Chapel Hill, NC HOA Rules: Board Governance (2026)

Under Section 4.6.6 of the Land Use Management Ordinance, Neighborhood or Homeowners' Associations, the Town of Chapel Hill attaches governance conditions to any subdivision where a homeowners' or neighborhood association, or similar legal entity, will maintain and control common improvements such as streets, alleys, bikeways, pedestrian and bicycle ways, utilities, storm drainage facilities, street signs, and recreation areas approved as part of subdivision approval. Subsection (a) requires binding arrangements establishing the association to be made before any lot in the subdivision is sold or any building is occupied, closing off the possibility that a developer sells lots first and organizes governance later.

Subsection (b) requires the association or similar legal entity to hold clear legal authority to maintain and exercise control over the improvements, meaning informal arrangements without legal standing do not satisfy the ordinance. Planning and Development Services reviews these governance documents, articles of incorporation and by-laws filed in the form the North Carolina Secretary of State requires, alongside the final plat application. The town manager evaluates the final plat for compliance with Section 4.6 and can approve, approve with conditions, or deny the plat, so an association that has not been legally formed with binding, pre-sale documentation puts final plat approval itself at risk. A denial or condition on final plat approval can be appealed to the board of adjustment.