For homeowner in North Carolina homeowners associations,
access to a mediation process, for their HOA-related grievances, recently
became much more accessible.
Background
In 2013, the North Carolina legislature passed a
law encouraging homeowners associations and aggrieved members to agree to
voluntary, non-binding mediation to resolve HOA-related disputes (see our 2013
blog discussing the law here). The law has mostly gathered proverbial dust, and we have
not actually seen any owners or HOAs avail themselves of it.
Recently, the North Carolina Chapter of the Community Associations Institute, a group which gathers no dust and is deeply involved with
educating homeowners and property managers throughout the state, began offering
mediation services through its new CAMP program (CAMP stands for Community
Association Mediation Program). In full disclosure, we as a firm are
members of CAI-NC, and we strongly believe in its mission, education and
advocacy. We are excited that this new program may provide a cost-effective
means for working out HOA disputes without the necessity of court proceedings.
CAMP Program
Details
The program offers to locate an experienced
mediator with significant HOA experience, who is either a professional
community manager or an attorney, to preside over an owner-versus-HOA
dispute.
The cost for this process is $500.00, which is
evenly split between both sides. The fee ensures a minimum, 2-hour mediation,
although the parties may engage the mediator for longer time periods, paid by
the hour.
Neither party is required to hire an attorney
for representation during the mediation, although the parties may be represented by
counsel if they wish.
How Parties
Enter the CAMP Program
Since mediation is voluntary, both parties must
agree to mediation by filling out an online application on the CAMP webpage. Each party must pay its half of the mediation fee at this
time.
Upon submitting the required forms and
paperwork, a mediator will contact the parties within thirty days. The
mediator is permitted to speak with the parties before the mediation commences,
and to hold separate meetings or discussions with the parties prior to or during
the mediation.
The mediator may also request the parties to
provide a written statement summarizing the dispute and to request the parties
to submit all documents supporting their claims and the dispute.
All information received by the mediator will
remain confidential. The mediator’s role is that of a settlement
facilitator; the mediator does not
render a decision about which side has the better argument or would win the
case if a lawsuit were filed, but assists the parties in reaching a mutual
settlement.
It remains to be seen whether the CAMP program will breathe new
life into the statutory mediation program, although hopefully it will result in
more disputing parties finding “common elements” to resolve their
disputes. If you have any questions as to how your association could use
the CAMP program, or any other HOA-related questions, please contact us.
