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Chapel Hill, NC HOA Rules: Assessment & Dues (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Governing section
LUMO Section 4.6.6(c)-(d)
Who must have assessment power
Any HOA maintaining subdivision improvements
Covers
Streets, bikeways, drainage, utilities, recreation areas
Review point
Final plat approval, articles and by-laws
Solar carve-out
Covenants cannot restrict solar collection devices

Summary

When a Chapel Hill subdivision's common improvements, streets, bikeways, drainage facilities or recreation areas, are turned over to a homeowners' association, the Land Use Management Ordinance requires the association to have the power to compel contributions from residents. Section 4.6.6(c) makes proportionate-share assessment authority a condition of subdivision approval, not an optional bylaw provision the town can waive.

4.6.6 Neighborhood or Homeowners' Associations. Where neighborhood or homeowners' associations, or similar legal entities, will maintain and control any improvements (streets, alleys, bikeways, pedestrian and bicycle ways, utilities, storm drainage facilities, street signs, and recreation areas and facilities for common use) approved as part of subdivision approval, they shall be established so that: ... (c)The association or similar legal entity has the power to compel contributions from residents of the development to cover their proportionate shares of the costs associated with the maintenance and control of the improvements; and(d)Subdivisions shall not include covenants or other conditions of sale that restrict or prohibit the use, installation or maintenance of solar collection devices.

Full Breakdown

The Town of Chapel Hill's Planning and Development Services department checks this requirement during subdivision review under Land Use Management Ordinance Section 4.6.6, titled Neighborhood or Homeowners' Associations. Where a developer proposes that a neighborhood or homeowners' association will maintain streets, alleys, bikeways, pedestrian and bicycle ways, utilities, storm drainage facilities, street signs, or recreation areas approved as part of the subdivision, the association's founding documents must give it the power to compel contributions from residents of the development to cover their proportionate shares of maintenance and control costs.

The town reviews articles of incorporation and by-laws submitted with the final plat application, filed in the form the North Carolina Secretary of State requires, to confirm this assessment authority exists before signing off. The same section bars subdivisions from writing covenants or sale conditions that restrict or prohibit the installation or maintenance of solar collection devices, so an association's assessment power cannot be used to block residents from adding solar panels. Because the requirement attaches at subdivision approval, an association that later tries to waive or narrow its own assessment authority puts itself out of compliance with the conditions under which the town approved the plat, giving the town manager grounds to treat the subdivision's common-improvement maintenance as deficient.

Violations & Fines

An association whose bylaws lack the power to compel proportionate-share contributions fails the Section 4.6.6 condition attached to the subdivision's final plat approval, and the Town of Chapel Hill's Planning and Development Services department can decline to accept the articles of incorporation, holding up final plat recordation until the by-laws are amended to include binding assessment authority.

Frequently Asked Questions

Does Chapel Hill require my HOA to be able to charge dues?
Yes, if the association maintains subdivision improvements approved by the town, such as streets, drainage facilities or recreation areas. Section 4.6.6(c) of the Land Use Management Ordinance requires the association to have the power to compel proportionate-share contributions from residents before the town approves the subdivision.
Can my HOA's covenants ban solar panels in Chapel Hill?
No. Section 4.6.6(d) of the Land Use Management Ordinance says subdivisions cannot include covenants or other conditions of sale that restrict or prohibit the use, installation or maintenance of solar collection devices, regardless of what the association's assessment powers otherwise allow.
Who checks that my HOA has assessment authority?
The Town of Chapel Hill's Planning and Development Services department reviews the association's articles of incorporation and by-laws when it processes the subdivision's final plat, confirming the assessment power required under Section 4.6.6(c) before recording the plat.

Sources & Official References

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