SHERRILLS FORD, N.C. — Homeowners in Catawba County said they could face foreclosure or bankruptcy as HOA fees are set to rise from $1,250 to $7,500 a month.
All of the homeowners told Channel 9’s Dave Faherty that they can’t pay the fees, which amount to $90,000 a year. The HOA is meeting Monday night to raise the dues.
Their concern is that liens will be put on their homes, and they could face bankruptcy or foreclosure.
[ READ MORE: Magnolia Cove homeowners face massive jump in monthly HOA dues ]
“It’s ridiculous,” said Diana Brokaw, a homeowner.
Brokaw still can’t believe she and the other 22 homeowners in Magnolia Cove are facing a sixfold increase in HOA fees by the first of the year.
“Who has $90,000 extra a year to pay for fees that you’re just told are going to happen,” she said.
Brokaw isn’t alone. Down the street, Jill Menson and her husband bought their home believing it would be their last. She said the homeowner’s fee five years ago was $158, but it shot up to more than $1,200 this summer with a $10,000 assessment. Now the couple is facing fees of $7,500 a month.
“We are going to be forced out with nowhere to go, because no one is going to get a dime for their houses even if we put them on the market,” Menson said.
According to an email from the Magnolia Cove HOA Board of Directors, “The increase is mainly driven by the Association’s legal and collection costs from owner accounts that haven’t been paid. Owners who stay current help bring those costs down over time.”
The North Carolina Attorney General told Channel 9 that there are no statutes that limit how much an HOA can charge in fees, but boards must comply with their governing documents. The homeowners say the developer, who owns the majority of the houses, controls the HOA.
“It’s not right,” Menson said. “Nobody is helping us. We’re not getting any help from the government agencies. No one is helping us.”
Those homeowners said the meeting Monday night will be held over Zoom, and they can’t ask questions of the board. The HOA said homeowners could submit questions ahead of time. The deadline was Friday.
Many people ask Action 9 attorney Jason Stoogenke about their rights when it comes to HOAs.
It can be hard to win a fight with your board.
Stoogenke said if you have an issue:
- Try to get the support of your neighbors. Strength in numbers.
- Try meeting with the board as a group, not by yourself.
- You may have to wait for elections and vote in new board members.