Understanding Your Rights: Challenging HOA Architectural Request Denials in Wilmington, NC

Homeowners have some right to some due process in HOA matters. (That’s not necessarily the same as due process under the law and/or within the court system.) While an architectural request denial is not a fine or penalty, if the situation escalates (say, you went ahead with the change anyway), the HOA must follow due process before penalizing you. The North Carolina Planned Community Act requires that before an HOA imposes fines for violations, the homeowner is entitled to notice and a hearing​.

This means you get a chance to be heard by the board (or a panel) to contest any alleged violation. The decision from such a hearing should also be given to you in writing. Furthermore, you may have the right to access certain HOA records – including meeting minutes where your request was discussed or the governing documents that support their decision​.

The Planned Community Act helps ensure that association records (like bylaws, covenants, financials, and minutes) are reasonably available to members, so you can request documentation to understand the basis of the denial. This transparency is key to holding the HOA accountable and preparing your response.

By understanding the HOA’s authority and your rights, you are better equipped to evaluate whether a denial is proper. If the HOA has a clear rule and followed proper procedure, you could be required to adjust your plans. But if the HOA overstepped – enforcing an unwritten rule, acting inconsistently, or violating state law – then you may have grounds to push back.

If you believe your HOA’s denial was unfair or not in line with the rules or relevant North Carolina law, you may be wondering: Do I have any recourse? Homeowners can challenge an architectural request denial, especially if the HOA acted outside its authority or violated its obligations. However, challenging an HOA decision requires a clear understanding of why the denial might be improper and how to make your case. Here are some potential grounds for challenge and what they mean:

Violation of HOA’s Own Rules or Procedures: An HOA must follow the processes set forth in its governing documents when reviewing and deciding on requests. If your HOA denied your request without following proper procedure, this could serve as a legal basis to challenge the decision. For example, if the covenants require a committee review or a response within 30 days and the HOA failed to do so, you could argue the denial is invalid. In the North Carolina Court of Appeals case called Makar vs Mimosa Bay Home Owners Association, the court found the HOA’s denial invalid because a proper committee didn’t issue the decision, and because the HOA missed its deadline to respond, the request was “deemed approved” by default​. That’s one reason it’s a good idea to lways check your CC&Rs or guidelines for any procedural requirements (quorum of committee members, timeline for decisions, notice requirements, etc.). A denial that ignores those rules can be overturned or rendered unenforceable.

No Basis in the Governing Documents: You may also be able to challenge a denial that is not based on any actual rule or standard in your community’s covenants or guidelines. HOAs cannot reject a request for reasons that have no foundation in the recorded rules. For instance, if your HOA said “we just don’t like that type of gazebo” but nothing in the rules bans gazebos (and similar ones exist in the neighborhood), the denial may be arbitrary. North Carolina courts have held that an HOA board or committee cannot deny approval for an “invalid reason” that contradicts the governing documents​. In one case, an HOA told a homeowner that a certain style of pool was not allowed, even though the written guidelines actually provided specifications for that very thing. The court saw that as the HOA inventing a reason and not communicating a legitimate rule, which was improper​. The lesson is that the HOA’s decision must align with the published rules; otherwise, a homeowner likely has a fair argument that the decision is unenforceable.

Selective or Inconsistent Enforcement: Another common issue is when an HOA seems to be enforcing the rules unevenly. If your request was denied but you can point to other homeowners who got approval for similar projects (or who made similar changes without penalty), you might have a claim of selective enforcement. While each case can have unique facts, HOAs expose themselves to litigation alleging selective enforcement claims if they don’t apply the rules equally to everyone. For example, if your HOA allows three neighbors to install a certain style of shed but denies you the same style, it could raise questions of fairness. Challenging on this ground requires evidence – you’ll need to document those other cases to show the disparity. Keep in mind, selective enforcement can be tricky to prove and may end up in legal action. If you go to court alleging the HOA is treating you differently, you must present clear evidence of the inconsistency​. It’s wise to first raise the inconsistency to the HOA directly and give them a chance to correct it.

Denial in Bad Faith or Discriminatory Reasons: Although it’s rare for an HOA to openly admit a bad reason, sometimes a denial might stem from personal conflicts or even unlawful bias. If you suspect the HOA’s decision was driven by a board member’s personal grudge or, worse, by discrimination, this is a serious matter. HOAs are bound by the covenant of good faith and fair dealing, as well as anti-discrimination laws.
A request cannot be denied because of who you are (your identity) as opposed to what you propose. If you believe discrimination is a factor (for example, others were approved but you were not and you’ve faced harassing comments), you might have grounds to challenge under the Fair Housing Act or related state laws.
Such claims can be complex and usually necessitate legal assistance to pursue. Bad faith denials might include the HOA failing to give any valid reason, or changing the rules arbitrarily to block your project alone. Courts can look at whether the HOA’s actions were reasonable. If an HOA’s decision seems arbitrary and without a rational basis related to the community’s welfare, it could be overturned. That said, proving bad faith often goes hand-in-hand with proving lack of authority or inconsistency in application of the restrictive covenants.

Rule Itself Is Invalid or Conflicts with Law: In some cases, you may not just challenge the
decision but the rule behind it. If an HOA denies your request citing a rule that actually violates North Carolina law or public policy, you could challenge on that basis.

For example, if an HOA somehow has a covenant banning all solar panels and denies your solar panel request, that rule likely conflicts with NC law encouraging solar access, so the denial is not legally supportable.
Similarly, if an HOA’s guideline is too vague (e.g. “no improvements without approval” with no criteria at all), a homeowner might argue it’s unenforceable due to lack of clear standards. However, attacking the rule itself is a broader challenge and can be an uphill battle. It might involve getting a court to declare that covenant unreasonable or void. This is typically a last resort, but it’s good to be aware that HOAs cannot enforce a covenant that the law would deem unreasonable or illegal.

In practical terms, the first step in challenging a denial is usually to engage with the HOA directly. Legal guidance from an attorney helps. You would point out the different issues – for example, “The guidelines say nothing about my proposed change” or “Three other homes have this same feature” – and ask the board to reconsider.

Disputes can be resolved at that level when a board realizes a possible mistake or risk. If that fails, a homeowner in North Carolina can consider mediation or legal action. With the help of an attorney, you could seek a declaratory judgment (a court ruling to interpret your rights under the covenants) or an injunction to prevent the HOA from enforcing an unfair denial. In some instances, North Carolina law allows courts to award attorney fees in HOA cases if the governing documents permit it​. The decision to challenge should weigh the strength of your position and the importance of the project to you. If you firmly believe the HOA is wrong and your rights are being infringed, you may have legal avenues to pursue a fair outcome.