'Forced out': HOA fees to rise to $2,500 a month

Homeowners at Magnolia Cove in Sherrills Ford, Catawba County, are facing monthly HOA dues of $2,500 after the board voted to raise them from $1,250. Residents say the costs have climbed sharply: one homeowner recalls fees of $158 five years ago, followed by a $10,000 assessment and a jump to more than $1,200 this summer. The community has 22 homeowners, several of whom fear they will be unable to keep their homes, sell them for a fair price, or avoid liens, foreclosure and bankruptcy. One resident said the increase could leave her and her husband with nowhere to go.

The HOA board attributed the increase mainly to legal and collection expenses stemming from unpaid owner accounts, saying current owners help reduce those costs over time. Residents contend the developer, which owns most of the homes, controls the association, and they say they had little chance to question the board at its Zoom meeting because questions had to be submitted in advance. North Carolina’s attorney general says state law does not cap HOA fees, though boards must follow their governing documents. A consumer attorney advises homeowners to organize with neighbors, approach the board together and consider voting in new board members when elections allow.