Which of your HOA documents are especially important to your community?
Many HOA board members would rush to say that all HOA documents are important and essential, and while that’s true, there is a hierarchy involved, it’s important to understand that hierarchy.
Let’s say, for example, there is a conflict between documents. Which one do you listen to? Which one are your residents and homeowners more beholden to? It’s the one with higher authority. That’s the document that prevails.
Because we have many years of experience managing HOAs and community associations, we’ve been following the laws, the logistics, and the best practices around governing documents. We can explain the hierarchy that you need to follow and explain the reasons that this matters.
At Capstone Realty Consultants, we’re not just helping you run a well-organized, financially responsible association. We’re also making sure that you’re protected against unnecessary risk and liability.
Let’s talk about legalities and document hierarchies.
Quick Overview:
|
The Hierarchy of HOA Documents: What Comes First
As you already know, homeowners associations operate based on a structured set of documents that guide how the community is managed, how decisions are made, and how residents must comply with shared rules.
And as we’ve just established: not all documents hold equal authority. There’s a clear hierarchy, from federal and state laws down to everyday rules passed by the board.
Here’s a breakdown of the hierarchy of HOA documents, from highest to lowest in authority, with explanations for each.
Federal and State Laws
At the very top of the hierarchy are federal and state laws. These laws override any HOA documents and are non-negotiable. Even if something is written in your governing documents, it cannot conflict with these laws. If it does, the law takes precedence.
Examples of federal law include:
- The Fair Housing Act, which prohibits discrimination based on race, color, religion, sex, disability, familial status, or national origin. Creating bylaws that say residents are not allowed to have wheelchairs or service animals, for example, would violate federal law.
- The Americans with Disabilities Act (ADA). While this law applies more directly to public accommodations and commercial buildings, HOAs may need to comply with common areas or parking areas that could be open to the public.
- The Freedom to Display the American Flag Act, which prevents HOAs from banning the display of the U.S. flag, though reasonable restrictions may still apply and you can likely ban other types of flags.
These laws apply nationwide, including your association in The Piedmont Triangle.
State Laws Governing North Carolina HOAs
In North Carolina, homeowners associations are primarily governed by two sets of statutes, and both of these are higher in the hierarchy than any other governing documents or by laws in your own association.
| North Carolina Planned Community Act (N.C. Gen. Stat. § 47F)
This law applies to all planned communities created on or after January 1, 1999, unless an older community amends its governing documents to be subject to it. Key provisions include: Board Powers and Duties (§ 47F-3-102) Grants HOAs authority to levy assessments, adopt rules, regulate common areas, and more. Disclosure Requirements (§ 47F-4-102): Sellers must disclose whether a property is part of an HOA and provide key documents to buyers. Assessment Collection and Liens (§ 47F-3-116) Governs how associations can collect dues, enforce liens, and initiate foreclosure. Open Meetings and Records (§ 47F-3-108 & § 47F-3-118) Requires open board meetings and member access to certain records, with exceptions. |
North Carolina Condominium Act (N.C. Gen. Stat. § 47C)
This applies to condominiums created on or after October 1, 1986. Similar in structure to the Planned Community Act, it outlines:
|
There’s also the North Carolina Nonprofit Corporation Act (N.C. Gen. Stat. § 55A).
Most HOAs in NC are incorporated as nonprofit corporations. This law governs:
- Board member elections and terms
- Meeting procedures
- Record-keeping and member access
- Filing requirements and corporate structure
Even if an HOA is not subject to §47F or §47C (due to age or structure), if it is incorporated, it must comply with the Nonprofit Corporation Act.
Other relevant North Carolina laws that are at the top of the governing documents hierarchy include:
- Debt Collection Rules. North Carolina law regulates how HOAs can collect debts, including limitations on attorney fees and collection practices (see § 47F-3-116).
- Solar Access Laws (G.S. § 22B-20). Prevents HOAs from banning solar panels on detached homes, though placement may still be regulated.
- Display of Flags and Political Signs. HOAs can set reasonable restrictions, but cannot completely prohibit the display of the U.S. flag (in line with federal law) or certain political signs near elections.
Why State Law Rank So High
No HOA document, whether it’s the Declaration, Bylaws, or Rules, can override state law. For example:
- If your HOA’s rules require closed-door meetings, but §47F-3-108 mandates open meetings, the law overrides the rules.
- If the CC&Rs allow foreclosure after just 30 days of missed payments, but state law requires longer notice or mediation, the law prevails.
North Carolina statutes define the legal framework within which HOA documents must operate. Any provision in your governing documents that conflicts with these laws is unenforceable.
Recorded Plat, Map, or Plan
The state and federal laws are first in the hierarchy, and what’s second in command?
The recorded plat, map, or condominium plan. This will be the official, legally recorded drawing of the community’s layout. It includes property boundaries, easements, common areas, and sometimes building footprints. These documents are filed with the county recorder and are considered part of the legal foundation of the community.
This is important to HOAs because it defines what is considered private property versus common property. If there’s a dispute over who owns or maintains a specific area (like a strip of lawn or pathway), the plat or map often resolves it.
Declaration of Covenants, Conditions, and Restrictions (CC&Rs)
Next in the hierarchy is the Declaration of CC&Rs. This is a core governing document.
It’s also often called the “Declaration” or “Master Deed,” and this is the foundational document for any HOA. It is recorded with the county and legally binds every property owner in the community to the restrictions and rules set out in it.
The CC&Rs define:
| Use restrictions (for example, no commercial activity) | Easements | Architectural control |
| Maintenance obligations | Assessments and liens | Rights and responsibilities of the HOA and members |
The CC&Rs are recorded and they run with the land, so these are enforceable against homeowners regardless of whether they’re new to the community or have been there for years. They’re valid and enforceable even if the homeowner has not read them.
These documents are also very difficult to amend, usually requiring a supermajority vote of the membership.
Articles of Incorporation
The Articles of Incorporation establish the HOA as a legal entity, and they are up next in the hierarchy of documents. The Articles are filed with the state to create the HOA as a nonprofit corporation (in most cases). It is usually a very short document, and outlines the association’s name, purpose, and initial registered agent.
Without the Articles of Incorporation, the HOA may not legally exist as a corporation. This affects its ability to enter contracts, hold insurance, sue and be sued, and perform other legal functions. It governs the structure of the HOA itself but doesn’t usually contain rules that directly affect homeowner behavior. That’s why it sits below the CC&Rs but above the Bylaws.
Bylaws: Your HOA’s Internal Governance Rules
The Bylaws guide how the HOA is operated on a day-to-day basis. They typically cover:
- Board composition and elections
- Meeting procedures
- Voting rights
- Quorum requirements
- Officer duties
Bylaws are administrative in nature. They do not generally dictate what homeowners can or cannot do with their property. Also, they are usually easier to amend than CC&Rs, often requiring only a board vote or a simple majority of homeowners. However, if the Bylaws ever conflict with the CC&Rs, the CC&Rs will prevail.
Rules and Regulations (or House Rules)
We’re moving through the hierarchy and arriving now at the Rules and Regulations. These are the day-to-day living rules that every association will impose on its members in a pursuit of uniformity and cohesion. As most of us know, these are detailed rules adopted by the HOA Board to govern everyday behavior in the community. Common rules include:
- Pool and clubhouse usage
- Pet policies
- Parking rules
- Trash collection times
- Noise restrictions
- Paint colors
This is a bit lower in the hierarchy because these rules, while seemingly strict, must be consistent with the CC&Rs and Bylaws. The Board cannot use them to create new restrictions that exceed the authority granted in higher documents. They’re also the easiest to change. Usually, they can be rescinded, strengthened, or altered simply by a board vote after a notice period.
Here’s an example that might be relevant to your community: if the CC&Rs allow pets, the Board cannot pass a rule banning them entirely. However, they could limit the number, size, or types of pets allowed if the CC&Rs permit that level of regulation.
Board Resolutions
The next stop in the hierarchy are the general decisions made by the HOA board. Board resolutions are official actions taken by the HOA board during meetings. They may include:
- Enforcement policies
- Fine schedules
- Adoption of new rules
- Appointment of committees
There are typically three types of Board resolutions:
- Policy resolutions. Set procedures or standards for operating the association (like collections policy)
- Administrative resolutions. Deal with internal processes (like how meeting minutes are handled)
- Special resolutions. Apply to a specific situation (like approving a homeowner’s architectural request)
Resolutions must align with all higher governing documents. They cannot introduce new restrictions not authorized by the CC&Rs, Bylaws, or Rules.
Architectural Guidelines (Design Standards)
Next, we’re talking about architectural guidelines and design standards, which are really visual and structural rules. These documents provide specific standards for modifications to individual homes, such as:
- Paint colors
- Roofing materials
- Fence types
- Landscaping
- Solar panels
These guidelines are usually created by the Architectural Review Committee (ARC) within the HOA, and must be consistent with the CC&Rs, which generally grant the authority to create and enforce them.
These are more detailed versions of what’s already covered in the CC&Rs. If there’s a conflict (maybe the CC&Rs allow chain-link fences but the guidelines ban them), the CC&Rs take priority.
Procedural Documents and Forms
We are at the bottom of the barrel, now. The procedural documents and forms are the lowest in authority. These might include complaint forms, application forms, violation letters, meeting notices, or community newsletters.
These documents are used to implement the policies created in higher-level documents. They have no independent authority and cannot impose restrictions on their own. Here are a couple of examples that might help you conceptualize what we mean by procedural documents:
- A pet registration form doesn’t mean pets are allowed or prohibited. It simply follows the rule already established elsewhere.
- A meeting notice doesn’t create new rules but ensures compliance with Bylaws regarding notice timing.
By understanding this hierarchy, HOA boards can make sound decisions, and homeowners can better understand where rules come from, and whether they’re enforceable.
Why Document Hierarchy Matters for HOAs in North Carolina
Why does this matter to you and your HOA?
In North Carolina, those of us who manage and work with HOAs operate under a complex web of governing documents, ranging from state laws to day-to-day rules and policies. While each document plays an important role in how the community is managed, not all documents carry the same legal weight. Understanding the hierarchy of HOA documents is critical for effective governance, legal compliance, and clear communication with homeowners.
Here’s why HOA document hierarchy matters, particularly in North Carolina:
| Conflict Resolution
One of the most important reasons to understand document hierarchy is to resolve conflicts between documents, or between the HOA and a homeowner. Sometimes, rules or policies adopted by a board may unintentionally contradict a higher-level document or law. When this happens, knowing which document takes precedence is the key to finding the correct answer. The proper hierarchy ensures the HOA follows a clear chain of authority when enforcing rules or interpreting documents. By following this order, boards can quickly identify which document controls in a dispute, reducing the risk of legal challenges and homeowner frustration. |
| Legal Compliance
HOAs in North Carolina must operate within the bounds of the law, particularly the North Carolina Planned Community Act (N.C. Gen. Stat. §47F) and the North Carolina Condominium Act (N.C. Gen. Stat. §47C). These laws govern nearly every aspect of HOA operation, from assessment collection to meeting procedures. If your HOA adopts rules or policies that violate these statutes, even unintentionally, those rules can be struck down. Worse, the association may face legal liability. For example, the Planned Community Act requires open board meetings with proper notice. If an HOA’s Bylaws (a lower-level document) state that meetings may be closed at the board’s discretion, that provision is unenforceable under state law. Legal compliance starts with understanding which documents carry the most authority. HOA leaders in North Carolina must ensure that all rules, guidelines, and policies align with applicable laws at every level. |
| Clarity and Consistency for Homeowners
For homeowners, nothing is more frustrating than inconsistent or confusing rules. When HOA documents are out of sync, or enforced without regard to their legal standing, it creates confusion, tension, and sometimes resentment in the community. Clear hierarchy provides a logical framework:
For example, if a homeowner wants to install solar panels, they might see conflicting information in the Architectural Guidelines and the CC&Rs. But North Carolina law (G.S. § 22B-20) states that HOAs cannot prohibit solar energy systems on detached homes, even if other documents say otherwise. By following the hierarchy, the homeowner and the board can quickly identify what’s allowed and why. Clear documentation also supports transparency and builds trust. When HOA rules are based on a well-understood hierarchy, it reduces confusion and improves the community’s overall satisfaction. |
In North Carolina, the hierarchy of HOA documents provides a legal framework for your HOA, and it’s also a practical tool for resolving conflicts, staying compliant, and promoting fairness and clarity. Whether you’re a board member making decisions or a homeowner trying to understand your rights, knowing which document comes first ensures everyone operates from the same playbook.
By respecting the document hierarchy, HOAs can avoid costly mistakes, enforce rules fairly, and create a more harmonious living environment for all residents.
Need some help getting your own documents in proper order? Contact us at Capstone Realty Consultants. We work with HOAs in Winston-Salem and throughout the Piedmont Triad area.