2021 AMG Scholarship Winners Press Release

Association Management Group (AMG) - Carolinas Announces Winners in 2nd Annual Scholarship Program

HOA Management Company Servicing the Carolinas Awards Four College/University Scholarships to Community Members

(Greensboro, NC) July 22, 2021 – Association Management Group (AMG), a leading professional community association management company in the Carolinas, announced today the four college/university scholarships winners of $1,000 in its College/University Scholarship Program. AMG provides professional residential property management services to more than 30,000 homeowners across the Carolinas living in communities with homeowners or community associations.

AMG wholeheartedly believes in the preservation and enhancement of homeowner associations, emphasizing the value of community as it contributes to one’s overall quality of life. As a leading property management association, AMG works closely with dedicated community members, service providers and employees throughout the North and South Carolina regions.

This year’s scholarship prompt was based around just thatꟷ the importance of community. The essays were evaluated anonymously by a panel of eight judges, including representatives and staff from AMG, community board members from Greensboro, Charlotte and Greenville, as well as client community vendors. The program was open to residents and vendors from AMG properties, as well as AMG employees and family members from each respective category.

“We were pleasantly surprised by the turnout from this year’s program. It is so encouraging to hear from the future leaders of our community, especially in how their own experiences have shaped them into thoughtful, community-conscious individuals. I think giving back to the community is incredibly rewarding and it is uplifting to see young people with that same spark,” said AMG Vice President May Gayle Mengert.

The AMG scholarship recipients are:

• Manuela Monjimbo, attending the University of North Carolina at Chapel Hill, was awarded the Corey Flynt Scholarship. Flynt, who died in a car accident in 2017, was the son of AMG’s President Dacy Cavicchia and brother to Charlotte Director of Operations, Danielle Rudisill and Special Projects Coordinator, Cassie Kutay.

• Sophia Bowers, also attending the University of North Carolina at Chapel Hill, was awarded the Billie Butler Scholarship in honor of Butler’s 20+ years dedicated to serving AMG clients in the Charlotte area.

• Bethany Castro-Lucero, attending the University of North Carolina at Greensboro, was awarded the Ron Erickson Scholarship in honor of the late world-class financial planning professional and role model to all who knew him.

• Payton Egan, attending Appalachian State University in Boone, North Carolina, was awarded the Tommy Badgett Scholarship in honor of long-term AMG employee and friend, who recently passed away this past January. His memory, in addition to the previously listed honorees, will be cherished forever.

“This scholarship program has been a great way to highlight the significance of community while honoring the memory of four individuals and their contributions to our community. I cannot think of a better way to continue honoring their legacies than by doing our part to help make a difference in the lives of others. The chosen essays reflect the diversity of our communities, and all have a common theme of appreciating cultures aside from our own,” added CEO Paul Mengert.

About AMG:

AMG is a professional community association management company dedicated to building effective community associations. AMG guides and assists executive boards to help protect the association’s interests, enhance the lives of community members and improve the property values in the community. With offices throughout the Carolinas, AMG is a knowledgeable partner in enforcing community governing documents with a proven set of processes and techniques and supporting communities with a broad range of services that can be tailored to individual community needs. Association Management Company, Inc., is a locally Accredited Business by the BBB and is a nationally Accredited Association Management Company (AAMC) by the Community Associations Institute.

For more about AMG, visit AMGworld.com.

Solar Panel Restrictions: The Court Of Appeals Illuminates Panel Restrictions

A “hot” topic in HOAs is the extent of an HOA’s authority to regulate solar panels. The legislature enacted a statute in 2007 that makes deed restrictions (i.e. a Declaration of Covenants, Conditions and Restrictions) void against public policy if they overly restrict an owner’s ability to install solar panels. The statute is N.C. General Statute § 22B-20 for those interested in reading it.

The courts have never shed light on the scope of the statute since its enactment until the N.C. Court of Appeals decided Belmont Association v. Farwig. The Farwigs installed solar panels on the front-facing roof of their home without prior architectural approval, and the association found them in violation of the declaration, which limits the type of improvements an owner can install without prior approval. Since the Belmont declaration did not explicitly refer to “solar panels,” the Farwigs argued that the general restriction against unauthorized improvements could not be enlarged to restrict the placement of solar panels.

Admittedly, the meaning of the statutes is clouded by unusual terminology and strange phraseology, and the court observed that certain parts of the statutes are ambiguous. The legislative history was convincing in the Court’s determination that the Belmont HOA had the authority to restrict the location of solar panels on the Farwig’s roof.

The Court determined that the legislature intended to prevent restrictions that “have the effect” of prohibiting the installation of solar collectors altogether, but not if the restrictions simply regulate their placement. As long as the declaration gives an HOA the ability to approve certain types of improvements (here, the Court determined that solar panels are the type of “improvements” that require architectural approval), then the HOA can limit where they can be placed.

The statute specifically says that it does not prohibit restrictions that disallow solar panels “on a roof surface that slopes downward toward” public access, such as a street. This was evidence that an HOA could prohibit the solar panels on the Farwig’s street-facing roof.

Relying on existing court decisions, the Court further held that restrictive covenants must be enforced reasonably and in good faith by an HOA. In short, an HOA’s declaration need not specifically use the words “solar panel”.

In a day of appellate opinions that shook the HOA, condominium and real estate world (see our other two blogs on these cases, which are more impactful than Farwig), the Court at least reaffirmed that owners bear responsibility for their own actions. The Farwig court’s parting message to the Farwigs was that “Defendants installed the solar panels first and sought approval later”, and therefore, their own decisions foreshadowed the outcome.

Used by permission of Offit Kurman, Attorneys At Law

https://www.offitkurman.com/blog/2021/06/01/solar-panel-restrictions-the-court-of-appeals-illuminates-panel-restrictions/

North Carolina Appellate Court Rules That Restrictive Covenants More Than 30 Years Old May Be Extinguished

We first blogged about C Investments 2 v. Auger, a potentially impactful case for older communities, several months ago. The North Carolina Court of Appeals has now rendered its opinion, which is discussed below.

C Investments purchased seven lots in the Country Colony neighborhood in Mecklenburg County. As is typical with many subdivisions in Charlotte (and in many other cities and towns), the developer of Country Colony in 1952 recorded restrictive covenants to restrict lots to residential-only use, to place restrictions on the type of structures that could be built (“one detached single-family dwelling not to exceed two and one-half stories in height”), on the number of residences that can be placed on a lot, to require homes to meet a minimum square footage, and to require setbacks from property lines.

At issue is the effect of the Marketable Title Act, a law enacted almost 50 years ago to eliminate stale restrictions that impact title to real estate. Historically, real estate law said that any title defect, encumbrance, or restriction in an owner’s chain of title is binding on present and future owners. In part because of the costs required to search real estate titles back to the beginning of real estate recordkeeping, the North Carolina legislature in 1973 enacted the Marketable Title Act. Despite the MTA’s decades-old dictates, it had never been meaningfully interpreted by the courts.

To oversimplify, the MTA’s goal is to extinguish title restrictions and defects that are more than 30 years old, as long as the defect does not appear in an owner’s chain of title for the past 30 years.

The MTA does have some exceptions. One of these exceptions is “covenants applicable to a general or uniform scheme of development which restrict the property to residential use only, provided said covenants are otherwise enforceable.” Such restrictions are not extinguished by the MTA, even if they do not appear in an owner’s chain of title for more than 30 years.

C Investments argued that the only part of the 30+ year old exceptions that survive the MTA are those pertaining to residential use. The owners in Country Colony argued that if a declaration contains a residential use restriction, all covenants in the declaration survive.

The Court sided with C Investments, holding that the plain language of the statute compelled the Court to determine that the MTA extinguishes all covenants other than the residential use-only restriction. The Court emphasized that it was not the court’s position to divine what the legislature meant when the language in the statute is plain on its face.

Of particular concern for planned communities is whether the MTA, after Auger, extinguishes covenants recorded more than 30 years ago. That said, the subdivision at issue in the Auger case is not subject to the Planned Community Act (Chapter 47F), so this court opinion does not address the interplay between the Planned Community Act and the Marketable Title Act. The PCA has language that says, if it conflicts with other statutes, the PCA controls, and this part of the PCA may protect planned communities formed under the PCA from the record-cleaning mechanism of the Marketable Title Act. (As of the present, this issue has not been addressed by the North Carolina Courts.) In addition, if a community has covenants that were recorded less than 30 years ago, then the MTA has a provision allowing them to be renewed before the 30-year expiration date. Communities need to quickly take stock of their situation and decide if they need to act. Because the mechanics of applying the MTA to restrictions older than 30 years can vary, each situation must be evaluated independently.

There was a dissenting opinion in Auger, which means that the North Carolina Supreme Court can more easily consider the case if one of the parties appeals.

Used by permission of Offit Kurman, Attorneys At Law

https://www.offitkurman.com/blog/2021/05/26/north-carolina-appellate-court-rules-that-restrictive-covenants-more-than-30-years-old-may-be-extinguished/

Older Condominiums Thrown A Curve Ball By North Carolina Court Of Appeals

The North Carolina Court of Appeals has issued a “published” opinion (meaning the case is binding authority for similar cases), effectively eliminating an important and effective tool for the collection of delinquent assessments for older condominiums: the “power of sale” foreclosure (“POSF”). Also known as “non-judicial foreclosure,” the POSF essentially utilizes the same legal process as mortgage foreclosures, where a neutral third-party trustee oversees the foreclosure from the commencement of the foreclosure through the sale of the property. This process is more efficient, less expensive, and faster than lawsuits, and unlike traditional lawsuits, the issues that can be raised are limited.

Condominiums formed on or after October 1, 1986, are governed by the North Carolina Condominium Act, Chapter 47C of the General Statutes. The Act details the procedures for POSFs, and has provisions that expressly make POSFs available as a remedy for condominiums formed prior to 1986 – which are otherwise governed by older law, the Unit Ownership Act (Chapter 47A), which is silent on the issue of POSFs.

The case, Executive Office Park of Durham Association, Inc. v Rock, involved a pre-1986 office condominium in Durham. The owner of several units fell behind in payment of his assessments (a fact which he disputed); the Association filed a Claim of Lien and later commenced a POSF. The Clerk of Court hearing the case granted the Association’s petition to move forward with a foreclosure sale. Mr. Rock appealed to the Superior Court, which upheld the foreclosure order. Mr. Rock appealed to the N.C. Court of Appeals.

The Court properly noted that the neither the 1982 Declaration for the condominium nor the statutory provisions governing pre-1986 condominiums (the Unit Ownership Act) provided for POSF. The only foreclosure procedure available to the Association, according to the court’s opinion, was a “judicial foreclosure,” which is a “traditional” lawsuit without the streamlined oversight of a trustee in a POSF. The Court reversed the prior rulings of the Clerk of Court and Superior Court, thereby voiding the right to pursue POSF for this and some similarly situated pre-1986 condominiums.

Inexplicably, the Court did not even mention in its very short (7-page) opinion, much less acknowledge, the unambiguous provisions in the Condominium Act that make POSF available to pre-1986 condominiums – despite the fact that the Association’s counsel specifically raised this argument in the appellate brief filed by the Association. For that reason, it is our opinion that this case was wrongly decided, and should be and will be reversed either by a requested rehearing of the case before the Court of Appeals, or on appeal to the North Carolina Supreme Court.

What does this case mean for pre-1986 condominiums? Unless and until this decision is reversed on a rehearing or appeal to the Superior Court, those associations will need to have their attorney review their declaration to determine if POSF is an available option. If not, the Association can (i) file a Claim of Lien and wait for the ruling to be reversed by the courts; (ii) pursue a judicial foreclosure, or (iii) pursue a small claims court lawsuit in the magistrate’s court.

The full court opinion can be found here: https://appellate.nccourts.org/opinions/?c=2&pdf=40202

Used by permission of Offit Kurman, Attorneys At Law

https://www.offitkurman.com/blog/2021/05/20/older-condominiums-thrown-a-curve-ball-by-north-carolina-court-of-appeals/

Essential Summer Maintenance Tips for Your Home

Essential Summer Maintenance Tips for Your Home

The summer temperatures can take a toll on your home. Every season homeowners should have a maintenance list for the home. Here is a list of summer to-do items.

Inspect Your Home's Exterior

It was a long winter, and it’s time to inspect your home’s exterior for things that could put it at risk in the future. This includes rotted or loose siding, mold or mildew, and moss growth. Once you’ve inspected the siding, power wash the home’s exterior surfaces to remove dirt, dust, sap, and anything else that could damage your siding or paint job. If you notice weak spots in the siding, contact a professional service company to help repair the damage. If there are spots of chipped or cracked paint, touch them up before summer gets into full swing.

Wash Windows and Replace Window Screens

Washing your exterior windows won’t make much of a difference if you don’t wash your window screens, too. Remove your window screens and gently scrub them with hot, soapy water. If your screens are too filthy to be cleaned, you may want to replace them.

Check and Clean Your Fans and Air Conditioner

First, you should look at your ceiling fans. The tops of fans routinely collect impressive amounts of dust during the winter months. When you start using these fans in the summer, the fan will spread these particles around your house, potentially exacerbating allergies, and having a negative impact on your air quality. And they’re easy to clean. You can either use a duster with a long handle, or you can climb on up and clean these spots with a Swiffer pad or damp rag.

Then, you’ll want to make sure your air conditioning is working. If you’re installing a window unit, remove and clean any filters before installing. And if you have central air, make sure that you are consistently replacing your filters to make your unit more energy efficient and effective.

Clean Gutters and Downspouts

Leaves, twigs, pollen, and other debris accumulates in your gutters over the winter and spring. If your gutters and downspouts stay clogged during heavy summer rains, the overflowing water can lead to flooding and structural damage. Typically done at least once a year, you may have to do it twice if you have a lot of trees around your home. Check also to see if any rust, holes, or cracks are developing. Repaint or repair to prevent the escape of rainwater in areas that could lead to water intrusion.

Replace the Air Filters Throughout your Home

The heating and air-conditioning system in your home works by intaking air from a room, which is then heated or cooled by coils and gets blown back into your home through the floor vents. Inside, your furnace’s air filter acts as the lungs of the system by preventing dust, pollen and other airborne particles from entering and getting blown back into other rooms. With such an important role in keeping your house and its occupants healthy, it’s vital that homeowners replace the filter on a regular basis.

Check and Clean Walkways, Driveway, and Patio

It’s a good idea to check your walkways, driveway, and patio to see if there are any cracks or weeds that need to be pulled before you begin cleaning them and repair any damage. Once you have done that, get out the power washer and wash away the last years dirt and grime.