Snug Harbor Property Owner’s Association: Understanding the Hierarchy of Laws and Governing Documents (From Strongest to Weakest)

by Website Staffon Posted on

1. Federal Law & U.S. Constitution

2. North Carolina State Law

  • This includes the state constitution, statutes, and court rulings.

A. Planned Community Act (NCGS § 47F)

  • Effective Jan 1, 1999
  • Applies fully only to HOAs/POAs created after that date.
  • For SHPOA (1970):
    • Only certain provisions apply retroactively, including:
      • Open meetings (§ 47F-3-108)
      • Record access (§ 47F-3-118)
      • Assessment lien process (§ 47F-3-116)
      • Quorum rules for meetings (§ 47F-3-109)
  • SHPOA can opt in to the PCA by amending its governing documents.

B. NC Nonprofit Corporation Act (NCGS § 55A)

  • Applies to SHPOA, incorporated as a nonprofit.
  • Governs:
    • Corporate structure
    • Board powers
    • Member meetings
    • Notice requirements

C. Other State Laws

  • Real Property statutes (e.g., for liens and foreclosure)
  • Contract law (since your governing documents are contracts)
  • Debt collection rules

3. County and Local Ordinances

  • Zoning, noise, signage, building codes, etc.
  • SHPOAs rules cannot override city or county laws.

4. Your HOA’s Governing Documents (Key for Pre-1999 HOAs/POAs)

A. Declaration of Covenants, Conditions & Restrictions (CC&Rs)

  • Also called the “Declaration” or “Master Deed”
  • Most powerful HOA/POA document (contractual and recorded)
  • Governs what owners can/can’t do with their property

B. Articles of Incorporation

  • Filed with the NC Secretary of State
  • Establishes SHPOA as a legal nonprofit
  • Defines purpose and powers of the association

C. Bylaws

  • Internal operating rules
  • Covers meetings, board elections, officer roles
  • Must comply with the Articles and NC Nonprofit Act

D. Rules & Regulations (or “Policies”)

  • Adopted by the board
  • Cover day-to-day issues (e.g., parking, pets, pool use)
  • Cannot conflict with the Declaration or higher laws

5. Board Resolutions or Guidelines

  • Lowest in the hierarchy
  • Should clarify how the board enforces rules
  • Must be consistent with all higher-level laws and documents