'We are going to be forced out': North Carolina homeowners fear the worst as neighborhood doubles HOA fees to $2,500 per month

As breathtaking as that new amount may be, it’s not nearly as bad as the HOA initially proposed. The original plan was to raise the monthly fees to $7,500.

Why so much?

The HOA says the increase is necessary due to legal strife.

In 2024, more than 20 homeowners sued the HOA and some of its officers over what they said was a failure to answer financial questions. The HOA says the claims were dismissed, some voluntarily and some by the court. A jury, it says, also found some homeowners liable for defamation, which resulted in monetary and punitive damages.

Another jury trial, the HOA said, is scheduled for next year which will determine the amount of punitive damages attributable to civil conspiracy.

Still, it says, there were significant legal costs, which is why it has raised fees as often as it has. In July, the HOA raised fees from $350 to $1,250, and hit homeowners with a $10,000 special assessment.

“Defending the homeowner-initiated claims has produced large legal expenses,” the HOA said in a statement. “Those legal bills are now the single largest item in the Association’s budget. The responsibility for paying those bills rests with the owners.”

Some owners in the neighborhood say they will not be able to afford the HOA fees and will be forced out of their homes with the most recent hike.