Navigating Winston-Salem HOA Laws: A Compliance Checklist

Laws are non-negotiable. 

In Winston-Salem, there are a few key laws that affect HOAs and impact how you’re able to manage your community. If you’re a little fuzzy on what’s allowed, what’s required, and what’s prohibited, it’s time to get up to date. Navigating these laws is not always easy, but it is critical. 

We’re professional HOA managers, so we understand that HOA regulations can be complex and confusing, especially when they intersect with North Carolina’s unique legal framework. This guide breaks down the essentials of HOA law in Winston-Salem and equips board members with the knowledge they need to lead confidently.   

We’re providing a checklist that you can use for compliance and proactive policymaking.

The North Carolina Planned Community Act (NC GS Chapter 47F)

First on your compliance checklist is The North Carolina Planned Community Act. This is one of the most critical regulations for HOAs in North Carolina.  

The NC Planned Community Act (PCA) governs how planned communities, including those led by HOAs, must operate. Established to provide clarity and consistency for HOA governance, Chapter 47F outlines regulations concerning the responsibilities of an HOA, the rights of homeowners, and how disputes should be handled.

This act applies to all planned communities created in North Carolina after January 1, 1999, though certain provisions may also apply to communities established before this date.

Key Provisions of the PCA

Powers and Duties of the HOA Board The PCA delineates an HOA’s authority, including the ability to create rules, collect dues, and enforce covenants.	Homeowner Rights The act ensures transparency and fairness in how HOAs conduct business, granting homeowners the right to attend meetings, access community records, and appeal certain decisions.	Reserve Funds The PCA requires prudent management of reserve funds to cover long-term maintenance and emergencies. Boards must plan financially to prevent unexpected assessments.
Dispute Resolution  The act outlines strategies for resolving conflicts between HOA boards and homeowners, emphasizing mediation and other alternative dispute resolution methods.	Architectural Control If your community has Architectural Review Committees, their operations must align with Chapter 47F’s standards to ensure decisions are fair and consistent.	Amendments to Governing Documents The PCA standardizes how an HOA can make changes to its bylaws or covenants, ensuring homeowners’ voices are part of the process.

Compliance with the North Carolina Planned Community Act isn’t just about avoiding legal consequences—it’s about building trust and maintaining a thriving, cooperative community. Failure to comply can result in:

• Legal Penalties. Non-compliance can result in fines, lawsuits, or other legal actions.

• Loss of Community Trust. Mismanagement or transparency issues can erode homeowner confidence in the HOA board.
• Financial Risk. Poor management of reserve funds or improper handling of assessments could lead to financial strain on the community.

Understanding the complexities of Chapter 47F helps demonstrate your board’s commitment to professionalism and ethical governance.

Here’s your compliance checklist:

• Regular Board Training  

Keep your board members informed and educated about HOA laws, including updates to Chapter 47F. Consider conducting regular training sessions or consulting legal professionals to provide clarity.

• Review Governing Documents  

Examine your community’s governing documents (e.g., covenants, bylaws, and rules) to ensure they align with the PCA. Outdated or contradictory provisions should be amended with both legal and homeowner input.

• Maintain Accurate Records  

Transparency is a central theme of Chapter 47F. Make sure your HOA keeps organized records, including meeting minutes, financial statements, and homeowner correspondence.

• Conduct Reserve Fund Studies  

Reserving adequate funds for long-term maintenance and emergencies isn’t just smart—it’s required. Work with financial planners to conduct regular reserve fund studies and make necessary adjustments.

• Implement Fair Rules Enforcement  

Ensure rules and penalties are consistently applied across the community. Chapter 47F highlights the importance of fairness and due process, so biases must be avoided to maintain trust.

• Establish Strong Communication  

Transparent communication with homeowners is essential. Use newsletters, emails, and regular meetings to keep the community informed of any updates or initiatives tied to HOA governance.

• Seek Professional Support  

Partnering with industry experts like our HOA management company or attorneys knowledgeable in HOA law can ease your board’s workload. These professionals can guide compliance efforts while ensuring the smooth operations of your HOA.

Winston-Salem HOAs and Fair Housing Compliance 

HOA boards must adhere to the federal Fair Housing Act, which prohibits discrimination on the basis of race, color, religion, sex, disability, familial status, or national origin. For example, your HOA must provide reasonable accommodations for disabled residents, such as approving requests for wheelchair ramps or other modifications.  

Failure to follow federal and state fair housing laws can result in complaints filed with the U.S. Department of Housing and Urban Development (HUD), legal actions, and financial penalties—not to mention reputational damage for your community. Beyond that, fair housing compliance creates a culture of fairness, making your neighborhood desirable and harmonious.

• Key Areas Where HOAs Must Ensure Fair Housing Compliance

HOA boards interact with residents in many ways that could fall under the jurisdiction of fair housing laws. Here are some of the most common areas to pay attention to:

1. Enforcement of Rules and Policies

HOAs must ensure that all rules and regulations are enforced consistently across all residents. For example, if one resident is fined for a parking violation, the same rules must apply to others—regardless of their race, religion, or other protected characteristics.

2. Reasonable Accommodations for Disabilities

Under fair housing laws, HOAs are required to provide reasonable accommodations for residents with disabilities. This might include granting exemptions to certain rules or allowing modifications such as wheelchair ramps. Failing to provide accommodations (or delaying their approval) could result in discrimination claims.

3. Marketing and Advertising for Housing

If your HOA manages rental properties or communicates about available housing in your community, ensure your marketing materials are inclusive and free from discriminatory language. For instance, avoid phrases such as “family-friendly” that could unintentionally exclude some groups.

4. Screening Applicants

For HOAs that oversee property rentals or sales processes, it’s crucial to screen applicants using consistent, non-discriminatory criteria. Practices like rejecting an application based on an applicant’s familial status or nationality are strictly prohibited.

5. Handling Complaints

Fair housing-related disputes between neighbors or against the HOA itself must be addressed promptly and professionally. Your HOA should document complaints, conduct investigations when necessary, and resolve issues in a manner that is consistent with fair housing laws.

• Here’s Your Checklist for Ensuring Fair Housing Compliance in Your Winston-Salem HOA

Ensuring compliance requires a thoughtful and proactive approach. Here’s how your HOA can stay on the right side of the law while creating a welcoming community:

1. Educate Your Board Members

Make sure all board members are familiar with federal, state, and local fair housing laws. Conduct regular training sessions and consult with experts to stay up to date on policy changes.

2. Review and Update Governing Documents

Take time to audit your HOA’s covenants, conditions, and restrictions (CC&R), bylaws, and community rules. Look for language or requirements that could unintentionally lead to discriminatory practices, and update these documents to reflect fair housing laws.

3. Develop a Clear Policy for Requests

Have a written policy for handling reasonable accommodation and modification requests from residents with disabilities. Providing clear instructions and timely responses will enhance your compliance and avoid misunderstandings.

4. Partner with an HOA Management Expert

Many HOA boards simply don’t have the resources or expertise to handle compliance on their own. A professional management service can guide your board through creating fair housing policies, resolving disputes, and staying compliant. This is where we excel.

5. Document Everything

Keep detailed records of meetings, enforcement actions, communications, and resident complaints. Documentation can protect your HOA in case of disputes or audits and demonstrate your commitment to fair practices.

6. Seek Legal Advice When Needed

For complex issues—like handling sensitive disputes or navigating gray areas—it’s wise to consult an experienced HOA attorney. Spending on legal guidance upfront can save your HOA from costly mistakes in the future.

North Carolina Open Meeting Laws

Transparency is essential when conducting HOA business. North Carolina requires HOAs to give reasonable notice of board meetings and to allow homeowners to attend unless legal matters are being discussed. The goal here is to ensure transparency and prevent any perception of secrecy within the community.  

North Carolina’s open meeting laws are designed to ensure transparency in the decision-making processes of governing bodies, including HOAs. These laws require most meetings to be open to association members, giving homeowners insight into the decisions that impact their community.

For HOA boards, this means most board meetings must be clearly announced, accessible to members, and conducted in compliance with these rules. However, there are exceptions, such as executive sessions for matters like legal advice, contracts, or member discipline.

Failing to adhere to open meeting laws can lead to fines, legal disputes, and a breakdown of trust within the community. That’s why ensuring compliance is absolutely essential.

Here is your checklist of the key aspects North Carolina HOA boards need to understand about open meeting laws.

Notifications HOA boards are typically required to provide notice of upcoming meetings to all members. The notice should include the date, time, location, and agenda. While specifics may vary depending on your governing documents, most notices are sent via mail, email, or posted in community spaces.	Accessibility Board meetings must be open to all members of the HOA unless they fall into specific circumstances (like discussing confidential matters in an executive session). Meetings may be held virtually or in person, but ensuring members can meaningfully attend is critical.
Transparency Minutes must be recorded for meetings and made accessible to members, ensuring all decisions and discussions have a clear and accurate record.	Executive Sessions While most meetings must be open, boards can call executive sessions for sensitive matters, such as pending or ongoing litigation, personnel issues, contract negotiations, and private member disputes. However, HOA boards should approach executive sessions with caution and transparency, ensuring they never exceed the boundaries of these exceptions.

Compliance with open meeting laws is more than a checkbox for legal protections—it’s a proactive step in building trust within your community. Transparent, fair processes allow for better communication and reduce tension between board members and residents. Furthermore, these open meetings:

• Prevent Legal Action. Non-compliance can lead to lawsuits, fines, and added stress for your entire HOA.

• Improves Accountability. Open meetings demonstrate that the board is conducting community business in an honest and ethical manner, reinforcing its credibility.
• Encourages Participation. An informed community is an engaged one. Members who feel included are more likely to volunteer, attend meetings, and contribute to the neighborhood’s success.

Understanding and complying with North Carolina’s open meeting laws is central to running a transparent and effective HOA. By prioritizing compliance, you’ll not only avoid legal trouble but also strengthen relationships within your community.

Collection Laws: Dues and Assessments

HOA boards have a legal right to collect dues and impose assessments, but they also carry an obligation to do so fairly and consistently. North Carolina specifically requires HOAs to follow proper procedures when pursuing unpaid dues, including notifying homeowners and providing an opportunity for payment before enforcing liens.  

The collection of dues and assessments by Winston-Salem HOAs is regulated by state laws, including the North Carolina Planned Community Act and the North Carolina Condominium Act, depending on the type of community. 

Here’s your checklist of things that you need to know in order to comply:

1. Authority to Collect Dues and Assessments

North Carolina law grants homeowners associations the authority to collect dues and enforce payment rules through their governing documents, such as the declaration of covenants, conditions, and restrictions (CC&Rs) or bylaws. These documents outline the amount, frequency, and purpose of payments.

2. Notice Requirements

Before collecting dues or imposing assessments, HOAs are legally required to provide clear, advanced notice to members. This ensures transparency and time for homeowners to budget accordingly. The notice typically includes:

• The due date

• Payment amount
• Purpose of the assessments (for special assessments)

3. Late Payments and Interest Penalties

The governing documents usually detail the penalties for late payments, such as late fees or interest charges. Under North Carolina HOA laws, penalties must be reasonable and clearly disclosed in the HOA’s policies. Members should check their CC&Rs to avoid surprises about added fees.

4. Liens and Foreclosures

If a homeowner fails to pay dues or assessments, the HOA has the power to place a lien on the property under the North Carolina Planned Community Act. This secures the HOA’s ability to recover unpaid amounts when the home is sold.

However, foreclosure is a more serious enforcement option. North Carolina law requires HOAs to follow a due process that includes written warnings and opportunities to resolve the issue before pursuing foreclosure. It’s worth noting that foreclosure is often a last resort.

5. Dispute Resolution

What happens if you disagree with the HOA’s fees or assessments? North Carolina HOA laws emphasize resolution through established internal processes first. This may involve hearings with the HOA’s board of directors or independent third-party mediation. Litigation should only be pursued as a final step.

6. Caps on Assessments

To keep assessments fair, many governing documents place caps on their frequency or amount. If the proposed assessment exceeds these limits, the North Carolina Planned Community Act often requires a majority vote by members. Members should review their governing documents carefully to understand their voting rights.

7. Transparency and Accountability

North Carolina HOA laws promote transparency by requiring HOAs to maintain accurate financial records. Members have the right to review these records upon request, ensuring dues and assessments are being used appropriately.

Disclosures & Resale Certificates  

Under North Carolina law, HOA boards must provide property buyers with specific disclosures and information about the community, such as assessments, restrictions, and meeting minutes. Ensure these documents are always accurate and up to date as they play a vital role during home sales.  

How to Stay Compliant with HOA Regulations 

To effectively manage your HOA in Winston-Salem, look to these key strategies for compliance and community success. 

1. Consult Legal Professionals Regularly 

The laws surrounding HOAs can change over time. Don’t assume your bylaws or practices are compliant just because they’ve worked in the past. Work with a legal expert familiar with HOA laws in North Carolina to review your governing documents annually and recommend updates if needed. 

2. Prioritize Board Member Training 

Being an HOA board member can feel overwhelming, especially if you’re new to the role. Organize training sessions for board members to deepen their understanding of HOA regulations and improve their leadership skills. These sessions can cover topics like conflict resolution, budgeting, and governance best practices. 

3. Establish Detailed Policies & Procedures 

Clear policies are the backbone of compliance. Document consistent procedures for handling disputes, architectural approvals, and dues collection. A well-documented process protects both the HOA and homeowners by ensuring consistency and fairness. 

If your board feels overwhelmed by the day-to-day responsibilities of managing an HOA, partnering with a professional association management company in Winston-Salem may offer the support your team needs. We specialize in ensuring HOA compliance, handling legal obligations, and improving operational efficiency—leaving board members the time to focus on community building. 

Let’s talk about it. Contact us at Capstone Realty Consultants. We can help with the management of your Winston-Salem HOA.