(A) Establishment of owners’ association.
(1) Creation. An owners’ association shall be established to fulfill the requirement of the North Carolina Condominium Act or to accept conveyance and maintenance of all common areas and facilities within a development containing common areas.
(2) Conveyance. Where developments have common areas for facilities serving more than one dwelling unit, these areas shall be conveyed to the owners’ association in which all owners of lots in the development shall be members. All areas other than public street rights-of-way, and other areas dedicated to the city, shall be shown and designated as common areas. The fee-simple title of the common area shall be conveyed by the subdivider or developer to the owners’ association.
(3) Subdivision or conveyance of common area. Common areas shall not be subsequently subdivided or conveyed by the owners’ association unless a revised preliminary major plat and a revised major final plat showing the subdivision or conveyance have been submitted and approved.
(4) Owners’ association Not Required. Developments involving only two units attached by a party wall shall not be required to have common areas or an owners’ association. Developments with only two units attached and not having an owners’ association shall have an agreement between owners concerning maintenance of party walls.
(B) Submission of Owner’s Association declaration. Prior to or concurrently with the submission of the final major plat for review and approval, the applicant shall submit a copy of the proposed bylaws of the owners’ association containing covenants and restraints governing the association, plats and common areas. The submitted documents shall be reviewed by the City Attorney and a recommendation made to the Board of Commissioners as to their sufficiency. The restrictions shall include provisions for the following:
(1) Existence before any conveyance. The owners’ association declaration shall be organized and in legal existence prior to the conveyance, lease-option or other long-term transfer of control of any unit or lot in the development.
(2) Membership. Membership in the owners’ association shall be mandatory for each original purchaser and each successive purchaser of a lot or unit. Provisions shall be made for the assimilation of owners in subsequent sections of the development.
(3) Owners’ association declaration.
(a) Responsibilities of owners’ association. The owners’ association declaration shall state that the association is responsible for:
1. The payment of premiums for liability insurance and local taxes;
2. Maintenance of recreational and/or other facilities located on the common areas; and
3. Payment of assessments for public and private improvements made to or for the benefit of the common areas.
(b) Default of owners’ association. Upon default by the owners’ association in the payment to the city of any assessments for public improvements or ad valorem taxes levied against the common areas, which default shall continue for a period of six months, each owner of a lot in the development shall become personally obligated to pay to the city a portion of the taxes or assessments in an amount determined by dividing the total taxes and/or assessments due to the city by the total number of lots in the development. If the sum is not paid by the owner within 30 days following receipt of notice of the amount due, the sum shall become a continuing lien on the property of the owner, his or her heirs, devisees, personal representatives and assigns. The city may either bring an action at law against the owner personally obligated to pay the same, or may elect to foreclose the lien against the property of the owner.
(c) Powers of the Association. The owners’ association is empowered to levy assessments against the owners of lots or units within the development. The assessments shall be for the payment of expenditures made by the owners’ association for the items set forth in this section, and any assessments not paid by the owner against whom such assessments are made shall constitute a lien on the lot of the owner.
(d) Easements. Easements over the common areas for access, ingress and egress from and to public streets and walkways and easements for enjoyment of the common areas, and for parking, shall be granted to each lot owner.
(e) Maintenance and restoration. Provisions for common area maintenance of and restoration in the event of destruction or damage shall be established.
(f) Nonresidential condominiums. If the condominium is a nonresidential condominium, the declaration shall contain the following provisions.
1. Parking spaces shall be allocated among the individual lots or units in such a manner that each unit is entitled to a sufficient number of parking spaces to comply with this chapter for the use intended to be located therein.
2. The owners’ association shall maintain a register listing the total number of parking spaces in the development and the number of parking spaces allocated to each lot or unit. A copy of this register shall be available to the city at the request of the Zoning Administrator.
3. The owners’ association shall not reduce the number of parking spaces allocated to an individual lot or unit without the express written consent of the owner thereof, and in no case shall the number of parking spaces allocated to an individual unit be reduced to a number below that required by this chapter.
(C) Residential developments.
(1) For all residential developments specified in Chapters 154, 155 and 157 as requiring homeowner’s associations, the establishment of a homeowners association shall be mandatory.
(2) The homeowners association shall be organized and established as a legal entity before or as part of the final plat approval and recording process.
(3) Membership in the homeowners association shall be mandatory for each original purchaser and each successive purchaser of a residential site. The homeowners association shall comply with the standards of this section.
(4) The homeowners association shall be responsible for the payment of premiums for liability insurance, local taxes, maintenance of recreational and other facilities located on the common areas, payment of assessments for public and private capital improvements made to or for the benefit of the common areas, maintenance and repair to the exterior of all attached residences located within the development or other common area facilities. It shall be further provided that upon default by the homeowners association in the payment to the governmental authority of any ad valorem taxes levied against the common areas of assessments for a period of six months, then each owner of a residential site in the development shall become obligated to pay to the taxing or assessing governmental authority a portion of the taxes or assessments in an amount determined by dividing the total taxes and/or assessments due to the governmental authority by the total number of residential sites in the development. If the sum is not paid by the owner within 30 days following receipt of notice of the amount due, then the sum shall become a continuing lien on the residence of the then owner, his or her heirs, or assigns. The governmental authority may them either bring an action at law against the owner obligated to pay the same or may elect to foreclose the lien against the residence of the owner.
(5) The homeowners association shall be empowered to levy assessments against the owners of residential sites within the development for the payment of expenditures made by the homeowners association for the items set forth in the preceding subparagraph and any such assessment not paid by the owner against whom such are assessed, shall constitute a lien on the residence of the owner.
(a) Proposed articles of incorporation. The articles of incorporation shall provide for homeowners’ control when over 50% of the dwelling units are sold.
(b) Proposed bylaws. The bylaws shall provide for annual meetings of the association, election of officers, and distribution of an annual financial accounting to members.
(c) Proposed annual budget. A proposed annual budget shall show monthly assessments which must be set at a sufficient level to insure success of the association.
(6) As a part of the approval process, the developer shall submit to the city the following documents for review:
(a) Proposed articles of incorporation for the association. These articles of incorporation shall provide for homeowners control when over 50% of the dwelling units are sold.
(b) Proposed bylaws of the association. The bylaws shall provide for annual meetings of the association, election of officers and distribution of an annual financial accounting to members.
(c) Proposed annual budget of the association showing monthly assessments. The monthly assessments must be set at a sufficient level to insure success of the association and necessary capital expenses.
(7) Proposed restrictions and covenants for the common area and residential sites shall be provided in the declaration.
(Ord. passed 7-25-2011)