set one association up on violation compliance?

I totally get that MC's are hated by boards and residents a like, it's becuase they do stuff that is not transparent and dont' feel the need to notify the board that all these nickle and dime fees, not mentioned specifically anywhere in the contract adds up to thousands of dollars.

Our manager came by a few months ago to see our neighborhood and do the violations reports. She wrote up probably 80 violations (wild guess it was a lot more than normal) Never told the board that was gonna cost $400. Yeah I should of looked at the monthly report closer, but when all it says is admin fees with no break down it's totally opaque on purpose.

After almost one year in this position I have finally figgured out that the MC' makes most of thier money in hidden fees. The monthly fee they quote is a minority of thier profit. Kind of feel bad it took this long. But honestly my predacessors for the last 25 years never figgured it out.

What do not understand about the above bold? Read it again: shall pay administrative and clerical expenses plus base postage. Thus the question is what are their administrative and clerical expenses? As an example, a violation letter has to be tailored as to an individual and the violation. They are just not spit out with the press of a button. Someone has to prepare the letter.

Contract states we pay a one month set up fee for setting up our account
Contract states once a month inspections are included in base monthly management fee
Yes the Mgt Co pays about $40 a month to use this 3rd party to send out and manage violations

I think you and others are assuming how you would run this operation and forgetting that no where in our contract does it state it works the way you think it should work.

For example how can they bill us admin fees if a 3rd party is doing the work?
How cna they charge $5/letter when the contract state we are to be charged base postage which is $1.10

anyways have a board meeting coming up soon and see what other 2 board members think.

Wendy,

Using your figures:

$40 per month x 12 =$480
$1.10 x 200 letters per year = $220

Lets say they pay their employees $10 per hour and it takes 15 min to put one violation into the system
200 violations x 1.25 hours x $10 per hour = $500

$480 for year of 3rd party service + $220 for postage + $500 in labor = $1,200 or about $6 per violation letter.

Your Association is paying $1,000 (or $5 per violation letter) for that service.

Now, one can argue that it takes less then 15 min to enter a violation notice into the system.
However, I suspect that the MC is paying more then $10 per hour for an employee.

Even if you knock the time down to 5 min per violation (or 1/12 of an hour) you get a little over 15 hours of work (lets round it to 15 hours for 200 violations).
15 hours x $10 per hour = $150
$480 for service + $220 for letters + $150 for labor = $850 or about $4.25 per letter and you are being charged $5.

Is this the battle you want to fight or would it be better to save time and energy and pick a bigger battle?

Wendy,

Making an inspection to identify potential violations and sending notifications are two different things.

Like it or not, most MCs charge extra for sending violation notices.

The board could agree to send the notifications themselves, thereby avoiding the $5 fee.
Just tell the MC to make reports to the board on what the violations are and the board will follow up with the owners.

Keep in mind that if you mail the notices (vs. email), you will still have expenses:

Postage in 2023 = $ 0.63
Envelope = ~ $ 0.06
Paper = ~ $ 0.02
Ink + Wear and Tear on Printer

Lets call it $1.00 per letter

We use email communications for "violations" and - yes - they are notifications/reminders only. Violations corrections are handled by process, which includes an in-person due process hearing. If repeated attempts to digitally communicate fail, then hard copied and mailed letters are appropriate in my opinion.