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Charlotte Real Estate News and Real Estate News/Links from Local and State Resources

Jul. 31, 2004
More about neighborhood associations
For voluntary groups, a few warnings -- and a source of help

ALLEN NORWOOD

Nancy Ridenhour of Huntersville said our July 17 story on voluntary neighborhood associations needed a few extra chapters. Readers should hear about some lessons she learned the hard way, she said, including a stern warning.

"(Our association) is not incorporated, so we can't own property," she said. "However, we do have liabilities."

The story, for those who missed it, focused on a voluntary association in Matthews. Neighborhood organizers had trouble collecting fees to pay such things as the entrance sign light bill. Some folks balked -- even though the tab was a minuscule $10 a year.

Most newer neighborhoods have official associations with legal authority to handle neighborhood business and collect mandatory fees, but the story touched on some options for those that lack such clout.

First, Ridenhour said, leaders in voluntary associations should assume they'll collect from only half the homeowners. "That's the first rule for making up your budget."

Ridenhour lives in Shepherds Vineyard, which was developed by Ralph Squires. In 1987 she bought the seventh lot in the neighborhood off Stumptown Road. The association there has an off-again, on-again history, she said, and she resurrected it two years ago when others decided they'd done their duty.

There are official neighborhood bills: The entrance is served by water and electricity.

But there's no official way to handle them. "Our CC&Rs (conditions, covenants and restrictions) don't mention an association, so I think that means it's entirely voluntary," she said. "As far as I know, we've never had an election.

"I've called the utilities and they know to mail the bills to me."

There are 223 homes in the neighborhood, she said, and the fee right now is $30 a year per home. So far this year she has collected from 91 homes.

The $30 covers more than the tiny utility bills. It also pays for a professional landscaper to handle the entrance plantings, which brings us to her warning.

A lawyer and an insurance agent confirmed to Ridenhour that volunteers working on the entrance wouldn't be properly covered, she said. If someone were injured, there even could be potential legal liabilities. The solution was to hire a pro -- and make sure he was insured.

Ridenhour said she learned how to choose and hire a landscaper by attending the ABC's course -- A Basic Course -- hosted by the state chapter of the Community Associations Institute.

"The CAI has been a blessing," she said.

The daylong course, held regularly in Charlotte, covers such things as association law, as well as organization, financing and maintenance. I've taken the course, too, and Ridenhour is correct: It provides terrific background for neighborhood leaders. For information, including a calendar of upcoming CAI events, visit www.cai-nc.org.

Since taking the course, Ridenhour also has learned her way around tax and property records to track owners of rental homes in the neighborhood. "We have hunted down every owner, and we make sure they get our newsletter."

Allen Norwood

 

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