Legislative Shenanigans in North Carolina

guest blog by Dave Russell
The new found alliance between the CAI and the National Association of Realtors seems to be spreading like wildfire. The National Association of Realtors (“the NAR”) is one of the largest lobbyist groups in the country. It appears that the CAI has lost so much support, they have teamed up with the NAR and are waging a war against homeowners. This licensing of HOA managers, as real estate agents, is simply a chorused conspiracy, only to funnel homeowners dues into both organizations’ pockets. A large portion of these dues are spent lobbying our kookie lawmakers, who are clueless about the real issues surrounding HOAs.

The CAI and the NAR are simply building an enormous bank account off of the backs of every homeowner in the land. If you think HOAs are a nightmare now, wait until you see what the NAR and the CAI do to homeowners collectively.

Understandably, homeowners are so desperate for protection, they haven’t a clue as to the untended consequences of this type of legislation. Wait until you see what those now licensed real estate agents want to charge for managing those HOA properties. It won’t be cheap, nor will there be any better protection for homeowners. But hey! That 4 hours of “board member training” should be the payoff. Um, NO.

What’s in it for the real estate industry? As we all know, they sure aren’t making any money selling homes, nor will they after the next anticipated housing market crash. You don’t suppose that the Realtors will be taking over HOA management, do you? Of course they will and they are going to charge the homeowners a pretty penny for doing so.

Apparently the real estate industry will be the next “overseers” of Homeowner Associations, they will also set the rules, stage and the legislation that goes along with it. (“Politics makes for some strange bedfellows.”) If you have followed the nasty HOA legislation here in Arizona, backed by the real estate industry, you certainly know that the Realtors do not have the homeowners’ best interests at heart.

Gee, I wonder what’s in it for the CAI? You don’t suppose the real estate industry is going to require real estate agents, who manage HOAs, to take expensive special CAI training, do you? You bet your bootstraps they are! Who is going to pay for that “special CAI training?” Ah, that’s right, the homeowners will.

The Realtors and the CAI have been using Arizona as a proving ground for the past several years. Both organizations have engaged in passing several pieces of unconstitutional HOA legislation, that have resulted in two lawsuits against the state. No surprise here, the two sponsoring lawmakers of these unconstitutional HOA bills were….drum-roll please….. Senator Gail Griffin and Rep. Michelle “the Bimbo” Ugenti. Both of these Gal-Pals just happen to be real estate agents themselves. Oh, did I mention that both the Bimbo and Griffin are the Chairpersons for the Committee(s) on Government in the House and the Senate? You see, these devious HOA bills must be passed in their committees first, before they hit the House and Senate floors.

Just like here in Arizona, if this proposed legislation passes, the poor folks in NC are going to figure out the hard way about the unintended consequences of HOA legislation. I have just a few words of wisdom for the folks in North Carolina, “be very careful what you wish for, it may actually come true.”

(meeting puts the focus on HOA rights)


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Ward Lucas is a longtime investigative journalist and television news anchor. He has won more than 70 national and regional awards for Excellence in Journalism, Creative Writing and community involvement. His new book, "Neighbors At War: the Creepy Case Against Your Homeowners Association," is now available for purchase. In it, he discusses the American homeowners association movement, from its racist origins, to its transformation into a lucrative money machine for the nation's legal industry. From scams to outright violence to foreclosures and neighborhood collapses across the country, the reader will find this book enormously compelling and a necessary read for every homeowner. Knowledge is self-defense. No homeowner contemplating life in an HOA should neglect reading this book. No HOA board officer should overlook this examination of the pitfalls in HOA management. And no lawyer representing either side in an HOA dispute should gloss over what homeowners are saying or believing about the lawsuit industry.

2 thoughts on “Legislative Shenanigans in North Carolina

  1. Cynthia

    Mr. Al Ripley, ncjustice.org will be speaking at this meeting I am told. Please see an announcement his group put out a few years back concerning HOAs


    “Election 2012 Issue Brief – Abuses by Homeowners Associations”


    “North Carolina, like most states, has laws that authorize and govern homeowner associations. Associations can levy fines, collect monthly assessments, and regulate the color of houses or the size of mailboxes. An HOA can even foreclose on a homeowner for not paying association dues or fees for rule violations.

    Well-run HOAs that treat homeowners fairly and respectfully can improve community living. Unfortunately, some HOAs in North Carolina abuse their authority. The problem is so prevalent that the NC General Assembly has formed several committees to study these associations.

    One legislative committee has heard a wide range of complaints from homeowners, including the following:
    •Abusive and unnecessary use of the power of foreclosure
    •Unpredictable demands for payment of fees months or even years after they were allegedly due
    •Misuse and/or embezzlement of association funds
    •Failure to offer payment plans to homeowners who have fallen behind on payments
    •Assessment of unnecessary attorney fees
    •Giving of association business to friends and family for overpriced services
    •Selective, arbitrary, and discriminatory enforcement of covenants
    • Unfair association elections and dismissal of officers
    •Proxy voting that concentrates voting power in a few officeholders
    •Improper notice of meetings
    •Unfair assessment of fines for alleged failure to abide by association covenants

    Questions for Candidates
    • Do you support new laws to stop abusive homeowner associations?
    •Do you support the creation of a Homeowners Association Division in the NC Real Estate Commission to regulate associations and help homeowners with complaints against abusive associations?

  2. Sandy Schenkat

    Thanks Dave for sharing these obvious facts about collusion with the NAR and CAI. Homeowners need to pay attention or we are all going to be at their mercy. Keep up your great work in challenging Bimbo Ugenti and Griffin. Please keep us advised of your law suits against the state of Arizona.


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