Homeowners associations (HOAs) play an important role in maintaining community standards, but not every rule an HOA enforces is legally valid. In fact, some unenforceable HOA rules in North Carolina continue to cause confusion, disputes, and even legal action, especially when those rules conflict with state or federal law.
Understanding which NC HOA rules are enforceable, and which are not, helps boards avoid costly mistakes, reduce disputes, and protect the communities they manage. Below, we explain how unenforceable rules arise, provide clear examples, and outline how North Carolina law protects both homeowners and associations.
Understanding Unenforceable HOA Rules in North Carolina
HOA rules must comply with both governing documents and the law. Even if a rule appears in the bylaws or covenants, conditions, and restrictions (CC&Rs), it may still be unenforceable if it conflicts with higher legal authority.
In North Carolina, HOAs are governed largely by the North Carolina Planned Community Act (Chapter 47F of the North Carolina General Statutes), which establishes legal standards for rulemaking, enforcement, and homeowner rights. When an HOA exceeds those limits, its rules can be challenged and invalidated.
What Makes an HOA Rule Legally Unenforceable
At its core, enforceability is determined by legal and document hierarchy. HOA rules must follow a clear order of authority.
Federal Law Overrides State Law and HOA Documents
Federal laws, including the Fair Housing Act, the Americans with Disabilities Act (ADA), and FCC regulations, override state law and all HOA governing documents. If a rule conflicts with federal protections, it is unenforceable regardless of what the CC&Rs or bylaws say.
For example, rules restricting satellite dishes are often invalid under the federal OTARD Rule, even if HOA documents attempt to prohibit them.
State Law Overrides HOA Governing Documents
North Carolina law supersedes HOA bylaws, rules, and covenants. If a rule conflicts with state statutes—such as the Planned Community Act or laws protecting solar panels or political expression—it cannot be enforced.
Even long-standing covenants may lose enforceability when they conflict with newer state laws.
Governing Documents Must Follow a Clear Order of Authority
HOA governing documents themselves follow a hierarchy. In general, recorded declarations or CC&Rs take precedence over bylaws, and bylaws take precedence over rules, resolutions, and policies adopted by the board.
A board resolution or rule may be unenforceable if it contradicts the CC&Rs. Likewise, a rule cannot impose restrictions that exceed the authority granted in the bylaws or declaration, even if the board properly voted to adopt it.
Due Process Is Required for Enforcement
Even valid rules may become unenforceable if enforced improperly. North Carolina law requires notice, an opportunity for a hearing, and consistent application. Arbitrary enforcement or excessive fines without due process can invalidate enforcement actions.
Examples of Unenforceable HOA Rules in North Carolina
Rules That Violate Fair Housing or ADA Protections
A common example involves pool rules that restrict access based on age. Policies such as “children under 16 may not use the pool” or limiting families with children to certain hours may violate Fair Housing Act protections related to familial status.
Similarly, refusing reasonable accommodations—such as denying a wheelchair ramp or banning service animals—can render a rule unenforceable.
Restrictions That Conflict with State or Federal Law
Examples include:
- Blanket bans on solar panels, which are generally prohibited under N.C. Gen. Stat. § 22B-20
- Prohibitions on satellite dishes protected by federal FCC regulations
- Rules preventing homeowners from displaying legally protected political signs
Outdated or Improperly Adopted Rules
Rules pulled from decades-old covenants or adopted informally without required approval or recording often fail legal scrutiny. When challenged, courts may invalidate these rules entirely.
Excessive or Arbitrary Fines
Rules that allow unchecked fines without notice, hearings, or clear enforcement standards frequently violate due process requirements under the Planned Community Act.
How North Carolina Law Protects Homeowners and Associations
Overview of the North Carolina Planned Community Act
The Planned Community Act sets boundaries for HOA authority, outlining how rules are adopted, enforced, and appealed. Compliance with this framework helps protect associations from disputes while ensuring homeowners are treated fairly.
Due Process and Notice Requirements
Before imposing fines or penalties, HOAs must provide written notice and an opportunity for a hearing. Skipping these steps can make enforcement actions unenforceable, even when the underlying rule is valid.
How Rule Challenges Are Best Handled by HOAs
In North Carolina, concerns about potentially unenforceable rules are typically addressed through the HOA’s internal processes. This may include written requests for clarification, internal hearings, or board-level review to ensure a rule aligns with state law and the association’s governing documents.
For boards, these situations present an opportunity to review rules proactively, correct issues early, and avoid escalation. Addressing concerns through clear communication, documented procedures, and consistent enforcement helps protect the association, reduce risk, and maintain community trust.
How HOAs Can Avoid Creating Unenforceable Rules
Review Rules With Professional Guidance
Boards should work closely with the association’s attorney and management company when adopting or revising rules. Legal counsel can help confirm that proposed rules comply with federal and state law, while experienced management partners can ensure rules align with the association’s governing documents and established procedures.
Align Rules With Governing Documents and Statutes
Before adoption, boards should verify that new rules do not conflict with the CC&Rs, bylaws, or applicable statutes. Reviewing rules through the proper legal and administrative lens helps prevent internal document conflicts.
Maintain Transparent Communication With Members
Clear communication reduces confusion and builds trust. When homeowners understand both the purpose and legal limits of HOA rules, compliance improves naturally and disputes are less likely to arise.
How MicroHOA Helps North Carolina HOAs Stay Compliant
Managing HOA rules, enforcement, and documentation can be complex, especially as laws change. MicroHOA helps North Carolina HOAs centralize governing documents, track compliance, and maintain transparent records that support fair and consistent enforcement.
By providing a clear system for rule management and homeowner communication, MicroHOA helps associations reduce disputes, avoid unenforceable rules, and stay aligned with current legal standards.
Learn more about HOA governance requirements on our page covering North Carolina HOA Laws.
FAQs
What HOA rules are unenforceable in North Carolina?
HOA rules in North Carolina are unenforceable if they conflict with federal law, violate state statutes, contradict higher-level governing documents, discriminate against protected classes, or fail to follow due process. Even rules written into CC&Rs may be invalid if they exceed legal authority or were improperly adopted. Courts prioritize federal law first, followed by state law, and then HOA governing documents.
Can my HOA fine homeowners for rules not in the governing documents?
Generally, no. HOAs cannot fine homeowners for violating rules that are not properly adopted into the governing documents. Under the North Carolina Planned Community Act, fines must be tied to valid rules and applied with notice and an opportunity for a hearing. Undocumented, retroactive, or inconsistently enforced fines are often unenforceable.
How should HOAs address concerns about unenforceable rules?
The most effective approach is internal review and clarification. Boards should evaluate whether a rule aligns with state law and governing documents, consult with their management company or attorney as needed, document their findings, and communicate clearly with homeowners. Addressing concerns early helps protect the association.
