Quick Answer
G.S. 47F-3-107 divides maintenance duties in a planned community and sets rules for damage claims. Unless the declaration says otherwise, the association maintains common elements and each owner maintains the lot. If an owner damages common elements, the association can direct repairs or fix the damage and recover the cost. Small claims-size disputes can go to a hearing panel, and owner damage liabilities become lien-secured assessments.
At a Glance
| Item | Detail |
|---|---|
| Law/citation | G.S. 47F-3-107, "Upkeep of planned community; responsibility and assessments for damages" |
| History | S.L. 1998-199, s. 1; amended by S.L. 2013-34, s. 2 (per the history note) |
| Applies to | HOAs. G.S. 47F-1-102(c) extends subsections (a), (b) and (c) to pre-1999 communities, unless the documents expressly provide otherwise. Subsections (d) and (e) are not on that list. |
| Key sections | (a) upkeep, (b) owner damage, (c) association-caused damage, (d) hearing panel and liens, (e) unincorporated real estate |
| Remedy or penalty | Damage liabilities are assessments secured by lien under G.S. 47F-3-116 |
What the Law Says
- (a) Upkeep. "Except as otherwise provided in the declaration," the association is responsible for causing common elements to be maintained, repaired and replaced when necessary, and may assess owners to recover those costs. Also unless the declaration says otherwise, "each lot owner is responsible for the maintenance and repair of his lot and any improvements thereon." Owners must give the association (and, when necessary, other owners) access through the lot or its limited common element reasonably necessary for maintenance, repair or replacement.
- (b) Owner-caused damage. If an owner is legally responsible for damage to a common element or limited common element, the association may direct the owner to repair it, or make the repairs itself and recover damages from the owner.
- (c) Association-caused damage. If an association agent, acting within the scope of the agent's activities, damages a lot, the association is liable to repair it or reimburse the owner, and is also liable for losses to the owner.
- (d) Hearing panel. When a claim under (b) or (c) is at or below the small-claims amount in G.S. 7A-210, any aggrieved party may request a hearing before an adjudicatory panel appointed by the board. If the board appoints no panel, the board hears it. The party charged gets "notice of the charge, opportunity to be heard and to present evidence, and notice of the decision." The panel may assess liability per damage incident up to that small-claims amount. Larger claims are decided "as otherwise provided by law." Owner liabilities, however determined, are "assessments secured by lien under G.S. 47F-3-116." Association liabilities may be offset by the owner against sums owed to the association, reducing the lien.
- (e) Unincorporated real estate. The association is not liable for maintenance and expenses on real estate not incorporated into the planned community.
What This Means in Practice
For boards
Start with the declaration, because subsection (a) yields to it. Many declarations assign exterior or limited common element duties differently. For owner damage, photograph and document the damage, give written notice of the charge, and offer the (d) hearing for small claims. Our reading: because a damage assessment is lien-secured, a clear record matters if the amount is later disputed.
For owners
The statute gives owners a hearing right on small damage claims, and a right to request a hearing on a claim against the association for damage to their lot. Owners must also allow reasonable access for maintenance.
What the law does not say
- It does not set a hearing deadline or notice period for subsection (d).
- It does not say what happens if an owner challenges a panel decision. See your declaration and G.S. 47F-3-107.1 for fine hearings, which have their own appeal language. Open question: whether (d) hearings should follow that process.
- We did not read the parallel condominium section.
Timeline
| Date | Event |
|---|---|
| January 1, 1999 | Planned Community Act effective (S.L. 1998-199) |
| 2013 | S.L. 2013-34, s. 2 amends the section (per the history note; we did not read the act) |
Related North Carolina Law
- G.S. 47F-3-107.1: fines and suspension hearing
- G.S. 47F-3-116: assessment liens and foreclosure
- G.S. 47F-3-102: association powers
- Chapter 47F overview
- North Carolina HOA laws complete guide
Board Checklist
- Map who maintains what under the declaration, including limited common elements.
- Keep dated photos, repair estimates and invoices for any damage claim.
- Give the owner written notice of the charge before assessing damages.
- Decide whether to appoint a standing adjudicatory panel for small claims.
- Confirm the current small-claims limit in G.S. 7A-210 before assigning a claim to a panel.
- Record decisions in writing and send notice of the decision.
- Ask counsel before placing a damage assessment on the lien process.
Frequently Asked Questions
Who maintains the common elements in a North Carolina HOA?
Unless the declaration says otherwise, the association, and it can assess owners for the cost.
Who maintains the lot?
The owner, unless the declaration provides otherwise.
Can an HOA charge an owner for damaging common elements?
Yes. Under subsection (b) it may direct the owner to repair, or repair and recover damages from the owner.
What is the hearing panel for?
Claims at or below the small-claims amount in G.S. 7A-210. The board appoints the panel, or hears the matter itself if it appoints none.
Is a damage charge a lien?
The statute says owner liabilities determined by hearing or otherwise are assessments secured by lien under G.S. 47F-3-116.
Is the association liable if its contractor damages a lot?
Subsection (c) makes the association liable for damage inflicted by its agent within the scope of the agent's activities.
Where We Stand
Our position: we support this law. Clear default maintenance rules and a quick small-claims hearing reduce disputes over modest repair bills and protect shared funds. Tip: document damage immediately, send the notice of charge in writing, and keep maintenance responsibilities in a one-page chart owners can read. This is Association Property Managers' operating view as a management company, separate from the legal summary above, and it is not legal advice.
Where This Comes From
This page is based on the text of G.S. 47F-3-107 and G.S. 47F-1-102 in Chapter 47F on ncleg.gov. We did not read G.S. 7A-210, the session laws, or court decisions on this section.
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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