As financial transparency is questioned, HOA bank records are at the center of a dispute between the Weddington Pointe HOA and its residents. The trust of homeowners is dwindling as fees continue to soar.
Residents Ask for HOA Bank Records
Since moving into the newly constructed community of Weddington Pointe in 2021, residents have faced a $500 annual increase in their homeowners association dues. With the HOA still under the developer’s control, residents feel they have limited options to contest these rising costs.
Homeowners like Natalie Brides and Liz Skrypek have begun scrutinizing the HOA’s financial management, especially given that a pool project promised years ago has only recently commenced construction. Meanwhile, several budget line items have significantly increased from the previous year.
For 2024, the HOA’s budget rose by $60,000 from last year, funded entirely by residents’ dues and fees. Residents suspect that the HOA may not be properly allocating the funds. This has led them to question the transparency of the budgeting process.
Questioning Developer Control
Representatives from Century Communities, the builder-developer of the subdivision, control the Weddington Pointe HOA. The builder-developer hired Cusick Community Management to handle contracts and daily operations. This situation is not unique, as developer-managed HOA boards — known as declarant control — are common in developing communities, often leading to conflicts of interest.
Research indicates that Cusick, under the legal name Blue Lake Capital, LLC, is frequently selected by major residential developers in the Charlotte region to manage HOAs under developer control. According to an attorney for Cusick, the company is a trusted management firm, evidenced by the developers who continue to choose them to oversee new communities.
Homeowners like Brides and Skrypek are eager to gain insights into their HOA’s finances and have submitted numerous questions to Cusick. They are particularly concerned about why residents are responsible for a $12,000 irrigation repair bill, which they believe should fall to the developer.
A significant point of contention is the drastic increase in the water and sewer budget for common areas, which jumped from $3,000 in 2023 to nearly $22,000 in 2024. This rise is attributed to unexpected monthly expenses exceeding the planned budget 2023. Additionally, the unfinished pool project has been allocated $20,000 for contracts, maintenance, and supplies in 2024 despite being delayed for years due to permit issues.
Resident Committee to Investigate HOA Bank Records
Residents have formed a committee and submitted a formal request to review the HOA’s financial records, including bank statements, receivables, and invoices. However, after five months, they have yet to receive a response. Residents are also concerned about increasing fines for violations, which are reflected in HOA documents, while their questions remain unanswered.
On June 20, residents were directed to communicate solely with Cusick regarding HOA matters, even though Century representatives control the board. The same communication requested residents to avoid contacting vendors or service providers directly about community issues.
A Century spokesperson indicated that Cusick provides current and relevant financials on its website. An attorney for Cusick explained that state law dictates the documents available to residents, leaving the decision up to the HOA board.
North Carolina law requires HOAs to provide budgets to members, which residents can access via the HOA website. However, the law does not prohibit additional disclosures. Plus, there are various ways homeowners can seek further access to documents.
Although state lawmakers have formed a committee to assess gaps in HOA legislation, no significant reforms have been enacted. In the meantime, residents like Brides and Skrypek are determined to explore ways to access financial records.
