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AN HOA has defended a two-year wait to fix a massive pothole in a residents' car parking lot - saying it’s too poor to pay for repairs.
Homeowners in the North Carolina community were told a loan might be needed to cover spiralling costs.
A clash over the pothole - which has swallowed two parking spaces outside their townhouses - has broken out at the Village at Mill Creek, in north-west Charlotte.
Homeowners have repeatedly asked their HOA: where is the money to fix it?
A dozen fed-up residents spoke to local broadcaster WBTV on Tuesday to air their grievances - and to push for action.
The desperate residents said they're even considering whether to withhold spiralling dues until they receive answers.
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But that would risk their HOA foreclosing on them.
“We’ve been living with this for two years, and nothing has been done,” said one frustrated homeowner.
“They keep dropping the ball and telling us that they don’t have the money to fix [it]," said another resident.
BIG LEAK
The disgruntled group showed a lengthy list of work orders dating back to when the crater started appearing, back in 2022, due to a water leak.
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However, the HOA's board of directors told residents it would need to take out a loan to be able to afford to complete repairs immediately.
That's despite resident’s association dues rising more than $50 per month, from $186.45 in 2020 to $243.00 a month in 2023.
“The rates keep going up for the homeowners, but the services seem to be stagnant or disappearing,” said one man.
“Nobody should have to live like this,” said a woman.
“We’ve been waiting two years, and we’ve been trying to take care of it ourselves, and we just need your assistance [WBTV's] in getting the word out, about what they’re doing, and not doing.”
The residents also complained that they have only been given simplified budget and expense sheets from the HOA's board of directors.
They have been pressing for more detailed financial information on how their money is being spent.
The rates keep going up for the homeowners, but the services seem to be stagnant or disappearing.
Homeowner
But, HOA officials defended both the community's management firm, and the lack of action to fix the damaged parking lot.
“Owners are not entitled to review every record of the association. For example, owners have no right to review individual bank statements invoices or receipts," the board of directors said.
“The repairs to Calpella Court are being pursued as quickly as association funds allow.
"Members tend not to support large increases in assessments, even when there are substantial repairs that need to be made.
“The village at Mill Creek has received excellent, responsive and highly ethical service from its management company.”
HOA RESPONDS
An attorney from Law Firm Carolinas, Charlotte, acting on behalf of the board, confirmed in a letter that the pothole emerged two years ago - partly due to heavy trucks.
"The parking lot has deteriorated due to the passage of time, weight damage caused by trash collection trucks, and an initial construction by the developer too close to water lines," wrote partner Harmony W. Taylor.
WHAT IS THE MEANING OF HOA?
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One in five US residents live in an area with an HOA... here's the lowdown
An HOA is a homeowner's association, which is an organization that aims to structure a clean and cohesive place to live for residents.
They are often seen in entire neighborhoods, subdivisions, condominiums, family homes, or townhouses within "a planned development".
It acts as a governing body for tenants after being used for marketing, managing, and selling homes by real estate developers.
How does an HOA work?
HOA's are run and funded by residents to ensure the community can function together, remain visually appealing, and keep property values high.
They primarily focus on common areas of a neighborhood, such as roads, parks, and pools, and provide locals with an HOA rule book to live by.
Known as covenants, conditions, and restrictions (CC&R), these regulations are enforced by an elected volunteer board of directors.
Restrictions include forbidding people to make physical changes to their homes without permission and strict rules for where you are permitted to park.
Penalties can be issued for breaching the rules - seeing fines being issued and even litigation in some severe cases - as most HOA's are incorporated and subject to state law.
All members of an HOA must pay a monthly fee and occasionally chip in for larger community expenses, for officials to use the money to pay for maintenance, utilities, and other amenities.
"Following damage and a leak in 2022, the board obtained inspection by an engineer who advised on next steps.
"The board will undertake all necessary work as soon as it can collect adequate assessments from the membership."
"We have represented this association for almost a decade," she added.
Taylor said the firm had "worked closely with the board as legal issues come up to make certain they are handled correctly and consistent with applicable law and the governing documents."
NONPROFIT
"Unfortunately, it appears that you have been given some incorrect information about the operation of the association as well as North Carolina law related to nonprofit community associations.
"The Village at Mill Creek is a nonprofit corporation.
"Owners have broad examination rights when it comes to nonprofit community association records.
"Owners are not entitled to review every record of the association.
"For example, owners have no right to review individual bank statements, invoices or receipts.
"Any suggestion that the association (or its manager) is acting inappropriately or contrary to the law in not sharing these is incorrect.
"The association is acting properly and consistent with the law by providing appropriate financial records to the membership."
For "business and confidentiality reasons" the HOA's board could not share every financial record with residents.
FUNDING WOES
She also said the repairs would take place as soon as it was financially viable.
"The repairs to Calpella Court are being pursued as quickly as association funds allow," the attorney confirmed.
"Assessments are set on a year to year basis by the board, subject to budget ratification by the membership.
"I’m sure it is no surprise to find that members tend to not to support large increases in assessments, even when there are substantial repairs that need to be made.
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"The parking surface is a perfect example of this."
The U.S. Sun has contacted the law firm for further comment.