HOA Blames Homeowner Lawsuits for $2500 Monthly Fees
Homeowners in a North Carolina neighborhood fear they could lose their houses after their HOA voted to double its monthly fees. Some worry they may face foreclosure or bankruptcy if they cannot pay.
The Magnolia Cove HOA in Sherrills Ford, North Carolina, voted on October 26, 2026, to raise fees from $1,250 to $2,500 a month. The board had first proposed raising them to $7,500 a month.
Although the board chose a smaller increase, homeowners will still have to pay $30,000 a year in HOA fees. That is on top of their mortgages, taxes, and other bills.
Several residents told WSOC-TV that the higher fees could force them to move. But the HOA says lawsuits and years of unpaid fees are the reason for the increase.
Too Much Money
Jill Menson and her husband bought their house thinking they would live there for the rest of their lives. She said their HOA fee was just $158 a month five years ago.
The fee later rose to more than $1,200 a month. Homeowners also had to deal with a separate $10,000 charge.
Now, Menson worries that she and her husband will have to leave. She also fears no one will want to buy their house because of the high HOA fees.
“We are going to be forced out with nowhere to go, because no one is going to get a dime for their houses even if we put them on the market,” Menson told WSOC-TV.
Another homeowner, Diana Brokaw, was shocked by the board’s first plan to charge $7,500 a month.
“Who has $90,000 extra a year to pay for fees that you’re just told are going to happen,” Brokaw said.
Homeowners also told WSOC-TV that developer Aaron Guess owns most of the homes in the neighborhood. They say this gives him control over the HOA board and leaves them with little say in its decisions.
The HOA Responds
The Magnolia Cove HOA posted a statement explaining why the fees are so high.
According to the board, more than 20 homeowners sued the HOA and some of its leaders in early 2024.
The board says the homeowners dropped some of their claims, while a judge threw out the others. The HOA then filed its own claims against some of those homeowners.
According to the HOA, a jury found that certain homeowners had made false statements that harmed others’ reputations. The jury also ordered them to pay damages.
The board says another trial is planned for 2027 to decide how much more money may be owed in that case.
The HOA says the court fights have cost a lot of money. It claims legal bills are now its biggest expense.
The board also says most homes in Magnolia Cove have unpaid HOA fees. When some owners do not pay, the HOA says the others are left covering the bills.
What Happens Now?
The HOA says it does not want fees to stay this high. It argues that the charges could come down once the court costs are paid and homeowners catch up on their overdue fees.
However, some residents say they cannot afford to wait that long. They fear falling behind on payments and losing their houses.
While no one is happy with the significant price increase, not everyone in the neighborhood disagrees with the board. WSOC-TV also spoke with residents who support the HOA and blame the lawsuits for the higher costs. One resident expressed frustration over litigation being started in the first place, causing this whole mess in the first place.
The North Carolina Attorney General’s Office told WSOC-TV that state law does not set a general limit on HOA fee increases. However, HOA boards must still follow their own rules.
For now, the October 26 vote means homeowners will have to pay $2,500 each month instead of the $7,500 first proposed.
The board says the money is needed to pay its bills, while some homeowners worry they will not be able to stay in the houses they bought.
