What Happens When HOA Funds Are Misused?

Responsible stewardship of resources and appropriate money management is central to the well-being of all homeowners associations (HOA). It doesn’t matter if you’re in Wilmington or Bald Head Island for that matter. Throughout North Carolina, HOA boards collect dues, maintain common areas, and oversee shared facilities. 

These responsibilities require prudent budgeting and careful, conservative allocation of resources. When suspicions arise that board members are misusing funds—whether intentionally or through carelessness—tensions can escalate quickly.

This FAQ explores what “misuse of HOA funds” looks like, how the North Carolina Planned Community Act influences board responsibilities, and how clients may address potential breaches to fiduciary duties. While each situation is unique, having a clear understanding of legal standards is an important first step. Have questions for an HOA dispute?  Call the Law Office of Bradley Coxe in Wilmington at 910-834-8400.