North Carolina Statewide Rule
North Carolina HOA Fines: Notice & Hearing Required (G.S. 47F-3-107.1)
Key Facts
- Governing law
- G.S. 47F-3-107.1
- Maximum fine
- $100 per violation
- Continuing violations
- Up to $100/day after 5-day grace
- Due process
- Notice + hearing before board or panel required
- Decision
- Owner entitled to notice of the decision
Summary
North Carolina's G.S. 47F-3-107.1 requires due process before an HOA can fine an owner. A hearing must be held before the executive board or an adjudicatory panel, with notice of the charge and an opportunity to be heard. A fine may not exceed $100, but it can recur for each day a continuing violation persists.
G.S. 47F-3-107.1 § 47F-3-107.1. Procedures for fines and suspension of planned community privileges or services. Unless a specific procedure for the imposition of fines or suspension of planned community privileges or services is provided for in the declaration, a hearing shall be held before the executive board or an adjudicatory panel appointed by the executive board to determine if any lot owner should be fined or if planned community privileges or services should be suspended pursuant to the powers granted to the association in G.S. 47F-3-102(11) and (12). Any adjudicatory panel appointed by the executive board shall be composed of members of the association who are not officers of the association or members of the executive board. The lot owner charged shall be given notice of the charge, opportunity to be heard and to present evidence, and notice of the decision. If it is decided that a fine should be imposed, a fine not to exceed one hundred dollars ($100.00) may be imposed for the violation and without further hearing, for each day more than five days after the decision that the violation occurs. Such fines shall be assessments secured by liens under G.S. 47F-3-116. If it is decided that a suspension of planned community privileges or services should be imposed, the suspension may be continued without further hearing until the violation or delinquency is cured.
Full Breakdown
G.S. 47F-3-107.1 conditions any fine on a hearing "held before the executive board or an adjudicatory panel appointed by the executive board." The lot owner "shall be given notice of the charge, opportunity to be heard and to present evidence, and notice of the decision." If the board or panel decides a violation occurred, "a fine not to exceed one hundred dollars ($100.00) may be imposed for the violation." For continuing violations, additional fines of up to $100 may be imposed "without further hearing, for each day more than five days after the decision" that the violation continues. Any fine is treated as an assessment and can ultimately be enforced through the lien process, though fine-only liens require judicial foreclosure.
Violations & Penalties
Up to $100 per violation, plus up to $100 per day for each day a continuing violation persists more than five days after the decision. Unpaid fines become an assessment, but a lien for fines alone can only be foreclosed judicially.
Frequently Asked Questions
How much can a North Carolina HOA fine a homeowner?
Does a North Carolina HOA have to hold a hearing before fining me?
Can North Carolina HOA fines lead to foreclosure?
Sources
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