Does HOA have the right to cut off water to collect past dues?

Does the association supply the water?

I'm not familiar with NC law, so I can only give you my opinion (which is all I can give anyway, I guess).

Unless the association supplies the water, and bills for the water, I fail to see how you have any control over it. Can the elctric company shut off your water because you don't pay your electric bill?

Water, like electricity and telephone service, is normally supplied by a public utility and, as far as I know, in most states, public utilities are regulated (even municipal utilities). Generally, there are laws governing the conditions and procedures that must be followed to shut off service. There are sometimes other factors that must be taken into consideration: whether the family has children, whether someone is elderly, sick, or disabled, etc. I also think that a shutoff notice has to be given and that the owner has to be given a specific date when the service will be shut off. I have also heard that a utility representative sometimes makes a personal final effort to collect before actually turning off the service.

You might want to check your state laws on public utilities. Maybe you will find what you're looking for there instead of under condo laws.

RobertL11: You are wise in your decision to contact the local water company since it is the association (included in members' dues payments?)who does pay for the water to units. The water company, as the supplier, must have official documents (contract or such) dictating how the initial water supply to your association was set up with the builder.

It is always well to have the municipal authorities give you professional advice in the situations which do include them indirectly.

Thank you all for your responses. After about 3 hours of calling and internet play I found the article and spoke to Richard Vinroot,attorney in this case and he will be getting me the law and info sometime next week. Here is the article:
NORTH CAROLINA NEWS

Charlotte condo leaders cut off water to non-paying members
02/10/2006

Associated Press

A condominium association empowered by a new state law squeezed two homeowners who haven't paid more than $2,000 in dues by turning off the water to their units.

In what may be the first such effort in North Carolina, The Princeton at Southampton owners' association cut off the water supply to both condos to force payment of homeowners' dues after dozens of notices and a certified warning letter, association president Michael Kan said.

"We thought this was better than kicking them out of their houses onto the street," Kan said. "It's also quicker and saves us money."

The tactic became legal last month when legislation governing the state's 13,000 homeowner associations went into effect, said attorney Richard Vinroot, who advises the association. The statute allows associations "to suspend privileges or services" for a homeowner who falls more than a month behind in paying dues.

North Carolina attorneys who specialize in homeowner association law said they know of no other places in the state where services have been cut off. One said she would advise against the practice.

"If landlords can't cut off people's water if they don't pay their rent, I don't think associations should either," said Tina Pace, a Raleigh attorney who specializes in homeowner association law. "If someone isn't paying rent, you evict them. If they're not paying dues, you foreclose on them."

But filing for foreclosure can be time-consuming and expensive, Kan said. A foreclosure would cost the association at least $1,000. It cost the group about $300 to cut off water, which will be charged to the delinquent homeowner.

The delinquent Princeton at Southampton homeowners each owe more than a year's worth of the community's $112-a.m.onth dues. Three other delinquent homeowners paid up, Kan said, after learning their water could be cut off.

One of the homeowners whose water was turned off, Greg Gulledge, said he hasn't paid his dues for more than a year because the association hasn't replaced a missing shutter on his condo. The other homeowner could not be reached Thursday.

Kan said the association first heard about the shutter this week and a work order has been placed.

Having no water won't get Gulledge to pay, he said.

"Why should I pay for services I'm not receiving?" he said. "I won't let them take my house, but I'll live without water for a while. If I have to call a water company to bring me 50 bottles a day, I'll do it."

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Information from: The News & Observer, http://www.newsobserver.com

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Thanks again to this forum for their help.

I'll let you know what happens.

Sincerely,
RobertL11

We have 250 homes in our subdivision. We supply water to every home, thru our artisan well system that is nearly 86 years old.

We currently have 6 homes in the sub in foreclosure and are bank-owned. All water is shut off and we have placed leins on the properties, so the title search will show this outstanding account. We must upgrade the leins at least yearly.

Now . . . we have several others that owe Membership/Water dues. We are trying to sort out just what to do. After several letters, ect. and even spray painting the water lead "cap" (that the HOA owns) on each property, some are still outstanding.

BrianB:

To fake(lie)issues with the water system is truley a unique idea, if you are lower than a snakes belly. This isn't an ingenuis solution, but ridicules if you have any business ethics and morals.
Granted the people who owe money should pay and that is why you have a lawyer. If the water is a cost incured by all members of the association and is included as part of their monthly assesment - then in reality they are in default and a lien should be put on thier property. This tactic is legal, in the declaration of the association, and should be enforced or other members of the association will think they can do it too. Besides, if the member wants to get the health board involved there could be ramifications to the people responsible for turning off the water. Give this some consideration - with or without a State Law. Remember, the declaration has presidence over state laws and if the waterless member gets a lawyer, someone could have egg on their face and a law suite to go with it.

*smile* first, you have to prove that the water system problems are indeed fake/lies. Good luck doing that if i am on the other side of the fence. Second, we can debate ethics all day: do you believe that not upholding your fiduciary responsibility and your duty to the HOA is a higher ethical choice than taking action against those who steal from your own members? I personally don't think much about thieves, and don't worry much about how my ethical stand is with them. I worry more about keeping my promises to the owners who depend on me to protect their interests. People who take from others without paying are thieves. People who don't do what they promised to do are liars. I prefer to save my ethics for the people who DO pay their bills, the folks who don't steal from others, the ones who follow the rules. The thieves and liars have already shown their colors, and get little sympathy from me.

If water is part of the assessment, a lien is possible, you are correct. However, if it is paid by each owner as used, then you may have some problems with an automatic lien. Such a utility arrangement isn't a "fine" but some states and courts may consider it a fee, and require a different path before liens are placed. CHeck your local laws as you proceed, but a lien is a great idea.

Lastly, can you explain what you mean by the declaration having presidence (sic) over state law? State laws have precedent over all CC&R's, i believe. I may be wrong, if so, please educate me on it. I always learn things here.

There is one cut off for four units.There is 54 units all total. So my thoughts were a plumber can split the line four ways to individually cut off whichever one is past due. I have to find a plumber and see what he can do. I am truly hoping it is possible, so we can collect. Then do some much needed maintenance around here.
Thank you so much for each & every comment. I have learned so much in just 2 days here and will continue to learn. I will update after the Annual meeting tonight(Thursday).

RobertL11