Quick Answer
G.S. 47F-3-102 lists what a North Carolina HOA may do: adopt rules and budgets, hire managers, sue, contract, regulate common elements, charge fees, fine owners, and more, 17 powers in all. They apply "unless the articles of incorporation or the declaration expressly provides to the contrary." Condominium associations have a similar list in G.S. 47C-3-102(a).
The one thing a board most needs to know: the statute is a default list. The declaration and articles can take a power away, but only if they do so expressly, and several powers (fines, suspensions, late charges) come with their own limits and procedures.
At a Glance
| Item | Detail |
|---|---|
| Law/citation | G.S. 47F-3-102 (planned communities); G.S. 47C-3-102 (condominiums) |
| Effective date | Current text. The 47F history ends with S.L. 2020-90, s. 4(c); the 47C history ends with S.L. 2020-90, s. 4(a) |
| Applies to | HOAs and condominium associations. Pre-1999 planned communities get subdivisions (1) through (6) and (11) through (17) (G.S. 47F-1-102(c)); condominiums created on or before October 1, 1986 get 47C-3-102(a)(1) through (6) and (11) through (16) |
| Key sections | § 47F-3-102(1) through (17); § 47C-3-102(a)(1) through (16) and (b) |
| Remedy or penalty | None stated. The section grants powers rather than imposing duties |
What the Law Says
The 47F section opens: "Unless the articles of incorporation or the declaration expressly provides to the contrary, the association may do all of the following." The powers, in the statute's order:
- (1) Adopt and amend bylaws and rules and regulations.
- (2) Adopt and amend budgets for revenues, expenditures and reserves, and collect assessments for common expenses.
- (3) Hire and discharge managing agents and other employees, agents and independent contractors.
- (4) Institute, defend or intervene in litigation or administrative proceedings on matters affecting the planned community.
- (5) Make contracts and incur liabilities.
- (6) Regulate the use, maintenance, repair, replacement and modification of common elements.
- (7) Cause additional improvements to be made as part of the common elements.
- (8) Acquire, hold, encumber and convey property in its own name, with common elements conveyed or encumbered only under G.S. 47F-3-112.
- (9) Grant easements, leases, licenses and concessions through or over the common elements.
- (10) Impose and receive payments, fees or charges for the use, rental or operation of common elements (other than limited common elements) and for services provided to lot owners.
- (11) Impose late charges and suspend privileges for unpaid assessments.
- (12) Impose fines or suspend privileges for violations, after notice and an opportunity to be heard.
- (13) and (13a) Impose reasonable charges for preparing and recording documents, and for statements of unpaid assessments.
- (14) Provide for indemnification of, and maintain liability insurance for, officers, board, directors, employees and agents.
- (15) Assign its right to future income, including common expense assessments.
- (16) Exercise all other powers that legal entities of the same type may exercise in North Carolina.
- (17) Exercise "any other powers necessary and proper for the governance and operation of the association."
The money and discipline powers
Subdivision (11) allows "reasonable charges for late payment of assessments, not to exceed the greater of twenty dollars ($20.00) per month or ten percent (10%) of any assessment installment unpaid." After notice and an opportunity to be heard, the association may suspend privileges or services "(except rights of access to lots)" while amounts remain unpaid "for a period of 30 days or longer."
Subdivision (12) allows "reasonable fines" or suspensions "for reasonable periods" for violations of the declaration, bylaws, and rules, again "after notice and an opportunity to be heard" and again excluding "rights of access to lots." The hearing procedure is in G.S. 47F-3-107.1.
Subdivision (13a) allows reasonable charges for statements of unpaid assessments, which "must be furnished within 10 business days after receipt of the request," up to $200 per statement or request, plus an expedite fee of up to $100 "if the request is made within 48 hours of closing." These charges "may be collected by the association, its managers, or its agents."
The condominium list
G.S. 47C-3-102(a) says the association, "even if unincorporated," may exercise 16 parallel powers "unless the declaration expressly provides to the contrary." Differences we noted: the late-charge, suspension and fine powers are combined in subdivision (11), which caps fines at "one hundred dollars ($100.00)" with a reference to G.S. 47C-3-107.1; subdivision (12) covers charges for recording amendments and for resale certificates under G.S. 47C-4-109; the unpaid-assessment statement power is (12a); and subsection (b) says the declaration "may not impose limitations on the power of the association to deal with the declarant that are more restrictive" than those on dealing with others.
What This Means in Practice
Reading the list as a ceiling and a floor
Our reading: a power on this list is available to the board without separate authority in the declaration, but the board still needs to follow the statute's own conditions (hearing before a fine, the $20 or 10% late-charge limit, the $200 and $100 statement caps) and any limits the declaration expressly adds. Whether a general phrase in a declaration is enough to count as "expressly" taking a power away is an open question for counsel.
Powers that are not on the list
The statute gives no power to charge fees that other provisions bar. For example, G.S. 47F-3-116(h) says an association "shall not levy, charge, or attempt to collect a service, collection, consulting, or administration fee" unless the declaration expressly allows it. Read subdivision (13a) and 3-116(h) together before billing any fee not listed.
Older communities
For planned communities created before 1999, G.S. 47F-1-102(c) brings in subdivisions (1) through (6) and (11) through (17) only. Subdivisions (7) through (10), which cover additional improvements, property, easements and use fees for common elements, are not on that list. Our reading: for those four topics an older HOA looks to its declaration and other law. Subdivision (13a) is numbered between (13) and (14), so we read it as within the (11) through (17) range; confirm with counsel.
Declarations that are silent or narrower
The North Carolina Supreme Court has considered how far an association's powers reach when the original documents are silent. See the pages on Armstrong v. Ledges Homeowners Association and Southeastern Jurisdictional Administrative Council v. Emerson below, both of which examine amendments that add assessment powers.
Timeline
| Date | Event |
|---|---|
| 1998 | Chapter 47F enacted (S.L. 1998-199), effective January 1, 1999 for communities created on or after that date |
| 2004 and 2005 | Statute history lists S.L. 2004-109, s. 4 and S.L. 2005-422, s. 1 amending 47F-3-102 |
| 2020 | S.L. 2020-90, s. 4(c) is the latest amendment shown for 47F-3-102 (s. 4(a) for 47C-3-102) |
Related North Carolina Law
- G.S. 47F-3-107.1: fines, suspension and hearing requirement
- G.S. 47F-3-118: records and unpaid-assessment statements
- G.S. 47F-3-116: assessment liens and foreclosure
- G.S. 47F-3-103: board, budget ratification and removal
- Armstrong v. Ledges Homeowners Association
- Southeastern Jurisdictional Administrative Council v. Emerson
- Chapter 47F: Planned Community Act overview
Board Checklist
- Read the declaration and articles for any express limit on the powers listed above.
- Before levying a fine, confirm a hearing has been held and the notice and decision steps were followed.
- Keep late charges within the greater of $20 per month or 10% of the unpaid installment.
- Check that any fee you charge is authorized by 3-102 or the declaration, especially after G.S. 47F-3-116(h).
- Furnish statements of unpaid assessments within 10 business days and keep fees at or below the statutory caps.
- Confirm the community's creation date to see which subdivisions apply.
Frequently Asked Questions
Can a North Carolina HOA fine homeowners?
Yes, under G.S. 47F-3-102(12), after notice and an opportunity to be heard, for reasonable fines tied to violations of the declaration, bylaws and rules. See the fines page for the hearing steps.
Is there a cap on HOA late fees?
Subdivision (11) limits late charges to the greater of $20 per month or 10% of the unpaid installment.
Can an HOA charge for a statement of unpaid assessments?
Yes, up to $200 per statement or request, plus up to $100 if requested within 48 hours of closing, and the statement must be furnished within 10 business days.
Can the declaration limit these powers?
Yes, if the articles or the declaration "expressly provides to the contrary."
Can an HOA suspend a homeowner's access to the lot?
No. Subdivisions (11) and (12) exclude "rights of access to lots" from suspension.
Can an HOA hire a management company?
Yes. Subdivision (3) lets the association hire and discharge managing agents, employees and independent contractors.
Where This Comes From
This page is based on the text of G.S. 47F-3-102, G.S. 47C-3-102 and G.S. 47F-1-102 on ncleg.gov, and G.S. 47F-3-116(h). We did not analyze court decisions on the scope of implied powers beyond linking the two cases named above.
How APM Helps
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Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed North Carolina attorney before acting.
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