Friday, July 27, 2012

Woman fights HOA to keep home after $589K of invalid fines | Charlotte

Woman fights HOA to keep home after $589K of invalid fines | Charlotte: North Carolina is at a tipping point for homeowners associations. The number of homeowners living in neighborhoods governed by HOAs is now greater than those who live outside those neighborhoods. The story of how Wilfong came close to losing her home illustrates why HOA battles have become personal.

It also shows lawmakers have not heard the last of the bitterly divisive issues that pit neighbor against neighbor with attorneys on all sides. Her lawsuit opens a window on HOAs: Quasi-governmental associations that carry the big stick of foreclosure and are drawing scrutiny from state lawmakers.

“They can ruin you,” said Wilfong.
Another HOA horror story to help spur yet another round of HOA legislative reform efforts.  As Shu Bartholomew says, "And the beat goes on."

1 comment:

Anonymous said...

Private fines by HOA corporations are ALWAYS invalid.

As noted in the Gillman case out of Virginia, the primary purpose of fining is to run targeted members out by "ruining" them through fines. Fining is a function of a sovereign and HOA corporations are not sovereigns nor has any state delegated its sovereign authority to HOA corporations.

Similary the Foley case out of Rhode Island notes that permitting HOA corporations to engage in private fining is an unconstitutional delegation of judicial or police power.

This case (like every HOA case) exposes the industry myth that HOAs "preserve value". As observed by the victim here, the winner was the HOA attorney.