Armstrong v. Ledges Homeowners Ass'n, Inc.

Henderson · NC · Supreme Court of North Carolina

Member win · other

What happened

The Ledges (Hidden Hills) in Henderson County was platted in 1988 with public roads, no common amenities, and no general assessment power in the original declaration; later deeds added only a small pro rata entrance-sign electricity share. After owners challenged rising annual bills, the association restated covenants to impose mandatory membership, liens, rental limits, and open-ended board-defined assessments. Owners including Armstrong sued in Superior Court, Henderson County for a declaration that the restated covenants exceeded the original bargain. After intermediate proceedings, the North Carolina Supreme Court held the majority amendment authorizing open-ended assessments unreasonable and unenforceable.

What the court (or agency) held

A declaration's amendment clause does not authorize unlimited new covenants. Amendments must be reasonable in light of the original bargain, read from the declaration, deeds, plat, and the community's character. A majority amendment authorizing open-ended assessments 'for the general purposes of promoting the safety, welfare, recreation, health, common benefit, and enjoyment of the residents ... as may be more specifically authorized from time to time by the Board' was unreasonable in a 49-lot neighborhood with public roads, no common areas, and only a ~$7/year sign-light obligation. The amendment was invalid and unenforceable.

Why this matters for members

Majority amendment power is not a blank check. Courts compare new assessment regimes to the original recorded bargain and community character; transforming a minimal-covenant subdivision into a full assessment HOA can be struck as unreasonable.

What the member did

Compared the plat and original declaration to the new assessment scheme; sued for a declaration that the restated covenants exceeded the original bargain; sought discretionary review after the Court of Appeals affirmed the association.

Questions for the board

Questions for a lawyer

Citation

Armstrong v. Ledges Homeowners Ass'n, Inc., 360 N.C. 547, 633 S.E.2d 78 (2006); No. 640PA05 (2006-08-18). Supreme Court of North Carolina. Outcome chip: fees/assessments hub / secondary. Source: https://law.justia.com/cases/north-carolina/supreme-court/2006/640-05-1.html

_General information, not legal advice. Outcomes turn on facts and current law._

Source opinion

General information, not legal advice. Outcomes turn on facts and current law.

Not a law firm. Not legal advice. Confirm this against your documents and your state’s law.