Tips for Property Owners' Associations

Maintain a high level of communication between the board of directors and the members. Many problems arise simply because the board of directors does not keep the membership regularly informed of the issues being faced by the board and its actions to deal with those issues. Consider sending copies of board meeting minutes by email or posting them on an association website.
Maintain association minutes in a notebook so that succeeding boards will have accurate records of previous action.
Organize and keep association financial records in a manner so that succeeding boards will be able to locate invoices, banking records and tax records.
If your community’s covenants are extended or amended by a vote of the association (rather than by a document signed by property owners) be sure to contact an attorney for preparation and recording of a certificate reflecting that action.
Always note in association bylaws the date when changes were made and keep copies of earlier versions of the bylaws.
Carefully comply with requirements for advance notification of meetings.
Be sure that any proxy form is in compliance with the association bylaws and North Carolina Law.
Notify all members of the names and addresses of officers and directors within 30 days of their election.
Consult an attorney before filing a lien for assessments. The provisions in the Planned Community Act for such liens are confusing and there is significant risk from an improperly filed lien.
If your subdivision is subject to the Planned Community Act, the association is required to maintain property insurance on the common elements and liability insurance, if it is reasonably available. If not available, the association must give written notice of that fact to all lot owners. Even if your subdivision is not subject to the Planned Community Act, it is a good practice to obtain insurance for the association. See an attorney for additional information regarding what coverage should be included in the insurance policy.